Essential Result Discussions

User Generated

yrpgher2020

Computer Science

Description

Discussion1:

This week contains multiple discussion questions that you are required to answer.

Week 1 Discussion

Respond to a minimum of one, then respond to peers to join in a dialog.

  1. What is the essential result of a project charter?
  2. What may be the risk of skipping the task to compose a project charter?
  3. Who is responsible for content in a project charter?
  4. What are some of the ways to avoid scoop creep?
  5. How are the controls for feature creep any different from scope creep?

_____________________________

Discussion 2:

This week contains multiple discussion questions that you are required to answer.

Wk1 DQs

Each person will post an interesting DQ here for which answers are learning opportunities. Then each person will have a dialog with others to offer good ideas or research findings.

Compose your post so that the first 20 characters is important, to invite others to read your DQ and have a conversation.

Unformatted Attachment Preview

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Successful Project Management Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Successful Project Management SEVENTH EDITION JACK GIDO Penn State University JIM CLEMENTS Clemson University ROSE BAKER University of North Texas Australia • Brazil • Mexico • Singapore • United Kingdom • United States Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Successful Project Management, Seventh Edition Jack Gido, Jim Clements, and Rose Baker Executive Product Director: Mike Schenk Product Manager: Aaron Arnsparger © 2018, 2015 Cengage Learning ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S. copyright law, without the prior written permission of the copyright owner. Content Developer: MPS North AmericaTara Slagle For product information and technology assistance, contact us at Cengage Learning Customer & Sales Support, 1-800-354-9706. Product Assistant: Denisse Zavala-Rosales For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions. Further permissions questions can be e-mailed to permissionrequest@cengage.com. Media Developer: Chris Valentine Marketing Manager: Nate Anderson Art and Cover Direction, Production Management, and Composition: Lumina Datamatics, Inc. Manufacturing Planner: Ron Montgomery Cover Image(s): iStockphoto/Steve Debenport; Creativa Images/Shutterstock; g-stockstudio/Shutterstock; Phovoir/Shutterstock; AlexRaths/iStock/Thinkstock; Minerva Studio/Shutterstock Unless otherwise noted all items © Cengage Learning Library of Congress Control Number: 2016955571 Student Edition: ISBN: 978-1-337-09547-1 Loose-leaf Edition: ISBN: 978-1-337-11608-4 Cengage Learning 20 Channel Center Street Boston, MA 02210 USA Cengage Learning is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at www.cengage.com. Cengage Learning products are represented in Canada by Nelson Education, Ltd. To learn more about Cengage Learning Solutions, visit www.cengage.com. Purchase any of our products at your local college store or at our preferred online store www.cengagebrain.com. Printed in the United States of America Print Number: 01 Print Year: 2017 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 To my wonderful family: my wife, Rosemary; our sons, Steve and Jeff; our “daughters, “ ” Teresa and Wendy; and our grandchildren, Matthew, Alex, Allison, Meghan, and Sophie. J.G. To my wonderful wife, Beth, and our four incredible children—Tyler, Hannah, Maggie, and Grace. I love you all very much. J.P.C. To my immensely supportive family: my late husband, Frank; son, Dan; daughter, Francie; and my friends who have helped me achieve my professional goals. R.B. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Brief Contents CHAPTER 1 PART 1 Project Management Concepts 2 Initiating a Project 34 CHAPTER 2 Identifying and Selecting Projects CHAPTER 3 Developing Project Proposals PART 2 36 64 Planning, Performing, and Controlling the Project 100 102 CHAPTER 4 Defining Scope, Quality, Responsibility, and Activity Sequence CHAPTER 5 Developing the Schedule CHAPTER 6 Resource Utilization CHAPTER 7 Determining Costs, Budget, and Earned Value CHAPTER 8 Managing Risk CHAPTER 9 Closing the Project PART 3 146 214 242 288 304 People: The Key to Project Success 324 CHAPTER 10 The Project Manager CHAPTER 11 The Project Team CHAPTER 12 Project Communication and Documentation CHAPTER 13 Project Management Organizational Structures Appendix A Project Management Information Systems 467 Appendix B Project Management Websites Appendix C Appendix D Project Management Associations around the Globe 481 Acronyms 485 326 360 406 442 479 Reinforce Your Learning Answers 487 Glossary 503 Index 511 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 vii Contents Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii About the Authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxix CHAPTER 1 Project Management Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Project Attributes 5 Balancing Project Constraints 7 Project Life Cycle 10 Initiating 11 Planning 12 Performing 12 Closing 14 Project Management Process Stakeholder Engagement 15 22 Global Project Management 23 Project Management Associations 24 Benefits of Project Management 25 Summary 27 Questions 29 Internet Exercises 29 Case Study 1: A Not-for-Profit Organization 30 Case Study 2: E-Commerce for a Small Supermarket Bibliography 32 31 PART 1 Initiating a Project CHAPTER 2 Identifying and Selecting Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Project Identification Project Selection 39 Project Charter 42 38 Preparing a Request for Proposal 47 Soliciting Proposals 53 Summary 56 Questions 57 Internet Exercises 57 Case Study 1: A Midsize Pharmaceutical Company Case Study 2: Transportation Improvements 59 Bibliography 62 58 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 ix x Contents CHAPTER 3 Developing Project Proposals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 Building Relationships with Customers and Partners Pre-RFP/Proposal Marketing 69 Decision to Develop a Proposal Creating a Winning Proposal Proposal Preparation 67 70 73 74 Proposal Contents 75 Technical Section 75 Management Section 77 Cost Section 78 Pricing Considerations 80 Simplified Project Proposal 81 Proposal Submission and Follow-Up Customer Evaluation of Proposals 83 84 Contracts 87 Fixed-Price Contracts 87 Cost-Reimbursement Contracts 87 Contract Terms and Conditions 88 Measuring Proposal Success 89 Summary 91 Questions 93 Internet Exercises 94 Case Study 1: Medical Information Systems 94 Case Study 2: New Manufacturing Facility in China Bibliography 99 96 PART 2 Planning, Performing, and Controlling the Project CHAPTER 4 Defining Scope, Quality, Responsibility, and Activity Sequence . . . . . . . . . . . . . . . . . 102 Establish Project Objective Define Project Scope Plan for Quality 105 106 110 Create Work Breakdown Structure Assign Responsibility Define Activities 112 116 118 Sequence Activities 119 Network Principles 119 Create Network Diagram 121 Planning for Information Systems Development 125 An Information System Example: Internet Applications Development for ABC Office Designs 129 Project Management Information Systems Summary 132 Questions 134 Internet Exercises 135 130 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Contents Case Study 1: A Not-for-Profit Medical Research Center Case Study 2: The Wedding 137 Bibliography 139 Appendix: Microsoft Project 139 xi 135 CHAPTER 5 Developing the Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 Estimate Activity Resources 149 Estimate Activity Durations 150 Establish Project Start and Completion Times 151 Develop Project Schedule 152 Earliest Start and Finish Times 152 Latest Start and Finish Times 156 Total Slack 158 Critical Path 160 Free Slack 163 Bar Chart Format 165 Project Control Process 166 Effects of Actual Schedule Performance Incorporate Changes into Schedule Update Project Schedule Control Schedule 168 169 170 171 Scheduling for Information Systems Development 176 An Information System Example: Internet Applications Development for ABC Office Designs (Continued) 178 Project Management Information Systems 180 Agile Project Management 183 Summary 189 Questions 192 Internet Exercises 194 Case Study 1: A Not-for-Profit Medical Research Center Case Study 2: The Wedding 195 Bibliography 195 Appendix 1: Probabilistic Activity Durations 196 Appendix 2: Microsoft Project 206 194 CHAPTER 6 Resource Utilization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214 Resource-Constrained Planning Resource Requirements Plan Resource Leveling 216 218 220 Resource-Limited Scheduling 222 Resource Requirements for Information Systems Development 227 An Information System Example: Internet Applications Development for ABC Office Designs (Continued) 227 Project Management Information Systems Summary 231 Questions 232 Internet Exercises 233 228 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xii Contents Case Study 1: A Not-for-Profit Medical Research Center Case Study 2: The Wedding 233 Bibliography 234 Appendix: Microsoft Project 234 233 CHAPTER 7 Determining Costs, Budget, and Earned Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 242 Estimate Activity Costs 245 Determine Project Budget 247 Aggregate Total Budgeted Cost 247 Develop Cumulative Budgeted Cost 249 Determine Actual Cost 251 Actual Cost 251 Committed Costs 251 Compare Actual Cost to Budgeted Cost Determine Value of Work Performed Analyze Cost Performance Cost Performance Index Cost Variance 258 Estimate Cost at Completion Control Costs 252 254 256 257 258 260 Manage Cash Flow 261 Cost Estimating for Information Systems Development 263 An Information System Example: Internet Applications Development for ABC Office Designs (Continued) 264 Project Management Information Systems 265 Summary 267 Questions 269 Internet Exercises 270 Case Study 1: A Not-for-Profit Medical Research Center Case Study 2: The Wedding 271 Bibliography 271 Appendix 1: Time–Cost Trade-Off 272 Appendix 2: Microsoft Project 276 271 CHAPTER 8 Managing Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288 Identify Risks 290 Assess Risks 292 Plan Risk Responses Monitor Risks 293 294 Managing Risks for Information Systems Development 296 An Information System Example: Internet Applications Development for ABC Office Designs (Continued) 297 Summary 298 Questions 299 Internet Exercises 299 Case Study 1: A Not-for-Profit Medical Research Center 299 Case Study 2: The Wedding 300 Case Study 3: Student Fund-Raising Project 300 Bibliography 302 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Contents xiii CHAPTER 9 Closing the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304 Project Closing Actions 306 Final Payments 307 Staff Recognition and Evaluation 307 Postproject Evaluation 308 Lessons Learned 310 Archive Project Documents 311 Customer Feedback 311 Early Project Termination 314 Summary 317 Questions 317 Internet Exercises 318 Case Study 1: Factory Expansion Project 318 Case Study 2: Market Research Report Project 320 Bibliography 322 PART 3 People: The Key to Project Success CHAPTER 10 The Project Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 326 Project Manager Responsibilities 329 Planning 329 Organizing 329 Monitoring and Controlling 329 Project Manager Skills 330 Leadership Ability 330 Ability to Develop People 334 Communication Skills 335 Interpersonal Skills 336 Ability to Handle Stress 338 Problem-Solving Skills 338 Negotiating Skills 339 Time Management Skills 340 Developing Project Manager Competence Delegation 340 342 Managing Changes 345 Summary 352 Questions 352 Internet Exercises 353 Case Study 1: Codeword 354 Case Study 2: ICS, Inc. 355 Bibliography 358 CHAPTER 11 The Project Team . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 360 Acquiring the Project Team 362 Project Team Development Forming 365 Storming 365 364 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xiv Contents Norming 366 Performing 367 Project Kickoff Meeting 368 Effective Project Teams 370 Characteristics of Effective Teams 370 Barriers to Team Effectiveness 371 Effective Team Members 375 Team Building 376 Valuing Team Diversity 377 Ethical Behavior 382 Conflict on Projects 384 Sources of Conflict 384 Handling Conflict 386 Problem Solving 388 A Nine-Step Approach to Problem Solving Brainstorming 390 388 Time Management 391 Summary 395 Questions 398 Internet Exercises 398 Case Study 1: Team Effectiveness? 399 Case Study 2: New Team Member 401 Bibliography 403 CHAPTER 12 Project Communication and Documentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 406 Personal Communication 409 Verbal Communication 409 Written Communication 410 Effective Listening 411 Meetings 412 Types of Project Meetings Effective Meetings 416 412 Presentations 419 Prepare the Presentation 421 Deliver the Presentation 422 Reports 423 Types of Project Reports Useful Reports 425 423 Control Document Changes 426 Project Communication Plan 427 Stakeholder Communication 429 Collaborative Communication Tools 429 Summary 433 Questions 435 Internet Exercises 436 Case Study 1: Office Communications 436 Case Study 2: International Communications Bibliography 441 438 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Contents xv CHAPTER 13 Project Management Organizational Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 Functional Organizational Structure 445 Autonomous Project Organizational Structure Matrix Organizational Structure 447 449 Advantages and Disadvantages of Organizational Structures Functional Organizational Structure 454 Autonomous Project Organizational Structure 454 Matrix Organizational Structure 455 Summary 457 Questions 459 Internet Exercises 459 Case Study 1: Multi Projects 460 Case Study 2: Organize for Product Development 462 Bibliography 466 453 Appendix A Project Management Information Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 467 Appendix B Project Management Websites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 479 Appendix C Project Management Associations around the Globe . . . . . . . . . . . . . . . . . . . . 481 Appendix D Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 485 Reinforce Your Learning Answers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 503 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 511 Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Preface There are those who make things happen, those who let things happen, and those who wonder what happened. We hope that Successful Project Management will help you have an enjoyable, exciting, and successful experience as you grow through future project endeavors, and that it will be the catalyst for enabling you to make things happen! Best wishes for enjoyment, satisfaction, and success in all that you do. Jack Gido Jim Clements Rose Baker Our Approach Project management is more than merely parceling out work assignments to individuals and hoping that they will somehow accomplish a desired result. In fact, projects that could have been successful often fail because of such take-it-for-granted approaches. Individuals need hard information and real skills to work successfully in a project environment and to accomplish project objectives. Successful Project Management is written to equip its users with both—by explaining concepts and techniques and by using numerous examples to show how they can be skillfully applied. Although the focus of the book is squarely on the practical things readers absolutely need to know to thrive in project environments, the book does not forsake objective learning; it simply challenges readers to think critically about project management principles and to apply them within the context of the real world. We capture lessons learned from years of managing projects, teaching project management, and writing extensively about it. Successful Project Management is intended for students as well as for working professionals and volunteers. The book is designed to present the essential skills readers need to make effective contributions and to have an immediate impact on the accomplishment of projects in which they are involved. It prepares students with marketable and transferable skills and sends them into the workforce ready to apply project management knowledge and skills. The book also supports employer talent development and lifelong learning programs to develop and train employees to work effectively in multifunctional teams and apply project management tools and techniques to successfully accomplish project objectives. Successful Project Management is written for everyone involved in projects, not just project managers. Projects with good or even great project managers still may not succeed, as the best efforts of all involved are essential. All the Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xvii xviii Preface people on the project team must have the knowledge and skills to work effectively together in a project environment. People do not become project managers by reading books; they become project managers by first being effective project team members. This book provides the foundation individuals need to be effective members of project teams and thereby boosts everyone’s potential to rise to the challenge of managing teams and projects. The book is written in an easy-to-understand, straightforward style with a minimum of technical terms. Readers acquire project management terminology gradually as they read the text. The mathematics is purposely kept simple. The text does not use complex mathematical theories or algorithms to describe scheduling techniques and does not include highly technical projects as examples. An overtly technical approach can create a barrier to learning for individuals who lack deep understanding of advanced mathematics or technical backgrounds. Separate appendixes are provided for those readers who want more in-depth coverage of probability considerations and time-cost trade-offs. Our book includes a broad range of easily understood examples based on projects encountered in everyday situations. For example, real-world applications include conducting a market survey, building an information system, and organizing a community festival. Enhancements to the Seventh Edition MINDTAP The seventh edition introduces a brand new MindTap product. For each chapter, this all-digital version of the book enhances learning with an engagement video and discussion, a quiz with rich feedback, Microsoft Project 2016 tutorial videos, and animations that highlight some of the cases in the end-of-chapter material. If you’re interested in all these features, talk to your Cengage learning consultant. Based on the excellent and supportive comments we received from our reviewers, we are pleased to incorporate the following enhancements in the seventh edition of Successful Project Management: ® • Revised the chapter concepts and contents to support the Project Management Knowledge Areas of the Project Management Institute’s A Guide to the Project Management Body of Knowledge (PMBOK Guide), Sixth Edition, as shown in the table on the following page. ® • Provided animated videos of selected case studies. Each case study animation includes embedded questions at intervals during the video for students to answer as well as discussion questions at the end of the video. • Replaced all Real World Project Management vignettes (two in each chapter) with more up-to-date vignettes that discuss a variety of applications and industry sectors, both North American and International. • Enhanced and updated the Microsoft Project Appendixes in Chapters 4 through 7 based on Microsoft Project 2016, including all new figures of screen captures. • Updated tutorial videos for using Microsoft Project 2016, available within the MindTap. • Made minor edits in the chapters to support the Project Management Knowledge Areas of A Guide to the Project Management Body of Knowledge ® ® Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Preface xix ® Project Management Knowledge Areas PMBOK Chapter Integration Scope Schedule Cost Quality Resource Communications Risk Procurement Stakeholder 1. Project Management Concepts 3 2. Identifying and Selecting Projects 3 3 3 3. Developing Project Proposals 3 4. Defining Scope, Quality, Responsibility, and Activity Sequence 3 5. Developing the Schedule 3 3 3 6. Resource Utilization 7. Determining Costs, Budget, and Earned Value 3 3 3 3 3 3 3 3 8. Managing Risk 3 9. Closing the Project 3 10. The Project Manager 3 3 3 11. The Project Team 3 3 12. Project Communication and Documentation 3 3 13. Project Management Organizational Structures 3 3 3 3 ® (PMBOK Guide) and to provide consistency of concepts and terminology among the chapters. • Updated Appendix B, Project Management Websites. • Updated Appendix C, Project Management Associations around the Globe. Distinctive Features Successful Project Management has many distinctive features to enhance learning and build skills. ® Supports PMBOK Guide—Concepts in the chapters support the project management knowledge areas of the Project Management Institute’s A Guide to the Project Management Body of Knowledge (PMBOK Guide). ® Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xx Preface Learning Outcomes—The beginning of each chapter identifies specific outcomes the learner should be able to accomplish after studying the material. Real-World Vignettes—Each chapter contains two real-world vignettes that illustrate the topics in the chapter. These vignettes not only reinforce chapter concepts but also draw readers into the discussion and pique their interest in applications of project management. Examples and Applications—Specific relevant real-world examples and applications are incorporated throughout this text to reinforce the concepts presented. Reinforce Your Learning Questions—Brief questions appear alongside the text to ensure that learners retain key concepts and that the fundamentals are not ignored. These in-the-margin questions “pop up” throughout the text to provide positive reinforcement and to help learners to gauge their comprehension of the material. Critical Success Factors—Each chapter contains a concise list of the important factors that project managers and team members need to know to help make their projects successful. Chapter Outlines—Each chapter opens with an outline of the key topics that will be covered. These outlines clarify expectations and allow readers to see the flow of information at a glance. Graphics and Templates—Numerous exhibits and templates appear in the text to illustrate the application of important concepts and project management tools. Chapter Summaries—At the end of each chapter is a concise summary of the material presented in the chapter—a final distillation of core concepts. Review Questions and Problems—Each chapter has a set of questions and problems that test and apply chapter concepts, support the learning outcomes, and reinforce understanding and retention. Internet Exercises—Each chapter has a set of exercises to invite learners to research and review information about real-world applications of various project management topics and summarize their findings. Case Studies—End-of-chapter case studies provide critical-thinking scenarios for either individual or group analysis. Variety in case format ensures that all learners can relate to the scenarios presented. The cases are fun and are intended to spark interesting debates. By fostering discussion of various viewpoints, the cases provide opportunities for participants to expand their thinking about how to operate successfully when differing views arise in the work environment. Thus students gain valuable insight into what teamwork is all about. Case Study Animations—Animated videos are provided of selected case studies. Each case study includes embedded questions at intervals during the animation for students to answer as well as discussion questions at the end of the video. Microsoft Project 2016—Examples of how to use and apply Microsoft Project 2016 are included in appendixes in Chapters 4–7. Detailed instructions and a number of sample screen displays are included. Tutorial Videos—The book’s MindTap includes a series of brief videos that illustrate how to use Microsoft Project 2016. The videos align with the material in the Microsoft Project 2016 appendixes in Chapters 4–7 of the book. ® ® ® ® Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Preface xxi Project Management Information Systems—A comprehensive appendix discusses the use of project management information systems as a tool to plan, track, and manage projects. Common features of project management information systems are discussed, along with selection criteria. Project Management Websites— An appendix of project management websites is provided as a good resource for additional information, applications, tools, and research about project management. The book’s companion website includes links to each of the project management websites listed. Project Management Associations—A list of project management associations around the globe is provided in an appendix for individuals who want to contact these organizations about professional development, access to periodicals and other publications, or career opportunities. The book’s companion website includes links to each of the project management associations listed. Organization and Content Successful Project Management comprises 13 chapters plus appendixes with an opening foundation chapter on project management concepts and the remaining 12 chapters divided into three parts: • Part 1, Initiating a Project, discusses identifying and selecting projects, and developing project proposals. • Part 2, Planning, Performing, and Controlling the Project, covers defining scope, quality, responsibility, and activity sequence; developing the schedule; resource utilization; determining costs, budget, and earned value; managing risk; and closing the project. • Part 3, People: The Key to Project Success, discusses the project manager; the project team; project communication and documentation; and project management organizational structures. Chapter 1, Project Management Concepts, is a foundation chapter that discusses the definition of a project and its attributes; managing a project within the constraints of scope, quality, schedule, budget, resources, risks, and customer satisfaction; the project life cycle of initiating, planning, performing, and closing a project, as well as monitoring and controlling the project and managing changes; the definition of project management and the steps of the project management process; stakeholder engagement; implications of global project management; project management associations; and the benefits of project management. The concepts in this chapter support two PMBOK Guide project management knowledge areas: project integration and stakeholder management. Part 1, Initiating a Project, discusses identifying and selecting projects, and developing project proposals. It includes two chapters: ® • Chapter 2, Identifying and Selecting Projects, covers how projects are identified, selected, authorized, and outsourced. The project charter is also discussed. The concepts in this chapter support two PMBOK Guide project management knowledge areas: project integration and procurement management. ® Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xxii Preface • Chapter 3, Developing Project Proposals, deals with building effective relationships with customers and partners; proposal marketing strategies; decision making to go forward with a proposal; creating winning proposals; proposal preparation and contents, including simplified project proposals; pricing considerations; customer evaluation of proposals; types of contracts; and measuring success of proposal efforts. The concepts in this chapter support the PMBOK Guide project management knowledge area of project procurement management. ® Part 2, Planning, Performing, and Controlling the Project, covers project management techniques and tools. It includes six chapters: • Chapter 4, Defining Scope, Quality, Responsibility, and Activity Sequence, discusses clearly defining the project objective; preparing a project scope document; the importance of planning for quality; creating a work breakdown structure; assigning responsibilities for work elements; and defining specific activities and creating a network diagram. The concepts in this chapter support five PMBOK Guide project management knowledge areas: project integration, scope, quality, resource, and schedule management. ® • Chapter 5, Developing the Schedule, deals with estimating the resources and durations for activities; developing a schedule that indicates the earliest and latest start and finish times for each activity; and determining slack and identifying the critical path of activities. It also explains the project control process, including monitoring and controlling progress; the effects of actual performance; updating the schedule; approaches to controlling the schedule; and agile project management. This chapter also includes an appendix on using probabilistic activity durations. The concepts in this chapter support three PMBOK Guide project management knowledge areas: project integration, resource, and schedule management. ® • Chapter 6, Resource Utilization, addresses taking resource constraints into account when developing a network plan and project schedule; preparing a resource requirements plan; leveling the use of resources within the required time frame for a project; and determining the shortest project schedule when the number of available resources is limited. The concepts in this chapter support two PMBOK Guide project management knowledge areas: project resource and schedule management. ® • Chapter 7, Determining Costs, Budget, and Earned Value, covers estimating the costs of activities; creating a time-phased budget; cumulating actual costs; determining the earned value of work actually performed; analyzing cost performance; estimating project cost at completion; approaches to controlling costs; and managing cash flow. This chapter also includes an appendix on timecost trade-off. The concepts in this chapter support two PMBOK Guide project management knowledge areas: project integration and cost management. ® • Chapter 8, Managing Risk, includes identifying and categorizing risks and their potential impact; assessing the likelihood of occurrence and degree of impact; prioritizing risks; preparing risk response plans; creating a risk assessment matrix; and controlling and monitoring risks. The concepts in this chapter support the PMBOK Guide project management knowledge area of project risk management. ® Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Preface xxiii • Chapters 4–8 include several continuing multichapter integrated examples and case studies that apply the concepts and tools discussed in the chapters. The examples and case studies are introduced in Chapter 4 and continue and build through Chapters 5, 6, 7, and 8. Chapters 4 through 7 also include appendixes on Microsoft Project that illustrate how to use and apply Microsoft Project to one of the multichapter integrated examples. • The last chapter in Part 2 is Chapter 9, Closing the Project. It discusses what actions should be taken when closing a project; conducting a postproject evaluation; the importance of documenting and communicating lessons learned; organizing and archiving project documents; obtaining feedback from customers; and early termination of projects. The concepts in this chapter support two PMBOK Guide project management knowledge areas of project integration and procurement management. ® Part 3, People: The Key to Project Success, focuses on the importance of the people involved in a project. It includes four chapters: • Chapter 10, The Project Manager, discusses the responsibilities of the project manager; the skills needed to manage projects successfully; ways to develop project manager competence; approaches to effective delegation; and how the project manager can manage and control changes to the project. The concepts in this chapter support three PMBOK Guide project management knowledge areas: project integration, resource, and stakeholder management. ® • Chapter 11, The Project Team, covers the development and growth of teams; the project kickoff meeting; effective teams including characteristics of effective project teams, barriers to team effectiveness, effective team members, team building, and valuing team diversity; ethical behavior; sources of conflict during the project and approaches to handling conflict; problem solving, including brainstorming; and effective time management. The concepts in this chapter support the PMBOK Guide project management knowledge area of project resource management. ® • Chapter 12, Project Communication and Documentation, addresses the importance of effective verbal and written communication, including suggestions for enhancing personal communication; effective listening; types of project meetings and suggestions for productive meetings; project presentations and suggestions for effective presentations; project reports and suggestions for preparing useful reports; controlling changes to project documents; creating a project communication plan; and collaborative communication tools. The concepts in this chapter support four PMBOK Guide project management knowledge areas: project communications, integration, resource, and stakeholder management. ® • Chapter 13, Project Management Organizational Structures, explains the characteristics, advantages, and disadvantages of the functional, autonomous project and matrix organizational structures and discusses the role of the project management office. The concepts in this chapter support two PMBOK Guide project management knowledge areas: project integration and resource management. ® Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xxiv Preface Appendix A, Project Management Information Systems, discusses the common features of project management information systems; criteria for selecting a project management information system; and advantages of and concerns about using such systems. Appendix B provides a list of websites that are good resources for additional information, applications, tools, and research about project management. Appendix C is a list of project management associations around the globe. Appendix D is a list of common project management acronyms. The book also includes answers to the Reinforce Your Learning questions for each chapter, and a Glossary of project management terms used in the book. Support Materials This edition of Successful Project Management provides a support package that will encourage student success and increase instructor effectiveness. The comprehensive Instructor Manual includes sample syllabi, learning objectives and outcomes for each chapter, suggested teaching methods for each chapter, lecture outlines, and answers to the end-of-chapter questions and case studies. The Test Bank includes true/false, multiple-choice, and problem-solving exercises for each chapter. Cognero, an online, fully customizable version of the Test Bank, provides instructors with all the tools they need to create, author/edit, and deliver multiple types of tests. Instructors can import questions directly from the Test Bank, create their own questions, or edit existing questions. Instructor Companion Site. In addition to the supplements above, a comprehensive set of instructor support materials, including the Instructor Manual, PowerPoint slides, and a link to the trial version of Microsoft Project 2016, is available for Successful Project Management on the book’s companion website at www.cengage brain.com. These support materials are designed to guide the instructor and minimize class preparation time. Student Companion Site. The Student Companion Site includes student PowerPoint slides, Internet exercises from the text, website links, a link to the trial version of Microsoft Project 2016, flashcards, and a glossary. The companion site can be found at www.cengagebrain.com. On the home page, students can use the search box to insert the ISBN of the title (from the back cover of their book). This will take them to the product page, where free companion resources can be found. ® ® ® ® Acknowledgments We are very grateful to the individuals who helped with the publication of this book. We offer special appreciation to Wes Donahue and Beth McLaughlin of Penn State University for providing support materials and suggestions. Jason Oakman did a meticulous job in preparing the original graphics. We want to thank all the members of the project team at Cengage Learning/South-Western who helped turn our vision into reality and contributed to the successful completion of this project. Special recognition goes to Aaron Arnsparger, Product Manager, Tara Slagle, Senior Content Project Manager at MPS North America, and Sharib Asrar, Associate Program Manager at Lumina Datamatics Inc. We would like to acknowledge the contributions of the Project Management Institute to advancing the project management profession and, in particular, the Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Preface xx v multitude of volunteers and staff for their diligent work on the current and previous editions of A Guide to the Project Management Body of Knowledge (PMBOK Guide). We would like to recognize the important contributions of the following reviewers for providing constructive and supportive comments for enhancing this seventh edition: ® Dennis Agboh Morgan State University Michael P. Allison Embry-Riddle Aeronautical University Charles Almond West Virginia University–Parkersburg Hilary Barnes Lubbock Christian University Graceful Beam Georgia Northwestern Technical College Sonja Bickford University of Nebraska Kearny Don Carpenter Colorado Mesa University Kuan-Chou Chen Purdue University Calumet Vivian Derby Ottawa University (Ottawa, Kansas) Dianna Dodd Brown Mackie College Karina Dundurs West Valley College Ahmed Eshra Monroe College Ephram Eyob Virginia State University Judy Field Ridgewater College James Gibbs Mount St. Joseph University Bob Gregory Bellevue University Donna Hanks Western Dakota Technical Institute Catherine Harris Lone Star College Morris Hsi Lawrence Technical University F. Kirk Keller Wayne Community College Jessica Kitchen Rogue Community College Frances Kubicek Kalamazoo Valley Community College J. Howard Kucher Stevenson University Changyue Luo Governor’s ’’s State University Hiral Shah St. Cloud State University Ben Shaw Cape Fear Community College Clara Spenny Embry-Riddle Aeronautical University Carrie Stevick Baker University William Tawes Stevenson University Ed Weckerly Penn State University We are also grateful to the following reviewers of the first six editions for their valuable comments that continually enriched and advanced the text: Dennis Agboh Morgan State University Dr. Stephen O. Agyei-Mensah Clarion University of North Pennsylvania Basil Al-Hashimi Mesa Community College Michael Anderson Simpson College Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xxv i Preface Kwasi Amoako-Gyampah University of North Carolina at Greensboro Ed Arnheiter Rensselaer Polytechnic InstituteHartford Fred K. Augustine, Jr. Stetson University Mehmet Barut Wichita State University Ervin H. Baumeyer, PE Lone Star College-North Harris Catherine Beise Salisbury University Charles Bilbrey James Madison University Vicki Blanchard Gibbs College of Boston Blaine Boxwell University of Bridgeport Daniel Brandon Christian Brothers University Dr. Dorothy Brandt Brazosport College Daketima Briggs Saint Mary’s ’’s University of Minnesota Tyson Browning Texas Christian University James Browning Brunswick Community College Victoria Buenger Texas A&M University Thomas Bute Humboldt State University Tim Butler Wayne State University John H. Cable University of Maryland David T. Cadden Quinnipiac University Michael Cathey George Washington University Paul Chase Becker College David E. Clapp Florida Institute of Technology Robert Cohn Long Island University-C.W. Post Comfort Cover Adams State College Craig Cowles Bridgewater State College Sam DeWald Penn State University Charlene A. Dykman, Ph.D. University of St. Thomas-Houston Bari Dzomba Penn State University Geoffrey Egekwu James Madison University Ike Ehie Southeast Missouri State University Mike Ensby Clarkson University Lynn Fish Canisius College James Ford Ford Consulting Associates Okiechi Geoffrey Egekwu James Madison University Philip Gisi DePaul University Adrienne Gould-Choquette State College of Florida Richard Gram Worcester Polytechnic Institute Valarie Griep Metropolitan State UniversityMinneapolis Joseph Griffin Northeastern University Ronald Grossman Central Connecticut State University Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Preface x xvii Ken Gyure Ardeshir Lohrasbi University of Arizona University of Illinois-Springfield Darryl S. Habeck Changyue Luo Milwaukee Area Technical College Governor’s ’’s State University Mamoon M. Hammad Larry Maes The George Washington University Davenport University-Warren Michael Hashek Mary Jo Maffei Gateway Technical College MQ Associates William Hayden Nicoleta Maghear State University of New York-Buffalo Hampton University Vish Hedge Reza Maleki California State University-East Bay North Dakota State University Andrew Henderson David M. Marion Barstow Community College Ferris State University Joan E. Hoopes, Ph.D James Marlatt, PMP Marist College University of Colorado O’Brien Hughes Kirsten Mast Lone Star College Albertson College of Idaho Kimberly Hurns William Milz Washtenaw Community College Northeast Wisconsin Technical College Margaret Huron Kathryn J. Moland, Ph.D., PMP Lone Star College-North Harris Livingstone College Bhushan L. Kapoor David Moore California State University, Fullerton Colorado School of Mines Barbara Kelley Janet C. Moore St Joseph’s ’’s University Penn State University Laurie J. Kirsch Herbert Moskowitz University of Pittsburgh Purdue University-West Lafayette Brian M. Kleiner William A. Moylan Virginia Tech Eastern Michigan University Shawn Krest Jim Murrow Genesee Community College Drury University Francis Kubicek Dr. Philip F. Musa Kalamazoo Valley Community College The University of Alabama at Birmingham Ram Kumar University of North Carolina–Charlotte Rakesh Narayan Mid-State Technical College Richard E. Kust California State University, Fullerton Carl Nelson Polytechnic University Chung-Shing Lee Pacific Lutheran University Hameed G. Nezhad, Ph.D. Metropolitan State University Lois M. Lemke Northeast Wisconsin Robert Niewoehner Technical College US Naval Academy Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xxv iii Preface Tony B. Noble Mohave Community College Michael Okrent University of Bridgeport John Olson DePaul University Shrikant S. Panwalkar Purdue University Fariborz Y. Partovi Drexel University Reed E. Pendleton DeVry University-Fremont Joseph A. Phillips DeVry University George Radu Chancellor University Tim Ralston Bellevue Community College William Ramshaw, PMP Whitworth University H. Dan Reid University of New Hampshire Pedro M. Reyes Baylor University Sandra Robertson Thomas Nelson Community College Eltgad Roces Penn State University Carl R. Schultz University of New Mexico Sophia Scott Southeast Missouri State University Steven Segerstrom College of Lake County Wade H. Shaw Florida Institute of Technology Kevin P. Shea Baker University Dr. Yosef S. Sherif California State University, Fullerton William R. Sherrard San Diego State University P.K. Shukla Chapman University Al Skudzinskas Towson University Anne Marie Smith La Salle University Taverekere Srikantaiah Dominican University Jimmy C. Stallings Webster University Christy Strbiak New Mexico State University Fredrick A. Tribble California State University, Long Beach Anthony P. Trippe Rochester Institute of Technology Sudhi Upadhyaya Bemidji State University Henri Van Bemmelen University of Bridgeport Linda Volonino Canisius College Agnieszka K. Waronska Colorado State University-Pueblo Cindy Wessel Washington University We would like to acknowledge all the individuals with whom we worked on projects and all the people who participated in our many project management courses and workshops. They provided a learning environment for testing the practical lessons included in this book. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 About the Authors Jack Gido was most recently Director of Economic & Workforce Development and Director of PennTAP, the Pennsylvania Technical Assistance Program at Penn State University. In this position, he directed the program, obtained funding, and provided leadership for a statewide staff who provided technology assistance and workforce development to Pennsylvania business and industry to improve their global competitiveness. Jack has 20 years of industrial management experience, including the management of productivity improvement and technology development projects. He has an M.B.A. from the University of Pittsburgh and a B.S. in Electrical Engineering from Penn State University. Jack is a member of the Project Management Institute and former President of the Upstate New York Chapter and teaches courses on project management. Jim Clements currently serves as the 15th President of Clemson University. Prior to becoming President at Clemson University, Jim served as President of West Virginia University. Previously he was Provost and Vice President for Academic Affairs, Vice President for Economic and Community Outreach, Chair of the Computer and Information Sciences Department, and the Robert W. Deutsch Distinguished Professor of Information Technology at Towson University. He holds a Ph.D. in Operations Analysis from the University of Maryland, Baltimore County, an M.S. in Computer Science from the Johns Hopkins University, and a B.S. and M.S. in Computer Science from the University of Maryland, Baltimore County. He is the author of more than 75 research publications. During the past 25 years, Dr. Clements has served as a consultant for a number of public and private organizations. He is also a four-time winner of the Faculty Member of the Year Award given by students at Towson University. Rose Baker is Assistant Professor in the Department of Learning Technologies, College of Information, University of North Texas. Prior to joining the faculty at the University of North Texas, Rose was a faculty member and directed research and educational centers at Penn State University. She has led projects with local, state, and federal agencies; academic institutions; corporations and businesses; and nonprofit organizations. Rose has more than 25 years of project management experience and has authored requests for proposals, competitive proposal submissions, research reports, and research publications. She holds a Ph.D. in Instructional Systems and an M.Ed. in Adult Education Theory and Practice from Penn State University and earned a B.A. in Mathematics and Chemistry from Washington and Jefferson College. Rose is a member of the Project Management Institute and a certified Project Management Professional (PMP ). ® Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 xxix Successful Project Management Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 1 Project Management Concepts Project Attributes Balancing Project Constraints Project Life Cycle Initiating Planning Performing Closing Syda Productions/Shutterstock.com Project Management Process Stakeholder Engagement Global Project Management Project Management Associations Benefits of Project Management Concepts in this chapter support the following Project Management Knowledge Areas of A Guide to the Project Management Body of Knowledge (PMBOK® Guide): Summary Project Integration Management Questions Project Stakeholder Management Internet Exercises Case Study 1 A Not-forProfit Organization Case Questions Group Activity Case Study 2 E-Commerce for a Small Supermarket Case Questions Group Activity Optional Activity Bibliography 2 REAL WORLD PROJECT MANAGEMENT Managing Culture for Project Success Consider the word, Culture. It brings to mind many ideas related to culture in the workplace, cultures in different companies, or cultures in countries. Culture is a way of thinking that distinguishes one group of people from other groups of people. An organization’s culture of innovation is the support for new ideas, risk, and failure. Behavior and attitudes are influenced by culture. Actions such as assertiveness, collectivism, or humane orientation can be defined for different cultures and influence Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 how a project manager makes decisions related to managing a project and project team members. What impact do you think cultural practices have on project success? Drew is a project manager for a firm with project teams in four countries, Austria, Canada, Finland, and South Korea. Each of the teams interacts with Drew and the team at the corporate headquarters through online video, phone calls, e-mails, and, at times, on location meetings. As part of the company’s professional development, Drew attended a training session on understanding diversity and culture to learn about corporate innovation culture and its relationship with assertiveness, collectivism, and humane orientation. One of the modules in the program indicated that cross-cultural management can be influenced by managerial practices and other organizational factors. Innovation activities often include championing programs, incentives for initiating new ideas, and monetary and nonmonetary rewards. The training materials described companies with a high innovation culture also had workers who showed high levels of analytical behaviors and a high problem-solving orientation. Drew hoped to inspire the teams and have more support for an innovation culture in order to increase the efficiency for solving problems or preventing problems in the teams’ projects. As a result of the training, a survey was implemented to learn more about the teams in each of the countries related to assertiveness, collectivism, and humane orientation, the three factors most related to changes in corporate innovation culture. Drew had learned about each during the training. Assertiveness had been found to be linked to encouragement for taking initiatives and rewards for performance. Collectivists expressed pride, loyalty, and cohesiveness with others in their group or organization. Those with a humane orientation encouraged or rewarded others for their fairness, generosity, care, and kindness. The findings of the survey indicated that the teams in the four countries were different from each other. The team from Austria had the highest scores in assertiveness and the team from Finland had the lowest. The team from South Korea had the highest score for collectivism and the team from Finland had the lowest. The team from Canada had the highest humane orientation score and the team from Austria had the lowest. Drew made decisions about what to do based upon the scores. More empowerment of individual champions and additional monetary and nonmonetary incentives were given to the Austrian team as a means to stimulate the corporate innovation culture because such practices are viewed favorably by those with more assertiveness in their social relationships. Providing material rewards are not fully compatible with cultures low in assertiveness; therefore, Drew provided nonmonetary rewards to the team from Finland. Drew applied more empowerment to the group for the team from Korea due to their high scores for in-group collectivism to reinforce the Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 3 4 Introduction team’s success rather than individual success. The same empowerment procedures were followed for the team from Canada as the team from Korea because high levels of humane orientation do not value self-enhancement, power, and materials possessions as much as low humane orientation. Additional feedback from the teams helped Drew find that enhancing analysis and practices is more appropriate to organizations with high in-group collectivism, high assertiveness, and low humane orientation. From her work, it was learned that corporate culture should be compatible with national cultural practices to increase the potential for project success. The success factors that Drew experienced are successes that you as a project manager can experience. The skills that Drew applied are ones that you will learn throughout this book. Based on information from Unger, B. B., Rank, J. J., & Gemünden, H. H. (2014). Corporate innovation culture and dimensions of project portfolio success: The moderating role of national culture. Project Management Journal, 45(6), 38–57. This chapter presents an overview of project management concepts. You will become familiar with the • • • • • • • • • LEARNING OUTCOMES After studying this chapter, the learner should be able to: Definition of a project and its attributes Key constraints within which a project must be managed Life cycle of a project Definition of project management Elements of the project management process Identification and engagement of stakeholders Implications of global project management Project Management Institute Benefits of project management • Define what a project is • List and discuss the attributes of a project • Explain what is meant by project objective • Define what is meant by project deliverable • Provide examples of projects • Discuss project constraints • Describe the phases of the project life cycle • Discuss stakeholder engagement • Define and apply project management • Discuss some implications of global project management • Discuss the steps of the planning process • Identify the three elements of the executing process • Create a stakeholder register • Discuss the Project Management Institute • List benefits of project management techniques Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Chapter 1 Project Management Concepts 5 Project Attributes A project is an endeavor to accomplish a specific objective through a unique set of interrelated activities and the effective utilization of resources. The following attributes help define a project: • • • • • • A project has a clear objective that establishes what is to be accomplished. It is the tangible end product that the project team must produce and deliver. The project objective is usually defined in terms of end product or deliverable, schedule, and budget. It requires completing the project work scope and producing all the deliverables within a certain time and budget. For example, the objective of a project might be to introduce a new portable food preparation appliance in 10 months and within a budget of $2 million. The project objective may also include a statement of the expected benefits or outcomes that will be achieved from implementing the project. It is why the project is being done. For example, a project with the objective to develop a new product may have an expected outcome to sell a certain number of units of that new product within a year, or to increase market share by a specific percent. The project objective might be to expand market share by 3 percent by introducing a new portable food preparation appliance within 10 months with a budget of $2 million. In this case, the outcome of increased market share would not be known until some time period has elapsed after the new product development project is completed. Another example is a project with an objective to put on an event to raise funds for a particular cause, such as diabetes research, but the expected benefit of the event is to raise a certain amount of money, such as $20,000. In this case, the completion of the project—holding the fund-raising event—enables the benefit to be achieved. A project is carried out through a set of interdependent activities (also referred to as tasks)—that is, a number of nonrepetitive activities that need to be accomplished in a certain sequence in order to achieve the project objective. A project utilizes various resources to carry out the activities. Such resources can include different people, organizations, equipment, materials, and facilities. For example, a project to perform a complex series of surgical operations may involve doctors with special expertise, nurses, anesthesiologists, surgical instruments, monitoring equipment, prosthetic devices or transplant organs, and special operating facilities. A project has a specific time frame or finite life span. It has a start time and a date by which the objective must be accomplished. For example, the refurbishing of an elementary school might have to be completed between June 20 and August 20. A project may be a unique or one-time endeavor. Some projects, such as designing and building a space station, are unique because they have never been attempted before. Other projects, such as developing a new product, building a house, or planning a wedding, are unique because of the customization they require. For example, a wedding can be a simple, informal occasion, with a few friends in a chapel, or a spectacular event, staged for royalty. A project has a sponsor or customer. The sponsor/customer is the entity that provides the funds necessary to accomplish the project. It can be a person, an organization, or a partnership of two or more people or organizations. When a contractor builds an addition to a house, the homeowner is Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 6 Introduction • Reinforce Your Learning 1. What are some attributes of a project? the customer who is funding or paying for the project. When a company receives funds from a government agency to develop a robotic device for handling radioactive material, the sponsor is the government agency. When a company’s board of directors provides funds for a team of its employees to upgrade the firm’s management information system, the board is the sponsor of the project. In this last case, the term customer may take on a broader definition, including not only the project sponsor (the company’s management) but also other stakeholders, such as the people who will be the end users of the information system. The person managing the project and the project team must successfully accomplish the project objective to satisfy the project sponsor as well as the users of the project’s end product—an upgraded information system. Finally, a project involves a degree of uncertainty. Before a project is started, a plan is prepared based on certain assumptions and estimates. It is important to document these assumptions because they will influence the development of the project work scope, schedule, and budget. A project is based on a unique set of interdependent activities and estimates of how long each activity should take, various resources and assumptions about the availability and capability of those resources, and estimates of the costs associated with the resources. This combination of assumptions and estimates causes uncertainty that the project objective will be completely accomplished. For example, the project scope may be accomplished by the target completion date, but the final cost may be much higher than anticipated because of low initial estimates for the cost of certain resources. As the project proceeds, some of the assumptions will be refined or replaced with factual or updated information. For example, once the conceptual design of a company’s annual report is finalized, the amount of time and costs needed to complete the detailed design and produce the final document can be better estimated. The following are some examples of projects: Staging a theatrical production Developing and introducing a new product Developing a set of apps for mobile business transactions Planning a wedding Modernizing a factory Designing and implementing a computer system Converting a basement to a family room Organizing and hosting a conference Designing and producing a brochure Executing an environmental cleanup of a contaminated site Holding a high school reunion Building a shopping mall Performing a series of surgeries on an accident victim Organizing a community festival Consolidating two manufacturing plants Rebuilding a town after a natural disaster Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Chapter 1 Project Management Concepts Reinforce Your Learning 2. Identify three projects in which you have been involved during your lifetime. 7 Hosting a dinner for 20 relatives Designing a business internship program for high school students Building a tree house Balancing Project Constraints The successful accomplishment of the project objective could be constrained by many factors, including scope, quality, schedule, budget, resources, risks, customer satisfaction, and stakeholder support. The project scope is all the work that must be done in order to produce all the project deliverables (the tangible product or items to be provided), satisfy the customer that the deliverables meet the requirements and acceptance criteria, and accomplish the project objective. For example, the project scope might be all of the work involved in clearing the land, building a house, and landscaping to the specifications agreed upon by the contractor and the buyer. Or a project to install new high-speed specialized automation equipment in a factory might include designing the equipment, building it, installing it, testing it to make sure it meets acceptance criteria, training workers to operate and maintain the equipment, and providing all the technical and operating documentation for the equipment. Quality expectations must be defined from the onset of the project. The project work scope must be accomplished in a quality manner and meet specifications. For example, in a house-building project, the customer expects the workmanship to be of the highest quality and all materials to meet specifications. Completing the work scope but leaving windows that are difficult to open and close, faucets that leak, or a landscape full of rocks will result in an unsatisfied customer and perhaps a payment or legal dispute. Mechanisms such as standards, inspections, audits, and so forth must be put in place to assure quality expectations are being met throughout the project and not just checked or inspected at the end of the project, when it might be costly to correct. All project deliverables should have quantitative acceptance criteria. The schedule for a project is the timetable that specifies when each activity should start and finish. The project objective usually states the time by which the project scope must be completed in terms of a specific date agreed upon by the sponsor and the organization performing the project. The project schedule indicates the dates when specific activities must be started and finished in order to meet the project completion date (for example, when a new bridge is to be open to traffic or when a new product must be launched at an industry exposition). The budget of a project is the amount the sponsor or customer has agreed to pay for acceptable project deliverables. The project budget is based on estimated costs associated with the quantities of various resources that will be used to perform the project. It might include the salaries of people who will work on the project, materials and supplies, equipment, rental of facilities, and the fees of subcontractors or consultants who will perform some of the project tasks. For example, for a wedding project, the budget might include estimated costs for flowers, gown, tuxedo, caterer, cake, limousine rental, videographer, reception facility, and so on. Various resources are needed to perform the project activities, produce the project deliverables, and accomplish the project objective. Resources include people, materials, equipment, facilities, and so forth. Human resources include Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 8 Introduction people with specific expertise or skills. Certain quantities of each type of resource with specific expertise are required at specific periods of time during the project. Similarly, particular equipment may be required during a certain portion of a project, such as equipment needed to excavate the land before construction can start on a new office building. The resource requirements for a project must be aligned with the types and quantities of resources available at the time periods when they are required. There could be risks that adversely affect accomplishing the project objective. For example, designing an information system using the newest technology may pose a risk that the new technology may not work as expected. Or there may be a risk that a new pharmaceutical product may not receive regulatory approval. A risk management plan must be developed that identifies and assesses potential risks and their likelihood of occurrence and potential impact, and delineates responses for dealing with risks if they do occur. Ultimately, the responsibility of the project manager is to make sure the customer is satisfied. This goes beyond just completing the project scope within budget and on schedule or asking if the customer or sponsor is satisfied at the end of the project. It means not only meeting the customer’s expectations but also developing and maintaining an excellent working relationship throughout the project. It requires ongoing communication with the customer or sponsor to keep the customer informed and to determine whether expectations have changed. Regularly scheduled meetings or progress reports, phone discussions, and e-mail are examples of ways to accomplish such communication. Customer satisfaction requires involving the sponsor as a partner in the successful outcome of the project through active participation during the project. The project manager must continually be aware of the degree of the customer’s satisfaction. By maintaining regular communication with the customer or sponsor, the project manager demonstrates genuine concern about the customer’s expectations; it also prevents unpleasant surprises later. The project manager and team need to build relationships with, and engage, the various stakeholders who may influence or may be affected by the project, in order to gain their support. See the section on stakeholder engagement later in this chapter for further discussion. Successfully completing the project requires finishing the scope of work within budget and a certain time frame while managing resource utilization, meeting quality specifications, and managing risks—and this must all be done while assuring customer or sponsor satisfaction and dealing with stakeholders’ issues and concerns and gaining their support. During the project, it is sometimes challenging to balance or juggle these factors, which often constrain one another and could jeopardize accomplishing the project objective. See Figure 1.1. To help ensure the achievement of the project objective, it is important to develop a plan before starting the project work, rather than jumping in and starting without a plan. Lack of a plan decreases the chances of successfully accomplishing the full project scope within budget and on schedule. Once a project is started, unforeseen circumstances may jeopardize the achievement of the project objective with respect to scope, budget, or schedule. They include: • • The cost of some of the materials is more than originally estimated. Inclement weather causes a delay. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Chapter 1 Project Management Concepts FIGURE 1.1 Factors Constraining Project Success Scope Customer Satisfaction Quality Stakeholders Risk Schedule Resources • • • • 9 Budget Additional redesign and modifications to a new sophisticated medical instrument are required to get it to meet performance specifications and government testing requirements. Delivery of a critical component for an aviation control system is delayed several months. Environmental contaminants are discovered when excavating for a new building. A key project team member with unique technical knowledge decides to retire, which creates a gap in critical expertise. Any of the above examples could affect the balance of scope, quality, schedule, budget, resources, risks, customer satisfaction, and stakeholder support (or impact these factors individually), jeopardizing successful accomplishment of the project objective. The challenge for the project manager is to not only continually balance these factors throughout the performance of the project but also prevent, anticipate, or overcome such circumstances if and when they occur. Good planning and communication are essential to prevent problems from occurring or to minimize their impact on the achievement of the project objective when they do occur. The project manager needs to be proactive in planning Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 10 Introduction and communicating and provide leadership to the project team to keep these constraining factors in balance and to accomplish the project objective. Reinforce Your Learning 3. What are eight factors that constrain the achievement of a project objective? Project Life Cycle The generic project life cycle has four phases: initiating, planning, performing, and closing the project. Figure 1.2 shows the four phases and the relative level of effort and time devoted to each phase. The time span of each phase and the associated level of effort will vary depending on the specific project. Project life cycles vary in length from a few weeks to several years, depending on the content, complexity, and magnitude of the project. In the initiating phase, projects are identified and selected. They are then authorized, using a document referred to as a project charter. The planning phase includes defining the project scope, identifying resources, developing a schedule and budget, and identifying risks, all of which make up the baseline plan for doing the project work. In the performing phase, the project plan is executed, and activities are carried out to produce all the project deliverables and to accomplish the project objective. During this phase, the project progress is monitored and controlled to assure the work remains on schedule and within budget, the scope is fully completed according to specifications, and all deliverables meet acceptance criteria. Also, any changes need to be documented, approved, and incorporated into an updated baseline plan if necessary. In the closing phase, project evaluations are conducted, lessons learned are identified FIGURE 1.2 Effort Project Life Cycle Effort Project Charter Archived Accepted Project Deliverables Documents Document Baseline Plan Time Initiating Planning Performing Closing Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Chapter 1 Project Management Concepts Reinforce Your Learning 4. Match the phases of the project life cycle, listed first, with the descriptions that follow: __ First phase __ Second phase __ Third phase __ Fourth phase A. Planning B. Performing C. Initiating D. Closing Reinforce Your Learning 5. A project is authorized using a document called a . 11 and documented to help improve performance on future projects, and project documents are organized and archived. INITIATING This first phase of the project life cycle involves the identification of a need, problem, or opportunity and can result in the sponsor authorizing a project to address the identified need or solve the problem. Projects are initiated when a need is identified by a sponsor—the people or the organization willing to provide funds to have the need satisfied. For example, a company may need to reduce the high scrap rate from its manufacturing process that makes its costs higher and production times longer than those of its competitors, or a community with a growing population may need to build a new school. In some cases, it could take several months to clearly define a need, gather data, and define the project objective. For example, the management of a hospital may want to establish an on-site day care center for the children of its employees as part of its strategy to attract and retain employees. However, it may take some time to gather data regarding the need and analyze various approaches to addressing the need. It is important to define the right need. For example, is the need to provide an on-site day care center, or is it to provide child care for the children of the hospital’s employees? That is, is “on-site” necessarily part of the need? The need for projects is often identified as part of an organization’s strategic planning process. Projects are a means to implement elements of specific strategies or actions, such as build an offshore wind farm, deploy a nutrition assistance program in a developing country, construct a new manufacturing facility in South America, or implement a corporate-wide online training program. Organizations may have many projects they would like to pursue, but they may be limited by the amount of available funds. Although an individual may need an addition to his house, need a new car, and want to go on a two-week vacation, he may not have the money to do all of those things. Therefore, organizations must employ a process to select which projects to pursue. Once projects are selected, they are formally authorized using a document referred to as a project charter. The charter may include the rationale or justification for the project; project objective and expected benefits; general requirements and conditions such as amount of funds authorized, required completion date, major deliverables, and required reviews and approvals; and key assumptions. If the organization decides to use external resources (a contractor) to perform the project, the organization will prepare a document called a request for proposal (RFP) that defines the project requirements and is used to solicit proposals from potential contractors to do the project. Through the RFP, the sponsor or customer asks contractors to submit proposals on how they might address the need and the associated costs and schedule to do so. An individual who needs a new house may spend time identifying requirements for the house—size, style, number of rooms, location, maximum amount she wants to spend, and date by which she would like to move in. She may then write down these requirements and ask several contractors to provide house plans and cost estimates. A company that has identified a need to develop a multifaceted advertising campaign for a new food product might document its requirements in an RFP and send it to several advertising firms. The advertising firms would submit proposals to the company. The company would then evaluate the competing Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 12 Introduction proposals and select an advertising firm (the contractor) to do the advertising campaign (the project) and sign an agreement or contract with that firm. PLANNING Reinforce Your Learning 6. The result of the planning phase is a . Before jumping in and starting the project, the project team or contractor must take sufficient time to properly plan the project. It is necessary to lay out a roadmap, or game plan, that shows how the project scope will be accomplished within budget and on schedule. Trying to perform a project without a plan is like attempting to assemble a backyard grill without first reading the instructions. Individuals who think planning is unnecessary or a waste of time invariably need to find time later on to redo things. It is important to plan the work and then work the plan. Otherwise, chaos and frustration will result, and the risk of project failure will be higher. Once a project is authorized and/or a contract is signed with an external contractor, the next phase of the project life cycle is to do detailed planning for how to accomplish the project. The planning involves determining what needs to be done (scope, deliverables), how it will get done (activities, sequence), who will do it (resources, responsibility), how long it will take (durations, schedule), how much it will cost (budget), and what the risks are. The result of this effort is a baseline plan that is a set of integrated documents that shows how the project scope will be accomplished within budget and on schedule and is used as a benchmark to which actual performance can be compared. Taking the time to develop a well-thought-out plan is critical to the successful accomplishment of any project. Many projects have overrun their budgets, missed their completion dates, or only partially satisfied their technical specifications because there was no viable baseline plan in place before they were started. It is important that the people who will be involved in performing the project also participate in planning the work. They are usually the most knowledgeable about which detailed activities need to be done. Also, by participating in the planning of the work, these individuals become committed to accomplishing it according to the plan. Participation builds commitment. PERFORMING The third phase of the project life cycle is performing the project. Once the baseline plan has been developed, work can proceed. The project team, led by the project manager, will execute the plan and perform the activities to produce all the deliverables and to accomplish the project objective. The pace of project activity will increase as more and various resources become involved in performing the project tasks. During the course of performing the project, different types of resources will be utilized. For example, if the project is to design and construct an office building, the project effort might first involve a few architects and engineers in developing the building plans. Then, as construction gets under way, the resources needed will substantially increase to include steelworkers, carpenters, electricians, painters, and the like. The level of effort will decrease after the building is finished, and a smaller number of different workers will finish up the landscaping and final interior touches. This phase results in the accomplishment of the project objective, leaving the customer satisfied that the full scope of the work and deliverables were completed according to specifications, within budget, and on time. For example, the Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Chapter 1 Project Management Concepts Reinforce Your Learning 7. In the performing phase, the project plan is to produce all the and to accomplish the . 13 performing phase is complete when a project team within a company has completed a project that consolidated two of its facilities into one, or when an external contractor has completed the design and installation of a customized information system that satisfactorily passes performance tests and is accepted by the customer. While the project work is being performed, it is necessary to monitor and control the progress of the project work to ensure that everything is going according to plan and the project objective will be accomplished. This involves measuring actual progress and comparing it to planned progress according to the baseline plan. To measure actual progress, it is important to keep track of which tasks have actually been started and completed, when they were started and completed, the earned value of the work completed, if the project deliverables are meeting the expected quality criteria, and how much money has been spent or committed. If, at any time during the project, comparison of actual progress to planned progress reveals that the project is behind schedule, overrunning the budget, or not meeting the technical specifications, corrective action must be taken to get the project back on track. Before a decision is made to implement corrective action, it may be necessary to evaluate several alternative actions to make sure the corrective action will bring the project back within the scope, schedule, and budget constraints of the project objective. Be aware, for instance, that adding resources to make up time and get back on schedule may result in overrunning the planned budget. If a project gets too far out of control, it may be difficult to accomplish the project objective without sacrificing the scope, budget, schedule, or quality. The key to effective project control is measuring actual progress and comparing it to planned progress on a timely and regular basis throughout the performing phase and taking any needed corrective action immediately. Hoping that a problem will go away without corrective intervention is naive. The earlier a problem is identified and corrected, the better. Based on actual progress, it is possible to forecast a schedule and budget for completion of the project. If these parameters are beyond the limits of the project objective, corrective actions need to be implemented at once. Changes are going to occur during the performing phase. So it is important to manage and control changes to minimize any negative impact on the successful accomplishment of the project objective. A change control system needs to be established for the process and procedures that define how changes will be documented, approved, and communicated. Agreement must be reached between the sponsor or customer and the project manager or contractor, as well as between the project manager and the project team, regarding the way changes will be handled. These procedures should address communication between the project manager and the sponsor or customer and between the project manager and the project team. If changes are consented to verbally rather than approved in writing and there is no indication given of the impact the changes will have on the work scope, budget, or schedule, there are bound to be problems down the road. Project team members should be careful about casually agreeing to changes without knowing whether they will necessitate additional person-hours of work. If the customer does not agree to pay for extra effort, the contractor must absorb the additional costs and also risk overrunning costs for a particular activity or the project. Some changes are trivial, but others may significantly affect the project work scope, budget, or schedule. Deciding to change the color of a room before it is Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 14 Introduction painted is a trivial change. Deciding that you want a two-story house after the contractor has already put up the framing for a single-story house is a major change, and would certainly increase the cost and probably delay the completion date. The impact a change has on accomplishing the project objective may be affected by when the change is identified. Generally, the later in the project that changes are identified, the greater their effect on accomplishing the project objective. The aspects most likely to be affected are the project budget and the completion date. This is particularly true when work that has already been completed needs to be “undone” to accommodate the required change. For example, it would be very expensive to change the plumbing or wiring in a new office building after the walls and ceilings are completed because some of them would need to be torn out and new ones installed. However, if such a change was made much earlier in the project—for instance, while the building was still being designed—the accommodation would be easier and less costly. The drawings could be changed so that the plumbing and wiring would be installed correctly the first time. The project manager, project team, contractor, or sponsor/customer may initiate changes. Some changes could be necessary as a result of the occurrence of a previously defined risk, such as a new product development not meeting certain test criteria, which would mean additional redesign work. When it is determined that corrective actions or changes are necessary, decisions must be made regarding how to update the baseline plan. These decisions often mean a trade-off involving time, cost, scope, and quality. For example, reducing the duration of an activity may require either increasing costs to pay for more resources or reducing the scope of the activity (and possibly not meeting the customer’s technical requirements). Similarly, reducing project costs may require using materials of a lower quality than originally planned. Once a decision is made on which actions to take, they must be incorporated into the schedule and budget. It is necessary to develop a revised schedule and budget to determine whether the planned corrective measures or changes result in an acceptable schedule and budget. If not, further revisions must be made until an acceptable revised baseline plan is agreed upon. The performing phase of the project life cycle ends when the sponsor or customer is satisfied that the project objective has been accomplished and that the requirements have been met, and accepts the project deliverables. CLOSING The final phase of the project life cycle is closing the project. The process of closing the project involves various actions, including collecting and making final payments, evaluating and recognizing staff, conducting a postproject evaluation, documenting lessons learned, and archiving project documents. The project organization should ensure that copies of appropriate project documentation are properly organized, filed, and archived so that they can be readily retrieved for use in the future. For example, using some actual cost and schedule information from a completed project may be helpful when developing the schedule and estimated costs for a proposed project. An important task during this phase is evaluating performance of the project. The project team should identify lessons learned and make recommendations for improving performance on future projects. To encourage the use of this information, a knowledge base system should be established that includes an easily Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Chapter 1 Project Management Concepts 15 accessible repository to retrieve lessons learned and information from previous projects. Feedback should also be obtained from the sponsor or customer to determine whether the anticipated benefits from the project were achieved, assess the level of customer satisfaction, and obtain any feedback that would be helpful in future business relationships with this customer or other customers. Reinforce Your Learning 8. Project management involves first a and then that . Reinforce Your Learning 9. The project must be agreed upon by the and the organization that will the project. Project Management Process Project management is planning, organizing, coordinating, leading, and controlling resources to accomplish the project objective. The project management process involves planning the work and then working the plan. A coaching staff may spend hours preparing a unique plan for a game; the team then executes the plan to try to accomplish the objective—victory. Similarly, the project management process involves two major functions: first establishing a plan and then executing that plan to accomplish the project objective. Once the sponsor has prepared a project charter to authorize going forward with a project, the front end effort in managing a project must be focused on establishing a realistic baseline plan that provides a set of integrated documents that shows how the project scope will be accomplished within budget and on schedule. The project objective establishes what is to be accomplished. The planning process determines what needs to be done (scope, deliverables), how it will get done (activities, sequence), who will do it (resources, responsibility), how long it will take (durations, schedule), and how much it will cost (budget). It includes the following steps: 1. Establish project objective. The objective must be agreed upon by the sponsor or customer and the organization that will perform the project. 2. Define scope. A project scope document must be prepared. It should include customer requirements, a statement of work, as well as a list of deliverables and associated acceptance criteria that can be used to validate that the work and deliverables meet specifications. 3. Create a work breakdown structure. Subdivide the project scope into pieces or work packages. Although projects may seem overwhelming when viewed as a whole, one way to conquer even the most monumental endeavor is to break it down into smaller components. A work breakdown structure (WBS) is a hierarchical decomposition of the project work scope into work packages to be executed by the project team that will produce the project deliverables. Figure 1.3 is an example of a WBS. 4. Assign responsibility. The person or organization responsible for each work item in the WBS must be identified in order to inform the project team of who is responsible and accountable for the performance of each work package and any associated deliverables. For example, Figure 1.3 indicates who is responsible for each work item. 5. Define specific activities. Review each work package in the WBS and develop a list of the detailed activities that need to be performed for each work package and to produce any required deliverables. 6. Sequence activities. Create a network diagram that shows the necessary sequence and dependent relationships of the detailed activities that need to be performed to achieve the project objective. Figure 1.4 is an example of a network diagram. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 16 Introduction FIGURE 1.3 Work Breakdown Structure Level 0 Festival Lynn Level 1 1 2 Promotion Volunteers Games Rides Lynn Beth Steve Pat 3 4 Level 2 1.1 1.2 1.3 3.1 3.2 3.3 4.1 4.2 Newspaper Ads Posters Tickets Booths Games Prizes Amusement Contractor Permits Lynn Keith Andrea Jim Steve Jeff Pat Neil Level 3 7. Estimate activity resources. Determine the types of resources, such as the skills or expertise required to perform each activity, as well as the quantity of each resource that may be needed. Resources include people, materials, equipment, and so on that may be required to perform each activity. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Chapter 1 Project Management Concepts 5 6 7 Entertainment Food Services Jeff Bill Jack 5.1 5.2 6.1 6.2 7.1 7.2 7.3 7.4 Performers Grandstand Food Facilities Parking Clean-up Restroom Facilities Security Jeff Jim Bill Chris Steve Tyler Jack Rose 5.2.1 5.2.2 7.2.2 7.3.1 Stage Audio & Lighting Seating 5.2.3 Containers 7.2.1 Contractor Restrooms First Aid Station Jim Joe Jim Tyler Damian Jack Beth 6.2.1 17 6.2.2 7.3.2 6.2.3 Food Booths Cooking Equipment Eating Areas Chris Bill Jim Resource estimates must consider the availability of each type of resource, whether it is internal or external (such as subcontractors), and the quantity available over the duration of the project. Designate a specific individual to be responsible for each activity. Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 18 Introduction FIGURE 1.4 Network Diagram Prepare Mailing Labels 5 Identify Target Consumers 1 Susan Develop Draft Questionnaire Pilot-Test Questionnaire 2 Susan 3 Susan Review Comments & Finalize Questionnaire 4 Susan Steve Print Questionnaire 6 Steve Develop Data Analysis Software 7 Andy Develop Software Test Data 8 Susan 8. Estimate activity durations. Make a time estimate for how long it will take to complete each activity, based on the estimate of the resources that will be applied. 9. Develop project schedule. Based on the estimated duration for each activity and the dependent relationships of the sequence of activities in the network diagram, develop the overall project schedule, including when each activity is expected to start and finish, as well as the latest times that each activity must start and finish in order to complete the project by the required completion date. Figure 1.5 is an example of a project schedule. 10. Estimate activity costs. Activity costs should be based on the types and quantities of resources estimated for each activity as well as the appropriate labor cost rate or unit cost for each type of resource. 11. Determine budget. A total budget for the project can be developed by aggregating the cost estimates for each activity. Similarly, budgets can be determined for each work package in the WBS by aggregating the cost estimates for the detailed activities for each work package. Other costs, such as project or organizational administrative, indirect, or overhead costs, should also be included in the budget and be appropriately allocated to each activity or work package. Once the total budget is determined for the overall project or Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203 Chapter 1 Project Management Concepts 9 Steve 11 Jim Prepare Report Analyze Results Input Response Data Mail Questionnaire & Get Responses 12 19 Jim 13 Jim Test Software 10 Andy K : ey Activity Description Activity Number Person Responsible for each work package, a time-phased budget needs to be developed to distribute the budget over the duration of the project or work package based on the project schedule for when each activity is expected to start and finish. Figure 1.6 is an example of a time-phased project budget. Once the project schedule and budget are developed, it must be determined whether the project can be completed within the required time, with the allotted funds, and with the available resources. If not, adjustments must be made to the project scope, activity resource or duration estimates, or resource assignments until an achievable, realistic baseline plan for accomplishing the project scope within budget and on schedule can be established. The result of the planning process is a baseline plan. Taking the time to develop a well-thought-out plan is critical to the successful accomplishment of any project. Many projects have overrun their budgets, missed their completion ...
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Discussion 1

Discussion Week 1 and Week 2

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Discussion 2
1. How the controls for feature are creep any different from scope creep?
Although feature creep and scope creep both involve the broadening of a project's initial goals,
their respective methods of expansion set them apart from one another. Scope creep arises when
a project's objectives or deliverables are extended beyond its initial scope without proper control,
which can happen due to changes in requirements, misinterpretations, or insufficient
stakeholders’ engagement (Gido et al., 2017). Conversely, feature creep pertains to the
inclination of continuously i...


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