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Question Description

Project Management Planning in Crisis (145 points total)

Project 4 will utilize the skills you’ve learned in your textbook Project Management Fundamentals. Taking what you’ve learned about planning, controlling, and managing projects, apply them to the below scenario and then re-apply them in the face of a crisis.

Scenario

You are the Line Producer (Project Manager) of Hollywood’s latest blockbuster, “Entertainment Management, the Musical”. You have 4 weeks until pre-production begins and the studio is deciding if they want to green light your project.

PART ONE

Give the Studio what they need to make a decision:

  • Outline your objective in adequate detail
  • Define the Scope of your projectPART TWOYou’ve been green-lit! The studio is giving you millions of dollars to make your blockbuster musical, now it’s time to plan. Put together your plan by identifying the following key components:
  • Create a Work Breakdown Structure of tasks including the following steps: o Writingo Design
    o Pre production o Shooting period o Post production
  • Attach time to each of the tasks in your Work Breakdown Structure
  • Build out a monthly GANTT chart showing the different steps outlined in your Work BreakdownStructure over the time you’ve allotted for each task
  • Write up a draft email to your Studio Executive outlining summary of your planPART THREEA freak snowstorm has hit Los Angeles and your shooting location is covered in 3 feet of snow. Also, your star actor has slipped and fallen out of his trailer requiring 2 weeks to recover from a bruised ankle...and ego. As the Line Producer, it’s your job to replan your project and communicate the impact to the studio executives.
  • Adjust your GANTT chart to accommodate the additional time needed
  • Write up an email to your Studio Executive summarizing the impact of this crisis and your new planHave fun with this! There is no set format, but I suggest using Word or Docs for your outline, scope, and email drafts. You should be able to incorporate the Work Breakdown Structure and GANTT chart in your Word doc using tables. Converting all items to PDF will allow for ease of submission. The amount of time you allot to each task in your Work Breakdown Structure is irrelevant, the main areas for assessment are thoughtfulness, clarity of your thoughts, and creativity.

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Fundamentals of Project Management Third Edition This page intentionally left blank Fundamentals of Project Management Third Edition JAMES P. LEWIS American Management Association New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C. Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel.: 212-903-8316. Fax: 212-903-8083. Web site: www.amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Lewis, James P., 1941– Fundamentals of project management / James P. Lewis.—3rd ed. p. cm. Includes bibliographical references and index. ISBN-10: 0-8144-0879-6 ISBN-13: 978-0-8144-0879-7 1. Project management. I. Title. HD69.P75L488 2007 658.4'04—dc22 2006019308 “PMI” and the PMI logo are service and trademarks of the Project Management Institute, Inc. which are registered in the United States of America and other nations; “PMP” and the PMP logo are certification marks of the Project Management Institute, Inc. which are registered in the United States of America and other nations; “PMBOK”, “PM Network”, and “PMI Today” are trademarks of the Project Management Institute, Inc. which are registered in the United States of America and other nations; “. . . building professionalism in project management . . .” is a trade and service mark of the Project Management Institute, Inc. which is registered in the United States of America and other nations; and the Project Management Journal logo is a trademark of the Project Management Institute, Inc. Various names used by companies to distinguish their software and other products can be claimed as trademarks. AMACOM uses such names throughout this book for editorial purposes only, with no inflection of trademark violation. All such software or product names are in initial capital letters of ALL CAPITAL letters. Individual companies should be contacted for complete information regarding trademarks and registration. © 2007 AMACOM, a division of American Management Association. All rights reserved. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Printing number 10 9 8 7 6 5 4 3 2 1 This book is dedicated to the memory of Eleanor Greek This page intentionally left blank CONTENTS Figure List ix Preface to the Third Edition xi Chapter 1 An Overview of Project Management 1 Chapter 2 The Role of the Project Manager 24 Chapter 3 Planning the Project 31 Chapter 4 Developing a Mission, Vision, Goals, and Objectives for the Project 44 Using the Work Breakdown Structure to Plan a Project 56 Chapter 6 Scheduling Project Work 69 Chapter 7 Producing a Workable Schedule 81 Chapter 8 Project Control and Evaluation 100 Chapter 9 Project Control Using Earned Value Analysis 113 Chapter 10 Managing the Project Team 128 Chapter 11 How to Make Project Management Work in Your Company 140 Project Management for Everyone 145 Chapter 5 Chapter 12 Answers to Chapter Questions 148 References and Reading List 151 Index 153 About Jim Lewis 163 vii This page intentionally left blank FIGURE LIST 1-1. 1-2. 1-3. 1-4. Triangles showing the relationship between P, C, T, and S. Life cycle of a troubled project. Appropriate project life cycle. The steps in managing a project. 3-1. Two pain curves in a project over time. 3-2. Planning is answering questions. 4-1. Chevron showing mission, vision, and problem statement. 4-2. Risk analysis example. 5-1. 5-2. 5-3. 5-4. WBS diagram to clean a room. WBS level names. Partial WBS for the 777 development program. Responsibility chart. 6-1. 6-2. 6-3. 6-4. 6-5. Bar chart. Arrow diagrams. WBS to do yard project. CPM diagram for yard project. WBS to clean room. 7-1. 7-2. 7-3. 7-4. 7-5. 7-6. Network to illustrate computation methods. Diagram with EF times filled in. Diagram showing critical path. Bar chart schedule for yard project. Schedule with resources overloaded. Schedule using float to level resources. ix Figure List x 7-7. Schedule with inadequate float on C to permit leveling. 7-8. Schedule under resource-critical conditions. 7-9. Network for exercise. 9-1. 9-2. 9-3. 9-4. 9-5. 9-6. 9-7. 9-8. 9-9. BCWS curve. Bar chart schedule illustrating cumulative spending. Cumulative spending for the sample bar chart. Plot showing project behind schedule and overspent. Project ahead of schedule, spending correctly. Project is behind schedule but spending correctly. Project is ahead of schedule and underspent. Percent complete curve. Earned value report. A-1. WBS for camping trip. A-2. Solution to WBS exercise. A-3. Solution to scheduling exercise. Preface to the Third Edition Like many things in life, the more things change, the more they stay the same. Interest in project management remains fairly high, though there has been some decline in recent years. However, the practice of project management remains questionable, as project failures continue to be almost as numerous as they were when the first and second editions of this book were published. It is one thing to talk about project management and an entirely different thing to do it. It seems to me there are a lot of talkers out there but not many do-ers. This year, 2006, marks my 25th anniversary as a project manager instructor and consultant. I have personally trained over 30,000 individuals in project management. Yet my guess is that less than ten percent of them actually practice what they learned. There are many reasons, but the foremost is probably that the organization does not support them in practicing formal project management. In the United States, and perhaps in many other countries, there is a preference for action rather than planning. We just want to get the job done, and planning is often viewed as a waste of time. This is not true, but it is the perception. In fact, one hour spent xi xii Preface to the Third Edition in planning will generally save about three hours in execution time. As I have heard it expressed, you have to go slow to go fast. One example of the validity of this statement is that in 1983 the San Diego Builder’s Association conducted a competition to see how fast they could build a single-family house. This was a house built on a cement slab, approximately 2000 square feet in size, and when finished, had sod grass in the yard, was fully wired, carpeted, and was ready to be occupied. The house was not prefabricated, nor was the cement slab poured when the starting gun was fired. Two houses were built simultaneously by two different work crews. The winning team finished their house in an incredible two hours and forty-five minutes! You may ask how this can be, as the slab takes several days to completely cure. They mixed exothermic chemicals in the cement to make it gel faster—it was cured in 45 minutes. The previous week, two identical houses were built, and the time required was six hours. What they learned from these two houses was incorporated into changes to the plan, so that the next week, they cut the time by more than 50 percent—showing the value of lessons-learned reviews. The point of all this is simple—you don’t build a house in twohours-and-forty-five minutes unless you have a really good plan, so the message is that, if time is really important to you, then you should take time to plan your projects. While this book is intended to give a quick overview of project management—the tools, techniques, and discipline as a whole—it does contain what you need to manage your projects. But as obvious as it may seem, reading the book won’t speed up your work. You have to apply the tools and techniques, and if you do, you can be sure your projects will go a lot better. Good luck. Jim Lewis Vinton, VA May 2006 CHAPTER 1 An Overview of Project Management W hat’s all the fuss about, anyway? Since the first edition of this book was published in 1997, the Project Management Institute (PMI®) has grown from a few thousand to nearly 250,000 in 2006. For those of you who don’t know, PMI is the professional organization for people who manage projects. You can get more information from their web site, www.pmi.org. In addition to providing a variety of member services, a major objective of PMI is to advance project management as a profession. To do so, they have established a certification process whereby qualifying individuals receive the Project Management Professional (PMP®) designation. To do so, such individuals must have work experience (approximately 5000 hours) and pass an online exam which is based on the Project Management Body of Knowledge or PMBOK®. A professional association? Just for project management? Isn’t project management just a variant on general management? Yes and no. There are a lot of similarities, but there are enough differences to treat project management as a discipline separate from general management. For one thing, projects are more schedule- 1 2 Fundamentals of Project Management intensive than most of the activities that general managers handle. And the people in a project team often don’t report directly to the project manager, whereas they do report to most general managers. So just what is project management, PMI defines a projand for that matter, what is a project? PMI defines a project as “. . . a tempoect as “. . . a temrary endeavor undertaken to produce porary endeavor a unique product, service, or result” (PMBOK 2004, p. 5). This means that a undertaken to project is done only one time. If it is repetitive, it’s not a project. A project should produce a unique have definite starting and ending points product, service, (time), a budget (cost), a clearly defined scope—or magnitude—of work to be or result.” done, and specific performance requirements that must be met. I say “should” because seldom does a project conform to the desired definition. These constraints on a project, by the way, will be referred to throughout this book as the PCTS targets. Dr. J. M. Juran, the quality guru, also defines a project as a problem scheduled for solution. I like this definition because it reminds me that every project is conducted to solve some kind of problem A project is a for a company. However, I must caution problem scheduled that the word problem typically has a negative meaning, and projects deal for solution. with both positive and negative kinds of —J. M. Juran problems. For example, developing a new product is a problem, but a positive one, while an environmental cleanup project deals with a negative kind of problem. Project Failures In fact, the Standish Group (www.standishgroup.com) has found that only about 17 percent of all software projects done in the An Overview of Project Management 3 United States meet the original PCTS targets, 50 percent must have the targets changed—meaning they are usually late, overspent, and have performance requirements reduced—and the remaining 33 percent are actually canceled. One year, we spent over 250 billion dollars on software development nationwide, so this means that 80 billion dollars was completely lost on canceled projects. What is truly astonishing is that 83 percent of all software projects get into trouble! The Standish study reported here was conducted in 1994. In the February 2001 issue of Software Development magazine, an ad for a software development conference stated that we spend about 140 billion dollars on canceled and over-budget projects each year. Now, lest you think I am picking on software companies, let me say that these statistics apply to many different kinds of projects. Product development, for example, shares similar dismal rates of failure, waste, and cancellation. Experts on product development estimate that about 30 percent of the cost to develop a new product is rework. That means that one of every three engineers assigned to a project is spending full-time just re-doing what two other engineers did wrong in the first place! I also have a colleague, Bob Dudley, who has been involved in construction projects for 35 years. He tells me that these jobs also tend to have about 30 percent rework, a fact that I found difficult to believe, because I have always thought of construction as being fairly well defined, and thus easier to control than might be true of research projects, for example. Nevertheless, several colleagues of mine confirm Bob’s statistics. The reason for these failures is consistently found to be inadequate project planning. People adopt a ready-fire-aim approach in an effort to get a job done really fast and end up spending far more time than necessary by reworking errors, recovering from diversions down blind “alleys,” and so on. I am frequently asked how to justify formal project management to senior managers in companies, and I always cite these statistics. However, they want to know whether using good project 4 Fundamentals of Project Management management really reduces the failures and the rework, and I can only say you will have to try it and see for yourself. If you can achieve levels of rework of only a few percent using a seat-of-the-pants approach to Project managemanaging projects, then keep doing what ment is application you’re doing! However, I don’t believe you will find this to be true. of knowledge, skills, The question I would ask is whether tools and techgeneral management makes a difference. If we locked up all the managers in a niques to project company for a couple of months, would business continue at the same levels of activities to achieve performance, or would those levels project requiredecline? If they decline, then we could argue that management must have been ments. Project doing something positive, and vice management is versa. I doubt that many general managers would want to say that what they accomplished do doesn’t matter. However, we all through the appliknow that there are effective and ineffective general managers, and this is true cation and integraof project managers as well. What Is Project Management? tion of the project management processes of initiating, planning, executing, monitoring and controlling, and closing. The PMBOK definition of project management is “. . . application of knowledge, skills, tools and techniques to project activities to achieve project requirements. Project management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring and controlling, and closing” (PMBOK 2004, p. 8). Project requirements include the PCTS targets An Overview of Project Management 5 mentioned previously. The various processes of initiating, planning, and so on, will be addressed later in this chapter, and the bulk of this book is devoted to explaining how these processes are accomplished. It would be better if the PMBOK specified that a project manager should facilitate planning. One mistake made by inexperienced project managers is to plan the The first rule of project for the team. Not only do they get no buy-in to their plan, but it is usuproject manageally full of holes. They can’t think of everything, their estimates of task durament is that the tions are wrong, and the entire thing people who must falls apart after the project is started. The first rule of project management is that do the work should the people who must do the work should help plan it. help plan it. The role of the project manager is that of an enabler. Her job is to help the team get the work completed, to “run interference” for them, to get scarce resources that they need, and to buffer them from outside forces that would disrupt the work. She is not a project czar. She should be—above everything—a leader, in the true sense of the word. “Leadership is the The best definition of leadership that art of getting I have found is the one by Vance Packard (1962). He says, “Leadership is the art of others to want to getting others to want to do something that you believe should be done.” The do something that operative word here is “want.” Dictators you believe should get others to do things that they want done. So do guards over prison work be done.” teams. But a leader gets people to want —Vance Packard to do the work, and that is a significant difference. The planning, scheduling, and control of work is the management or administrative part of the job. But without leadership, 6 Fundamentals of Project Management projects tend to just satisfy bare minimum requirements. With leadership, they can exceed those bare minimums. It Is Not Just Scheduling! One of the common misconceptions about project management is that it is just scheduling. At last report, Microsoft had sold a huge number of copies of Microsoft Project®, yet the failures remain high. Scheduling is certainly a major tool used to manage projects, but it is not nearly as important as developing a shared understanding of what the project is supposed to accomplish or constructing a good work breakdown structure (WBS) to identify all the work to be done (I will discuss the WBS later). In fact, without practicing good project management, the only thing a detailed schedule is going to do is allow you to document your failures with great precision! I do want to make one point about scheduling software. It doesn’t matter too much which package you select, as they all have strong and weak points. However, the tendency is to give people the software and expect them to learn how to use it without any training. This simply does not work. The features of scheduling software are such that most people don’t learn the subtleties by themselves. They don’t have the time, because they are trying to do their regular jobs, and not everyone is good at self-paced learning. You wouldn’t hire a green person to run a complex machine in a factory and put him to work without training, because you know he would destroy something or injure himself. So why do it with software? One-Person Projects When is managing a project not project management? When only one person is involved. A lot of people are sent to my seminars to learn how to manage projects, but they are the only person working on their projects. Now it is true that a one-person job can be called a project, An Overview of Project Management 7 because it has a definite starting point, target end date, specific performance requirements, defined scope of work, and a budget. However, when no one else is working on the project (including outside vendors), there is no need for a critical path schedule. A critical path schedule is one that has a number of parallel paths, and one of them will be longer than the others and will determine how long it will take to complete the job, or ultimately, whether the given end date can be met. When you’re working on a job by yourself, there aren’t any parallel paths—unless you are ambidextrous! One-person projects do require good self-management, or good time management, but all you need is a go ...
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