case study

User Generated

Fjrrg123

Writing

Description

you must see the dacument that i put which will help u to understand what to do. i link one book and pic see it too and do all part of it what i post

Part 1

Book information :

Required Text book(s): Labor Relations and Collective Bargaining Author(s): Carrell, Michael & Heavrin, Christina Edition: 10th Year: 2010

Please read Case Study 4-2 Exclusive Representation on page 157 and answer question 1

Make sure answer all part of the questions also leave 2 comment on it for 2 students.

Part 2

Complete Exercise 4 "JWD Consulting Case Study", Case Study 1:

Follow instructions to complete the assignment at the end of chapter 3 Exercise 4, Answer all 7 questions at the end of chapter 3.

Make sure u write the question first then answer your questions

Make sure to answer all question of the case study and summery of the case study

I will also make leave to book for read more this book is 8 editions but assignment from 9 edition.

Please do them carefully and answer them nice and clear

Unformatted Attachment Preview

Part 1 Book information : Required Text book(s): Labor Relations and Collective Bargaining Author(s): Carrell, Michael & Heavrin, Christina Edition: 10th Year: 2010 Please read Case Study 4-2 Exclusive Representation on page 157 and answer question 1 Make sure answer all part of the questions also leave 2 comment on it for 2 students. Part 2 Complete Exercise 4 "JWD Consulting Case Study", Case Study 1: Follow instructions to complete the assignment at the end of chapter 3 Exercise 4, Answer all 7 questions at the end of chapter 3. Make sure u write the question first then answer your questions Make sure to answer all question of the case study and summery of the case study I will also make leave to book for read more this book is 8 editions but assignment from 9 edition. Please do them carefully and answer them nice and clear I N F O R M AT I O N T E C H N O L O G Y P RO J E C T M A N AG E M E N T Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. I N F O R M AT I O N T E C H N O L O G Y P RO J E C T M A N AG E M E N T Eighth Edition Kathy Schwalbe, Ph.D., PMP Professor Emeritus, Augsburg College $XVWUDOLDä%UD]LOä0H[LFRä6LQJDSRUHä8QLWHG.LQJGRPä8QLWHG6WDWHV Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. te t portant otice e ia content reference a not e availa le in the e oo version ithin the pro ct escription or the pro ct Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Information Technology Project Management, Eighth Edition Kathy Schwalbe Product Director: Mike Schenk Senior Product Manager/Team Lead: Joe Sabatino Content Development Manager: Jennifer King Content Developer: Anne Merrill Product Assistant: Adele Scholtz Intellectual Property Analyst: Christina Ciaramella Senior Intellectual Property Manager: Kathryn Kucharek Marketing Manager: Eric La Scola © 2016 Cengage Learning WCN: 02-200-203 ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced, transmitted, stored, or used in any form or by any means—graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act—without the prior written permission of the publisher. For product information and technology assistance, contact Cengage Learning Customer & Sales Support, 1-800-354-9706. For permission to use material from this text or product, submit all requests online at cengage.com/permissions Further permissions questions can be e-mailed to permissionrequest@cengage.com Manufacturing Planner: Ron Montgomery Library of Congress Control Number: 2015950371 Art and Cover Direction, Production Management, and Composition: Lumina Datamatics, Inc. Student Edition: ISBN-13: 978-1-285-45234-0 Cover Images: ©everything possible/shutterstock.com (man looking at a network structure) ©Stuart Jenner/shutterstock.com (back view of group of people) Cengage Learning 20 Channel Center Street Boston, MA 02210 USA Screenshots for this book were created using Microsoft Project, and were used with permission from Microsoft. Microsoft and the Office logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. Cengage Learning is an independent entity from the Microsoft Corporation, and not affiliated with Microsoft in any manner. Screenshots from MindView Business software are used with permission from MatchWare. iPhone, iPad, iPod, and MacBook are registered trademarks of Apple Inc. Information pertaining to Northwest Airlines was used with their express permission. No part of it may be reproduced or used in any form without prior written permission from Cengage Learning This publication is a derivative work of A Guide to the Project Management Body of Knowledge (PMBOK® Guide)—Fifth Edition, which is copyrighted material of and owned by Project Management Institute, Inc. (PMI), Copyright 2013. This publication has been developed and reproduced with the permission of PMI. Unauthorized reproduction of this material is strictly prohibited. The derivative work is the copyrighted material of and owned by Cengage Learning, Copyright 2016. PMI, PMP, CAPM, PgMP, PMI-RMP, PMI-ACP, PMI-SP, OPM3, and PMBOK are registered marks of the Project Management Institute, Inc. Cengage Learning reserves the right to revise this publication and make changes from time to time in its content without notice. Cengage Learning is a leading provider of customized learning solutions with office locations around the globe, including Singapore, the United Kingdom, Australia, Mexico, Brazil, and Japan. Locate your local office at: www.cengage.com/global Cengage Learning products are represented in Canada by Nelson Education, Ltd. To learn more about Cengage Learning, 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: 2015 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. For Dan, Anne, Bobby, and Scott Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. BRIEF CONTENTS Preface Chapter 1 Introduction to Project Management xix 1 Chapter 2 The Project Management and Information Technology Context 43 Chapter 3 The Project Management Process Groups: A Case Study 79 Chapter 4 Project Integration Management 137 Chapter 5 Project Scope Management 183 Chapter 6 Project Time Management 221 Chapter 7 Project Cost Management 263 Chapter 8 Project Quality Management 299 Chapter 9 Project Human Resource Management 343 Chapter 10 Project Communications Management 389 Chapter11 Project Risk Management 425 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. viii Brief Contents Chapter 12 Project Procurement Management 465 Chapter 13 Project Stakeholder Management 495 Appendix A Guide to Using Microsoft Project 2010 A.1 Glossary G.1 Index I.1 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. TA B L E O F C O N T E N T S Preface Chapter 1 Introduction to Project Management 1.1 Introduction 1.2 What Is a Project? 1.2a Examples of IT Projects 1.2b Project Attributes 1.2c Project Constraints 1.3 What Is Project Management? 1.3a Project Stakeholders 1.3b Project Management Knowledge Areas 1.3c Project Management Tools and Techniques 1.3d Project Success 1.4 Program and Project Portfolio Management 1.4a Programs 1.4b Project Portfolio Management 1.5 The Role of the Project Manager 1.5a Project Manager Job Description 1.5b Suggested Skills for Project Managers 1.5c Importance of People Skills and Leadership Skills 1.5d Careers for IT Project Managers 1.6 The Project Management Profession 1.6a History of Project Management 1.6b The Project Management Institute 1.6c Project Management Certification 1.6d Ethics in Project Management 1.6e Project Management Software Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Key Terms End Notes Chapter 2 The Project Management and Information Technology Context 2.1 A Systems View of Project Management 2.1a What Is a Systems Approach? 2.1b The Three-Sphere Model for Systems Management xix 1 2 4 4 6 7 9 10 11 12 15 17 17 18 22 22 23 25 27 28 28 32 33 34 35 37 37 39 39 40 41 41 43 45 45 46 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. x Table of Contents 2.2 Understanding Organizations 2.2a The Four Frames of Organizations 2.2b Organizational Structures 2.2c Organizational Culture 2.3 Focusing on Stakeholder Needs 2.3a The Importance of Top Management Commitment 2.3b The Need for Organizational Commitment to Information Technology 2.3c The Need for Organizational Standards 2.4 Project Phases and the Project Life Cycle 2.4a Product Life Cycles 2.4b The Importance of Project Phases and Management Reviews 2.5 The Context of Information Technology Projects 2.5a The Nature of IT Projects 2.5b Characteristics of IT Project Team Members 2.5c Diverse Technologies 2.6 Recent Trends Affecting Information Technology Project Management 2.6a Globalization 2.6b Outsourcing 2.6c Virtual Teams 2.6d Agile Project Management 2.6e The Manifesto for Agile Software Development 2.6f Scrum 2.6g Agile, the PMBOK® Guide, and a New Certification Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Key Terms End Notes Chapter 3 The Project Management Process Groups: A Case Study 3.1 Project Management Process Groups 3.2 Mapping the Process Groups to the Knowledge Areas 3.3 Developing an It Project Management Methodology 3.4 Case Study 1: JWD Consulting’s Project Management Intranet Site Project (Predictive Approach) 3.4a Project Pre-Initiation and Initiation 3.4b Pre-Initiation Tasks 3.4c Initiating 3.4d Project Planning 3.4e Project Execution 3.4f Project Monitoring and Controlling 3.4g Project Closing 3.5 Case Study 2: JWD Consulting’s Project Management Intranet Site Project (Agile Approach) 3.5a Scrum Roles, Artifacts, and Ceremonies 47 47 49 51 52 54 55 56 57 59 62 64 64 64 65 65 65 66 67 69 69 70 71 73 74 75 75 76 77 77 79 80 85 86 89 89 90 93 98 107 111 114 117 118 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Table of Contents 3.5b Project Pre-Initiation and Initiation 3.5c Planning 3.5d Executing 3.5e Monitoring and Controlling 3.5f Closing 3.6 Templates by Process Group Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Key Terms End Notes 121 122 124 124 126 126 130 130 132 132 133 134 134 Chapter 4 Project Integration Management 137 4.1 What is Project Integration Management? 4.2 Strategic Planning and Project Selection 4.2a Strategic Planning 4.2b Identifying Potential Projects 4.2c Aligning IT with Business Strategy 4.3 Methods for Selecting Projects 4.3a Focusing on Broad Organizational Needs 4.3b Categorizing IT Projects 4.3c Performing Financial Analyses 4.3d Using a Weighted Scoring Model 4.3e Implementing a Balanced Scorecard 4.4 Developing a Project Charter 4.5 Developing a Project Management Plan 4.5a Project Management Plan Contents 4.5b Using Guidelines to Create Project Management Plans 4.6 Directing and Managing Project Work 4.6a Coordinating Planning and Execution 4.6b Providing Strong Leadership and a Supportive Culture 4.6c Capitalizing on Product, Business, and Application Area Knowledge 4.6d Project Execution Tools and Techniques 4.7 Monitoring and Controlling Project Work 4.8 Performing Integrated Change Control 4.8a Change Control on IT Projects 4.8b Change Control System 4.9 Closing Projects or Phases 4.10 Using Software to Assist in Project Integration Management Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Running Case xi 138 141 141 143 144 146 146 146 147 152 154 155 158 158 161 162 163 163 164 165 166 168 169 169 172 172 175 175 177 177 177 178 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xii Table of Contents Tasks Key Terms End Notes Chapter 5 180 180 181 Project Scope Management 5.1 What Is Project Scope Management? 5.2 Planning Scope Management 5.3 Collecting Requirements 5.4 Defining Scope 5.5 Creating the Work Breakdown Structure 5.5a Approaches to Developing Work Breakdown Structures 5.5b The WBS Dictionary 5.5c Advice for Creating a WBS and WBS Dictionary 5.6 Validating Scope 5.7 Controlling Scope 5.7a Suggestions for Improving User Input 5.7b Suggestions for Reducing Incomplete and Changing Requirements 5.8 Using Software to Assist in Project Scope Management Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Running Case Tasks End Notes Chapter 6 Project Time Management 6.1 The Importance of Project Schedules 6.2 Planning Schedule Management 6.3 Defining Activities 6.4 Sequencing Activities 6.4a Dependencies 6.4b Network Diagrams 6.5 Estimating Activity Resources 6.6 Estimating Activity Durations 6.7 Developing the Schedule 6.7a Gantt Charts 6.7b Adding Milestones to Gantt Charts 6.7c Using Tracking Gantt Charts to Compare Planned and Actual Dates 6.7d Critical Path Method 6.7e Calculating the Critical Path 6.7f Growing Grass Can Be on the Critical Path 6.7g Using Critical Path Analysis to Make Schedule Trade-Offs 6.7h Using the Critical Path to Shorten a Project Schedule 6.7i Importance of Updating Critical Path Data 6.7j Critical Chain Scheduling 183 184 186 188 191 194 199 203 204 205 207 208 209 210 212 212 214 214 214 216 217 218 221 222 225 225 228 228 229 232 233 234 234 236 237 238 239 240 240 242 243 243 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Table of Contents 6.7k Program Evaluation and Review Technique (PERT) 6.7l Agile and Time Management 6.8 Controlling the Schedule 6.8a Reality Checks on Scheduling and the Need for Discipline 6.9 Using Software to Assist in Project Time Management Words of Caution on Using Project Management Software Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Running Case Tasks Key Terms End Notes Chapter 7 Project Cost Management 7.1 The Importance of Project Cost Management 7.1a What Is Cost? 7.1b What Is Project Cost Management? 7.2 Basic Principles of Cost Management 7.3 Planning Cost Management 7.4 Estimating Costs 7.4a Types of Cost Estimates 7.4b Cost Estimation Tools and Techniques 7.4c Typical Problems with IT Cost Estimates 7.4d How to Develop a Cost Estimate 7.5 Determining the Budget 7.6 Controlling Costs 7.6a Earned Value Management 7.6b Project Portfolio Management 7.7 Using Project Management Software to Assist in Project Cost Management Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Running Case Tasks Key Terms End Notes Chapter 8 Project Quality Management 8.1 The Importance of Project Quality Management 8.2 What Is Project Quality Management? 8.3 Planning Quality Management 8.4 Performing Quality Assurance xiii 247 248 248 249 250 251 253 254 256 256 256 259 259 259 260 263 264 265 266 266 270 271 271 273 274 275 281 282 282 288 289 291 291 293 293 294 295 295 297 297 299 300 302 304 306 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xiv Table of Contents 8.5 Controlling Quality 8.6 Tools and Techniques for Quality Control 8.6a Statistical Sampling 8.6b Six Sigma 8.6c Testing 8.7 Modern Quality Management 8.7a Deming and His 14 Points for Management 8.7b Juran and the Importance of Top Management Commitment to Quality 8.7c Crosby and Striving for Zero Defects 8.7d Ishikawa’s Guide to Quality Control 8.7e Taguchi and Robust Design Methods 8.7f Feigenbaum and Workers’ Responsibility for Quality 8.7g Malcolm Baldrige National Quality Award 8.7h ISO Standards 8.8 Improving It Project Quality 8.8a Leadership 8.8b The Cost of Quality 8.8c The Impact of Organizational Influences, and Workplace Factors on Quality 8.8d Expectations and Cultural Differences in Quality 8.8e Maturity Models 8.9 Using Software to Assist in Project Quality Management Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Running Case Tasks Key Terms End Notes Chapter 9 Project Human Resource Management 9.1 The Importance of Human Resource Management 9.1a The Global IT Workforce 9.1b Implications for the Future of IT Human Resource Management 9.2 What is Project Human Resource Management? 9.3 Keys to Managing and Leading People 9.3a Motivation Theories 9.3b Influence and Power 9.3c Covey and Improving Effectiveness 9.3d Emotional Intelligence 9.3e Leadership 9.4 Developing the Human Resource Plan 9.4a Project Organizational Charts 9.4b Responsibility Assignment Matrices 9.4c Staffing Management Plans and Resource Histograms 307 308 314 315 320 322 322 323 323 324 324 325 325 325 326 326 327 329 329 330 333 334 334 336 336 337 338 338 338 339 343 344 344 345 347 348 349 353 355 357 358 359 360 362 363 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Table of Contents 9.5 Acquiring the Project Team 9.5a Resource Assignment 9.5b Resource Loading 9.5c Resource Leveling 9.6 Developing the Project Team 9.6a Training 9.6b Team-Building Activities 9.6c Reward and Recognition Systems 9.7 Managing the Project Team 9.7a Tools and Techniques for Managing Project Teams 9.7b General Advice on Managing Teams 9.8 Using Software to Assist in Human Resource Management Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Running Case Key Terms End Notes Chapter 10 Project Communications Management 10.1 The Importance of Project Communications Management 10.2 Keys to Good Communications 10.2a Focusing on Group and Individual Communication Needs 10.2b Formal and Informal Methods for Communicating 10.2c Distributing Important Information in an Effective and Timely Manner 10.2d Setting the Stage for Communicating Bad News 10.2e Determining the Number of Communication Channels 10.3 Planning Communications Management 10.4 Managing Communications 10.4a Using Technology to Enhance Information Creation and Distribution 10.4b Selecting the Appropriate Communication Methods and Media 10.4c Reporting Performance 10.5 Controlling Communications 10.6 Suggestions for Improving Project Communications 10.6a Developing Better Communication Skills 10.6b Running Effective Meetings 10.6c Using E-Mail, Instant Messaging, Texting, Kanban Boards, and Collaborative Tools Effectively 10.6d Using Templates for Project Communications 10.7 Using Software to Assist in Project Communications Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions xv 364 364 366 367 369 370 371 375 375 376 378 379 381 382 384 384 384 385 386 387 389 390 392 392 394 395 395 396 398 399 400 401 403 404 405 405 406 408 411 414 418 418 420 420 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xvi Table of Contents Exercises Running Case Key Terms End Notes Chapter 11 Project Risk Management 11.1 The Importance of Project Risk Management 11.2 Planning Risk Management 11.3 Common Sources of Risk on IT Projects 11.4 Identifying Risks 11.4a Suggestions for Identifying Risks 11.4b The Risk Register 11.5 Performing Qualitative Risk Analysis 11.5a Using Probability/Impact Matrixes to Calculate Risk Factors 11.5b Top Ten Risk Item Tracking 11.6 Performing Quantitative Risk Analysis 11.6a Decision Trees and Expected Monetary Value 11.6b Simulation 11.6c Sensitivity Analysis 11.7 Planning Risk Responses 11.8 Controlling Risks 11.9 Using Software to Assist in Project Risk Management Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Running Case End Notes Chapter 12 Project Procurement Management 12.1 The Importance of Project Procurement Management 12.2 Planning Procurement Management 12.2a Types of Contracts 12.2b Tools and Techniques for Planning Procurement Management 12.2c Procurement Management Plan 12.2d Statement of Work 12.2e Procurement Documents 12.2f Source Selection Criteria 12.3 Conducting Procurements 12.4 Controlling Procurements 12.5 Closing Procurements 12.6 Using Software to Assist in Project Procurement Management Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions 421 422 422 422 425 426 433 434 438 439 440 442 443 444 447 447 449 451 452 454 455 457 458 460 460 460 461 463 465 466 471 471 476 477 478 478 481 481 483 484 485 488 489 490 490 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Table of Contents Exercises Running Case Key Terms End Notes Chapter 13 Project Stakeholder Management 13.1 The Importance of Project Stakeholder Management 13.2 Identifying Stakeholders 13.3 Planning Stakeholder Management 13.4 Managing Stakeholder Engagement 13.5 Controlling Stakeholder Engagement 13.6 Using Software to Assist in Project Stakeholder Management Chapter Summary Quick Quiz Quick Quiz Answers Discussion Questions Exercises Running Case Key Terms End Notes Appendix A Guide to Using Microsoft Project 2013 Introduction Project Management Software Reviews Basic Features of Project Management Software What’s New in Project 2013 Using Project 2013 Before You Begin Using the 60-Day Trial of Project 2013 Overview of Project 2013 Exploring Project 2013 Using an Existing File Project 2013 Views Project 2013 Reports Project 2013 Filters Creating a New File and Entering Tasks in a Work Breakdown Structure Creating a New Project File Creating a Work Breakdown Structure Hierarchy Creating Summary Tasks Numbering Tasks Saving Project Files Without a Baseline Developing the Schedule Calendars Task Durations Entering Task Durations Establishing Task Dependencies Gantt Charts, Network Diagrams, and Critical Path Analysis xvii 491 492 492 493 495 496 498 502 503 506 508 511 511 513 513 513 514 514 514 A.1 A.2 A.3 A.6 A.7 A.7 A.7 A.8 A.9 A.15 A.17 A.19 A.21 A.23 A.23 A.25 A.26 A.27 A.28 A.29 A.29 A.31 A.34 A.38 A.43 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xviii Table of Contents Project Cost and Resource Management Entering Fixed and Variable Cost Estimates Entering Baseline Plans, Actual Costs, and Actual Times Viewing Earned Value Management Data Integrating Project 2013 with Other Applications and Apps for Office Copying Information Between Applications Creating Hyperlinks to Other Files Using Project 2013 Apps Glossary Index A.46 A.46 A.52 A.56 A.57 A.57 A.59 A.60 G.1 I.1 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. P R E FAC E The future of many organizations depends on their ability to harness the power of information technology, and good project managers continue to be in high demand. Colleges have responded to this need by establishing courses in project management and making them part of the information technology, management, engineering, and other curricula. Corporations are investing in continuing education to help develop and deepen the effectiveness of project managers and project teams. This text provides a much-needed framework for teaching courses in project management, especially those that emphasize managing information technology projects. The first seven editions of this text were extremely well received by people in academia and the workplace. The Eighth Edition builds on the strengths of the previous editions and adds new, important information and features. It’s impossible to read a newspaper, magazine, or web page without hearing about the impact of information technology on our society. Information is traveling faster and being shared by more people than ever before. You can buy just about anything online, surf the web on a mobile phone, or use a wireless Internet connection just about anywhere. Companies have linked their systems together to help them fill orders on time and better serve their customers. Software companies are continually developing new products to help streamline our work and get better results. When technology works well, it is almost invisible. But did it ever occur to you to ask, “Who makes these complex technologies and systems happen?” Because you’re reading this text, you must have an interest in the “behind-thescenes” aspects of technology. If I’ve done my job well, you’ll begin to see the many innovations society is currently enjoying as the result of thousands of successful information technology projects. In this text, you’ll read about IT projects in organizations around the world that went well, including the National University Hospital in Singapore, which used critical chain scheduling to decrease patient admission times by more than 50 percent; retailer Zulily, one of a growing number of organizations developing software in-house to meet their need for speed and innovation; Dell’s green computing project that saves energy and millions of dollars; Google’s driverless car project, striving to reduce traffic accidents and save lives; and many more. Of course, not all projects are successful. Factors such as time, money, and unrealistic expectations, among many others, can sabotage a promising effort if it is not properly managed. In this text, you’ll also learn from the mistakes made on many projects that were not successful. I have written this book in an effort to educate you, tomorrow’s project managers, about what will help make a project succeed—and what can make it fail. You’ll also see how projects are used in everyday media, such as television and film, and how companies use best practices in project management. Many readers tell me how much they enjoy reading these real-world examples in the What Went Right?, What Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xx Preface Went Wrong?, Media Snapshot, and Best Practice features. As practitioners know, there is no “one size fits all” solution to managing projects. By seeing how different organizations in different industries successfully implement project management, you can help your organization do the same. Although project management has been an established field for many years, managing information technology projects requires ideas and information that go beyond standard practices. For example, many information technology projects fail because of a lack of executive support, poor user involvement, and unclear business objectives. This book includes many suggestions for dealing with these issues. New technologies can also aid in managing information technology projects, and examples of using software to assist in project management are included throughout the book. Information Technology Project Management, Eighth Edition, is the only textbook to apply all 10 project management knowledge areas and all five process groups to information technology projects. As you will learn, the project management knowledge areas are project integration, scope, time, cost, quality, human resource, communications, risk, procurement, and stakeholder management. The five process groups are initiating, planning, executing, monitoring and controlling, and closing. This text builds on the PMBOK® Guide, Fifth Edition, an American National Standard, to provide a solid framework and context for managing information technology projects. It also includes an appendix, Guide to Using Microsoft Project 2013, that many readers find invaluable. In addition to the physical text, several resources are available online. Additional case studies, including the one from the Seventh Edition, Manage Your Health, are available, as well as over fifty template files that students can use to create their own project management documents. The author’s personal website (www .kathyschwalbe.com or www.pmtexts.com) also provides additional, up-to-date resources and links related to the field of project management, including topics like Agile, PMP and CAPM certification, simulation software, leadership, mind mapping, sample student projects, and more. Information Technology Project Management, Eighth Edition, provides practical lessons in project management for students and practitioners alike. By weaving together theory and practice, this text presents an understandable, integrated view of the many concepts, skills, tools, and techniques of information technology project management. The comprehensive design of the text provides a strong foundation for students and practitioners in project management. NEW TO THE EIGHTH EDITION Building on the success of the previous editions, Information Technology Project Management, Eighth Edition, introduces a uniquely effective combination of features. The main changes in the Eighth Edition include the following: t A new running case at the end of Chapters 4–13, the ten knowledge area chapters. Instructors often like to assign running cases to reinforce application of key concepts. The “Manage Your Health” running case from the Seventh Edition is provided online along with several additional running cases. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Preface t t t t t xxi Updated and additional exercises to enhance student learning and give instructors more options for in-class or out-of-class work. Additional content on important topics like leadership and agile. New examples that highlight IT project management at work in real, newsworthy companies. These timely, relevant examples help illustrate the realworld applications and impact of key project management concepts. They also serve as mini-case stories, suitable for class discussion. Many recent studies of IT project management and related topics. Summaries of classic, updated, and the most current research throughout the text build a rich context for essential IT project management concepts. User feedback is incorporated. Based on feedback from reviewers, students, instructors, practitioners, and translators, you’ll see a variety of changes that help clarify information. (This book has been translated into Chinese, Japanese, Russian, and Czech.) Many people have been practicing some form of project management with little or no formal study in this area. New books and articles are written each year as we discover more about the field and as project management software continues to advance. Because the project management field and the technology industry change rapidly, you cannot assume that what worked even a few years ago is still the best approach today. This text provides up-to-date information on how good project management and effective use of software can help you manage projects, especially information technology projects. Distinct features of this text include its relationship to the Project Management Body of Knowledge, its value in preparing for certification, its detailed guide for using Microsoft Project 2013, its inclusion of running case studies and online templates, its emphasis on IT projects, its coverage of several software tools that assist with project management, and its companion website. Based on PMBOK® Guide, Fifth Edition and Preparing for Certification The Project Management Institute (PMI) created the Guide to the Project Management Body of Knowledge (the PMBOK® Guide) as a framework and starting point for understanding project management. It includes an introduction to project management, brief descriptions of all 10 project management knowledge areas, and a glossary of terms. The PMBOK® Guide is, however, just that—a guide. This text uses the PMBOK® Guide, Fifth Edition (2013) as a foundation, but goes beyond it by providing more details, discussing the how and why of the knowledge areas, highlighting additional topics, and providing a real-world context for IT project management. This text is an excellent resource for preparing for PMI certifications, such as the Project Management Professional (PMP) and Certified Associate in Project Management (CAPM). Detailed Guide to Microsoft Project 2013 Software has become a critical tool for helping project managers and their teams effectively manage information technology projects. Information Technology Project Management, Eighth Edition, includes a detailed guide in Appendix A for using the leading project management software on the market—Microsoft Project 2013. Examples that use Project 2013 and other software tools are integrated throughout the text. Appendix A, Guide to Using Microsoft Project 2013, teaches you in a systematic way Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xxii Preface to use this powerful software to help in project scope, time, cost, human resource, and communications management. Emphasis on IT Projects and Use of Software Tools Most of the examples of projects in this text are based on IT projects. Research studies and advice are specific to managing IT projects, and include expanded information on agile. Each of the knowledge area chapters includes examples as well as a separate section describing how software can be used to assist in managing that knowledge area. For example, Chapter 5, Project Scope Management, includes examples of using mind maps created with MindView Business software to create a work breakdown structure. Chapter 11, Project Risk Management, shows an example of using Monte Carlo simulation software to help quantify project risk. Exercises, Running Cases, Templates, and Sample Documents Based on feedback from readers, the Eighth Edition continues to provide challenging exercises and running cases to help students apply concepts in each chapter. The text includes more than 50 templates and examples of real project documents that students can use to help them apply their skills to their own projects. Students can access all of these materials for free through the companion CourseMate product, and for an additional fee, students who purchase the CourseMate product will gain access to a complete, interactive e-book, crossword puzzles, and additional study tools. AC C E S S I N G T H E C O U R S E M AT E S I T E To access the CourseMate site, open a web browser and go to www.cengagebrain .com. Search by ISBN, author name, or title, and click Create My Account to begin the registration process. O R G A N I Z AT I O N A N D C O N T E N T Information Technology Project Management, Eighth Edition, is organized into three main sections, which provide a framework for project management, a detailed description of each project management knowledge area, and an appendix of practical information for applying project management. The first three chapters form the first section, which introduces the project management framework and sets the stage for the remaining chapters. Chapters 4 through 13 form the second section, which describes each of the project management knowledge areas—project integration, scope, time, cost, quality, human resource, communications, risk, procurement, and stakeholder management—in the context of information technology projects. An entire chapter is dedicated to each knowledge area. Each of these chapters includes sections that map to their major processes as described in the PMBOK® Guide, Fifth Edition. For example, the chapter on project quality management includes sections on planning quality management, performing quality assurance, and controlling quality. Additional sections highlight other important concepts related to each knowledge area, such as Six Sigma, testing, Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Preface xxiii maturity models, and using software to assist in project quality management. Each chapter also includes detailed examples of key project management tools and techniques as applied to information technology projects. For example, the chapter on project integration management includes samples of various project-selection techniques, such as net present value analyses, ROI calculations, payback analyses, and weighted scoring models. The project scope management chapter includes a sample project charter, a project scope statement, and several work breakdown structures for information technology projects. Appendix A forms the third section of the text, which provides practical information to help you learn how to use the most popular project management software available today. By following the detailed, step-by-step guide in Appendix A, which includes more than 60 screen illustrations, you will learn how to use Project 2013. You can download a free trial from the Microsoft website, use your school or company license, or purchase this powerful software. P E DAG O G I CA L F E AT U R E S Several pedagogical features are included in this text to enhance presentation of the materials so that you can more easily understand the concepts and apply them. Throughout the text, emphasis is placed on applying concepts to current, real-world information technology project management. Opening Case and Case Wrap-Up To set the stage, each chapter begins with an opening case related to the material presented in that chapter. These real-life case scenarios, most of which are based on the author’s experiences, spark student interest and introduce important concepts in a real-world context. As project management concepts and techniques are discussed, they are applied to the opening case and other similar scenarios. Each chapter then closes with a case wrap-up—with some ending successfully and some failing—to further illustrate the real world of project management. What Went Right? and What Went Wrong? Failures, as much as successes, can be valuable learning experiences. Each chapter of the text includes one or more examples of real information technology projects that went right, as well as examples of projects that went wrong. These examples further illustrate the importance of mastering key concepts in each chapter. Media Snapshot The world is full of projects. Television shows, movies, newspapers, websites, and other media highlight project results that are good and bad. Relating project management concepts to the types of projects highlighted in the media helps you understand the importance of this growing field. Why not get excited about studying project management by seeing its concepts at work in popular television shows, movies, or other media? Best Practice Every chapter includes an example of a best practice related to topics in that chapter. For example, Chapter 1 describes best practices written by Robert Butrick, author of The Project Workout, from the Ultimate Business Library’s Best Practice book. He Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xxiv Preface instructs organizations to ensure that their projects are driven by their strategy and to engage project stakeholders. Global Issues Every chapter includes an example of global issues of importance today. For example, Chapter 2 describes some of the problems with outsourcing, such as rioting in Beijing when customers could not buy the latest iPhones. Chapter 12 describes the recent development of urban onshoring, one response to problems with offshoring. Key Terms The fields of information technology and project management include many unique terms that are vital to creating a workable language when the two fields are combined. Key terms are displayed in boldface and are defined the first time they appear. Definitions of key terms are provided in alphabetical order at the end of each chapter and in a glossary at the end of the text. You can also find them by chapter on the companion website. Application Software Learning becomes much more dynamic with hands-on practice using the top project management software tool in the industry, Microsoft Project 2013, as well as other tools, such as spreadsheet software and the Internet. Each chapter offers many opportunities to get hands-on experience and build new software skills. This text is written from the point of view that reading about something only gets you so far—to really understand project management, you have to do it for yourself. In addition to the exercises and running cases at the end of each chapter, several challenging exercises are provided at the end of Appendix A, Guide to Using Microsoft Project 2013. STUDENT AND INSTRUCTOR RESOURCES Student and Instructor Companion Websites The free Student Companion Website accessed through www.cengagebrain.com provides the template files mentioned in the text, Project 2013 files, a case study describing initiating through closing the ResNet project for Northwest Airlines (now part of Delta), and additional running cases that instructors can assign to students to practice their skills. There is also a link to the author’s website, which provides up-to-date resources on important topics like agile, certifications, and more. The Instructor Companion Website, also accessed with a single sign-on (SSO) account through www.cengagebrain.com, contains even more resources only for instructors: t t t Instructor’s Manual The Instructor’s Manual that accompanies this textbook includes additional instructional material to assist in class preparation, such as suggestions for lecture topics and additional discussion questions. Solution Files Solutions to end-of-chapter questions are available on the Instructor Companion Website. PowerPoint Presentations This text comes with Microsoft PowerPoint slides for each chapter. These slides are included as a teaching aid for classroom presentation, to make available to students on the network for chapter review, or to print for classroom distribution. Instructors can add their own slides for additional topics they introduce to the class. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Preface t xxv Test Banks In addition to the Test Bank available online through Cognero (see below), the Test Bank is also available in a number of file formats on the Instructor Companion Website. Each chapter’s bank of questions includes dozens of True/False, Multiple Choice, and Essay questions. Instructors can retrieve the appropriate file formats to administer tests through their schools’ learning management systems (Blackboard, Canvas, Moodle, Desire2Learn, etc.), or they can opt for Word documents. NEW! Test Banks in Cognero The Test Bank for Information Technology Project Management, Eighth Edition, is now available online in the new Cognero system. Cengage Learning Testing Powered by Cognero is a flexible, online system that allows instructors to: t t t t Author, edit, and manage test bank content. Use searchable metadata to ensure tests are complete and compliant. Create multiple test versions in an instant. Deliver tests from your learning management system (LMS), classroom, or wherever you want. Cengage Learning Testing Powered by Cognero works on any operating system or browser with no special installs or downloads needed. With its intuitive tools and familiar desktop drop-down menus, Cognero enables instructors to easily create and edit tests from school or home—anywhere with Internet access. IT Project Management CourseMate Engaging, trackable, and affordable, the IT Project Management CourseMate website offers a dynamic way to bring course concepts to life with interactive learning, study, and exam preparation tools that support the printed edition of the text. Watch student comprehension soar with all-new flashcards and engaging crossword puzzles, test-prep quizzes, and more. A complete e-book provides students and instructors alike with the choice of an entire online learning experience. IT Project Management CourseMate goes beyond the book to deliver what students need. The complete CourseMate companion product is available for an additional fee, but students can also use the CourseMate website to access the text’s supplemental materials, including project documents, templates, and cases, at no additional charge. ACKNOWLEDGMENTS I never would have taken on the project of writing this book, including all the prior editions, without the help of many people. I thank the staff at Cengage Learning, including Joe Sabatino, Jason Guyler, Anne Merrill, Jennifer King, Eric LaScola, Christina Ciaramella, and Kathy Kucharek, for their dedication and hard work in helping me produce this book and in doing such an excellent job of marketing it. I’d also like to thank Marilyn Freedman for her excellent assistance in researching and preparing the manuscript, and many more people who did a great job in planning and executing this book and its supplemental materials. I thank my many colleagues and experts in the field who contributed information to this book. Joseph W. Kestel, PMP, provided outstanding feedback on the agile Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xxvi Preface information in this text based on his personal experience in leading agile projects. David Jones, Rachel Hollstadt, Cliff Sprague, Michael Branch, Barb Most, Jodi Curtis, Rita Mulcahy, Karen Boucher, Bill Munroe, Tess Galati, Joan Knutson, Neal Whitten, Brenda Taylor, Quentin Fleming, Jesse Freese, Nick Matteucci, Nick Erndt, Dragan Milosevic, Bob Borlink, Arvid Lee, Kathy Christenson, Peeter Kivestu, and many other people provided excellent materials included in this book. I enjoy the network of project managers, authors, and consultants in this field who are passionate about improving the theory and practice of project management. I also thank my students and colleagues at Augsburg College and the University of Minnesota for providing feedback on the earlier editions of this book. I received many valuable comments from them on ways to improve the text and structure of my courses. I learn something new about project management and teaching all the time by interacting with students, faculty, and staff. I also thank the faculty reviewers for providing excellent feedback for me in writing this book over the years. I thank the many instructors and readers who have contacted me directly with praise as well as suggestions for improving this text. I appreciate the feedback and do my best to incorporate as much as I can. In particular, I’d like to thank the following: Jody Allen, Mid-America Christian University William Baker, Southern New Hampshire University Tonya Barrier, Missouri State University Kevin Daimi, University of Detroit Mercy Antonio Drommi, University of Detroit Mercy Roger Engle, Franklin University Lisa Foster, Walsh College of Business & Accountancy Esther Frankel, Santa Barbara City College Guy Garrett, Gulf Coast State College James Gibbs, Mount St Joseph University Thomas Haigh, University of Wisconsin, Milwaukee Kay Hammond, Lindenwood University Sam Hijazi, Saint Leo University Henry Jackson, Schreiner University Karen Johnson, Indiana University Northwest Donna Karch, The College of St. Scholastica Carol Kaszynski, Inver Hills Community College Cyril Keiffer, Owens Community College Thomas King, Pennsylvania State University Sang Joon Lee, Mississippi State University Sunita Lodwig, University of South Florida Barbara Miller, Zane State College Kimberly Mitchell, Illinois State University Tim Moriarty, Waubonsee Community College Brandon Olson, The College of St. Scholastica Olga Petkova, Central Connecticut State University April Reed, East Carolina University Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Preface xxvii Jason Riley, Sam Houston State University Carl Scott, University of Houston Ferris Sticksel, Webster University David Syverson, Embry-Riddle Aeronautical University Barbara Warner, Wake Technical Community College Steven White, Anne Arundel Community College Most of all, I am grateful to my family. Without their support, I never could have written this book. My wonderful husband, Dan, has always supported me in my career, and he helps me keep up-to-date with software development because he is a lead architect for Milner Technologies, Inc. (formerly ComSquared Systems, Inc.). Our three children, Anne, Bobby, and Scott, think it’s cool that their mom writes books and speaks at conferences. They also see me managing projects all the time. Anne, now 31, a research analyst for The New Teacher Project, teases me for being the only quilter she knows who treats each quilt as a project. (Maybe that’s why I get so many done!) After her colleagues at The Minnesota Evaluation Studies Institute at the University of Minnesota heard about my work and books, they hired me to teach a workshop on project management to evaluators, which was sold out. Our two sons are working as software developers in Texas and Oregon and may become IT project managers soon. Our children understand the main reason I write—I have a passion for educating future leaders of the world, including them. As always, I am eager to receive your feedback on this book. Please send comments to me at schwalbe@augsburg.edu. Kathy Schwalbe, Ph.D., PMP Professor Emeritus, Department of Business Administration Augsburg College ABOUT THE AUTHOR Kathy Schwalbe, Professor Emeritus in the Department of Business Administration at Augsburg College in Minneapolis, taught courses in project management, problem solving for business, systems analysis and design, information systems projects, and electronic commerce until her retirement in May 2015. She retired from teaching to focus on writing, traveling, and enjoying life. Kathy was also an adjunct faculty member at the University of Minnesota, where she taught a graduate-level course in project management in the engineering department. She also provides training and consulting services to several organizations and speaks at numerous conferences. Kathy’s first job out of college was as a project manager in the Air Force. She worked for 10 years in industry before entering academia in 1991. She was an Air Force officer, project manager, systems analyst, senior engineer, and information technology consultant. Kathy is an active member of PMI, having served as the Student Chapter Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. xxviii Preface Liaison for the Minnesota chapter, VP of Education for the Minnesota chapter, Editor of the ISSIG Review, Director of Communications for PMI’s Information Systems Specific Interest Group, member of PMI’s test-writing team, and writer for the community posts. Kathy earned her Ph.D. in Higher Education at the University of Minnesota, her MBA at Northeastern University’s High Technology MBA program, and her B.S. in mathematics at the University of Notre Dame. She was named Educator of the Year in 2011 by the Association of Information Technology Professionals (AITP) Education Special Interest Group (EDSIG). Kathy lives in Minnesota with her husband. Visit her personal website at www.kathyschwalbe.com or www.pmtexts.com. Other books by Kathy Schwalbe: An Introduction to Project Management, Fifth Edition (Minneapolis: Schwalbe Publishing, 2015). Healthcare Project Management, co-authored with Dan Furlong (Minneapolis: Schwalbe Publishing, 2013). Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. CHAPTER 1 INTRODUCTION TO PROJECT MANAGEMENT LEARNING OBJECTIVES After reading this chapter, you will be able to: r 6OEFSTUBOEUIFHSPXJOHOFFEGPSCFUUFSQSPKFDUNBOBHFNFOU FTQFDJBMMZ GPSJOGPSNBUJPOUFDIOPMPHZ *5 QSPKFDUT r &YQMBJOXIBUBQSPKFDUJT QSPWJEFFYBNQMFTPG*5QSPKFDUT MJTUWBSJPVTBUUSJCVUFTPGQSPKFDUT BOEEFTDSJCFUIFUSJQMFDPOTUSBJOUPGQSPKFDUNBOBHFNFOU r %FTDSJCFQSPKFDUNBOBHFNFOUBOEEJTDVTTLFZFMFNFOUTPGUIFQSPKFDU NBOBHFNFOUGSBNFXPSL JODMVEJOHQSPKFDUTUBLFIPMEFST UIFQSPKFDUNBOBHFNFOULOPXMFEHFBSFBT DPNNPOUPPMTBOEUFDIOJRVFT BOEQSPKFDU TVDDFTT r %JTDVTTUIFSFMBUJPOTIJQCFUXFFOQSPKFDU QSPHSBN BOEQPSUGPMJPNBOBHFNFOUBOEUIFDPOUSJCVUJPOTFBDINBLFTUPFOUFSQSJTFTVDDFTT r 6OEFSTUBOEUIFSPMFPGQSPKFDUNBOBHFSTCZEFTDSJCJOHXIBUUIFZEP XIBU TLJMMTUIFZOFFE BOEDBSFFSPQQPSUVOJUJFTGPS*5QSPKFDUNBOBHFST r %FTDSJCFUIFQSPKFDUNBOBHFNFOUQSPGFTTJPO JODMVEJOHJUTIJTUPSZ UIF SPMFPGQSPGFTTJPOBMPSHBOJ[BUJPOTMJLFUIF1SPKFDU.BOBHFNFOU*OTUJUVUF 1.* UIFJNQPSUBODFPGDFSUJGJDBUJPOBOEFUIJDT BOEUIFBEWBODFNFOUPG QSPKFDUNBOBHFNFOUTPGUXBSF Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. $IBQUFS 2 OPENING CASE Anne Roberts, the director of the Project Management Office for a large retail chain, stood in front of 500 people in the large corporate auditorium to explain the company’s new strategies during a monthly all-hands meeting. She was also streaming live video to thousands of other employees at other locations, suppliers, and stockholders throughout the world. The company had come a long way in implementing new information systems to improve inventory control, sell products online, streamline the sales and distribution processes, and improve customer service. However, a recent security breach had alarmed investors and the stock price plummeted. People were anxious to hear about the company’s new strategies. Anne began to address the audience, “Good morning. As many of you know, we have completed many projects successfully, including the advanced data networks project. That project enabled us to provide persistent broadband between headquarters and our retail stores throughout the world, allowing us to make timely decisions and continue our growth strategy. Our customers love that they can return items to any store, and any sales clerk can look up past sales information. Local store managers can make timely decisions using up-to-date information. Of course, we’ve had some failures, and we need to continually assess our portfolio of projects to meet business needs. Two big IT initiatives this coming year include providing the best computer security possible and providing enhanced online collaboration tools for our employees, suppliers, and customers. Our challenge is to work even smarter to decide what projects will most benefit the company, how we can continue to leverage the power of information technology to support our business, and how we can exploit our human capital to successfully plan and execute those projects. If we succeed, we’ll continue to be a world-class corporation.” “And if we fail?” someone asked from the audience. “Let’s just say that failure is not an option,” Anne replied. 1.1 INTRODUCTION Many people and organizations today have a new—or renewed—interest in project management. Until the 1980s, project management primarily focused on providing schedule and resource data to top management in the military, computer, and construction industries. Today’s project management involves much more, and people in every industry and every country manage projects. Project management is a distinct profession with degree programs, certifications, and excellent career opportunities. New technologies have become a significant factor in many businesses. Computer hardware, software, networks, and the use of interdisciplinary and global work teams have radically changed the work environment. The following statistics demonstrate the significance of project management in today’s society, especially for projects involving information technology (IT): t t Worldwide IT spending was $3.8 trillion in 2014, a 3.2 percent increase from 2013 spending. Telecom services accounted for 45 percent of the spending.1 The Project Management Institute estimates demand for 15.7 million project management jobs from 2010 to 2020, with 6.2 million of those jobs in the United States.2 Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. *OUSPEVDUJPOUP1SPKFDU.BOBHFNFOU t t t t The unemployment rate for IT professionals is generally half the rate of the overall labor market in the United States. Between 2011 and 2014, and during the recession, the average unemployment rate for workers not in science, technology, engineering, and mathematics (STEM) was 7.4 percent, as opposed to just above 3 percent for STEM workers.3 In 2013 (the most recent year of PMI’s salary survey), the average salary in U.S. dollars for someone in the project management profession was $108,000 per year in the United States; $134,658 in Australia, (the highest-paid country); and $24,201 in Egypt (the lowest-paid country). Of the 11,150 people from the United States who responded to PMI’s salary survey, 80 percent had the Project Management Professional (PMP) credential, and their salary was over 20 percent higher than professionals without it.4 The top skills employers look for in new college graduates are all related to project management: team-work, decision-making, problem-solving, and verbal communications. The three degrees most in demand are business, engineering, and computer and information sciences.5 Organizations waste $109 million for every $1 billion spent on projects, according to PMI’s Pulse of the Profession® report. Excelling at project management definitely affects the bottom line.6 3 The complexity and importance of IT projects, which involve using hardware, software, and networks to create a product, service, or result, have evolved dramatically. Today’s companies, governments, and nonprofit organizations are recognizing that to be successful, they need to use modern project management techniques, especially for IT projects. Individuals are realizing that to remain competitive in the workplace, they must develop skills to become good project team members and project managers. They also realize that many of the concepts of project management will help them in their everyday lives as they work with people and technology on a day-to-day basis. W H AT W E N T W R O N G ? In 1995, the Standish Group published an often-quoted study titled “The CHAOS Report.” This consulting firm surveyed 365 IT executive managers in the United States who managed more than 8,380 IT application projects. As the title of the study suggests, the projects were in a state of chaos. U.S. companies spent more than $250 billion each year in the early 1990s on approximately 175,000 IT application development projects. Examples of these projects included creating a new database for a state department of motor vehicles, developing a new system for car rental and hotel reservations, and implementing a client-server architecture for the banking industry. The study reported that the overall success rate of IT projects was only 16.2 percent. The surveyors defined success as meeting project goals on time and on budget. The study also found that more than 31 percent of IT projects were canceled before completion, costing U.S. companies and government agencies more than $81 billion. The study authors were adamant about the need for better project management in the IT industry. They explained, “Software development projects are in chaos, and we can no longer imitate the three continued Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. $IBQUFS 4 monkeys—hear no failures, see no failures, speak no failures.”7 Although this study was done 20 years ago, it was significant in making senior executives pay attention to the importance of IT project management. In another large study, PricewaterhouseCoopers surveyed 200 companies from 30 different countries about their project management maturity and found that over half of all projects fail. The study also found that only 2.5 percent of corporations consistently meet their targets for scope, time, and cost goals for all types of projects.8 Although several researchers question the methodology of such studies, the results have prompted managers throughout the world to examine ways to improve their practices in managing projects. Many organizations assert that using project management techniques provides advantages, such as: t t t t t t t t t Better control of financial, physical, and human resources Improved customer relations Shorter development times Lower costs and improved productivity Higher quality and increased reliability Higher profit margins Better internal coordination Positive impact on meeting strategic goals Higher worker morale This chapter introduces projects and project management, explains how projects fit into programs and portfolio management, discusses the role of the project manager, and provides important background information on this growing profession. Although project management applies to many different industries and types of projects, this text focuses on applying project management to IT projects. 1.2 WHAT IS A PROJECT? To discuss project management, it is important to understand the concept of a project. A project is “a temporary endeavor undertaken to create a unique product, service, or result.”9 Operations, on the other hand, is work done in organizations to sustain the business. Projects are different from operations in that they end when their objectives have been reached or the project has been terminated. 1.2a Examples of IT Projects Projects can be large or small and involve one person or thousands of people. They can be done in one day or take years to complete. As described earlier, IT projects involve using hardware, software, and networks to create a product, service, or result. Examples of IT projects include the following: Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. *OUSPEVDUJPOUP1SPKFDU.BOBHFNFOU t t t t t t t t t t t A large network of healthcare providers updates its information systems and procedures to reduce hospital acquired diseases. A team of students creates a smartphone application and sells it online. A company develops a driverless car. A college upgrades its technology infrastructure to provide wireless Internet access across the whole campus as well as online access to all academic and student service information. A company develops a new system to increase sales force productivity and customer relationship management that will work on various laptops, smartphones, and tablets. A television network implements a system to allow viewers to vote for contestants and provide other feedback on programs via social media sites. A government group develops a system to track child immunizations. A large group of volunteers from organizations throughout the world develops standards for environmentally friendly or green IT. A global bank acquires other financial institutions and needs to consolidate systems and procedures. Government regulations require monitoring of pollutants in the air and water. A multinational firm decides to consolidate its information systems into an integrated enterprise resource management approach. 5 Gartner, Inc., a prestigious consulting firm, identified the top 10 strategic technologies for 2015. A few of these technologies include the following: t t t t Computing everywhere: The needs of mobile users in diverse contexts and environments will continue to drive companies to develop new products and services. The Internet of things: Expanding digitization and connectivity will continue to enable companies to combine information from people, places, and things to extend services, improve how assets or machines operate, or create new sources of revenue. One example, according to Gartner, is that “the pay-per-use model can be applied to assets (such as . . . equipment), services (such as pay-as-you-drive insurance), people (such as movers), places (such as parking spots), and systems (such as cloud services).” 3D printing: Worldwide shipments of 3D printers are expected to nearly double in 2015 compared to 2014 and double again in 2016. New applications continue to be found for producing items at lower costs through improved designs, streamlined prototyping, and short-run manufacturing. Advanced, pervasive, and invisible analytics: Analytics continues to grow in importance as the volume of data generated by embedded systems increases. The challenge is analyzing data to provide “the right information to the right person at the right time.”10 As you can see, a wide variety of projects use information technologies, and organizations rely on them for success. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. $IBQUFS 6 MEDIA SNAPSHOT One of Gartner’s top 10 strategic technologies for 2012 included application stores and marketplaces for smartphones and tablets. Gartner predicted that by 2014 there would be more than 70 billion mobile application downloads every year, but the actual number was almost double!11 Facebook is by far the most downloaded app, and the most popular category of all apps continues to be games. There are over 1.3 million apps in Apple’s App store and another 1.3 million in Google’s Play Store. Of course, business professionals use phone applications for productive purposes. The challenge is to develop useful apps and get workers to focus on them instead of the many distracting options available. Business Insider, Forbes, PC Magazine, and website Lifehacker.com provide lists of top productivity apps “to keep you focused and get things done.”12 1.2b Project Attributes Projects come in all shapes and sizes. The following attributes help define a project further: t t t t A project has a unique purpose. Every project should have a well-defined objective. For example, Anne Roberts, the director of the Project Management Office in the chapter’s opening case, might sponsor an IT collaboration project to develop a list and initial analysis of potential IT projects that might improve operations for the company. The unique purpose of this project would be to create a collaborative report with ideas from people throughout the company. The results would provide the basis for further discussions and selecting projects to implement. As you can see from this example, projects result in a unique product, service, or result. A project is temporary. A project has a definite beginning and end. In the IT collaboration project, Anne might form a team of people to work immediately on the project, and then expect a report and an executive presentation of the results in one month. A project is developed using progressive elaboration. Projects are often defined broadly when they begin, and as time passes, the specific details of the project become clearer. Therefore, projects should be developed in increments. A project team should develop initial plans and then update them with more detail based on new information. For example, suppose that a few people submitted ideas for the IT collaboration project, but they did not clearly address how the ideas would support the business strategy of improving operations. The project team might decide to prepare a questionnaire for people to fill in as they submit their ideas to improve the quality of the inputs. A project requires resources, often from various areas. Resources include people, hardware, software, and other assets. Many projects cross departmental or other boundaries to achieve their unique purposes. For the IT Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. *OUSPEVDUJPOUP1SPKFDU.BOBHFNFOU t t collaboration project, people from IT, marketing, sales, distribution, and other areas of the company would need to work together to develop ideas. The company might also hire outside consultants to provide input. Once the collaboration project team has selected key projects for implementation, each of those will probably require additional resources. To meet objectives of these new projects, people from other companies—product suppliers and consulting companies—may be added to the team. Resources, however, are limited and must be used effectively to meet project and other corporate goals. A project should have a primary customer or sponsor. Most projects have many interested parties or stakeholders, but for a project to succeed someone must take the primary role of sponsorship. The project sponsor usually provides the direction and funding for the project. Executive support is crucial to project success, as described in later chapters. Anne Roberts would be the sponsor for the IT collaboration project. Once further IT projects are selected, however, the sponsors for those projects would be senior managers in charge of the main parts of the company affected by the projects. For example, the sponsor of a project to improve online product sales would be the vice president of sales. In this situation, Anne might become part of a project steering committee, helping other managers understand different project objectives, resolve priorities, research issues, or alter constraints within a given project or across multiple projects. A project involves uncertainty. Because every project is unique, it is sometimes difficult to define its objectives clearly, estimate how long it will take to complete, or determine how much it will cost. External factors also cause uncertainty, such as a supplier going out of business or a project team member needing unplanned time off. This uncertainty is one of the main reasons project management is so challenging, especially on projects involving new technologies. 7 An effective project manager is crucial to a project’s success. Project managers work with the project sponsors, team, and the other people involved to achieve project goals. 1.2c Project Constraints Every project is constrained in different ways, often by its scope, time, and cost goals. These limitations are sometimes referred to in project management as the triple constraint. To create a successful project, a project manager must consider scope, time, and cost and balance these three often-competing goals: t t t Scope: What work will be done as part of the project? What unique product, service, or result does the customer or sponsor expect from the project? How will the scope be verified? Time: How long should it take to complete the project? What is the project’s schedule? How will the team track actual schedule performance? Who can approve changes to the schedule? Cost: What should it cost to complete the project? What is the project’s budget? How will costs be tracked? Who can authorize changes to the budget? Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. $IBQUFS 8 Figure 1-1 illustrates the three dimensions of the triple constraint. Each area—scope, time, and cost—has a target at the beginning of the project. For example, the IT collaboration project might have an initial scope of producing a 40- to 50-page report and a one-hour presentation on about 30 potential IT projects. The project manager might further define project scope to include providing a description of each potential project, an investigation of what other companies have implemented for similar projects, a rough time and cost estimate, and assessments of the risk and potential payoff as high, medium, or low. The initial time estimate for this project might be one month, and the cost estimate might be $45,000–$50,000. These expectations provide targets for the scope, time, and cost dimensions of the project. Note that the scope and cost goals in this example include ranges—the report can be 40 to 50 pages long and the project can cost between $45,000 and $50,000. Because projects involve uncertainty and limited resources, projects rarely finish according to their original scope, time, and cost goals. Instead of discrete target goals, it is often more realistic to set a range for goals, such as spending between $45,000 and $50,000 and having a 40- to 50-page report. These goals might require hitting the target, but not the bull’s eye. Successful project management means meeting all three goals (scope, time, and cost)—and satisfying the project’s sponsor! Target ¥$FOHBHF-FBSOJOH FIGURE 1-1 1SPKFDUDPOTUSBJOUT Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. *OUSPEVDUJPOUP1SPKFDU.BOBHFNFOU Managing the triple constraint involves making trade-offs between scope, time, and cost goals for a project. For example, you might need to increase the budget for a project to meet scope and time goals. Alternatively, you might have to reduce the scope of a project to meet time and cost goals. Experienced project managers know that you must decide which aspect of the triple constraint is most important. If time is most important, you must often change the initial scope and cost goals to meet the schedule. If scope goals are most important, you may need to adjust time and cost goals. To generate project ideas for the IT collaboration project, suppose that the project manager sent an e-mail survey to all employees, as planned. The initial time and cost estimate may have been one week and $5,000 to collect ideas using this e-mail survey. Now, suppose that the e-mail survey generated only a few good project ideas, but the scope goal was to collect at least 30 good ideas. Should the project team use a different method like focus groups or interviews to collect ideas? Even though it was not in the initial scope, time, or cost estimates, it would really help the project. Because good ideas are crucial to project success, it would make sense to inform the project sponsor that adjustments are needed. Although the triple constraint describes how the basic elements of a project interrelate, other elements can also play significant roles. Quality is often a key factor in projects, as is customer or sponsor satisfaction. Some people, in fact, refer to the quadruple constraint of project management, which includes quality as well as scope, time, and cost. A project team may meet scope, time, and cost goals but might fail to meet quality standards and satisfy the sponsor. For example, Anne Roberts may receive a 50-page report describing 30 potential IT projects and hear a presentation that summarizes the report. The project team may have completed the work on time and within the cost constraint, but the quality may have been unacceptable. Other factors might also be crucial to a particular project. On some projects, resources are the main concern. For example, the entertainment industry often needs particular actors for movies or television shows. Project goals must be adjusted based on when particular people are available. Risk can also affect major project decisions. A company might wait to start a project until the risks are at an acceptable level. The project manager should be communicating with the sponsor throughout the project to make sure it is meeting expectations. Chapter 10, Project Communications Management, and Chapter 13, Project Stakeholder Management, address communicating with stakeholders and understanding their expectations in greater detail. How can you avoid the problems that occur when you meet scope, time, and cost goals, but lose sight of customer satisfaction? The answer is good project management, which includes more than managing project constraints. 9 1.3 WHAT IS PROJECT MANAGEMENT? Project management is “the application of knowledge, skills, tools, and techniques to project activities to meet project requirements.”13 Project managers must strive not only to meet specific scope, time, cost, and quality goals of projects, they must also facilitate the entire process to meet the needs and expectations of people involved in project activities or affected by them. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. $IBQUFS  Project portfolio Tools and techniques 10 Knowledge areas Scope management Stakeholders’ needs and expectations Time management Cost management Quality management Project integration management Human resource management Communications management Risk management Procurement management Project 1 Project 2 Project 3 Project 4 Enterprise success Project success Stakeholder management ¥$FOHBHF-FBSOJOH FIGURE 1-2 1SPKFDU.BOBHFNFOU'SBNFXPSL Figure 1-2 illustrates a framework to help you understand project management. Key elements of this framework include the project stakeholders, project management knowledge areas, project management tools and techniques, and the contribution of successful projects to the enterprise. 1.3a Project Stakeholders Stakeholders are the people involved in or affected by project activities, and include the project sponsor, project team, support staff, customers, users, suppliers, and even opponents of the project. These stakeholders often have very different needs and expectations. A familiar example of a project is building a new house. There are several stakeholders in a home construction project. t t The project sponsors would be the potential new homeowners who would be paying for the house. They could be on a very tight budget, so would expect the contractor to provide a realistic idea of what type of home they could afford given their budget constraints. They would also need a realistic idea of when they could move in. Regardless of budget, they would expect the contractor to provide accurate estimates for the building costs. The new homeowners would have to make important decisions to keep the costs of the house within their budget. Can they afford to finish the basement right away? If they can afford to finish the basement, will it affect the projected move-in date? In this example, the project sponsors are also the customers and users of the product, which is the house. The house may require financing by a bank or other financial institution like a credit union, which will secure a legal interest (lien) in the property and Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. *OUSPEVDUJPOUP1SPKFDU.BOBHFNFOU t t t t t the finished home. This institution is an example of a legal stakeholder who must be informed of any changes to the plans or schedule because the project is part of a legal contract. The project manager in this example would normally be the general contractor responsible for building the house. The project manager needs to work with all the project stakeholders to meet their needs and expectations. The project team for building the house would include several construction workers, electricians, and carpenters. These stakeholders would need to know exactly what work they must do and when they need to do it. They would need to know if the required materials and equipment will be at the construction site or if they are expected to provide the materials and equipment. Their work would need to be coordinated because many interrelated factors are involved. For example, the carpenter cannot put in kitchen cabinets until the walls are completed. Support staff might include the buyers’ employers, the general contractor’s administrative assistant, and people who support other stakeholders. The buyers’ employers might expect their employees to complete their work but allow some flexibility so they can visit the building site or take phone calls related to building the house. The contractor’s administrative assistant would support the project by coordinating meetings between the buyers, the contractor, suppliers, and other parties. Building a house requires many suppliers. The suppliers would provide the wood, windows, flooring, appliances, and other materials. Suppliers would expect exact details on the items they need to provide, and where and when to deliver those items. A project might have opponents. In this example, a neighbor might oppose the project because the workers make so much noise that she cannot concentrate on her work at home, or the noise might wake her sleeping children. She might interrupt the workers to voice her complaints or even file a formal complaint. Or, the neighborhood might have association rules concerning new home design and construction. If the homeowners do not follow these rules, they might have to halt construction due to legal issues. Even without such complaints, the home must comply with certain building codes and other restrictions; these considerations may also result in changes to the project’s requirements, making the local government a stakeholder in the project.  As you can see from this example, projects have many different stakeholders, and they often have different interests. Stakeholders’ needs and expectations are important in the beginning and throughout the life of a project. Successful project managers develop good relationships with project stakeholders to understand and meet their needs and expectations. 1.3b Project Management Knowledge Areas Project management knowledge areas describe the key competencies that project managers must develop. The center of Figure 1-2 shows the 10 knowledge areas of project management. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. $IBQUFS  1. Project scope management involves defining and managing all the work required to complete the project successfully. 2. Project time management includes estimating how long it will take to complete the work, developing an acceptable project schedule, and ensuring timely completion of the project. 3. Project cost management consists of preparing and managing the budget for the project. 4. Project quality management ensures that the project will satisfy the stated or implied needs for which it was undertaken. 5. Project human resource management is concerned with making effective use of the people involved with the project. 6. Project communications management involves generating, collecting, disseminating, and storing project information. 7. Project risk management includes identifying, analyzing, and responding to risks related to the project. 8. Project procurement management involves acquiring or procuring goods and services for a project from outside the performing organization. 9. Project stakeholder management includes identifying and analyzing stakeholder needs while managing and controlling their engagement throughout the life of the project. 10. Project integration management is an overarching function that affects and is affected by all of the other knowledge areas. Project managers must have knowledge and skills in all 10 of these areas. This text includes an entire chapter on each of these knowledge areas because all of them are crucial to project success. 1.3c Project Management Tools and Techniques Thomas Carlyle, a famous historian and author, stated, “Man is a tool-using animal. Without tools he is nothing, with tools he is all.” As the world continues to become more complex, it is even more important for people to develop and use tools, especially for managing important projects. Project management tools and techniques assist project managers and their teams in carrying out work in all 10 knowledge areas. For example, some popular time-management tools and techniques include Gantt charts, project network diagrams, and critical path analysis. Table 1-1 lists some commonly used tools and techniques by knowledge area. You will learn more about these and other tools and techniques throughout this text. A survey of 753 project and program managers was conducted to rate several project management tools. Respondents rated tools on a scale of 1–5 (low to high) based on the extent of their use and the potential of the tools to help improve project success. “Super tools” were defined as those that had high use and high potential for improving project success. These super tools included software for task scheduling (such as project management software), scope statements, requirement analyses, and lessons-learned reports. Tools that are already used extensively and have been found to improve project performance include progress reports, kick-off meetings, Gantt charts, and change requests. Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Edito...
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

This question has not been answered.

Create a free account to get help with this and any other question!

Similar Content

Related Tags