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
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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
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Information Technology Project
Management, Eighth Edition
Kathy Schwalbe
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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
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For Dan, Anne, Bobby, and Scott
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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
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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
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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
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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
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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
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Chapter 4 Project Integration Management
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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
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xii
Table of Contents
Tasks
Key Terms
End Notes
Chapter 5
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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
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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
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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
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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
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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
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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
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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
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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).
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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:
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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.
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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
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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).
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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:
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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
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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:
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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).
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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
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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:
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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):
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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
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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
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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:
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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:
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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:
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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.
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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:
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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
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*OUSPEVDUJPOUP1SPKFDU.BOBHFNFOU
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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:
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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?
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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
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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.
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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
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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.
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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
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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.
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$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.
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Edito...