Contemporary project management 2nd edition pdf

Risk Management - Principles Of Project Management Assignment

Read the following scenario:

Dr. Bill Mattes, the Provost for Harrisburg University (HU), is hosting a campus event and she wants to ensure it is a complete success. Your group has been asked to manage risks associated with the planning for the event. The project team leader, Virat Kohli, is new to project management and has about 6 months to plan and execute the project. The budget for the entire project is $20,000.
An outdoor site venue will be used for the event, which includes a live band for the entertainment. The finance department has allocated funds, additional funding is needed (through sponsorship of the event and by selling tickets) to meet the total cost burden of the event. Promoting the event will be important to raising funds.

The outdoor event site used must be returned in the condition it was found. Security is also important as alcohol will be served. Neighbors are already concerned about noise and vandalism.

Dr. Mattes has a risk neutral personality. She is the project sponsor and has asked that $500 be used from the project budget to manage risks. The university has a culture of risk seeking (as evidenced by their recent decision to pursue e-Sports).
For this event, the senior management at HU has no tolerance (or appetite) for risks that can impact the project schedule. "The schedule must be protected", Dr. Mattes stated, "because we can't hold an event any later than the planned weekend." Senior management has high tolerance for risks that can impact the project budget. "We've come through the challenging times of the early years and are now in great shape, particularly with the high enrollment numbers of foreign students", said Joe Dokes, Chief Financial Officer at HU.
For this 6-month long project, Dr. Mattes has asked for risk and other project status reports each month. These are low-key meetings using the relevant elements of the risk register. Dr. Mattes is not familiar with the risk register, so it will be important for your group to spend some time explaining in the RMP how to use it, and to provide examples of how to write a proper risk statement.
Based upon this scenario, complete the following tasks:

1. Part 1 - 25 points. Write a Risk Management Plan (RMP) using the content found in the PMBOK 6e (Section 11.1.3.1). At a minimum, the plan should address all elements of a RMP found in the PMBOK. The plan should include the following figures and tables:

Risk breakdown structure (RBS) to level 2.
Probability and Impact scale definitions for time, cost and quality.
Probability-Impact matrix with scoring scheme
The scale definitions and scoring scheme should be based upon 5 levels for probability (very low, low, medium, high and very high) and 5 levels for impact.

The methodology must also include a sample risk statement for threat and opportunity that demonstrates an understanding of how to capture the necessary information for each type of risk.
The risk register provided in this unit will be an attachment to your plan.
Your group can create additional characters in the scenario in order to fulfill roles needed to manage risk.
2. Part 2 - 25 points. Using the techniques described in Chapter 11, CPM 4e and Chapter 11, PMBOK 6e, identify five threats and five opportunities (a total of 10 risks), one each for the different types of risk responses (e.g., accept, enhance, mitigate, share, transfer, exploit, avoid escalate).

3. Part 3 - 15 points. Prepare a 400-word paper discussing the process used to identify threats and opportunities, why it was chosen, and how it worked for your group. Hint: Risk Identification is addressed in the PMBOK and CPM texts. At a minimum, groups should discuss and amplify upon the tools and techniques included in Figure 11-6.
4. Part 4 - 25 points. Using the risk register template provided in this unit, document the 10 risks. Complete the register in its entirety including using properly formatted risk statements (risk descriptions), determining the appropriate response strategy/technique, writing a risk response description that is consistent with the chosen response strategy/technique, identifying the risk trigger(s) and assigning a risk owner. Risks should be sorted & presented in priority order.

Mechanics (10 points) It is expected that the risk management plan will have excellent mechanics (presentation, grammar and spelling) exhibit the quality of work capable of a group of graduate students and working professionals. All sections of the plan must be readable at 100% magnification. The plan should not exceed 4 pages.

Contemporary Project M anagem

ent K

loppenborg

Th ird Edition

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Contemporary Project Management, 3e includes both time-tested and cutting-edge project management techniques that are invaluable to you as a student or practitioner. Check out some of the features of this text:

• Agile Approach to Project Planning and Management. The text fully integrates the agile approach and uses a margin icon and alternate font color to emphasize the difference between agile and traditional project management methods.

• PMBOK ® Guide Approach. This edition covers all knowledge areas and processes from the fi fth edition of the PMBOK® Guide and now includes ten PMBOK® Guide-type questions at the end of each chapter. All glossary defi nitions also refl ect the fi fth edition of the PMBOK® Guide.

• Real Project Management Examples. Each chapter contains examples from practitioners at actual companies in the U.S. and abroad.

• Actual Projects as Learning Vehicles. At the end of each chapter, there is an example project with a list of deliverables. Microsoft® Word and Excel templates for many project management techniques are also available on the textbook companion site.

• Full Integration of Microsoft® Project Professional 2013. Using screen captures, the text shows step-by-step instructions for automating project management techniques and processes in Microsoft® Project 2013.

Contemporary Project Management Timothy J. Kloppenborg

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MS Project 2013 Instructions in Contemporary Project Management 3e

Chapter MS Project

4 Introduction to MS Project 2013

Toolbars, ribbons, and window panes

Initialize MS Project for Use

Auto schedule, start date, identifying information, summary row

Create Milestone Schedule

Key milestones, projected finish dates, information

6 Set up Work Breakdown Structure (WBS)

Understand WBS definitions and displays, enter summaries, create the outline, Insert row number column, Hide/show desired amount of detail

7 Set up Schedule in MS Project

Define organization’s holidays, turn off change highlighting, understand types of project data

Build Logical Network Diagram

Enter tasks and milestones, define dependencies, understand network

diagram presentation, verify accuracy

Understand Critical Path

Assign duration estimates, identify critical path

Display and Print Schedules

8 Define Resources

Resource views, max units, resource calendars

Assigning Resources

In split view enter work, select resource, modify assignments

Identify Over allocated Resources

Resource usage and Detailed Gantt views together

Dealing with Over Allocations

Manual leveling and judgment

9 Develop Bottom-up Project Budget

Assignment costs, activity costs, various cost perspectives

Develop Summary Project Budget

11 Baseline Project Plan

14 Report Progress

How MS Project recalculates based upon actual performance, current and future impacts of variances, define the performance update process (what, when, and how)

Update the Project Schedule

Acquire performance data, set and display status date, Enter duration-

based performance data, reschedule remaining work, revise estimates

15 Close Project

Complete schedule, archive schedule, capture and publish lessons learned

PMBOK® Guide 5e Coverage in Contemporary Project Management 3e The numbers refer to the text page where the process is defined.

Project management (PM) processes and knowledge areas 9 Project life cycle 6-8, 62-64 Projects and strategic planning 28-31 Organizational influences 54-61 Portfolio and program management 31-34 Stakeholders 65-74

PMBOK® Guide 5th ed. Coverage

Knowledge Areas

Initiating Process Group Planning Process Group

Executing Process Group

Monitoring & Controlling Process Group

Closing Process Group

Project Integration Management

Develop Project charter 84-99

Develop Project Management Plan 116-118, 306-308

Direct and Manage Project Work 383-384

Monitor and Control Project Work 385-386 Perform Integrated Change Control 158-160, 386-387

Close Project or Phase 425-430

Project Scope Management

Plan Scope Management 146 Collect Requirements 146-148 Define Scope 148-150 Create WBS 150-158

Validate Scope 422 Control Scope 400-401

Project Time Management

Plan Schedule Management 172 Define Activities 175-176 Sequence Activities 176-181 Estimate Activity Resources 211-212 Estimate Activity Durations 181-184 Develop Schedule 184-192

Control Schedule 172, 401-405

Project Cost Management

Plan Cost Management 246 Estimate Costs 246-256 Determine Budget 256-259

Control Costs 259, 401-405

Project Quality Management

Plan Quality Management 302-306

Perform Quality Assurance 392-393

Control Quality 306, 393-400

Project Human Resources Management

Plan Human Resource Management 212-216

Aquire Project Team 348-350 Develop Project Team 350-364 Manage Project Team 364-367

Project Communications Management

Plan Communications Management 126-130

Manage Communications 388-391

Control Communications 391

Project Risk Management

PlanRiskManagement 270-275 Identify Risks 95, 275-277 Perform Qualitative Risk Analysis 95-96, 277-280 Perform Quantitative Risk Analysis 280 Plan Risk Responses 96, 281-283

Control Risks 387-388

Project Procurement Management

Plan Procurement Management 324-327, 331-333

Conduct Procurements 327-331

Control Procurments 334

Close Procurements 424-425

Project Stakeholder Management

Identify Stakeholders 97, 119-123

Plan Stakeholder Management 124-126

Manage Stakeholder Engagement 123-124, 367-368

Control Stakeholder Engagement 368-369

Source: Adapted from A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 5th ed. (Newtown Square, PA: Project Management Institute, Inc., 2013): 43.

Contemporary Project Management Organize / Plan / Perform

THIRD EDITION

TIMOTHY J. KLOPPENBORG Xavier University

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Contemporary Project Management: Organize / Plan / Perform, Third Edition

Timothy J. Kloppenborg

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WCN: 02-200-208

Brief Contents Project Deliverables xiii Preface xv About the Author xxii

PART 1 Organizing Projects

1 Introduction to Project Management 2

2 Project Selection and Prioritization 26

3 Organizational Capability: Structure, Culture, and Roles 52

4 Chartering Projects 82

PART 2 Planning Projects

5 Stakeholder Analysis and Communication Planning 114

6 Scope Planning 144

7 Scheduling Projects 170

8 Resourcing Projects 208

9 Budgeting Projects 244

10 Project Risk Planning 268

11 Project Quality Planning and Project Kickoff 290

PART 3 Performing Projects

12 Project Supply Chain Management 320

13 Leading and Managing Project Teams 346

14 Determining Project Progress and Results 380

15 Finishing the Project and Realizing the Benefits 420

Appendix A PMP® and CAPM® Exam Prep Suggestions 439 Appendix B Strengths Themes as Used in Project Management (available on the

textbook companion site) Glossary Terms from the PMBOK® Guide 443 Index 451

iii

Contents

Project Deliverables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xv About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxii

PART 1 Organizing Projects

CHAPTER 1 Introduction to Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.1 What Is a Project? 4

1.2 History of Project Management 4

1.3 How Can Project Work Be Described? 5 1.3a Projects versus Operations 5 / 1.3b Soft Skills and Hard Skills 5 / 1.3c Authority

and Responsibility 6 / 1.3d Project Life Cycle 6

1.4 Understanding Projects 8 1.4a Project Management Institute 8 / 1.4b Project Management Body of Knowledge

(PMBOK®) 9 / 1.4c Selecting and Prioritizing Projects 10 / 1.4d Project Goals and Constraints 10 / 1.4e Defining Project Success and Failure 11 / 1.4f Using Microsoft Project to Help Plan and Measure Projects 12 / 1.4g Types of Projects 12 / 1.4h Scalability of Project Tools 14

1.5 Project Roles 14 1.5a Project Executive-Level Roles 14 / 1.5b Project Management-Level Roles 14 /

1.5c Scrum Master 15 / 1.5d Project Associate-Level Roles 15

1.6 Overview of the Book 15 1.6a Part 1: Organizing and Initiating Projects 15 / 1.6b Part 2: Planning Projects 17 /

1.6c Part 3: Performing Projects 18

Summary 19

Key Terms from the PMBOK® Guide 19 Chapter Review Questions 20

Discussion Questions 20

PMBOK® Guide Questions 20 Example Project Instructions 21

References 22

Endnotes 22

Project Management in Action: Using Appreciative Inquiry to Understand Project Management 24

CHAPTER 2 Project Selection and Prioritization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

2.1 Strategic Planning Process 28 2.1a Strategic Analysis 28 / 2.1b Guiding Principles 28 / 2.1c Strategic Objectives 31 /

2.1d Flow-Down Objectives 31

2.2 Portfolio Management 31 2.2a Portfolios 32 / 2.2b Programs 32 / 2.2c Projects and Subprojects 33 /

2.2d Assessing an Organization’s Ability to Perform Projects 34 / 2.2e Identifying

iv

Potential Projects 35 / 2.2f Methods for Selecting Projects 36 / 2.2g Using a Cost-Benefit Analysis Model to Select Projects 36 / 2.2h Using a ScoringModel to Select Projects 38 / 2.2i Prioritizing Projects 40 / 2.2j Resourcing Projects 41

2.3 Securing Projects 41 2.3a Identify Potential Project Opportunities 42 / 2.3b Determine Which Opportunities to

Pursue 42 / 2.3c Prepare and Submit a Project Proposal 43 / 2.3d Negotiate to Secure the Project 44

Summary 44

Key Terms from the PMBOK® Guide 45 Chapter Review Questions 45

Discussion Questions 45

PMBOK® Guide Questions 46 Exercises 46

Example Project Instructions 47

References 47

Endnotes 48

Project Management in Action: Prioritizing Projects at D. D. Williamson 49

CHAPTER 3 Organizational Capability: Structure, Culture, and Roles . . . . . . . . . . . . . . . . . . . . . 52

3.1 Types of Organizational Structures 54 3.1a Functional 54 / 3.1b Projectized 55 / 3.1c Matrix 56

3.2 Organizational Culture and Its Impact on Projects 59 3.2a Culture of the Parent Organization 60 / 3.2b Project Cultural Norms 61

3.3 Project Life Cycles 62 3.3a Define-Measure-Analyze-lmprove-Control (DMAIC) Model 62 / 3.3b Research and

Development (R&D) Project Life Cycle Model 62 / 3.3c Construction Project Life Cycle Model 63 / 3.3d Agile Project Life Cycle Model 63

3.4 Agile Project Management 64

3.5 Project Executive Roles 65 3.5a Steering Team 65 / 3.5b Sponsor 66 / 3.5c Customer 67 / 3.5d Chief Projects

Officer/Project Management Office 69

3.6 Project Management Roles 69 3.6a Functional Manager 69 / 3.6b Project Manager 70 / 3.6c Scrum Master 72 /

3.6d Facilitator 72

3.7 Project Team Roles 73 3.7a Core Team Members 73 / 3.7b Subject Matter Experts 74

Summary 74

Key Terms from the PMBOK® Guide 75 Chapter Review Questions 75

Discussion Questions 76

PMBOK® Guide Questions 76 Exercises 77

Example Project Instructions 77

References 77

Endnotes 78

Project Management in Action: Project Leadership Roles at TriHealth 79

Contents v

CHAPTER 4 Chartering Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

4.1 What Is a Project Charter? 84

4.2 Why Is a Project Charter Used? 85

4.3 When Is a Charter Needed? 85

4.4 Typical Elements in a Project Charter 87 4.4a Title 87 / 4.4b Scope Overview 87 / 4.4c Business Case 88 /

4.4d Background 88 / 4.4e Milestone Schedule with Acceptance Criteria 88 / 4.4f Risks, Assumptions, and Constraints 89 / 4.4g Resource Estimates 90 / 4.4h Stakeholder List 90 / 4.4i Team Operating Principles 90 / 4.4j Lessons Learned 91 / 4.4k Signatures and Commitment 91

4.5 Constructing a Project Charter 91 4.5a Scope Overview and Business Case Instructions 91 / 4.5b Background

Instructions 92 / 4.5c Milestone Schedule with Acceptance Criteria Instructions 92 / 4.5d Risks, Assumptions, and Constraints Instructions 95 / 4.5e Resources Needed Instructions 96 / 4.5f Stakeholder List Instructions 97 / 4.5g Team Operating Principles Instructions 97 / 4.5h Lessons Learned Instructions 98 / 4.5i Signatures and Commitment Instructions 98

4.6 Ratifying the Project Charter 99

4.7 Starting a Project using Microsoft Project 99 4.7a MS Project 2013 Introduction 99 / 4.7b Initialize Microsoft Project 2013 for General

Use 101 / 4.7c Initialize a Project 102 / 4.7d Construct a Milestone Schedule 104

Summary 105

Key Terms from the PMBOK® Guide 105 Chapter Review Questions 105

Discussion Questions 105

PMBOK® Guide Questions 106 Exercises 107

Example Project 107

References 107

Endnotes 108

Project Management in Action: Information Systems Enhancement Project Charter 108

PART 2 Planning Projects

CHAPTER 5 Stakeholder Analysis and Communication Planning . . . . . . . . . . . . . . . . . . . . . . . . . 114

5.1 Develop the Project Management Plan 116

5.2 Identify Stakeholders 119 5.2a Find Stakeholders 119 / 5.2b Analyze Stakeholders 120 / 5.2c Document

Stakeholders 121

5.3 Build Relationships 123 5.3a Relationship Building within the Core Team 124 / 5.3b Relationship Building with

All Other Stakeholders 124

5.4 Plan Communications Management 126 5.4a Purposes of a Project Communications Plan 126 / 5.4b Communications Plan

Considerations 126 / 5.4c Communications Matrix 128 / 5.4d Knowledge Management 129

vi Contents

5.5 Project Meeting Management 130 5.5a Improving Project Meetings 130 / 5.5b Issues Management 132

5.6 Communications Needs of Global and Virtual Project Teams 134 5.6a Virtual Teams 134 / 5.6b Cultural Differences 135 / 5.6c Countries and Project

Communication Preferences 135

5.7 Communications Technologies 136 5.7a Current Technology Types 136

Summary 137

Key Terms from the PMBOK® Guide 137 Chapter Review Questions 137

Discussion Questions 138

PMBOK® Guide Questions 138 Example Project 139

References 139

Endnotes 140

Project Management in Action: Project Communication Planning for a Distributed Project 141

CHAPTER 6 Scope Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 144

6.1 Plan Scope Management 146

6.2 Collect Requirements 146 6.2a Gather Stakeholder Input 147

6.3 Define Scope 148 6.3a Reasons to Define Scope 148 / 6.3b How to Define Scope 149 / 6.3c How to

Define Scope in Agile Projects 150

6.4 Work Breakdown Structure (WBS) 150 6.4a What Is the WBS? 151 / 6.4b Why Use a WBS? 151 / 6.4c WBS Formats 152 /

6.4d Work Packages 154 / 6.4e How to Construct a WBS 155

6.5 Establish Change Control 158

6.6 Using MS Project for Work Breakdown Structures (WBS) 160 6.6a Set Up the WBS 161

Summary 165

Key Terms from the PMBOK® Guide 166 Chapter Review Questions 166

Discussion Questions 166

Exercises 167

PMBOK® Guide Questions 167 Example Project 168

References 168

Endnotes 168

Project Management in Action: Work Breakdown Structure Template 169

CHAPTER 7 Scheduling Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170

7.1 Plan Schedule Management 172

7.2 Purposes of a Project Schedule 173

7.3 Historical Development of Project Schedules 173

Contents vii

7.4 How Project Schedules Are Limited and Created 174

7.5 Define Activities 175

7.6 Sequence Activities 176 7.6a Leads and Lags 179 / 7.6b Alternative Dependencies 180

7.7 Estimate Activity Duration 181 7.7a Problems and Remedies in Duration Estimating 182 / 7.7b Learning Curves 182

7.8 Develop Project Schedules 184 7.8a Two-Pass Method 185 / 7.8b Enumeration Method 189

7.9 Uncertainty in Project Schedules 190 7.9a Program Evaluation and Review Technique 190 / 7.9b Monte Carlo Simulation 191

7.10 Show the Project Schedule on a Gantt Chart 192

7.11 Using Microsoft Project for Critical Path Schedules 193 7.11a Set Up the Project Schedule 194 / 7.11b Build the Logical Network Diagram 196 /

7.11c Understand the Critical Path 199 / 7.11d Display and Print Schedules with MS Project 199

Summary 199

Key Terms from the PMBOK® Guide 200 Chapter Review Questions 200

Discussion Questions 201

Exercises 201

PMBOK® Guide Questions 202 Example Project 203

References 203

Endnotes 204

Project Management in Action: Bank Project Schedule 205

CHAPTER 8 Resourcing Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 208

8.1 Abilities Needed when Resourcing Projects 210 8.1a The Science and Art of Resourcing Projects 210 / 8.1b Considerations when

Resourcing Projects 210 / 8.1c Activity- versus Resource-Dominated Schedules 211

8.2 Estimate Resource Needs 211

8.3 Plan Human Resource Management 212 8.3a Identify Potential Resources 212 / 8.3b Determine Resource Availability 213 /

8.3c Decide Timing Issues when Resourcing Projects 214

8.4 Project Team Composition Issues 215 8.4a Cross-Functional Teams 215 / 8.4b Co-Located Teams 215 / 8.4c Virtual

Teams 215 / 8.4d Outsourcing 215

8.5 Assign a Resource to Each Activity 216 8.5a Show Resource Responsibilities on RACI Chart 216 / 8.5b Show Resource

Assignments on Gantt Chart 216 / 8.5c Summarize Resource Responsibilities by Time Period with Histogram 218

8.6 Dealing with Resource Overloads 219 8.6a Methods of Resolving Resource Overloads 219

8.7 Compress the Project Schedule 222 8.7a Actions to Reduce the Critical Path 222 / 8.7b Crashing 223 / 8.7c Fast

Tracking 226

viii Contents

8.8 Alternative Scheduling Methods 227 8.8a Critical Chain Project Management (CCPM) 227 / 8.8b Reverse Phase

Schedules 228 / 8.8c Rolling Wave Planning 228 / 8.8d Agile Project Planning 229 / 8.8e Auto/Manual Scheduling 229

8.9 Using MS Project for Resource Allocation 229 8.9a Step 1: Defining Resources 229 / 8.9b Setting Up a Resource Calendar 231 /

8.9c Step 2: Assigning Resources 231 / 8.9d Step 3: Finding Overallocated Resources 233 / 8.9e Step 4: Dealing with Overallocations 235

Summary 236

Key Terms from the PMBOK® Guide 237 Chapter Review Questions 237

Discussion Questions 237

Exercises 238

PMBOK® Guide Questions 238 Example Project 239

References 239

Endnotes 240

Project Management in Action: Managing Software Development with Agile Methods and Scrum 240

CHAPTER 9 Budgeting Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244

9.1 Plan Cost Management 246

9.2 Estimate Cost 246 9.2a Types of Cost 247 / 9.2b Accuracy and Timing of Cost Estimates 250 /

9.2c Methods of Estimating Costs 251 / 9.2d Project Cost Estimating Issues 253

9.3 Determine Budget 256 9.3a Aggregating Costs 257 / 9.3b Analyzing Reserve Needs 258 / 9.3c Determining

Cash Flow 258

9.4 Establishing Cost Control 259

9.5 Using MS Project for Project Budgets 260 9.5a Develop Bottom-Up Project Budget 260 / 9.5b Develop Summary Project

Budget 261

Summary 263

Key Terms from the PMBOK® Guide 263 Chapter Review Questions 263

Discussion Questions 263

Exercises 264

PMBOK® Guide Questions 264 Example Project 265

References 265

Endnotes 266

Project Management in Action: The Value of Budget Optimization 266

CHAPTER 10 Project Risk Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268

10.1 Plan Risk Management 270 10.1a Roles and Responsibilities 272 / 10.1b Categories and Definitions 272

Contents ix

10.2 Identify Risks 275 10.2a Information Gathering 275 / 10.2b Reviews 275 / 10.2c Understanding

Relationships 276 / 10.2d Risk Register 276

10.3 Risk Analysis 277 10.3a Perform Qualitative Risk Analysis 277 / 10.3b Perform Quantitative Risk

Analysis 280 / 10.3c Risk Register Updates 280

10.4 Plan Risk Responses 281 10.4a Strategies for Responding to Risks 281 / 10.4b Risk Register Updates 283

Summary 284

Key Terms from the PMBOK® Guide 284 Chapter Review Questions 284

Discussion Questions 285

Exercises 285

PMBOK® Guide Questions 285 Example Project 286

References 287

Endnotes 287

Project Management in Action: Risk Management on a Satellite Development Project 288

CHAPTER 11 Project Quality Planning and Project Kickoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290

Quality and Risk 291

11.1 Development of Contemporary Quality Concepts 292 11.1a Quality Gurus 292 / 11.1b Total Quality Management/Malcolm Baldrige 293 /

11.1c ISO 9001:2008 293 / 11.1d Lean Six Sigma 295

11.2 Core Project Quality Concepts 296 11.2a Stakeholder Satisfaction 296 / 11.2b Process Management 297 / 11.2c Fact-Based

Management 299 / 11.2d Empowered Performance 301 / 11.2e Summary of Core Concepts 302

11.3 Plan Quality Management 302 11.3a Quality Policy 303 / 11.3b Quality Management Plan Contents 305 /

11.3c Quality Baseline 305 / 11.3d Process Improvement Plan 305 / 11.3e Quality Assurance 305 / 11.3f Control Quality 306

11.4 Project Quality Tools 306

11.5 Develop Project Management Plan 306 11.5a Resolve Conflicts 307 / 11.5b Establish Configuration Management 308 /

11.5c Apply Sanity Tests to All Project Plans 308

11.6 Kickoff Project 308 11.6a Preconditions to Meeting Success 309 / 11.6b Meeting Activities 309

11.7 Baseline and Communicate Project Management Plan 309

11.8 Using MS Project for Project Baselines 311 11.8a Baseline the Project Plan 311 / 11.8b First Time Baseline 312 / 11.8c Subsequent

Baselines 312

Summary 312

Key Terms from the PMBOK® Guide 313 Chapter Review Questions 313

Discussion Questions 314

Exercises 314

PMBOK® Guide Questions 314

x Contents

Example Project 315

References 316

Endnotes 316

Project Management in Action: Quality Planning at GTC 317

PART 3 Performing Projects

CHAPTER 12 Project Supply Chain Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 320

12.1 Introduction to Project Supply Chain Management 322 12.1a SCM Components 323 / 12.1b SCM Factors 323 / 12.1c SCM Decisions 324 /

12.1d Project Procurement Management Processes 324

12.2 Plan Procurement Management 324 12.2a Outputs of Planning 325 / 12.2b Make-or-Buy Decisions 325

12.3 Conduct Procurements 327 12.3a Sources for Potential Suppliers 327 / 12.3b Information for Potential Suppliers 327 /

12.3c Approaches Used When Evaluating Prospective Suppliers 328 / 12.3d Supplier Selection 329

12.4 Contract Types 331 12.4a Fixed-Price Contracts 331 / 12.4b Cost-Reimbursable Contracts 332 /

12.4c Time and Material (T&M) Contracts 333

12.5 Control Procurements 334

12.6 Improving Project Supply Chains 334 12.6a Project Partnering and Collaboration 334 / 12.6b Third Parties 338 / 12.6c Lean

Purchasing 338 / 12.6d Sourcing 338 / 12.6e Logistics 339 / 12.6f Information 339

Summary 339

Key Terms from the PMBOK® Guide 340 Chapter Review Questions 340

Discussion Questions 340

PMBOK® Guide Questions 341 Exercises 341

Example Project 342

References 342

Endnotes 343

Project Management in Action: Implications for Project Management in a Networked Organization Model 343

CHAPTER 13 Leading and Managing Project Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 346

13.1 Acquire Project Team 348 13.1a Preassignment of Project Team Members 348 / 13.1b Negotiation for Project Team

Members 349 / 13.1c On-Boarding Project Team Members 350

13.2 Develop Project Team 350 13.2a Stages of Project Team Development 351 / 13.2b Characteristics of High-Performing

Project Teams 353 / 13.2c Assessing Individual Member Capability 355 / 13.2d Assessing Project Team Capability 355 / 13.2e Building Individual and Project Team Capability 358 / 13.2f Establishing Project Team Ground Rules 360

Contents xi

13.3 Manage Project Team 364 13.3a Project Manager Power and Leadership 364 / 13.3b Assessing Performance of

Individuals and Project Teams 366 / 13.3c Project Team Management Outcomes 366

13.4 Manage and Control Stakeholder Engagement 367

13.5 Managing Project Conflicts 369 13.5a Sources of Project Conflict 369 / 13.5b Conflict Resolution Process and Styles 370 /

13.5c Negotiation 371

Summary 372

Key Terms from the PMBOK® Guide 373 Chapter Review Questions 373

Discussion Questions 374

PMBOK® Guide Questions 374 Example Project 375

References 375

Endnotes 376

Project Management in Action: Centralizing Planning and Control in a Large Company After Many Acquisitions 377

CHAPTER 14 Determining Project Progress and Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 380

14.1 Project Balanced Scorecard Approach 382

14.2 Internal Project Issues 383 14.2a Direct and Manage Project Work 383 / 14.2b Monitor and Control Project

Work 385 / 14.2c Monitoring and Controlling Project Risk 387 / 14.2d Manage Communications 388 / 14.2e Control Communications 391

14.3 Customer Issues 392 14.3a Perform Quality Assurance 392 / 14.3b Control Quality 393

14.4 Financial Issues 400 14.4a Control Scope 400 / 14.4b Control Schedule and Costs 401 / 14.4c Earned Value

Management for Controlling Schedule and Costs 401

14.5 Using MS Project to Monitor and Control Projects 405 14.5a What Makes a Schedule Useful? 405 / 14.5b How MS Project Recalculates the

Schedule Based on Reported Actuals 405 / 14.5c Current and Future Impacts of Time and Cost Variance 406 / 14.5d Define the Performance Update Process 406 / 14.5e Steps to Update the Project Schedule 406

14.6 Replanning if Necessary 410

Summary 411

Key Terms from the PMBOK® Guide 412 Chapter Review Questions 412

Discussion Questions 412

PMBOK® Guide Questions 413 Exercises 414

Example Project 415

References 415

Endnotes 416

Project Management in Action: Controlling, Monitoring, and Reporting Projects at a Major Medical Center 416

xii Contents

CHAPTER 15 Finishing the Project and Realizing the Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 420

15.1 Validate Scope 422

15.2 Close Procurements 424 15.2a Terminate Projects Early 424

15.3 Close Project 425 15.3a Write Transition Plan 425 / 15.3b Knowledge Management 426 / 15.3c Create

the Closeout Report 430

15.4 Post-Project Activities 430 15.4a Reassign Workers 430 / 15.4b Celebrate Success and Reward Participants 430 /

15.4c Provide Ongoing Support 431 / 15.4d Ensure Project Benefits Are Realized 431

15.5 Using MS Project for Project Closure 431

Summary 432

Key Terms from the PMBOK® Guide 432 Chapter Review Questions 432

Discussion Questions 433

PMBOK® Guide Questions 433 Exercises 434

Example Project 434

References 434

Endnotes 435

Project Management in Action: The Power of Lessons Learned 436

Appendix A PMP® and CAPM® Exam Prep Suggestions . . . . . . . . . . . . . . . . . . . . . . . 439 Appendix B Strengths Themes as Used in Project Management (available on the

textbook companion site) Glossary Terms from the PMBOK® Guide . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443 Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 451

PROJECT DELIVERABLES CHAPTER

Project Customer Tradeoff Matrix 1

Project Success Definition 1

Project SWOT Analysis 2

Project Elevator Pitch 2

Project Selection/Prioritization 2

Project Resource Assignment 2

Project Source Selection 2

Project Charter 4

Stakeholder Prioritization 5

Stakeholder Register 5

Project Communications Matrix 5

Project Meeting Agenda 5

Project Meeting Minutes 5

Contents xiii

PROJECT DELIVERABLES CHAPTER

Project Issues Log 5

Project Meeting Evaluation 5

Project Requirements Traceability Matrix 6

Project Scope Statement 6

Work Breakdown Structure 6

Change Request 6

Activity List 7

Network-Based Schedule 7

Gantt Chart Schedule 7

Project RACI Chart 8

Resource Histogram for Resolving Overloads 8

Project Crashing 8

Project Budget Aggregation 9

Project Risk Register 10

Project SIPOC 11

Project Quality Plan 11

Project Supplier Selection 12

Project Member Assessment 13

Project Team Assessment 13

Project Progress Report 14

Earned Value Analysis 14

Project Customer Feedback 15

xiv Contents

Preface

While project managers today still need to use many techniques that have stood the test of twenty to fifty years, they increasingly also need to understand the business need for a project, sort through multiple conflicting stakeholder demands, and know how to deal with rapid change, a myriad of communication issues, global and virtual project teams, modern approaches to quality improvement, and many other issues that are more chal- lenging than in projects of previous times.

Contemporary project management utilizes the tried-and-true project management techniques along with modern improvements such as the most current versions of Microsoft® Project Professional 2013 and the fifth edition of the Guide to the Project Management Body of Knowledge (PMBOK® Guide). Contemporary project management also uses many tools and understandings that come from modern approaches to quality and communications, expanded role definitions, leadership principles, human strengths, agile planning and execution, and many other sources. Contemporary project manage- ment is scalable, using simple versions of important techniques on small projects and more involved versions on more complex projects.

Distinctive Approach This book covers the topics of contemporary project management. It was also developed using contemporary project management methods. For example, when considering the topic of dealing with multiple stakeholders, every chapter was reviewed by students, practitioners, and academics. This allowed student learning, practitioner realism, and ac- ademic research and teaching perspectives to be simultaneously considered.

The practical examples and practitioner reviewers came from many industries and from many sizes and types of projects to promote the scalability and universality of con- temporary project management techniques.

New to This Edition

• Agile approach. The agile approach to project planning and management in which planning and implementing are done incrementally is introduced in Chapter 1. Throughout the book when the agile approach is different from the traditional, a margin icon and alternate color print are used to emphasize the difference. In this book’s contemporary approach to project management in practice, agile and tradi- tional are both used extensively.

• Updated to reflect the fifth edition of the PMBOK® Guide. All fifth edition PMBOK® Guide knowledge areas and processes are specifically included. The end of each chapter now contains ten PMBOK® Guide-type questions that are typical of what would be seen on PMP® and CAPM® exams. Appendix A gives study suggestions for the CAPM® and PMP® exams.

• New examples throughout the text. Each chapter starts with a motivating example for why the student would want to read the chapter and ends with an example of how a company actually used some tools and/or concepts from the chapter. There are many smaller examples throughout each chapter that illustrate specific points. Many of these are new examples from around the world and from many different industries such as the Fiesta® San Antonio Commission (Texas) and an IT rollout

xv

within a system of regional schools in Germany (Chapter 5); the rollout of a project management tool to a South African banking group (Chapter 7); the Panama Canal expansion (Chapter 10); the determination of supplier ratings at General Tool Company in Ohio (Chapter 11); and the control, monitoring, and reporting of projects at Cincinnati Children’s Hospital Medical Center (Chapter 14).

• Microsoft® Project Professional 2013 fully integrated into the fabric of eight chapters. Though techniques are demonstrated in a by-hand fashion, a demonstra- tion of how to automate them using Microsoft® Project Professional 2013 is shown in a step-by-step manner with numerous screen captures. On all screen captures, critical path activities are shown in contrasting color for emphasis.

• Project deliverables. A list of project deliverables that can be used for students assignments are included after the expanded table of contents. Many instructors may choose some but not all of these depending on class organization.

• Templates. Electronic templates for many of the techniques (student deliverables) are available on the textbook companion website. These Microsoft® Word and Excel documents can be downloaded and filled in for ease of student learning and for consistency of instructor grading.

Distinctive Features • PMBOK® Guide approach. This consistency with the established standard gives

students a significant leg up if they decide to become certified Project Management Professionals (PMPs®) or Certified Associates in Project Management (CAPMs®). All glossary definitions are from the PMBOK® Guide.

• Actual project as learning vehicle. One section at the end of each chapter lists deliverables for students to create (in teams or individually) for a real project. These assignments have been refined over the last decade while working with the local PMI® chapter, which provides a panel of PMP® judges to evaluate projects from a practical point of view. Students are encouraged to keep clean copies of all deliver- ables so they can demonstrate their project skills in job interviews. A listing of these deliverables is included after the detailed table of contents.

• Student oriented, measurable learning objectives. Each chapter begins with a listing of the most important points students should learn and identifies the PMBOK® topics covered in the chapter. The chapter material, end-of-chapter questions and problems, PowerPoint® slides, and test questions have all been updated to correlate to specific objectives.