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Contemporary Project Management
Timothy J. Kloppenborg •
Vittal Anantatmula •
Kathryn N. Wells
F O U R T H E D I T I O N
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
MS Project 2016 Instructions in Contemporary Project Management 4e
Chapter MS Project
3 MS Project 2016 Introduction
Ribbon, Quick Access Toolbar, view panes, Zoom Slider, Shortcuts, Scheduling Mode Selector
Setting Up Your First Project
Auto schedule, start date, identifying information, summary row
Create Milestone Schedule
Key milestones, zero duration, must finish on, information
7 Set Up a Work Breakdown Structure (WBS)
Understand the WBS definitions and displays
Enter WBS Elements (tasks), Create the outline,
Insert WBS Code Identifier column, Hide or show subtasks detail
8 Using MS Project for Critical Path Schedules
Set Up the Project Schedule
Set or update the project start date, Define organization’s working and nonworking time
Build the Network Diagram and Identify the Critical Path
Enter tasks and milestones, edit the timescale, understand and define task dependencies, assign task duration estimates, identify the critical path, understand the network diagram view
Display and Print Schedules
9 Define Resources
Resource views, max units, resource calendars
Assigning Resources
Basic assignment, modify an assignment
Identify Overallocated Resources
Resource usage and Detailed Gantt views together
Overallocated Resources
Finding overallocated resources, dealing with overallocations
Crashing a Critical Path Activity
10 Develop Bottom-up Project Budget
Assignment costs, task costs, various cost perspectives
Develop Summary Project Budget
12 Baseline the Project Plan
First time baseline, subsequent baselines, viewing variances
14 Using MS Project to Monitor and Control Projects
What Makes a Schedule Useful?
How MS Project recalculates based on reported actuals, current and future impacts of variances, define the performance update process (who, what, when)
Steps to Update the Project Schedule
Acquire performance data, set and display status date, Enter duration-based performance data, reschedule remaining work, revise future estimates
15 Close Project
Creating project progress reports, sharing reports, export a report to MS Excel, archive project work, capture and publish lessons learned
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
PMBOK® Guide 6e Coverage in Contemporary Project Management 4e The numbers refer to the text page where the process is defined. Project management (PM) processes and knowledge areas 10–11 Project life cycle 7–10, 62–64 Projects and strategic planning 33–37 Organizational influences 102–110 Portfolio and program management 37–42
PMBOK® Guide, 6th 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 60–79
Develop Project Management Plan 409–410
Direct and Manage Project Work 459–460 Manage Project Knowledge 192–193, 504–508
Monitor and Control Project Work 460–462 Perform Integrated Change Control 229–232, 462–463
Close Project or Phase 503, 508–511
Project Scope Management
Plan Scope Management 211–212 Collect Requirements 212–216 Define Scope 216–220 Create WBS 220–229
Validate Scope 500–501 Control Scope 475–476
Project Schedule Management
Plan Schedule Management 246 Define Activities 249–253 Sequence Activities 253–255 Estimate Activity Durations 255–258 Develop Schedule 259–267
Control Schedule 476–480
Project Cost Management
Plan Cost Management 329–330 Estimate Costs 330–341 Determine Budget 342–344
Control Costs 345, 476–480
Project Quality Management
Plan Quality Management 401–404 Manage Quality 404–406, 469–474
Control Quality 406–409, 469–474
Project Resources Management
Plan Resource Management 290–295 Estimate Activity Resources 290
Aquire Resources 138–141 Develop Team 141–157 Manage Team 157–161
Control Resources 476
Project Com- munications Management
Plan Communications Management 188–192
Manage Communications 193–199, 465–467
Monitor Communications 467–468
Project Risk Management
Plan Risk Management 360–366 Identify Risks 75, 366–368 Perform Qualitative Risk Analysis 75, 368–372 Perform Quantitative Risk Analysis 372–373 Plan Risk Responses 75, 373–377
Implement Risk Responses 464–465
Monitor Risks 463–464
Project Procurement Management
Plan Procurement Management 431–433, 438–441
Conduct Procurements 434–438
Control Procurments 441
Project Stake- holder Management
Identify Stakehold- ers 75–77, 178–184
Plan Stakeholder Engagement 184–186 Manage Stakeholder Engagement 187–188
Monitor Stakeholder Engagement 188
Source: Adapted from A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 6th ed. (Newtown Square, PA: Project Management Institute, Inc., 2017): 31.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contemporary Project Management ORGANIZE LEAD PLAN PERFORM
FOURTH EDITION
TIMOTHY J. KLOPPENBORG Xavier University
VITTAL ANANTATMULA Western Carolina University
KATHRYN N. WELLS Keller Williams Real Estate
Australia • Brazil • Mexico • Singapore • United Kingdom • United States
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest.
Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contemporary Project Management, Fourth Edition
Timothy J. Kloppenborg
2019 2015
Cengage Learning Customer & Sales Support, 1-800-354-9706
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2017947974
978 1 337 40645 1
Cengage Learning 20
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40 125
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Printed in the United States of America Print Number: 01 Print Year: 2017
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
MS Project 2016 Instructions in Contemporary Project Management 4e
Chapter MS Project
3 MS Project 2016 Introduction
Ribbon, Quick Access Toolbar, view panes, Zoom Slider, Shortcuts, Scheduling Mode Selector
Setting Up Your First Project
Auto schedule, start date, identifying information, summary row
Create Milestone Schedule
Key milestones, zero duration, must finish on, information
7 Set Up a Work Breakdown Structure (WBS)
Understand the WBS definitions and displays
Enter WBS Elements (tasks), Create the outline,
Insert WBS Code Identifier column, Hide or show subtasks detail
8 Using MS Project for Critical Path Schedules
Set Up the Project Schedule
Set or update the project start date, Define organization’s working and nonworking time
Build the Network Diagram and Identify the Critical Path
Enter tasks and milestones, edit the timescale, understand and define task dependencies, assign task duration estimates, identify the critical path, understand the network diagram view
Display and Print Schedules
9 Define Resources
Resource views, max units, resource calendars
Assigning Resources
Basic assignment, modify an assignment
Identify Overallocated Resources
Resource usage and Detailed Gantt views together
Overallocated Resources
Finding overallocated resources, dealing with overallocations
Crashing a Critical Path Activity
10 Develop Bottom-up Project Budget
Assignment costs, task costs, various cost perspectives
Develop Summary Project Budget
12 Baseline the Project Plan
First time baseline, subsequent baselines, viewing variances
14 Using MS Project to Monitor and Control Projects
What Makes a Schedule Useful?
How MS Project recalculates based on reported actuals, current and future impacts of variances, define the performance update process (who, what, when)
Steps to Update the Project Schedule
Acquire performance data, set and display status date, Enter duration-based performance data, reschedule remaining work, revise future estimates
15 Close Project
Creating project progress reports, sharing reports, export a report to MS Excel, archive project work, capture and publish lessons learned
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
PMBOK® Guide 6e Coverage in Contemporary Project Management 4e The numbers refer to the text page where the process is defined. Project management (PM) processes and knowledge areas 10–11 Project life cycle 7–10, 62–64 Projects and strategic planning 33–37 Organizational influences 102–110 Portfolio and program management 37–42
PMBOK® Guide, 6th 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 60–79
Develop Project Management Plan 409–410
Direct and Manage Project Work 459–460 Manage Project Knowledge 192–193, 504–508
Monitor and Control Project Work 460–462 Perform Integrated Change Control 229–232, 462–463
Close Project or Phase 503, 508–511
Project Scope Management
Plan Scope Management 211–212 Collect Requirements 212–216 Define Scope 216–220 Create WBS 220–229
Validate Scope 500–501 Control Scope 475–476
Project Schedule Management
Plan Schedule Management 246 Define Activities 249–253 Sequence Activities 253–255 Estimate Activity Durations 255–258 Develop Schedule 259–267
Control Schedule 476–480
Project Cost Management
Plan Cost Management 329–330 Estimate Costs 330–341 Determine Budget 342–344
Control Costs 345, 476–480
Project Quality Management
Plan Quality Management 401–404 Manage Quality 404–406, 469–474
Control Quality 406–409, 469–474
Project Resources Management
Plan Resource Management 290–295 Estimate Activity Resources 290
Aquire Resources 138–141 Develop Team 141–157 Manage Team 157–161
Control Resources 476
Project Com- munications Management
Plan Communications Management 188–192
Manage Communications 193–199, 465–467
Monitor Communications 467–468
Project Risk Management
Plan Risk Management 360–366 Identify Risks 75, 366–368 Perform Qualitative Risk Analysis 75, 368–372 Perform Quantitative Risk Analysis 372–373 Plan Risk Responses 75, 373–377
Implement Risk Responses 464–465
Monitor Risks 463–464
Project Procurement Management
Plan Procurement Management 431–433, 438–441
Conduct Procurements 434–438
Control Procurments 441
Project Stake- holder Management
Identify Stakehold- ers 75–77, 178–184
Plan Stakeholder Engagement 184–186 Manage Stakeholder Engagement 187–188
Monitor Stakeholder Engagement 188
Source: Adapted from A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 6th ed. (Newtown Square, PA: Project Management Institute, Inc., 2017): 31.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Brief Contents
Preface xx About the Authors xxix
PART 1 Organizing Projects 1 Introduction to Project Management 2
2 Project Selection and Prioritization 32
3 Chartering Projects 60
PART 2 Leading Projects 4 Organizational Capability: Structure, Culture, and Roles 100
5 Leading and Managing Project Teams 136
6 Stakeholder Analysis and Communication Planning 176
PART 3 Planning Projects 7 Scope Planning 210
8 Scheduling Projects 244
9 Resourcing Projects 286
10 Budgeting Projects 328
11 Project Risk Planning 358
12 Project Quality Planning and Project Kickoff 386
PART 4 Performing Projects 13 Project Supply Chain Management 426
14 Determining Project Progress and Results 456
15 Finishing the Project and Realizing the Benefits 498
Appendix A PMP and CAPM Exam Prep Suggestions 522 Appendix B Agile Differences Covered 527 Appendix C Answers to Selected Exercises 532 Appendix D Project Deliverables 537 Appendix E Strengths Themes As Used in Project Management [Available Online]
Index 539
v Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Requirements Documents
13.1 Identify Stakeholders
Stakeholder
Register Stakeholder Engagement
Assessment Matrix
Integration
Scope
Schedule
Cost
Quality
Resources
Communication
Risk
Procurement
Stakeholders
12.1 Plan Procurement Management
11.1 Plan Risk
Management
10.1 Plan Communications
Management
9.1 Plan Resource
Management
8.1 Plan Quality
Management
7.1 Plan Cost
Management
6.1 Plan Schedule
Management
5.1 Plan Scope
Management
Duration
Estimates
Scope Statement
Activity List
Milestone List
Network
4.1 Develop Project Charter
Charter
Assumptions Log
Cost Baseline
Resource Requirements
RACI Team
Charter
Quality Mgt. Plan
Communications Matrix
Risk Register
Bid Documents Make or Buy
Analysis
6.5 Develop Schedule
Schedule Baseline
5.2 Collect Requirements
5.4 Create WBS
Scope
4.2 Develop Project Management Plan
Activities
9.2 Estimate Activity
Resources
11.2 Identify Risks
11.3 Perform Qualitative
Risk Analysis
11.4 Perform Quantitative Risk Analysis
11.5 Plan Risk
Responses
13.2 Plan Stakeholders Engagement
6.4 Estimate activity
Durations
7.3 Determine Budget
7.2 Estimate Costs
6.3 Sequence Activities
1.2 Foundational Elements
2.4 Organizational Systems
3.4 Project Manager Competencies Selecting Projects
Project Customer Tradeoff Matrix
Life Cycle and Development Approach Elevator Pitch
Leader Roles and Responsibilities Project Selection and Prioritization Matrix Project Resource Assignment Matrix
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
11.6 Implement Risk Responses
13.3 Manage Stakeholder Engagement
13.4 Monitor Stakeholder Engagement
4.3 Direct and Manage Project Work
4.4 Manage Project Knowledge
Scope Baseline with WBS
Resource Histogram Project Crashing
Retrospectives
Closure Documents Customer Feedback Transition Plan
Scope Backlog
Burn Down/Up
Charts
Quality Reports
s Analysis
Realizing s
PM Plan Baselines Life Cycle and Development Approach 4.7 Close Project
or Phase
6.6 Control Schedule
Earned Value Analysis
7.4 Control Costs
5.6 Control Scope
5.5 Validate Scope
8.2 Manage Quality
9.3 Acquire Resources
9.4 Develop Team
9.6 Control Resources
9.5 Manage Team
8.3 Control Quality
Change Requests
10.2 Manage Communications
11.7 Monitor Risks
10.3 Monitor Communications
Team Assignments
Team Assessments
Agendas Minutes
Issues Log Meeting Evaluation Progress Report
12.2 Conduct Procurements
12.3 Control Procurements
Source Selection
Matrix
Lessons Learned Register
Quality Measurements
4.6 Perform Integrated
Change Control
4.5 Monitor and Control
Project Work
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contents
Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xx About the Authors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xxix
PART 1 Organizing Projects
CHAPTER 1 Introduction to Project Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.1 What Is a Project? 3
1.2 History of Project Management 5
1.3 How Can Project Work Be Described? 6 1.3a Projects versus Operations 6 / 1.3b Soft Skills and Hard Skills 7 / 1.3c Authority
and Responsibility 7 / 1.3d Project Life Cycle 7
1.4 Understanding Projects 10 1.4a Project Management Institute 10 / 1.4b Project Management Body of Knowledge
(PMBOK®) 10 / 1.4c The PMI Talent Triangle 11 / 1.4d Selecting and Prioritizing Projects 14 / 1.4e Project Goals and Constraints 14 / 1.4f Defining Project Success and Failure 15 / 1.4g Using Microsoft Project to Help Plan and Measure Projects 16 / 1.4h Types of Projects 16 / 1.4i Scalability of Project Tools 17
1.5 Project Roles 17 1.5a Project Executive-Level Roles 18 / 1.5b Project Management-Level Roles 19 /
1.5c Project Associate-Level Roles 20
1.6 Overview of the Book 20 1.6a Part 1: Organizing and Initiating Projects 20 / 1.6b Part 2: Leading Projects 21 /
1.6c Part 3: Planning Projects 21 / 1.6d Part 4: Performing Projects 23
PMP/CAPM Study Ideas 23
Summary 24
Key Terms Consistent with PMI Standards and Guides 24
Chapter Review Questions 25
Discussion Questions 25
PMBOK® Guide Questions 26 Integrated Example Projects 27
Suburban Homes Construction Project 27
Casa DE PAZ Development Project 28
Semester Project Instructions 28
Project Management in Action 29
References 30
Endnotes 31
viii Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).
Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
CHAPTER 2 Project Selection and Prioritization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 2.1 Strategic Planning Process 33
2.1a Strategic Analysis 33 / 2.1b Guiding Principles 34 / 2.1c Strategic Objectives 36 / 2.1d Flow-Down Objectives 37
2.2 Portfolio Management 37 2.2a Portfolios 38 / 2.2b Programs 39 / 2.2c Projects and Subprojects 39 /
2.2d Assessing an Organization’s Ability to Perform Projects 42 / 2.2e Identifying Potential Projects 42 / 2.2f Using a Cost-Benefit Analysis Model to Select Projects 43 / 2.2g Using a Scoring Model to Select Projects 45 / 2.2h Prioritizing Projects 48 / 2.2i Resourcing Projects 48
2.3 Securing Projects 49 2.3a Identify Potential Project Opportunities 50 / 2.3b Determine Which Opportunities to
Pursue 50 / 2.3c Prepare and Submit a Project Proposal 51 / 2.3d Negotiate to Secure the Project 51
PMP/CAPM Study Ideas 52
Summary 52
Key Terms Consistent with PMI Standards and Guides 52
Chapter Review Questions 53
Discussion Questions 53
PMBOK® Guide Questions 53 Exercises 54
Integrated Example Projects 55
Casa DE PAZ Development Project 56
Semester Project Instructions 56
Project Management in Action 57
References 58
Endnotes 59
CHAPTER 3 Chartering Projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 3.1 What Is a Project Charter? 62
3.2 Why Is a Project Charter Used? 63
3.3 When Is a Charter Needed? 64
3.4 Typical Elements in a Project Charter 65 3.4a Title 65 / 3.4b Scope Overview 65 / 3.4c Business Case 66 /
3.4d Background 66 / 3.4e Milestone Schedule with Acceptance Criteria 66 / 3.4f Risks, Assumptions, and Constraints 67 / 3.4g Resource Estimates 69 / 3.4h Stakeholder List 69 / 3.4i Team Operating Principles 69 / 3.4j Lessons Learned 70 / 3.4k Signatures and Commitment 70
3.5 Constructing a Project Charter 70 3.5a Scope Overview and Business Case Instructions 70 / 3.5b Background
Instructions 71 / 3.5c Milestone Schedule with Acceptance Criteria Instructions 72 / 3.5d Risks, Assumptions, and Constraints Instructions 75 / 3.5e Resources Needed Instructions 75 / 3.5f Stakeholder List Instructions 75 /
Contents ix
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
3.5g Team Operating Principles Instructions 77 / 3.5h Lessons Learne
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