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In the earliest stages of the just-in-time training project, which task is completed first?

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An Introduction to


Project Management, Fourth Edition


Cover Photo: Dan Schwalbe


©2012 Kathy Schwalbe, LLC ISBN-10: 0982800339 ISBN-13: 978-098-0-982003-3-1 eBook ISBN: 978-1-63001-985-3


ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced, transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the author. Materials from Kathy Schwalbe’s Information Technology Project Management, Sixth Edition, are used with permission from Cengage Learning. Microsoft and the Office logo are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. All screenshots from Microsoft products are used with permission from Microsoft. Information and screenshots from AtTask are used with permission from AtTask, Inc. Information and screenshots from MindView Business are used with permission from MatchWare. Some of the product names and company names used in this book have been used for identification purposes only and may be trademarks or registered trademarks of their respective manufacturers and sellers.


The material that is reprinted from the PMBOK® Guide, Fifth Edition (©2013 Project Management Institute, Inc., all rights reserved) is used with permission of the Project Management Institute, Inc., 14 Campus Boulevard, Newtown Square, PA 19073- 3299, USA. Phone: (610)356-4600. PMI, PMP, and PMBOK are registered marks of the Project Management Institute, Inc. Published by Kathy Schwalbe, LLC in Minneapolis, MN, July 2012. Minor corrections made in February 2013. Book stores should email schwalbe@augsburg.edu to place orders. Also available from www.amazon.com. Free companion Web site: www.intropm.com Visit www.kathyschwalbe.com for more information on this and other books by Kathy Schwalbe.


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BRIEF TABLE OF CONTENTS Chapter 1 An Introduction to Project, Program, and Portfolio Management Chapter 2 Project, Program, and Portfolio Selection Chapter 3 Initiating Projects Chapter 4 Planning Projects, Part I (Project Integration, Scope, Time, and Cost Management) Chapter 5 Planning Projects, Part II (Project Quality, Human Resource, Communications, Stakeholder, Risk, and Procurement Management) Chapter 6 Executing Projects Chapter 7 Monitoring and Controlling Projects Chapter 8 Closing Projects Chapter 9 Best Practices in Project Management Appendix A Brief Guide to Microsoft Project 2010 Appendix B Brief Guide to AtTask Appendix C Resources Glossary


DETAILED TABLE OF CONTENTS Chapter 1: An Introduction To Project, Program, And Portfolio Management Introduction What Is A Project?


Examples Of Projects Project Attributes Project Constraints


What Is Project Management? Project Stakeholders Project Management Process Groups And Knowledge Areas Project Management Tools And Techniques Project Success


Program And Project Portfolio Management Programs Project Portfolio Management


The Project Management Profession Suggested Skills For Project, Program, And Portfolio Managers Importance Of Leadership Skills Project Management Certification Ethics In Project Management Project Management Software


Chapter Summary Quick Quiz


Quick Quiz Anwers Discussion Questions Exercises Team Projects Key Terms End Notes Chapter 2: Project, Program, And Portfolio Selection Aligning Projects With Business Strategy


Strategic Planning SWOT Analysis


Four-Stage Planning Process For Project Selection


Methods For Selecting Projects Focusing On Competitive Strategy And Broad Organizational Needs Performing Financial Projections


Net Present Value Analysis Return On Investment Payback Analysis Using A Weighted Scoring Model


Implementing A Balanced Scorecard Addressing Problems, Opportunities, And Directives Project Time Frame Project Priority


Program Selection Focusing On Coordination And Benefits Approaches To Creating Programs


Project Portfolio Selection Sample Approach For Creating A Project Portfolio Five Levels Of Project Portfolio Management


Chapter Summary Quick Quiz


Quick Quiz Answers Discussion Questions Exercises Key Terms End Notes Chapter 3: Initiating Projects Project Management Process Groups


Mapping The Process Groups To The Knowledge Areas Developing A Project Management Methodology The Importance Of Top Management Commitment The Need For Organizational Standards


PreInitiating And Initiating Global Construction’s Just-In-Time Training Project PreInitiating Processes And Outputs


Contents Of A Business Case Sample Business Case


Initiating Processes And Outputs Identifying Stakeholders Sample Stakeholder Register And Stakeholder Analysis Creating A Project Charter Contents Of A Project Charter Sample Project Charter Holding A Project KickOff Meeting Sample KickOff Meeting Agenda


Chapter Summary Quick Quiz


Quick Quiz Answers Discussion Questions Exercises Team Projects Key Terms End Notes Chapter 4: Planning Projects, Part 1 Introduction Project Planning Should Guide Project Execution Summary Of Planning Processes And Outputs Project Integration Management


Team Contracts Sample Team Contract Project Management Plans Sample Project Management Plan


Project Scope Management Planning Scope Management Develop A Scope Management Plan And Requirements Management Plan Sample Requirements Management Plan Collecting Requirements Sample Requirements Traceability Matrix Defining Scope Sample Scope Statement Creating The Work Breakdown Structure Approaches To Developing Work Breakdown Structures


Using Guidelines The Analogy Approach The Top-Down Approach The BottomUp Approach Mind Mapping


Sample WBS Creating The WBS Dictionary Sample WBS Dictionary Entry


Project Time Management Planning Schedule Management Defining Activities Creating The Activity List And Attributes Sample Activity List And Attributes Creating A Milestone List Sample Milestone List Sequencing Activities Project Schedule Network Diagrams Estimating Activity Resources Sample Activity Resource Requirements Estimating Activity Duration Sample Activity Duration Estimates Developing The Project Schedule Critical Path Analysis


Calculating The Critical Path Growing Grass Can Be On The Critical Path Using Critical Path Analysis To Make Schedule Trade-Offs Importance Of Updating Critical Path Data


Critical Chain Scheduling Sample Project Schedule


Project Cost Management Planning Cost Management Estimating Costs Cost Estimation Tools And Techniques Sample Cost Estimate Cost Budgeting Sample Cost Baseline


Chapter Summary Quick Quiz


Quick Quiz Answers Discussion Questions Exercises Team Projects Key Terms End Notes Chapter 5: Planning Projects, Part 2 Introduction Summary Of Planning Processes And Outputs Project Quality Management


Planning Quality Management Sample Quality Management Plan Quality Metrics Sample Project Dashboard And Quality Metrics Description Quality Checklists Sample Quality Checklist


Project Human Resource Management Project Organizational Charts Sample Project Organizational Chart Responsibility Assignment Matrices Sample Responsibility Assignment Matrix Resource Histograms Sample Resource Histogram Staffing Management Plans Sample Staffing Management Plan


Project Communications Management Communications Management Plans Sample Communications Management Plan Project Web Sites Sample Project Web Site


Project Stakeholder Management Project Risk Management


Planning Risk Management Sample Risk Management Plan


Identifying Risks Performing Qualitative Risk Analysis Sample Probability/Impact Matrix Performing Quantitative Risk Analysis Planning Risk Responses Risk Registers Sample Risk Register Risk-Related Contract Decisions Sample Risk-Related Contract Decisions


Project Procurement Management Make-Or-Buy Decisions Sample Make-Or-Buy Decision Procurement Management Plans Types Of Contracts Sample Procurement Management Plan Procurements Documents: Requests For Proposals Or Quotes Sample Requests For Proposal Contract Statements Of Work Sample Contract Statement Of Work Source Selection Criteria And The Supplier Evaluation Matrices Sample Supplier Evaluation Matrix


Chapter Summary Quick Quiz


Quick Quiz Answers Discussion Questions Exercises Team Projects Key Terms End Notes Chapter 6: Executing Projects Introduction Summary Of Executing Processes And Outputs Project Integration Management


Deliverables Sample Deliverables Work Performance Data


Sample Work Performance Data Change Requests Sample Change Request Implemented Solutions To Problems Sample Implemented Solutions To Problems


Issues With Competence And Motivation Poor Conflict Management


Project Quality Management Quality Assurance Techniques Sample Quality Assurance Technique: Cause And Effect Diagram


Project Human Resource Management Motivation


Maslow’s Hierarchy Of Needs Herzberg’s Motivation-Hygiene Theory Mcclelland’s Acquired-Needs Theory Mcgregor’s Theory X And Theory Y Thamhain And Wilemon’s Influence Bases Covey’s Effectiveness Research


Acquiring The Project Team And Making Project Staff Assignments Resource Loading And Leveling Sample Project Staff Assignments Developing The Project Team And Assessing Team Performance Training Team-Building Activities Reward And Recognition Systems Sample Team Performance Assessment Managing The Project Team General Advice On Managing Teams


Project Communications Management Important Project Communications Concepts


Formal And Informal Communications Nonverbal Communications Using The Appropriate Communications Medium


Understanding Individual And Group Communication Needs The Impact Of Team Size On Project Communications


Project Communications And Updating Business Processes Sample Updates To Business Processes


Project Stakeholder Management Managing Stakeholder Engagement Sample Issue Log Sample Issue Log


Project Procurement Management Conducting Procurements Sample Qualified Seller List Sample Agreement Or Contract


Chapter Summary Quick Quiz


Quick Quiz Answers Discussion Questions Exercises Team Projects Key Terms End Notes Chapter 7: Monitoring and Controlling Projects Introduction Summary Of Monitoring And Controlling Processes And Outputs Project Integration Management


Monitoring And Controlling Project Work Forecasting With Earned Value Management Sample Forecast Using An Earned Value Chart


Integrated Change Control Project Scope Management


Validating Scope Sample Of Accepted And Unaccepted Deliverables Controlling Scope


Project Time Management Sample Work Performance Information


Project Cost Management Project Quality Management


Sample Quality-Control Tools Project Communications Management


Reporting Performance Sample Performance Report


Project Stakeholder Management Project Risk Management


Sample Risk Register Updates Project Procurement Management


Suggestions For Controlling Procurements Chapter Summary Quick Quiz


Quick Quiz Answers Discussion Questions Exercises Team Projects Key Terms End Notes Chapter 8: Closing Projects Introduction Summary Of Closing Outputs Project Integration Management


Sample Customer Acceptance/Project Completion Form Sample Final Report Sample Transition Plan Sample Lessons-Learned Report Project CloseOut Meeting And Knowledge Transfer


Project Procurement Management Sample Written Notice Of A Closed Contract


Advice On Closing Projects Chapter Summary Quick Quiz


Quick Quiz Answers Discussion Questions Exercises Team Projects Key Terms


End Notes Chapter 9: Best Practices in Project Management Introduction Defining Project Management Best Practices


The Project Management Institute’s Definition Of Best Practices Ultimate Business Library Best Practices


Best Practices Of Individual Project Managers Project Management Maturity


Capability Maturity Model Integration Project Management Maturity Models Research On Project Management Maturity Ibbs’ The Value Of Project Management Research Thomas And Mullaly Research On Project Management Value Crawford And Cook-Davies Study On Best Industry Outcomes Pricewaterhouse Coopers’ Study On Boosting Business Performance


Summary Of Best Practices Mentioned In This Text Final Advice On Project Management Chapter Summary Quick Quiz


Quick Quiz Answers Discussion Questions Exercises Team Projects Key Terms End Notes Appendix A: Brief Guide to Microsoft Project 2010 Introduction Project Management Software Reviews Basic Features Of Project Management Software What’s New In Project 2010 Using Project 2010


Before You Begin Overview Of Project 2010


Starting Project 2010 And Understanding The Main Screen Elements


Using Project Help And The Project Web Site Exploring Project 2010 Using An Existing File


Project 2010 Views Project 2010 Reports Project 2010 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 Entering Task Durations


Manual And Automatic Scheduling Duration Units And Guidelines For Entering Durations


Entering Task Durations Establishing Task Dependencies Gantt Charts, Network Diagrams, And Critical Path Analysis


Project Cost And Resource Management Entering Fixed And Variable Cost Estimates


Entering Fixed Costs In The Cost Table Entering Resource Information And Cost Estimates Using The New Team Planner Feature


Entering Baseline Plans, Actual Costs, And Actual Times Viewing Earned Value Management Data Integrating Project 2010 With Other Applications


Common Reports Creating Hyperlinks To Other Files


Discussion Questions Exercises End Notes Appendix B: Brief Guide to AtTask Introduction Using AtTask For Portfolio Management


Project Portfolio Management Process Accessing And Reviewing A Sample Portfolio Before You Begin Starting AtTask Optimizing Portfolios


Getting Help In The New AtTask Creating A New Project In AtTask


Discussion Questions Exercises End Notes Appendix C: Resources Introduction Companion Web Sites


For Students For Instructors


Template Files Case Studies


Case Study 1: Real Projects Individual Homework: Project Proposal (100 Points) Individual Homework: Self Assessment (100 Points) Syllabus Description Of Team Projects


Case Study 2: New Business Venture Part 1: Initiating Part 2: Planning Part 3: Executing Part 4: Monitoring And Controlling Part 5: Closing


Case 3: Fixer Upper Part 1: Initiating Part 2: Planning Part 3: Executing Part 4: Monitoring And Controlling Part 5: Closing


Simulation Software MindView Business Software Project Management Certifications


Glossary


PREFACE The recent recession has made organizations appreciate the need for good project, program, and portfolio management skills more than ever. Many organizations, including corporations, government agencies, non-profit organizations, colleges, and universities have responded to this need by establishing courses and programs in project management. Hundreds of books are now available on this topic.


After publishing the first two editions of this book, my publisher, Course Technology, now a branch of Cengage Learning, decided not to update it. They publish other books with higher sales, including my Information Technology Project Management book, soon in its seventh edition. I personally use this text, An Introduction to Project Management, in my project management courses at Augsburg College because most of my students are not IT or CSC majors. Over 40,000 copies of all editions have been sold worldwide as of early 2012. I plan to keep updating and using this text for years to come. I thank Cengage Learning for giving me the rights to self-publish the third and fourth editions and permission to use some of the content from my other book.


What makes this book different from other project management books? First of all, people actually enjoy reading it. I get emails every week from readers like you who appreciate my straightforward, organized writing style. They like the way that I explain concepts and then provide realistic examples to help them learn to apply those concepts. Since I use this text in my own classes, I get a lot of feedback from students and see firsthand what works and does not work in a classroom setting. Several people have commented that they like the cartoons, Jeopardy games on the companion Web site, and my honest, sometimes humorous style. Project management can be a boring subject, but I think it’s one of the most exciting topics and careers, especially if you want to change the world for the better.


This text addresses the need for people in all majors and industries to understand and apply good project, program, and portfolio management. It includes many realworld examples in the “What Went Right,” “What Went Wrong,” “Media Snapshot,” and “Best Practice” segments. People like to read about real projects to learn from the successes and failures of others. They also realize that there are projects in all aspects of life, from remodeling a house to running a political campaign to developing a new software application. The fourth edition also includes a new feature called “Video Highlights.” Many people like to watch videos for learning and entertainment, so I have added some to this edition.


I’m most excited about the fact that this book provides comprehensive samples of applying various tools and techniques to a realistic project. Many people learn best by example, so I’ve provided detailed examples of applying project management to a project everyone can relate to. I have never come across a textbook that presents project management concepts and then brings them to life in a fully developed sample project. I also provide template files for creating the sample documents. I believe this approach helps many people truly understand and apply good project management.

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