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Contents
Preface
Chapter 1: Overview
1.0 Introduction
1.1 Understanding Project Management
1.2 Defining Project Success
1.3 Success, Trade-Offs, and Competing Constraints
1.4 The Project Manager–Line Manager Interface
1.5 Defining the Project Manager’s Role
1.6 Defining the Functional Manager’s Role
1.7 Defining the Functional Employee’s Role
1.8 Defining the Executive’s Role
1.9 Working with Executives
1.10 Committee Sponsorship/Governance
1.11 The Project Manager as the Planning Agent
1.12 Project Champions
1.13 The Downside of Project Management
1.14 Project-Driven versus Non–Project-Driven Organizations
1.15 Marketing in the Project-Driven Organization
1.16 Classification of Projects
1.17 Location of the Project Manager
1.18 Differing Views of Project Management
1.19 Public-Sector Project Management
1.20 International Project Management
1.21 Concurrent Engineering: A Project Management Approach
1.22 Added Value
1.23 Studying Tips for the PMI® Project Management Certification Exam
2
Answers
Problems
Chapter 2: Project Management Growth: Concepts and Definitions
2.0 Introduction
2.1 General Systems Management
2.2 Project Management: 1945–1960
2.3 Project Management: 1960–1985
2.4 Project Management: 1985–2012
2.5 Resistance to Change
2.6 Systems, Programs, and Projects: A Definition
2.7 Product versus Project Management: A Definition
2.8 Maturity and Excellence: A Definition
2.9 Informal Project Management: A Definition
2.10 The Many Faces of Success
2.11 The Many Faces of Failure
2.12 The Stage-Gate Process
2.13 Project Life Cycles
2.14 Gate Review Meetings (Project Closure)
2.15 Engagement Project Management
2.16 Project Management Methodologies: A Definition
2.17 Enterprise Project Management Methodologies
2.18 Methodologies Can Fail
2.19 Organizational Change Management and Corporate Cultures
2.20 Project Management Intellectual Property
2.21 Systems Thinking
2.22 Studying Tips for the PMI® Project Management Certification Exam
Answers
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Problems
Chapter 3: Organizational Structures
3.0 Introduction
3.1 Organizational Work Flow
3.2 Traditional (Classical) Organization
3.3 Developing Work Integration Positions
3.4 Line-Staff Organization (Project Coordinator)
3.5 Pure Product (Projectized) Organization
3.6 Matrix Organizational Form
3.7 Modification of Matrix Structures
3.8 The Strong, Weak, or Balanced Matrix
3.9 Center for Project Management Expertise
3.10 Matrix Layering
3.11 Selecting the Organizational Form
3.12 Structuring the Small Company
3.13 Strategic Business Unit (SBU) Project Management
3.14 Transitional Management
3.15 Barriers to Implementing Project Management in Emerging Markets
3.16 Seven Fallacies that Delay Project Management Maturity
3.17 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 4: Organizing and Staffing The Project Office and Team
4.0 Introduction
4.1 The Staffing Environment
4.2 Selecting the Project Manager: An Executive Decision
4.3 Skill Requirements for Project and Program Managers
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4.4 Special Cases in Project Manager Selection
4.5 Selecting the Wrong Project Manager
4.6 Next Generation Project Managers
4.7 Duties and Job Descriptions
4.8 The Organizational Staffing Process
4.9 The Project Office
4.10 The Functional Team
4.11 The Project Organizational Chart
4.12 Special Problems
4.13 Selecting the Project Management Implementation Team
4.14 Mistakes Made by Inexperienced Project Managers
4.15 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 5: Management Functions
5.0 Introduction
5.1 Controlling
5.2 Directing
5.3 Project Authority
5.4 Interpersonal Influences
5.5 Barriers to Project Team Development
5.6 Suggestions for Handling the Newly Formed Team
5.7 Team Building as an Ongoing Process
5.8 Dysfunctions of a Team
5.9 Leadership in a Project Environment
5.10 Life-Cycle Leadership
5.11 Value-Based Project Leadership
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5.12 Organizational Impact
5.13 Employee–Manager Problems
5.14 Management Pitfalls
5.15 Communications
5.16 Project Review Meetings
5.17 Project Management Bottlenecks
5.18 Cross-Cutting Skills
5.19 Active Listening
5.20 Project Problem-Solving
5.21 Brainstorming
5.22 Project Decision-Making
5.23 Predicting the Outcome of a Decision
5.24 Facilitation
5.25 Handling Negative Team Dynamics
5.26 Communication Traps
5.27 Proverbs and Laws
5.28 Human Behavior Education
5.29 Management Policies and Procedures
5.30 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 6: Management Of your time and Stress
6.0 Introduction
6.1 Understanding Time Management
6.2 Time Robbers
6.3 Time Management Forms
6.4 Effective Time Management
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6.5 Stress and Burnout
6.6 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 7: Conflicts
7.0 Introduction
7.1 Objectives
7.2 The Conflict Environment
7.3 Types of Conflicts
7.4 Conflict Resolution
7.5 Understanding Superior, Subordinate, and Functional Conflicts
7.6 The Management of Conflicts
7.7 Conflict Resolution Modes
7.8 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 8: Special Topics
8.0 Introduction
8.1 Performance Measurement
8.2 Financial Compensation and Rewards
8.3 Critical Issues with Rewarding Project Teams
8.4 Effective Project Management in the Small Business Organization
8.5 Mega Projects
8.6 Morality, Ethics, and the Corporate Culture
8.7 Professional Responsibilities
8.8 Internal Partnerships
8.9 External Partnerships
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8.10 Training and Education
8.11 Integrated Product/Project Teams
8.12 Virtual Project Teams
8.13 Breakthrough Projects
8.14 Managing Innovation Projects
8.15 Agile Project Management
8.16 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 9: The Variables for Success
9.0 Introduction
9.1 Predicting Project Success
9.2 Project Management Effectiveness
9.3 Expectations
9.4 Lessons Learned
9.5 Understanding Best Practices
9.6 Best Practices versus Proven Practices
9.7 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 10: Working with Executives
10.0 Introduction
10.1 The Project Sponsor
10.2 Handling Disagreements with the Sponsor
10.3 The Collective Belief
10.4 The Exit Champion
10.5 The In-House Representatives
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10.6 Stakeholder Relations Management
10.7 Politics
10.8 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 11: Planning
11.0 Introduction
11.1 Validating the Assumptions
11.2 Validating the Objectives
11.3 General Planning
11.4 Life-Cycle Phases
11.5 Proposal Preparation
11.6 Kickoff Meetings
11.7 Understanding Participants’ Roles
11.8 Project Planning
11.9 The Statement of Work
11.10 Project Specifications
11.11 Milestone Schedules
11.12 Work Breakdown Structure
11.13 WBS Decomposition Problems
11.14 Work Breakdown Structure Dictionary
11.15 Role of the Executive in Project Selection
11.16 Role of the Executive in Planning
11.17 The Planning Cycle
11.18 Work Planning Authorization
11.19 Why Do Plans Fail?
11.20 Stopping Projects
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11.21 Handling Project Phaseouts and Transfers
11.22 Detailed Schedules and Charts
11.23 Master Production Scheduling
11.24 Project Plan
11.25 Total Project Planning
11.26 The Project Charter
11.27 Project Baselines
11.28 Verification and Validation
11.29 Requirements Traceability Matrix
11.30 Management Control
11.31 The Project Manager–Line Manager Interface
11.32 Fast-Tracking
11.33 Configuration Management
11.34 Enterprise Project Management Methodologies
11.35 Project Audits
11.36 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 12: Network Scheduling Techniques
12.0 Introduction
12.1 Network Fundamentals
12.2 Graphical Evaluation and Review Technique (GERT)
12.3 Dependencies
12.4 Slack Time
12.5 Network Replanning
12.6 Estimating Activity Time
12.7 Estimating Total Project Time
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12.8 Total PERT/CPM Planning
12.9 Crash Times
12.10 PERT/CPM Problem Areas
12.11 Alternative PERT/CPM Models
12.12 Precedence Networks
12.13 Lag
12.14 Scheduling Problems
12.15 The Myths of Schedule Compression
12.16 Understanding Project Management Software
12.17 Software Features Offered
12.18 Software Classification
12.19 Implementation Problems
12.20 Critical Chain
12.21 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 13: Project Graphics
13.0 Introduction
13.1 Customer Reporting
13.2 Bar (Gantt) Chart
13.3 Other Conventional Presentation Techniques
13.4 Logic Diagrams/Networks
13.5 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 14: Pricing and Estimating
14.0 Introduction
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14.1 Global Pricing Strategies
14.2 Types of Estimates
14.3 Pricing Process
14.4 Organizational Input Requirements
14.5 Labor Distributions
14.6 Overhead Rates
14.7 Materials/Support Costs
14.8 Pricing Out the Work
14.9 Smoothing Out Department Man-Hours
14.10 The Pricing Review Procedure
14.11 Systems Pricing
14.12 Developing the Supporting/Backup Costs
14.13 The Low-Bidder Dilemma
14.14 Special Problems
14.15 Estimating Pitfalls
14.16 Estimating High-Risk Projects
14.17 Project Risks
14.18 The Disaster of Applying the 10 Percent Solution to Project Estimates
14.19 Life-Cycle Costing (LCC)
14.20 Logistics Support
14.21 Economic Project Selection Criteria: Capital Budgeting
14.22 Payback Period
14.23 The Time Value of Money
14.24 Net Present Value (NPV)
14.25 Internal Rate of Return (IRR)
14.26 Comparing IRR, NPV, and Payback
14.27 Risk Analysis
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14.28 Capital Rationing
14.29 Project Financing
14.30 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 15: Cost Control
15.0 Introduction
15.1 Understanding Control
15.2 The Operating Cycle
15.3 Cost Account Codes
15.4 Budgets
15.5 The Earned Value Measurement System (EVMS)
15.6 Variance and Earned Value
15.7 The Cost Baseline
15.8 Justifying the Costs
15.9 The Cost Overrun Dilemma
15.10 Recording Material Costs Using Earned Value Measurement
15.11 The Material Accounting Criterion
15.12 Material Variances: Price and Usage
15.13 Summary Variances
15.14 Status Reporting
15.15 Cost Control Problems
15.16 Project Management Information Systems
15.17 Enterprise Resource Planning
15.18 Project Metrics
15.19 Key Performance Indicators
15.20 Value-Based Metrics
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15.21 Dashboards and Scorecards
15.22 Business Intelligence
15.23 Infographics
15.24 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 16: Trade-Off Analysis in a Project Environment
16.0 Introduction
16.1 Methodology for Trade-Off Analysis
16.2 Contracts: Their Influence on Projects
16.3 Industry Trade-Off Preferences
16.4 Conclusion
16.5 Studying Tips for the PMI® Project Management Certification Exam
Answers
Chapter 17: Risk Management
17.0 Introduction
17.1 Definition of Risk
17.2 Tolerance for Risk
17.3 Definition of Risk Management
17.4 Certainty, Risk, and Uncertainty
17.5 Risk Management Process
17.6 Plan Risk Management (11.1)
17.7 Risk Identification (11.2)
17.8 Risk Analysis (11.3, 11.4)
17.9 Qualitative Risk Analysis (11.3)
17.10 Quantitative Risk Analysis (11.4)
17.11 Probability Distributions and the Monte Carlo Process
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17.12 Plan Risk Response (11.5)
17.13 Monitor and Control Risks (11.6)
17.14 Some Implementation Considerations
17.15 The Use of Lessons Learned
17.16 Dependencies Between Risks
17.17 The Impact of Risk Handling Measures
17.18 Risk and Concurrent Engineering
17.19 Studying Tips for the PMI® Project Management Certification Exam
Answers
Problems
Chapter 18: Learning Curves
18.0 Introduction
18.1 General Theory
18.2 The Learning Curve Concept
18.3 Graphic Representation
18.4 Key Words Associated with Learning Curves
18.5 The Cumulative Average Curve
18.6 Sources of Experience
18.7 Developing Slope Measures
18.8 Unit Costs and Use of Midpoints
18.9 Selection of Learning Curves
18.10 Follow-On Orders
18.11 Manufacturing Breaks
18.12 Learning Curve Limitations
18.13 Prices and Experience
18.14 Competitive Weapon
18.15 Studying Tips for the PMI® Project Management Certification Exam
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Answers
Problems
Chapter 19: Contract Management
19.0 Introduction
19.1 Procurement
19.2 Plan Procurements
19.3 Conducting the Procurements
19.4 Conduct Procurements: Request Seller Responses
19.5 Conduct Procurements: Select Sellers
19.6 Types of Contracts
19.7 Incentive Contracts
19.8 Contract Type versus Risk
19.9 Contract Administration
19.10 Contract Closure
19.11 Using a Checklist
19.12 Proposal-Contractual Interaction
19.13 Summary
19.14 Studying Tips for the PMI® Project Management Certification Exam
Answers
Chapter 20: Quality Management
20.0 Introduction
20.1 Definition of Quality
20.2 The Quality Movement
20.3 Comparison of the Quality Pioneers
20.4 The Taguchi Approach
20.5 The Malcolm Baldrige National Quality Award
20.6 ISO 9000
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20.7 Quality Management Concepts
20.8 The Cost of Quality
20.9 The Seven Quality Control Tools
20.10 Process Capability (CP)
20.11 Acceptance Sampling
20.12 Implementing Six Sigma
20.13 Lean Six Sigma and DMAIC
20.14 Quality Leadership
20.15 Responsibility for Quality
20.16 Quality Circles
20.17 Just-In-Time Manufacturing (JIT)
20.18 Total Quality Management (TQM)
20.19 Studying Tips for the PMI® Project Management Certification Exam
Answers
Chapter 21: Modern Developments in Project Management
21.0 Introduction
21.1 The Project Management Maturity Model (PMMM)
21.2 Developing Effective Procedural Documentation
21.3 Project Management Methodologies
21.4 Continuous Improvement
21.5 Capacity Planning
21.6 Competency Models
21.7 Managing Multiple Projects
21.8 End-of-Phase Review Meetings
Chapter 22: The Business of Scope Changes
22.0 Introduction
22.1 Need for Business Knowledge
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22.2 Timing of Scope Changes
22.3 Business Need for a Scope Change
22.4 Rationale for Not Approving a Scope Change
Chapter 23: The Project Office
23.0 Introduction
23.1 Present-Day Project Office
23.2 Implementation Risks
23.3 Types of Project Offices
23.4 Networking Project Management Offices
23.5 Project Management Information Systems
23.6 Dissemination of Information
23.7 Mentoring
23.8 Development of Standards and Templates
23.9 Project Management Benchmarking
23.10 Business Case Development
23.11 Customized Training (Related to Project Management)
23.12 Managing Stakeholder Relations
23.13 Continuous Improvement
23.14 Capacity Planning
23.15 Risks of Using a Project Office
23.16 Project Portfolio Management
Chapter 24: Managing Crisis Projects
24.0 Introduction
24.1 Understanding Crisis Management
24.2 Ford versus Firestone
24.3 The Air France Concorde Crash
24.4 Intel and the Pentium Chip
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24.5 The Russian Submarine Kursk
24.6 The Tylenol Poisonings
24.7 Nestlé’s Marketing of Infant Formula
24.8 The Space Shuttle Challenger Disaster
24.9 The Space Shuttle Columbia Disaster
24.10 Victims Versus Villains
24.11 Life-Cycle Phases
24.12 Project Management Implications
Chapter 25: Future of Project Management
25.0 Changing Times
25.1 Complex Projects
25.2 Complexity Theory
25.3 Scope Creep
25.4 Project Health Checks
25.5 Managing Troubled Projects
Chapter 26: The Rise, Fall, and Resurrection of Iridium: A Project Management Perspective
26.0 Introduction
26.1 Naming the Project “Iridium”
26.2 Obtaining Executive Support
26.3 Launching the Venture
26.4 The Iridium System
26.5 The Terrestrial and Space-Based Network
26.6 Project Initiation: Developing the Business Case
26.7 The “Hidden” Business Case
26.8 Risk Management
26.9 The Collective Belief
26.10 The Exit Champion
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26.11 Iridium’s Infancy Years
26.12 Debt Financing
26.13 The M-Star Project
26.14 A New CEO
26.15 Satellite Launches
26.16 An Initial Public Offering (IPO)
26.17 Signing Up Customers
26.18 Iridium’s Rapid Ascent
26.19 Iridium’s Rapid Descent
26.20 The Iridium “Flu”
26.21 Searching for a White Knight
26.22 The Definition of Failure (October, 1999)
26.23 The Satellite Deorbiting Plan
26.24 Iridium is Rescued for $25 Million
26.25 Iridium Begins to Grow
26.26 Shareholder Lawsuits
26.27 The Bankruptcy Court Ruling
26.28 Autopsy
26.29 Financial Impact of the Bankruptcy
26.30 What Really Went Wrong?
26.31 Lessons Learned
26.32 Conclusion
Epilogue (2011)
Appendix A. Solutions to the Project Management Conflict Exercise
Appendix B. Solution to Leadership Exercise
Appendix C. Dorale Products Case Studies
Appendix D. Solutions to the Dorale Products Case Studies
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Appendix E. Alignment of the PMBOK® Guide to the Text
Author Index
Subject Index
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Dr. Kerzner’s 16 Points to Project Management Maturity
1. Adopt a project management methodology and use it consistently.
2. Implement a philosophy that drives the company toward project management maturity and communicate it to everyone.
3. Commit to developing effective plans at the beginning of each project.
4. Minimize scope changes by committing to realistic objectives.
5. Recognize that cost and schedule management are inseparable.
6. Select the right person as the project manager.
7. Provide executives with project sponsor information, not project management information.
8. Strengthen involvement and support of line management.
9. Focus on deliverables rather than resources.
10. Cultivate effective communication, cooperation, and trust to achieve rapid project management maturity.
11. Share recognition for project success with the entire project team and line management.
12. Eliminate nonproductive meetings.
13. Focus on identifying and solving problems early, quickly, and cost effectively.
14. Measure progress periodically.
15. Use project management software as a tool—not as a substitute for effective planning or interpersonal skills.
16. Institute an all-employee training program with periodic updates based upon documented lessons learned.
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Cover illustration: xiaoke ma/iStockphoto Copyright © 2013 by John Wiley & Sons, Inc. All rights reserved Published by John Wiley & Sons, Inc., Hoboken,
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at www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or
warranties with the respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness
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