>>教学大纲《项目管理教学大纲》

（Project Management，072106SD）

一、前 言

1、课程性质

项 目管理作为管理科学的重要分支，已经被广泛应用于建筑、信息技术、金融、软件开发、航空

航天、政府机关等许多行业。项目管理是一项应用性极强的综合性的经 济技术工作，是企业管理的重

要思想方法。当今社会，作为经济管理等相关专业的学生来说，掌握项目管理的思想、方法、基本原

理尤为重要。

2、教学目的

学习本课程的目的，要求学生在全面了解项目管理基本理论、基本知识的基础上，系统掌握投资

项目管理的内容、理论和方法，为将来从事项目管理的实际工作及研究奠定良好的基础。

3、使用对象

本大纲适用专业：项目管理、工程管理、管理科学的本科生教学。

4、基本教学要求

本 课程定位于培养学生项目管理的系统思想和项目管理的实际动手、操作能力，因

此，在教学过程中应在立足于项目管理基本知识体系、基本理论及项目周期各阶段管 理

的基础上，重点围绕项目管理的思想和技术展开。同时，整个教学过程中应贯穿模拟教

学、启发式教学，不仅使学生掌握项目管理的基本方法，而且使学生建立项 目管理的系

统理念和思想。

5、要求先修课程

微观经济学、财务管理学、统计学、投资经济学、证券投资学、工程投资概预算（或

估算）等。

二、教学内容（具体到章、节、目名称，每章开头说明教学要求，后附思考

题）

Chapter 1 MODERN PROJECT MANAGEMENT

1．What is a project?

A. The project life cycle

B. The project manager

2．The importance of project management

A. Product life cycle

B. Global competition

C. Knowledge explosion

D. Corporate downsizing

E. Increased customer focus

F. Rapid development of third world economies

G. Small projects represent big problems

3．The evolution toward integrated project management systems

A. Integration of projects with the strategic plan

B. Integration within the process of managing actual projects

4．Summary

Text overview

Key terms

Review questions

Exercises

Case exercise: South American Adventures Unlimited

Case exercise: A Day in the Life

Chapter Objectives

To explain why project management is crucial in today’s world.

To define a project and differentiate projects from routine operations

To establish the importance of projects in implementing organization strategy

To introduce the concept of a project maturity model that traces the evolution of project

management systems.

To establish managing projects is an act of balancing the technical and socio/cultural sides of the

project

To make students aware of the Project Management Institute that is made up of over 75,000

project management professionals.

Review Questions

1. Define a project. What are four characteristics which help differentiate projects from

other functions carried out in the daily operations of the organization?

A project is a complex, non routine, one-time effort limited by time, budget, resource, and

specifications. Differentiating characteristics of projects from routine, repetitive daily work are

below:

a. a defined life span

b. a well-defined objective

c. typically involves people from several disciplines

d. a project life cycle

e. specific time, cost, and performance requirements

2. What are some of the key environmental forces that have changed the way projects are

managed? What has been the impact of these forces on the management of projects?

Some environmental forces that have changed the way we manage projects are the product life

cycle, knowledge growth, global competition, organization downsizing, technology changes,

time-to-market. The impacts of these forces are more projects per organization, project teams

responsible for implementing projects, accountability, changing organization structures, need for

rapid completion of projects, linking projects to organization strategy and customers, prioritizing

projects to conserve organization resources, alliances with external organizations, etc.

3. Why is the implementation of projects important to strategic planning and the project

manager?

Strategic plans are implemented primarily through projects e.g., a new product, a new

information system, a new plant for a new product. The project manager is the key person

responsible for completing the project on time, on budget, and within specifications so the

project’s customer is satisfied. If the project is not linked to the strategic plan of the organization,

resources devoted to the project are wasted and a customer need is not met. This lack of

connectivity occurs more in practice than most would believe.

4. The technical and socio/cultural dimensions of project management are two sides to the

same coin. Explain.

The system and social/cultural dimensions of project management are two sides of the same coin

because successful project managers are skillful in both areas. The point is, successful project

managers need to be very comfortable and skillful in both areas.

5. Implementing project management techniques into an organization appears to be

evolutionary rather than revolutionary. Why is it improbable that an organization will be

able to leapfrog to a holistic project management system in one year?

Development of a holistic project management system does not happen overnight! Each

organization project management process will be unique and will usually require dramatic

changes. Typical changes will be needed in the following areas:

A. developing organization structures which facilitate implementing projects.

B. developing a strong linkage between strategy and projects.

C. prioritizing projects to conserve organization resources.

D. transferring authority and resources to project managers and their teams, Such changes can

take from 3-5 years.

6. What is meant by an integrative approach to project management? Why is this approach

important in today’s environment?

An integrative approach to project management is one in which all the parts are interrelated. This

approach is important because it can give an organization a competitive edge in today’s

environment. An integrative approach includes two parts. First, projects must have a strong link

to the organization strategic plan, which is directed toward meeting the customer’s needs. A

project priority system reinforces this linkage by prioritizing projects according to their

contribution to the strategic plan and allocates resources by the priorities set. Second, an

integrative approach provides an integrated system for the actual implementation of the projects.

This includes an information system which supports decision making and a social/cultural

environment which creates a positive, active contribution from team members responsible for

completing the project.

Exercises

1. Review the front page of your local newspaper and try to identify all the projects

contained in the articles. How many were you able to find?

It is near impossible to open a newspaper and not find articles relating to projects.

Sunday editions are especially good for this exercise. Even experienced project managers find

the number of projects far greater than they would have predicted. Each one was managed by a

project manager! This is a good illustration of the important role projects play in our daily lives.

2. Individually identify what you consider to be the greatest achievements accomplished by

mankind in the last five decades. Now share your list with three to five other students in the

class and come up with an expanded list. Review these accomplishments in terms of the

definition of what a project is. What does your review suggest about the importance of

project management?

Typical responses center technology, medical, space--e.g., computer advances, laser operations

and new drugs, building the space station. We usually select two or three student suggestions of

projects (there will be plenty!) and ask the students to identify the kinds of problems the project

manager of the project may have had to deal with. Again, once the students get into the exercise,

the problems they can envision are many. These problems are placed on the board. After the

board is near filled and most students have participated, we try to show or classify on the board

the problems by the content of the text chapters. The intent is to demonstrate to the class the

course and text will address many of the problems suggested by the students.

3. Individually identify projects assigned in previous terms. Were both socio/cultural and

technical elements factors in the success of difficulties of the projects?

Students will naturally focus on socio-cultural aspects in part because they are more familiar

with concepts such as leadership, problem-solving, and team work than scope, WBS, and

baseline budgets. Furthermore interpersonal friction is often a source of consternation on student

projects. The instructor may have to point out that interpersonal conflicts often arise from ill

defined scopes, uneven work schedules, and poor planning.

4. Check out the Project Management. Institute’s home page at: www.pmi.org

A. Review general information about PMI a s well as membership information.

B. See if there is a PMI chapter in your state. If not, where is the closest one?

C. From the news link, access information on PMI’s Project Management Body of Knowledge

(PMBOK), or go directly to it at:

www.pmi.org/publictn/pmboktoc.htm. What is PMBOK?

D. Explore other links that PMI provides. What do these links tell you about the nature and

future of project management?

If you have any difficulty accessing any of the Web addresses listed here or elsewhere in the text,

you can find up-to-date addresses on the home page of Dr. Erik Larson, coauthor of this text:

www.bus.orst.edu/faculty/larson

Chapter 2 ALIGNING PROJECTS WITH ORGANIZATION STRATEGY

Chapter Outline

1. The strategic management process: an overview

2. Four activities of the strategic management process

A. Review and define the organizational mission

B. Set long range goals and objectives

C. Analyze and formulate strategy to reach objectives

D. Implementing strategy through projects

3. The need for an effective project portfolio management system

Absence of a priority system linked to strategy creates problems

Problem 1: The Implementation gap

Problem 2: Organizational politics

Problem 3 : Resource conflicts and multitasking

4. Creating support for a central project portfolio management system

5. A project portfolio management system

A. Classification of the project

B. Selection criteria

C. Sources and solicitation of project proposals

6. Ranking proposals and selection of projects

A. Managing the portfolio System

B. Balancing the portfolio for risks and types of projects

7. Assessing the effectiveness of the priority system over the long haul model

8. Summary

9. Key terms

10. Review questions

11. Case: Jarvis Communication Corporation

12. Case: Hector Gaming Company

13. Case: Film Prioritization the balanced score card

Chapter Objectives

To identify the significant role that projects contribute to the strategic direction of the

organization

To stress the importance of establishing project priorities and top management support

To describe the linkages of strategies and projects

To write a set of hierarchical objectives for an organization

To describe a scheme for prioritizing projects that ensures top management involvement and

minimizes conflicts

To apply an objective priority system to project selection

Review Questions

1. Describe the major components of the strategic management process.

The strategic management process involves assessing what we are, what we want to become, and

how we are going to get there. The generic major component of the process includes the

following:

A. defining the mission of the organization

B. analyzing of the external and internal environments

C. setting objectives

D. formulating strategies to reach objectives

E. implementing strategies through projects

2. Explain the role projects play in the strategic management process.

Strategy is implemented primarily through projects. Successful implement at in projects means

reaching the goals of the organization and thus meeting the needs of its customers Projects that

do not contribute to the strategic plan waste critical organization resources.

3. How are projects linked to the strategic plan?

Projects are linked to the strategic plan because projects represent how a strategy is to be

implemented. Since some projects are more important than others, the best way to maximize the

organization’s scarce resources is through a priority scheme that allocates resources to a portfolio

of projects that balancer is and contribute the most to the strategic plan.

4. The portfolio of projects is typically represented by compliance, strategic, and operations

projects. What impact can this classification have on project selection?

By carefully aligning your project proposal with one classification, you may in crease the

chances of it being selected. Remember, senior management typically a lot budgets for each

category independent of actual project selection. Knowledge of funds available, risk portfolio,

senior managements, etc. may cause some to attempt to move their project proposal to a different

classification to improve the chances of the project being selected. Thus, having clear definitions

of what constitutes compliance, strategic, or operations projects will go far in avoiding the latter

problem.

5. Why does the priority system described in this chapter require that it be open and

published? Does the process encourage bottom-up initiation of projects? Does it discourage

some projects? Why?

An open, published priority system ensures projects are selected on the basis of their contribution

to the organization. If the priority system is not open, squeaky wheels, strong people, and key

departments get their projects selected for the wrong reasons. Bottom-up is encouraged because

every organization member can self evaluate their project idea against priorities--and so can

everyone lse in the organization. To some, this approach may look intimidating but rarely is in

practice; how ever it does discourage projects that clearly will not make positive, significant

contributions to the organization vision.

6. Describe an operative system that will prioritize projects by their contribution to the

strategic plan. How does this system assist in allocating organizational resources and avoid

over commitment of resources? How does your system differ from the case study model?

A generic project priority system might include the following activities:

A. assessing the relative importance of organization objectives

B. developing criteria for selecting projects based on the project’s contribution to the

organization’s objectives (value added)

C. prioritizing projects based on these criteria (and a balance of risk) using a weighting

scheme

D. allocating resources to these selected projects

E. monitoring projects and use of organization resources

7. Why should an organization not rely only on ROI to select projects?

Financial criteria, like ROI alone, will not ensure that selected projects contribute to the mission

and strategy of a firm. Other considerations such as developing new technology, public image,

brand loyalty, ethical position, and maintaining core competencies should be considered. Further

more, it is difficult or next to impossible to assess ROI for many important projects (e.g.,

compliance projects). While ROI is likely to be a key consideration for many organizations,

multiple screening criteria are recommended for selecting and prioritizing projects.

Chapter 3 ORGANIZATION: STRUCTURE AND CULTURE

Chapter Outline

1. Project management structures

A. Organizing projects within the functional organization

B. Organizing projects as dedicated teams

C. Organizing projects within a matrix arrangement

D. Different matrix forms

(1). Functional matrix

(2). Balanced matrix

(3). Project matrix

2. Organizing projects within virtual organizations

3. Choosing the appropriate project management structure

4. Organization culture

A. What is organization culture?

B. Identifying cultural characteristics

6. Implication of organization culture for organizing projects

7. Summary

8. Key terms

9. Review questions

10. Exercises

11. Case: Moss and McAdams Accounting firm

12. Case: Orion A and B

13. Appendix: How culture is created and communicated in organizations

A. Selection of new members

B. Methods for maintaining culture

(1). Formal statement of principles

(2). Top management behavior

(3). Reaction to crisis

(4). Allocation of rewards and status

(5). Rituals, stories, and symbols

C. Removal of deviants

Summary

Review questions

Exercise

Chapter Objectives

        To be able to identify different types of project management structures

        To understand the strengths and weaknesses of different project management structures

        To appreciate the significance that organizational culture plays in managing projects

        To be able to interpret the culture of an organization

        To understand the interaction between project management structure and the culture of an

organization

Review Questions

1. Compare the advantages and disadvantages of the functional, matrix, and dedicated

team approaches to managing projects.

(1)The advantages of the functional approach include:

        No radical alteration in basic structure of the parent organization.

        Maximum flexibility in use of staff within functional units.

        In-depth expertise can be brought to bear on specific components of the project.

        Normal career paths can be maintained.

The weaknesses of the functional approach include:

        Lack of project focus

        Poor cross-functional integration

        Slow

        Lack of project ownership

(2)The advantages of the matrix approach include:

        Flexible utilization of resources across projects and functional duties.

        Project focus is provided by having a designated project manager.

        Specialists maintain ties with their functional group

        Balances project prerogatives with technical requirements

The weaknesses of the matrix approach include:

        Decision making can bet bogged down as agreements have to be negotiated between project

managers and functional managers.

        Stress induced by multiple superiors.

(3)The advantages of the dedicated team approach:

        Does not disrupt the basic structure of the parent organization.

        Concentrated project focus.

        Projects tend to get done quickly.

        Strong cross-functional integration.

The weaknesses of dedicated project team include:

        Dilemma of what to do with people once the project is over.

        Technical expertise limited to the people on the team.

        We/they attitude emerges between project team and rest of organization which inhibits

integration of project with mainstream operations.

        Expensive - creation of project management role and duplication of services across projects.

(4)The advantages of virtual organization approach:

        Cost reduction.

        High level of technical expertise can be applied.

        Increased flexibility in the kinds of projects the organization can initiate.

The weaknesses of the virtual organization approach include:

        Difficulty in coordinating the efforts of people from different organizations.

        Potential loss of control.

        Conflicts and misunderstandings created by people coming from different organizational

cultures.

Suggestion:

Begin the discussion by identifying the strengths and weaknesses of the functional organization.

Record responses on the left side of a large black board. Next identify the strengths and

weaknesses of the dedicated team approach on the right side of the board. In the middle record

the strengths and weaknesses of the matrix organization. Use this framework to discuss the

relative merits of different kinds of matrix organizations. End the discussion by relating the

advantages and disadvantages of virtual organization to what has already been discussed.

2. What distinguishes a functional matrix from a project matrix?

The most distinguishing characteristic between a functional and project matrix is the relative

influence the project manager has over project participants and functional managers. In a

functional matrix the project manager role is limited to coordinating project activities. The

functional managers are responsible for managing their segment of the project. The project

manager has little formal authority over the project. In a project matrix, the project manager

controls most aspects of the project including design tradeoffs and assignment of project

personnel. The functional managers are responsible for supporting project completion. A project

manager in the functional matrix is not likely to be involved in performance appraisals and

compensation decisions while project managers in a project matrix would.

3. Under what conditions would it be advisable to use a project matrix instead of a

dedicated project team?

Both structures can be quite effective. The project matrix would be recommended when the

organization cannot afford to have people work full-time on the project and when the culture of

the organization supports the dual authority structure. Dedicated project teams are recommended

when speed is essential to success and there is not enough project work to warrant a formal

matrix structure. Dedicated project teams are also recommended when the prevalent culture

within the organization does not support collaboration and innovation.

4. Why is it important to assess the culture of an organization before deciding what project

management structure should be used to complete a project?

The culture of the organization can impact the effectiveness of different project management

structures. Organizational cultures that do not encourage teamwork, collaboration, and cross-

functional integration need a stronger project management structure (i.e., project team, project

matrix) to be successful. Conversely, a functional matrix can be effective in an organization in

which the culture of the organization is conducive to project management.

5. What do you believe is more important for successfully completing a project the formal

project management structure or the culture of the parent organization?

Both are important and an argument can be made for either structure or culture. The bias of the

authors is that culture is more important than structure since it more directly impacts behavior. A

positive organizational culture can compensate for the inherent weaknesses of the formal

structure. For example a functional matrix can be effective if the norms and customs of the

organization value teamwork and effective problem solving. Conversely, a functional matrix is

likely to be disastrous in a negative culture that encourages competition and looking out only for

yourself.

Alternatively, one could argue that an organization can circumvent a negative culture by creating

an independent project team or a strong project matrix. In either the case, the strategy is to

insulate the project team from the dominant organizational culture and create a unique project

subculture.

Exercises

1. Review the Corporate web-site for Hewlett-Packard.

a. What are the main elements of the H-P Way?

The HP way is reflected in its core organizational values and practices.

The five core values include:

1. We have trust and respect for individuals.

2. We focus on a high level of achievement and contribution.

3. We conduct our business with uncompromising integrity.

4. We achieve our common objectives through teamwork.

5. We encourage flexibility and innovation.

Key practices include:

        Management by wandering around(MBWA).

        Management by objective(MBO).

        Open door policy.

b. How does the H-P Way help create a culture which supports effective project

management?

The core values place a premium on trust, achievement, integrity, teamwork, and innovation.

People are expected to take initiative, set high standards, be honest in their dealings, work as a

team, and innovate. MBWA encourages direct interaction between people who work together,

which is likely to lead to better coordination and higher quality information. H-P is objective

driven, which is a key element of project management. People are expected to identify what they

are trying to achieve and document progress. The open door policy encourages people to speak

their minds, which is likely to lead to early problem detection and more effective problem

solving. Students should be encouraged to read supportive documents associated with the H-P

Way and asked to rate H-P on the cultural dimensions that support effective project management.

Strong evidence is provided to suggest that H-P fits the ideal profile of an organization culture

that is conducive to project management (see: Figure 9-8 in the text).

Variations on the Exercise.

Check and identify other company web-sites that discuss their organizational culture to provide a

basis for comparison.

Assign this as an individual or group written exercise. Ask students to review the H-P website

prior to class and use H-P as a vehicle for discussing culture and how it relates to project

management.

2. You work for LL Company which builds high-end optical scopes for hunting rifles. LL

Company has been the market leader for the past 20 years and has decided to diversify by

applying their technology to develop a top quality binocular. What kind of project

management structure would you recommend that they use for this project? What

information would you like to have to make this recommendation and why?

This could be used as a short written assignment, an exam question, or a basis for class

discussion. Regardless of how it is used, the following issues should be addressed. How

important is project management to LL Company? LL Company appears to have a stable product

line and does not engage heavily in product development. If so, then a formal matrix structure

should not be recommended.

What is the culture like at LL? Does it support informal collaboration and teamwork? Will

whoever is in charge of the binocular project have trouble getting the support and cooperation of

people needed to complete the project? If yes, then a dedicated project team would be

recommended to reduce the project dependencies on other parts of the organization. If, no, then

an informal matrix could be arranged where a project manager is assigned to oversee the

completion of the project. How much innovation is required to produce the binoculars? Chances

are very little given the similarity between rifle scopes and binoculars. If true, then the project

may essentially be a manufacturing one and could be completed within the manufacturing

department with minimal input from other functional areas.

3. Going to college is analogous to working in a matrix environment in that most students

take more than one class, and must distribute their time across multiple classes. What

problems does this create for you? How does it affect your performance? How could the

system be better managed to make your life less difficult and more productive?

This could be used as a written assignment or the subject of in-class discussion. Students are

likely to focus on heavy workload periods (Exam week, Midterms) when multiple assignments

are due. Students should be encouraged to discuss the trade-offs they make between competing

assignments and the impact it has on their performance. Students should be encouraged to

explore the basis for making these trade-offs. Why do students devote more time to one class

rather than another? Students should be encouraged to discuss whether similar reasons would be

given for working harder on one project over another in a business situation.

Most students will recommend leveling the work load to more evenly spread out assignments

across the term. The instructor should be prepared to answer why this does not occur and explore

barriers to coordinating assignments made by instructors and parallels it has for business

organizations.

Some colleges (most notably Colorado College) have a curriculum in which students take one

class at a time. You may offer this as an alternative and ask students what they think about this

approach.

Appendix:

How Culture is Created and Communicated in Organizations

Review Questions

1. What are the mechanisms that are used to sustain the culture of an organization?

Organizations actively recruit new employees whose habits, values, and attitudes are consistent

with the norms and values of the organization. A variety of mechanisms are used to reinforce and

socialize employees to the norms and customs of the organization. During new employee

orientation sessions, formal statements of values-and operating principles are discussed. Top

management serves as role models and its behavior is scrutinized to determine those qualities

and habits that the organization values. Crisis situations present an opportunity for an

organization to clearly communicate its values and priorities. Organizations reinforce desired

behavior and discourage inappropriate behavior through their formal reward and punishment

systems. A significant portion of an organization’s culture is communicated symbolically

through rituals, stories, myths, and the physical lay-out of the operations. Finally, organization’s

preserve their culture by removing either voluntarily or non-voluntarily people who deviate from

the norms and values of the organization.

2. Which mechanism do you believe has the biggest effect on the culture of an organization

and why?

There is no definitive answer to this question. The question is included to encourage students to

probe deeper into the role these different mechanisms play in shaping employee attitudes and

behavior. We often use this question to initiate class discussion of the framework. Most students

will argue that promulgating formal statements of principles is the least significant mechanism

especially if these principles are not supported by the other mechanisms. Others will question the

effect that rituals and myths play in sustaining a culture. Many students will argue that the

reward system has the biggest effect on sustaining culture. While others will advocate that

recruitment of employees is the most important mechanism. Students should be encouraged to

provide examples to support their arguments. We like to conclude this discussion by stressing

that the different mechanisms need to be consistent and mutually reinforcing. Top management

needs to behave in ways consistent with organizational principles. Similarly, the organization’s

reward system needs to be aligned with goals and values of the organization.

Chapter 4 DEFINING THE PROJECT

Chapter Outline

1. Step one: Defining the project scope

A. Employing a project scope list

1. Project objectives

2. Deliverables

3. Milestones

4. Technical requirement s

5. Limits and exclusions

6. Review with customer

2. Step two: Establishing project priorities

3. Step three: Creating the work break down structure

A. Major groupings found in a WBS

B. How WBS helps the project manager

C. WBS development

4. Step four: Integrating the WBS with the organization

5. Step five: Coding the WBS for the information system

6. Project rollup

7. Process breakdown structure

8. Responsibility matrices

9. Summary

10. Key terms

11. Review questions

12. Exercises

13. Case: Manchester United Soccer Club

14. Computer project exercise—Conveyor belt project

Chapter Objectives

        To recognize the importance of a completes cope statement acceptable to your customer as a

condition for project success

        To layout guidelines for creating a WBS for a project

        To demonstrate the importance of WBS to the management of projects and how it serves as

a data base for planning and control

        To demonstrate how the OBS establishes accountability to organizational units

        To apply a WBS to a case or suggested project

Review Questions

1. What kinds of information are included in a cost account?

Cost accounts include one or more work packages linked to a deliverable and an organization

unit.

2. What kinds of information are included in a work package?

Work packages include the following types of information:

a. work to accomplish a segment of the project

b. time to accomplish the work package

c. time-phased budget for the work package and total cost to complete the work package

d. resources needed to complete work package

e. single person responsible for accomplishment of the work package

f. monitoring points for measuring progress during implementation of work package

g. any specifications critical to the work package

3. What is a time-phased budget in a work package?

A time-phased budget for a work package is one that sets up costs (budget)f or each time period

over the duration of the work package. A time-phased budget for a work package is needed for

primarily two purposes. A Time phasing work package budget is especially important in work

packages over one-week duration. First, accounting and finance departments need budgets in this

form to predict cash inflows and out flows. Second, placing the budget in a time-phased format

allows the project manager to compute variances from schedule as the project is implemented.

4. What is the meaning of the term project "roll up," and what is its significance to the

project manager?

The term" roll up" refers to the process used to develop a status report for the project. The term is

derived from the fact that work package budgets can be cumulated two ways--by deliverable and

organization unit. Problems are easily isolated by deliverable and organization unit responsible—

from a single work package, to a major deliverable.

5. When would it be appropriate to create a responsibility matrix rather than a full blown

WBS?

On smaller projects where verbal, face-to-face communication possible, a responsibility matrix

should be adequate. Sometime as responsibility matrix is used for a segment of a project or one

in which a team wishes to stress responsibility.

Exercises

1. Develop a WBS matrix for a local stage play. Be sure to identify the deliverables and

organizational units (people) responsible. How would you code your system? Give an

example of the work packages in one of your cost accounts.

The stage play is a good team or small group exercise. Developing a WBS for a local stage play

is a project to which most groups can easily relate. Many forms of WBS structure will be

presented. We usually give the teams a blank WBS /OBS transparency (and pens) so each team

can present their breakdown to the class. The exercise usually points out the difficulty of

defining "deliverables." For most purposes a "milestone" can typically be used as a deliverable.

Be careful that deliverables do not represent organization departments, e.g., engineering design.

2. Use an example of a project with which you are familiar with or are interested in.

Identify the deliverables and organizational units (people) responsible. How would you

code your system? Give an example of the work packages in one of your cost accounts.

This exercise reinforces the idea of the WBS/OBS matrix as a method for organizing a database

for planning and control. Check student structure to ensure deliverables are something any

project team member could clearly identify; and, if possible, the deliverable should be something

you can easily see or touch.

3. You are the father or mother of a family of five planning a weekend camping trip.

Develop a responsibility matrix that evenly distributes the work that needs to be done prior

to starting your trip.

This exercise is usually easily done by students. The exercise is frequently used as a homework

assignment. Be prepared for many different approaches to a camping trip. As in exercise 2

above, be sure the student selects activities that have clear start and end points.

Chapter 5 Estimating Project Times and Costs

Chapter Outline

1. Factors influencing the quality of estimates

A. Planning horizon

B. Project duration

C. People

D. Project structure and organization

E. Padding estimates

F. Organization culture

2. Macro versus micro estimating

3. Estimating project times and costs

A. Macro approaches for estimating project times and costs

B. Micro approaches for estimating project times and costs

4. Level of detail

5. Developing budgets--Time-phased budgets

6. Types of costs

7. Estimating guidelines for times, costs, and resources

8. Refining estimates and contingency funds

9. Creating a data base for estimating

10. Summary

11. Key terms

12. Exercises

13. Case: Sharp Printing, AG

14. Appendix: Learning Curves

Chapter Objectives

        to understand estimating project times and costs are the foundation for project planning and

control

        to sensitize the student to the many factors that influence project time and cost estimates

        to have an awareness of the methods, uses, and advantages and disadvantages of macro and

micro estimating methods

        to understand the need for time-phasing budgets

        to understand he different types of costs used to compute total project cost

        to suggest estimating guidelines for time, cost and resources

        to suggest a scheme for developing an estimating data base for future projects

Exercises

1. Mrs. Tolstoy and her husband, Serge, are planning their dream house. The lot for the house

sits high on a hill with a beautiful view of the Appalachian Mountains. The plans for the house

show the size of the house to be 2,900 square feet. The average price for a lot and house similar

to this one has been $120. per square foot. Fortunately, Serge is a retired plumber and feels he

can save money by installing the plumbing himself. Mrs. Tolstoy feels she can take care of the

interior decorating.

The following average cost information is available from a local bank that makes loans to local

contractors and disperses progress payments to contractors when specific tasks are verified as

complete.

24% Excavation and framing complete

8% Roof and fireplace complete

3% Wiring roughed in

6% Plumbing roughed in

5% Siding on

17% Windows, insulation, walks, plaster, and garage complete

9% Furnace installed

4% Plumbing fixtures installed

10% Exterior paint, light fixtures installed, finish hardware in stalled

6% Carpet and trim installed

4% Interior decorating

4% Floors laid and finished

A. What is the estimated cost for the Tolstoy’s house if they use contractors to complete all of

the house?

B. Estimate what the cost of the house would be if the Tolstoy’s use their talents to do some of

the work themselves?

Estimated total cost for the house 2,900 sq. ft. x $120 per foot is $348,000.

Estimated savings of Serge’s plumbing work

Rough plumbing in 6% × $348,000 =$20,880

Plumbing fixtures installed 4% × $348,000 =$13,920

Interior decorating 4% × $348,000 =$13,920

Total saving $ 48,720

Estimated total cost for the completed house using the talents

$348,000 - $48,720 = $299,280

2. Firewall Project XT

Using the "complexity weighting" scheme shown in Table 5-2 and the function point complexity

weighted table shown below, estimate the total function point count. Assume historical data

suggest 5 function points equal on person month and six people can work on the project.

Complexity Weight TableNumber of inputs 10 Rated complexity lowNumber of outputs 20 Rated complexity averageNumber of inquires 10 Rated complexity averageNumber of files 30 Rated complexity highNumber of interfaces 50 Rated complexity high

a. What is the estimated project duration?

b. If 20 people are available for the project, what is the estimated project duration?

c. If the project must be complete in 6 months, how many people will be needed for the project?

a. The total function point count is:Complexity

Element Count Low Average High TotalInputs 10 10×2 = 20Outputs 20 20×6 = 120Inquiries 10 10×4 = 40Files 30 30×12 = 360Interfaces 50 50×15 = 750TOTA L = 1290ta. 1290/5 function points = 258 person months. Assuming six people available, the project duration will be approximately 43 months (258/6 = 43).b. The project duration will be approximately 12.9 months if 20 people are available (258/20 = 12.9).c. 43 people will be needed to complete the project in approximately 6 months (258/6 = 43)

Chapter 6 DEVELOPING A NETWORK PLAN

Chapter Outline

1. Developing the project network

2. From work package to network

3. Constructing a project network

A. Terminology

B. Two approaches

C. Basic rules to follow in developing project networks

4. Activity-on-node (AON) fundamentals

5. Start and finish network computations

6. Network computation process

A. Forward pass---earliest times

B. Backward pass--latest times

C. Determining slack (or float)

D. Free slack (float)

7. Using the forward and backward pass information

8. Level of detail for activities

9. Practical considerations

A. Network logic errors

B. Activity numbering

C. Use of computer to develop networks

D. Calendar dates

E. Multiple starts and multiple projects

10. Extended network techniques to come closer to reality

A. Laddering

B. Use of lags

11. An example using lag relationships--the forward and backward pass

12. Hammock activities

13. Summary

14. Key terms

15. Review questions

16. Exercises

17. Case: Nightingale Project-A

18. Case: Nightingale Projeet-B

19. Case: Pilot’s Stadium

20. Computer exercises

Computer case: Zuma Project

Computer case: Conveyor Belt Project

Chapter 6 Appendix: Activity on Arrow Method

1. Description

2. Design of an AOA project network

A Forward pass--earliest times

B. Backward pass--latest times

C. Computer generated networks

3. Choice of method

4. AOA summary

5. Review questions

6. Appendix exercises

Chapter Objectives

        To establish the linkage between the WBS and the project network

        To diagram a project network using AON methods

        To provide a process for computing early, late, and slack activity times and identify the

critical path

        To demonstrate understanding and application of "lags" in compressing projects or

constraining the start or finish of an activity

        To provide an overview framework for estimating times and costs

        To suggest the importance of slack in scheduling projects

Review Questions

1. How does the work breakdown structure differ from the project network?

A. The WBS is hierarchical while the project network is sequential

B. The network provides a project schedule by identifying sequential dependencies and timing of

project activities. The networks sets all project work, resources needs, and budgets into a

sequential time frame; the WBS does not provide this information

C. The WBS is used to identify each project deliverable and the organization unit responsible for

its accomplishment within budget and within a time duration

D. The WBS provides a framework for tracking costs to deliverables and organization units

response.

2. How are the WBS and project network linked?

The network uses the time estimates found in the work packages of the WBS to develop the

network.

Remember, the time estimates, budgets, and resources required for a work package in the WBS

are set in time finances, but without dates. The dates are computed after the network is

developed.

3. Why bother creating a WBS? Why not go straight to the project network and forget the

WBS?

The WBS is the database for decision making. It is designed to provide different information for

decision making. For example, this database provides information for the following types of

decisions:

A. Link deliverables, organization units, and customer

B. Provide for control

C. Isolate problems to source

D. Track schedule and cost variance. Network doesn’t

E. Assign responsibility and budgets

F. Focus attention on deliverables

G. Provide information for different levels in the organization

The project network does not provide all this information. The network is derived from the

WBS.

4. Why is slack important to the project manager?

Slack is important to the project manager be cause it represents the degree of flexibility the

project manager will have in rearranging work and resources. A project network with several

near critical paths and hence, little slack, gives the project manager little flexibility in changing

resources or rearranging work.

5. What is the difference between free slack and total slack?

Total slack is the amount of time an activity can be delayed and not delay the project. When an

activity in a chain (except the last activity) is delayed, all following activities will be delayed by

the same amount time. Therefore managers of those following activities need to be notified their

activity start will be delayed.

Free slack is the maximum amount of time an activity can be delayed and not delay the early

start of an activity immediate following it . Frees lack is usually the last activity in a sub path

within a project network. In this case, coordination with other activity manager is not necessary.

6. Why are lags used in developing networks?

A. To closer represent real situations found in projects

B. To allow work to be accomplished parallel when the finish-to-start relationship is too

restrictive

7. What is a hammock activity and when is it used?

A hammock activity is a special purpose activity that exists over a segment of the life of the

project. A hammock activity typically uses resources and is handled as an overhead cost--e.g.,

inspection. These activities are used to identify overhead resources or costs tied directly to the

project. The hammock duration is determined by the beginning of the first of a string of activities

and the ending of the last activity in the string. Hammock activities are also used to aggregates

actions of projects to avoid project detail--e.g. covering a wholes network within a project. This

latter approach gives top management overview of the project by avoiding detail.

Exercises

Creating a Project Network:

This exercise is designed to demonstrate how one uses a WBS to create a network for a project. The project involves

a wedding which most students have an easy time understanding.

Step 1.

As an assignment, have the students use the yellow-sticky approach to create a network prior to class. They should

convert their network to paper either by using a project management software package that draws CPM diagrams or

simply by drawing on paper.

Step 2. (5-10minutes)

Students share their networks with each other in class (in groups of two to three students), discuss differences, and

make suggested improvements.

Step 3. (5minutes)

Prepare in advance a set of 21 heavy stock cards with the name of each of the activities to be included in the network

printed on them. Ask the students to nominate a student’s network that they think is particularly good. Choose one

of the nominees and ask him/her to display the network using the heavy stock cards, temporarily tape on the

blackboard (or on butcher paper), and to draw lines to connect the activities.

Step 4. (10-20minutes)

Review and discuss the network. Check the network by starting from the beginning and asking for each task if it is

the only thing that is needed immediately before the start of the next task. Correct mistakes when necessary.

Chapter 7 Risk Management

Chapter Outline

1. Risk management process

2. Risk Identification

3. Risk Assessment

A. Scenario Analysis

B. Ratio/Rand Analysis

C. Hybrid analysis approaches

D. Failure Mode and Effects Analysis (FMEA)

E. Probability analysis

F. Scenario analysis (B) Semi quantitative

3. Risk Response Development

A. Mitigating risk

B. Transferring risk

C. Sharing risk

D. Retaining risk

4. Contingency Planning

A. Technical risks

B. Schedule risks

C. Cost risks

D. Funding risks

5. Contingency Funding

A. Budget reserves

B. Management reserves

6. Risk Response Control

7. Change Control Management

8. Summary

9. Key terms

10. Review questions

11. Exercises

12. Case: Alaska Fly-Fishing Expedition

13. Case: Silver Fiddle Construction

14. Case: Javacom LAN project

15. Appendix 5: PERT and PERT simulation

A. Program Evaluation Review Technique (PERT)

B. A hypothetical PERT example

C. PERT simulation

16. Review questions

17. Exercises

18. Case: International Capital, Inc.

Chapter Objectives

        To describe the risk management process

        To identify different kinds of risks

        To illustrate approaches for risk identification, analysis, and assessment

        To suggest approaches for responding to project risks

        To propose the use of contingency reserves to cover risk events

        To recognize the need for a change control process/system for any size project

Review Questions

1. Project risks can/cannot be eliminated if the project is carefully planned. Explain.

Project risks cannot be eliminated. It is impossible to be aware of all things that might happen

when a project is being implemented. Undesirable events identified before the project begins can

be transferred, retained/reduced, or shared. Contingency plans with trigger points and

responsibility should be established before the project begins.

2. The chances of risk events occurring and their respective costs change over the project

life cycle. What is the significance of this phenomenon to a project manager?

The chances of risk events and estimated costs changing over the project life cycle are high.

These events will impact project change control mechanisms. Moreover, such changes could be

significant enough to require changes in scope. The project manager must ensure that these

changes are recorded and kept updated. Otherwise the integrity of the project control system will

quickly deteriorate and be come useless as a management tool.

3. Explain the difference between budget reserves and management reserves.

Budget reserves are established to cover identified risks that occur while implementing a project

work package or activity. If the risk does not materialize, the funds are returned to the

management reserve. The management reserve covers unforeseen risks and applies to the total

project. These reserves are usually controlled by top management, he owner, and/or the project

manager. Budget and management reserves are independent of each other.

4. How are the work breakdown structures and change control connected?

The WBS and change control are directly linked. Any change from the baseline developed from

the WBS needs to be recorded. This link allows management to trace changes and problems

directly to deliverables and the organization unit responsible.

5. What are the likely outcomes if a change control process is not used? Why?

If a change control process is not used, budgets and plans will self-destruct quickly. Tracking

changes facilitates control and accountability of budgets and time. In addition, change control

allows for coordination of changes further on in the project.

Exercises

1. Gather a small team of students. Think of a project most students would understand and be

familiar with the kinds of tasks involved. Identify and assess major and minor risks inherent to

the project. Decide on a response type. Develop a contingency plan for two to four identified

risks. Estimate costs. Assign contingency reserves. How much reserve would your team estimate

for the whole project? Justify your choices and estimates.

Students enjoy this exercise; the exercise is open-ended and allows the students to think of fun

projects. Some groups will follow the text materials closely. Others will depend on past

experience or simply ignore the text material. The wrap-up usually requires refocus on some

formalized method which accomplishes the major issues discussed in the chapter. The discussion

can be ended by reviewing the minimum building blocks needed to manage project risk events.

2. You have been assigned to a project risk team of five members. Since this is the first time your

organization has formally set up a risk team for a project, it is hoped that your team will develop

a process which can be used on all future projects.

Your first team meeting is next Monday morning. Each team member has been asked to prepare

for the meeting by developing, in as much detail as possible, an outline which describes how you

believe the team should proceed in handling project risks. Each team member will hand out their

proposed outline at the beginning of the meeting. Your outline should include but not be limited

to the following information:

(1). team objectives

(2). process for handling risk events

(3). team activities

(4). team outputs

This exercise has been used in executive development seminars and college project management

classes. The assumed type of firm and type of projects will make for interesting variations in

presentations before a class or group. The responses from participants with project experience

are very different from those of undergraduate students. Undergraduates usually follow the

chapter outline with small deviations related to the kinds of risk events which might occur and

team objectives. The team activities and outputs requirements are sometimes weak for

undergrads. More experienced managers will be more creative in types of objectives and outputs.

Differences frequently relate to the background of the participants and their experience--e.g.,

marketing or construction. For example, one information technology group of managers

organized their model around the type of project and the key factors influencing risk--"Size,

complexity, people problems, novelty, control issues." Managers with project experience

sometimes divide risk events into segments of the project life cycle--defining, planning,

executing, delivery. Experienced managers are very good at assessing downstream secondary

risks which result from a risk event occurring; some of their models will cover secondary risks.

This exercise requires very little guidance from the instructor. Each group will provide some

unique views and approaches.

The session can be supplemented with discussion questions such as the following:

How do you get people to talk about risk in a practical manner?

How can you articulate risk?

Where is the greatest opportunity to reduce project risks?

How do you get management o support contingency funds?

How can we improve estimating procedures for time, cost, and technical risks?

The wrap-up comes back to the minimum requirements for a risk model for a firm and the kinds

of activities a risk team might perform--before, during, and after the project. Picking two or three

of the unique approaches teams come up with can be used to demonstrate important points.

3. Search the World Wide Web (WWW) using the key words: "best practices, project

management" What did you find? How might this information be useful to a project

manager?

Students should discover a wide range of information with this search. Among the sites the

authors found included consulting firms advertising training and assessments, open forums

concerning specific kinds of projects, benchmarking information, and risk portfolios. In addition

to finding consulting firms that may provide valuable services, students should be aware of the

variety of internet communities related to project management that provide valuable information

not only about risk management, but project execution.

For a more risk specific exercise, ask students to conduct a similar search with the key words

"risk project management".

Chapter 8 SCHEDULING RESOURCE

Chapter Outline

1. The problem

2. Types of project constraints

A. Technical or logic constraints

B. Resource constraints

C. Physical constraints

3. Kinds of resources

A. People

B. Materials

C. Equipment

D. Working capital

4. Classification of a scheduling problem

5. Resource allocation methods

A. Assumptions

B. Time constrained projects: smoothing resource demand

C. Resource constrained projects

D. Impact of resource constrained scheduling

6. Computed remonstration of resource constrained scheduling

7. Splitting/Multitasking

8. Benefits of scheduling resources

9. Multi project resource schedules

10. Summary

11. Key terms

12. Review questions

13. Exercises

14. Case: Power Train, Ltd.

15. Convey Belt Project, Part 3

16. Appendix

Critical Chain Approach

Computer exercise: Zuma Project

Chapter Objectives

        To contrast the differences between time and resource constrained projects

        To explain the implications for managing time and resource constrained projects

        To demonstrate an understanding of one heuristic method for scheduling resource

constrained projects

        To explain the potential for hidden critical paths

        To demonstrate the use of responsibility matrixes to assign individuals and responsibility.

        To introduce multi project resource scheduling

Review Questions

1. How does resource scheduling tie to project priority?

Resource scheduling ties to project priority because resources are limited. Remember, the

priority system ranks projects which then determines which project each resource should work

on first.

2. How does resource scheduling reduce flexibility in managing projects?

Resource scheduling systems usually reduce flexibility because when resources are considered,

computer routines use slack to get an "efficient" schedule. When slack is used up, flexibility is

lost and the risk of delaying the project increases. If the resource conflict occurs on the critical

path, the project is delayed.

3. Present six reasons why scheduling resources is an important task

Six reasons for scheduling resources are to:

1. Check if existing resources are adequate and available

2. Decide which resources have priority

3. Assess the impact if another project is added to the pool

4. Determine where the real critical path is. Are there unforeseen dependencies?

5. If slack is used up developing a schedule, see what happens to the risk of being late

6. Decide if outside contractors have to be used

7. Decide if an imposed project duration is realistic

Students should not be limited to these reasons; there are many more reasons for scheduling

resources.

4. How can outsourcing project work alleviate the three most common problems associated

with multi project resource scheduling?

Out sourcing can be used to reduce project slippage, improve utilization of critical resources, and

avoid resource bottlenecks. For example, project delays can be avoided by contracting key

activities when resources are not available internally. Likewise, hiring consultants to help with

Y2K problems allows critical IT people to work on specific problems, while the outsiders work

on standard programs. Not only doest he project get done on time, but the company avoids hiring

IT personnel to meet a short term need.

5. Explain the risks associated with leveling resources, compressing or crashing projects,

and imposed durations or "catch up" as the project is being implemented.

The risks associated with leveling, crashing, and "catch up" are similar to those noted in question

2. Flexibility is decreased and risk of delay is increased. F or examples, lack is used up and may

cause other bottlenecks later in a sequence of activities. Having time buffers (see TOC) at merge

points before the project begins could help a voids one of the need to crash activities. Decoupling

critical activities can help to cut time if decoupling is possible and resources can be shifted;

however, the risk is typically reduced only slightly.

Chapter 9 REDUCING PROJECT DURATION

Chapter Outline

1. Rationale for reducing project time

2. Project cost-duration graph

A. Explanation of project costs

1.) Project indirect costs

2.) Project direct costs

3. Constructing a project cost-duration graph

A. Determining which activities to shorten

B. A simplified example

4. Practical considerations

A. Using the project a cost-duration graph

B. Crash times

C. Linearity assumption

D. Choice of activities to crash revisited

E. Time reduction decision and sensitivity

5. Options for accelerating project completion

6. What if cost reduction, not time, is the issue?

7. Summary

8. Key terms

9. Review questions

10. Exercises

11. Case exercise: International Capital (B)

12. Case exercise: Whitbread World Sailboat Race

Chapter Objectives

        To recognize that compression costs additional money

        To demonstrate an understanding of the problems with imposed project durations

        To understand the real costs of crashing projects

        To explain the risks associated with compressing or crashing a project

        To recognize when a project manager should try for the optimum cost-time

Review Questions

1. Identify five indirect costs you might find on a moderately complex project. Why are

these costs classified as indirect?

Indirect (overhead) costs are costs that cannot be attributed to a specific activity or work

package. Examples of indirect costs are supervision, consultants, debt interest charges,

machinery common to several activities, accounting and information processing, public relations,

penalties or incentives for early or late complete or LI n practice it is amazing how many project

compression decisions are made without serious consideration of indirect costs.

2. How can a cost-time graph be used by the project manager? Explain.

A cost-time graph is useful to the project manager for comparing alternatives. Any alternative

that moves the project duration away from the optimum cost-time point will increase costs.

Additionally, incentives and penalties can be evaluated against the total, low cost point.

3. What are the advantages and disadvantages of reducing project scope to accelerate a

project? What can be done to reduce these disadvantages?

Advantages:

Savings and/or reduction of costs

Quicker time to market

Disadvantages:

Reduction of functionality

Unhappy customer

4. Reducing the project duration increases the r/sk of being late. Explain.

Compressing the project duration means slack (float) on noncritical activities will be reduced.

When slack of noncritical activities is reduced, the chance of new critical paths occurring

increases; hence, the risk of the project becoming a increases. In addition, compressing will have

the following other impacts on managing the project:

A. reduces flexibility by using slack

B. can increase number of critical activities

C can increase interdependencies of paths

D. makes resource scheduling tighter (critical)

E. may increase costs

5. It is possible to shorten the critical path and save money. Explain how this is possible.

The only way to shorten the critical path and save moneys to have indirect costs which are

greater than the additional direct costs of shortening the critical path one unit of time. The

difference is a savings.

6. Why are indirect costs significant in analysis of potential project alternatives?

When indirect costs are high relative to direct costs, significant savings are possible.

Unfortunately some project managers evaluate alternatives by comparing only direct costs.

Shortening the project duration will reduce indirect costs that continue as long as the project is in

progress. If these indirect costs are high, eliminating them for a specific time period of the

project duration can result in significant savings.

Chapter 10 BEING AN EFFECTIVE PROJECT MANAGER

Chapter Outline

1. Managing versus leading a project

2. Managing project stakeholders

A. Project team

B. Project managers

C. Administrative support

D. Functional managers

E. Top management

F. Project sponsors

G. Sub-contractors

H. Government

I. Other organizations

J. Customers

3. Influence as exchange

A. Task-related currencies

B. Position-related currencies

C. Inspiration-related currencies

D. Relationship-related currencies

E. Personal-related currencies

4. Social network building

A. Mapping dependencies

B. Management by wandering around

C. Managing upward relations

D. Leading by example

1) Priorities

2) Urgency

3) Problem solving

4) Cooperation

5) Standards of performance

6) Ethics

5. Ethics and project management

6. Building trust: the key to exercising influence

7. Qualities of an effective project manager

A. Contradictory nature of work

1) Innovate/maintain stability

2) See big picture/get hands dirty

3) Encourage individuals/stress team

4) Hands-off/hands-on

5) Flexible/firm

6) Team/organizational loyalties

B. Traits of an effective project manager

1) Systems thinker

2) Personal integrity

3) Proactive

4) High tolerance of stress

5) General business perspective

6) Good communicator

7) Effective time management

8) Skillful politician

9) Optimist

8. Summary

9. Key terms

10. Review questions

11. Exercise

12. Case: Western Oceanography Institute

Chapter Objectives

        To create an awareness of the network of relationships that need to be managed to be a

successful project manager.

        To identify the "currencies" a project manager can use to influence others

        To encourage students to engage in MBWA

        To highlight the importance of maintaining positive relationships with project sponsors

        To understand and discuss the importance of building trust for project success

        To identify some of the qualities of an effective project manager

Review Questions

1. Why is a conductor of an orchestra an appropriate metaphor for being a project

manager? What aspects of project managing are not reflected by this metaphor? Can you

think of other metaphors that would be appropriate?

2. What does the exchange model of influence suggest you do to build a cooperative

relationship to complete a project?

3. What differences would you expect to see between the kinds of influence currencies that

a project manager in a functional matrix would use and the influence a project manager of

a dedicated project team would use?

4. Why is it important to build a relationship before you need it?

5. Why is it critical to keep the project sponsor informed?

6. Why is trust a function of both character and competence?

7. Which of the nine traits/skills associated with being an effective project manager is the

most important one? Which is least important one?

Exercises

1. Access the Keirsey Temperament Sorter Questionnaire at

http://sunsite.unc.edu/personality/keirsey.html

2. Access the Project Management Institute website at www.pmi.org and review

the standards contained in PMIM ember Ethical Standards section. How useful is the

information for helping someone decide what behavior is appropriate and inappropriate?

3. You are organizing an AIDS Benefit concert in your home town which will feature local,

heavy metal rock groups and guest speakers. Draw a dependency map identifying the

major groups of people who are likely to affect the success of this project. Who do you

think will be most cooperative? Who do you think will be the least cooperative? Why?

4. You are the project manager responsible for the overall construction of a new

international airport. Draw a dependency map identifying the major groups of people

likely to affect the success of this project. Who do you think will be most cooperative? Who

do you think will be the least cooperative? Why?

5. Identify an important relationship (co-worker, boss, friend, ...) in which you are having

trouble gaining cooperation. Assess this relationship in terms of the influence currency

model. What kinds of influence currency have you been exchanging in this relationship? Is

the "bank account "for this relationship in the "red" or the "black"? What kinds of

influence would be appropriate for building a stronger relationship with that person?

6. Ethical Dilemmas

Chapter 11 MANAGING PROJECT TEAMS

Chapter Outline

1. Five stage team development model

A. Forming

B. Storming

C. Norming

D. Performing

E. Adjourning

2. Situational factors which influence team development

3. Building a high performance project team

4. Recruiting project team members

5. Managing project meetings

A. The first project team meeting

B. Establishing ground rules

1) Planning decisions

2) Tracking decisions

3) Managing change decisions

4) Relationship decisions

C. Managing subsequent meetings

6. Establishing team identity

7. Creating a shared vision

8. Managing project reward systems

9. Managing the decision making process

A. Facilitating group decision making

1) Problem identification

2) Generating alternatives

3) Reaching a decision

10. Managing conflict within the project team

A. Managing functional conflict

B. Managing dysfunctional conflict

11. Rejuvenating the project team

12. Managing virtual project teams

13. Project team pitfalls

A. Group think

B. Bureaucratic bypass syndrome

C. Entrepreneurs disease

D. Team spirit becomes team infatuation

E. Going native

14. Summary

15. Key terms

TM11-1

16. Review questions

17. Exercises

18. Case: Kerzner Office Equipment

19. Case: Franklin Equipment Ltd.

Chapter Objectives

        To identify key characteristics of a high performance project team

        To appreciate the impact situational factors have on project team development

        To develop strategies for developing a high performance project team

        To build skills that encourage functional conflict and discourage dysfunctional conflict

        To understand the challenges of managing virtual project teams

        To recognize the importance of the project manager’s behavior in shaping how a team

performs

Review questions

1. What are the major differences between the Five Stage Team Development Model and

the Punctuated Equilibrium Model of group development?

The five stage model asserts that effective project groups evolve in a predictable manner. They

progress from forming, storming, norming to performing and conclude by Adjourning once the

project is about to be completed. The Punctuated Equilibrium

Model argues that groups do not naturally evolve into an effective team over time, but encounter

a mid-point crisis which forces members to elevate their performance and establish new roles

and norms for achieving project objectives. Within the context of the five stage model, the

punctuated equilibrium model suggests that groups begin by combining the forming and norming

phases, then go through a period of relatively low performance, followed by storming, then a

period of high performance, and finally adjourning.

2. What are the elements of an effective project vision? Why are they important?

There are four key elements to an effective vision. First, the vision must make strategic sense.

Second, one must be able to communicate it to others. Third, the project leader must have a

personal passion to achieve it. Finally, the vision should inspire others to give optimal effort. The

vision must make strategic sense; otherwise others will not see it as appropriate or realistic. One

must be able to communicate the vision to others so that they understand it and choose to pursue

it. The project manager must have a passion to achieve the vision so that it is seen as being

credible and has the full support of the project manager. Finally, visions motivate superior

performance and therefore must be a source of inspiration to others.

3. Why should a project manager emphasize group rewards over individual rewards?

Because most project work is a collaborative effort, it makes sense that the reward system

encourages teamwork. Recognizing individuals can distract from team unity. Because project

work is interdependent it can be very difficult to distinguish who truly deserves individual credit.

Group cohesion can be undermined if members feel that others are receiving special treatment.

Camaraderie can vanish, to be replaced by bickering and obsessive preoccupation with internal

group politics. Such distractions can absorb a tremendous amount of energy that would otherwise

be directed to completing the project. Individual rewards should only be used when there is clear

agreement that a member deserves special recognition.

4. What is the difference between functional and dysfunctional conflict on a project?

It can be difficult to discern whether a conflict among project members is functional or

dysfunctional. The key is how conflict affects project performance, not how individuals feel.

Members can be upset and dissatisfied with each other, but as long as the conflict enhances

project performance then it is considered functional. Conversely, if the conflict distracts from

project performance by degenerating into personality clashes or creating unnecessary delays in

critical project work, then the conflict is considered dysfunctional.

5. When would it be appropriate to hold a formal team-building session on a project?

Formal team-building sessions should be used whenever it is believed that such activities will

enhance the performance of the project team. This would especially be true at the beginning of a

project when the session would help develop a team identity among a group of strangers.

Likewise, team-building activities could be used to assimilate new project members once the

project is underway. Devoting time and attention to team building would also be appropriate

when the project team is experiencing problems working together or needs to elevate its

performance to meet new project demands. The sessions would be useful in identifying and

changing dysfunctional behavior as well as re-energizing the team to higher levels of

performance. One mistake project managers make is that they resort to formal team-building

activities after they realize the team is in trouble. It might be wiser to utilize team-building

sessions earlier to encourage collaboration and to prevent small problems from escalating into

major problems within the team.

6. What are the unique challenges of managing a virtual project team?

There are many challenges associated with managing a spatially separated, virtual team.

Two of the biggest challenges are developing trust within the team and effective communication

patterns. People tend to find it difficult to trust some one whom they have met one or two times

or not at all. Furthermore, unlike when members work side by side and can readily assess the

competence and effort displayed by fellow team members, the actions of distant members are not

visible. Finally, physical separation prohibits informal socializing that contributes to trust among

participants. Reliance on electronic, as opposed to direct communication, can be problematic.

Managers not only have to overcome time zone differences and cross-cultural variations, but

they are missing visual cues that contribute to effective communication.

7. What can a project manager do to avoid some of the pitfalls of a highly cohesive project

team?

First, project managers need to be aware that there is a potential downside to a highly cohesive

team and be able to recognize the symptoms associated with the pathologies described in the

chapter. Second, they can take pre-emptive action to reduce the isolation of the team by

encouraging the maintenance of ties with the rest of the organization as well as with other project

stakeholders. Third, they can personally reinforce the connection between the project and the

mission and policies of the parent organization.

They can also encourage functional conflict and discourage the group from developing a "holier

than thou" attitude. They can also use the Nominal Group technique to encourage the surfacing

of dissenting opinions. Finally, they can hold formal team- building sessions to identify and

eliminate dysfunctional norms and refocus the team’s attention on project objectives.

Chapter 12 PARTNERING: MANAGING INTER-ORGANIZATIONAL RELATIONS

Chapter Outline

1. Introduction

2. Pre-project activities

A. Selecting partner(s)

B. Team building: the project managers

C. Team building: the stakeholders

3. Project implementation

A. Problem resolution

B. Continuous improvement

C. Joint evaluation

D. Persistent leadership

4. Project completion--celebrating success

5. Why project partnering efforts fail or succeed

6. The art of negotiating

A. Separate the people from the problem

B. Focus on interests, not positions

C. Invent options for mutual gain

D. When possible, use objective criteria

E. Dealing with unreasonable people

7. A note on managing customer relations

8. Summary

9. Review questions

10. Key terms

11. Case: Partnering: The Accounting Software Installation Project

12. Appendix 12A: Contract management

A. Fixed-price contracts

B. Cost-plus contracts

C. Contract change control system

D. Contract management in perspective

13. Review questions

Chapter Objectives

        To understand the need and value of engaging in project partnering

        To be able to set and implement a partnering arrangement on a major project

        To understand why project partnering efforts succeed or fail

        To develop an evaluation procedure for evaluating partnering arrangements that

results in early detection of potential problems

        To be able to practice principle negotiation

        To provide helpful advice for managing customer relations

Review Questions

1. Why should contractors and owners want to enter a partnering arrangement with each

other?

Under most conditions, it is in the best interest of both the owners and contractors to collaborate

instead of compete with each other. Partnering is based on the assumption that the traditional

adversarial relationship between owners and contractors is ineffective and self-defeating.

Win/lose turns into lose/lose for everyone. Furthermore, partnering assumes that both parties

share enough common goals to warrant a more collaborative relationship. Both contractors and

owners benefit when the project is completed on time and safely. Neither wants rework. Both

would prefer to avoid costly litigation.

2. Why do proponents of partnering claim that it is a pro-active approach to managing

projects?

Partnering accepts that one of the major barriers to effective collaboration is that participants

come from different organizations with different standards, habits, and priorities. Partnering

requires significant investment up front in team building sessions so that people can discuss

differences and begin to build a relationship with each other before the project begins. Potential

problems are identified and members establish expectations and guidelines for resolving them

before they can escalate into larger problems. At the same time, a joint evaluation system is

established so that different partners routinely assess how well they are working together so that

corrective action can be taken to ensure collaboration.

3. What does the term "escalate" refer to and why is it essential to project partnering

success?

Escalation is a control mechanism for dealing with and resolving problems. The basic principle

is that problems should be resolved at the lowest appropriate level within a set time limit (for

example, 24 hours) or they are "escalated" to the next level management. This process is

repeated until the problem is resolved. Escalation discourages participants from forcing

concessions by delaying decisions. It empowers people to solve problems. There is no shame in

pushing significant problems up the hierarchy; at the same time management discourages

subordinates from passing up problems that the subordinates should have resolved. Time is

money on the project, and escalation contributes to quick and effective problem solving.

4. Why is the principle negotiation approach recommended for negotiating agreements on

projects?

Project management is not a contest. People on a project are not opponents but allies attempting

to complete a project. For this alliance to work there has to be a degree of trust, cooperation, and

honesty. Principle Negotiation is a method for developing win/win solutions while protecting

yourself against those who would take advantage of your forthrightness.

5. What does the acronym BATNA refer to? Why is it important to being a successful

negotiator?

BATNA stands for "best alternative to a negotiated agreement." Essentially it represents the-best

alternative if you are unable to reach an agreement with the party you are negotiating with.

BATNA reflects how dependent you are on the other party. If you have a strong BATNA you

can walk away from a deal and say "’no, unless we work towards a win-win scenario." If you

have a weak BATNA, then you are more likely to have to concede to the demands of the other

party. BATNA is a true benchmark for determining whether you should accept an agreement.

6. How can a project manager influence customer satisfaction with the project?

According to the met expectations model, customer satisfaction is a function of the extent to

which perceived performance exceeds expectations. Through their interactions with customers,

project managers can influence customers’ base expectations (what they expect to get) and

perceptions of performance (what they actually received). The project manager, through frequent

communication, educates clients so that they can make valid judgments as to project

performance and reduces misunderstandings that can lead to disappointment and dissatisfaction.

Chapter 13 Progress and Performance Measurement and Evaluation

Chapter Outline

1. The project control process

A. Step 1: Setting a baseline plan

B. Step 2: Measuring progress and performance

C. Step 3: Comparing plan against actual

D. Step 4: Taking action

2. Monitoring time performance

A. Tracking Gantt chart

B. Control chart

3. An Integrative cost/schedule system

A. The need for an earned value (EV) system

B. Failure of budget comparison systems

C. Outline for an integrative cost/schedule system

D. Development of project baselines

E. What costs are included in baselines?

F. Rules for placing costs in baselines

G. Methods of variance analysis

4. Developing a status report: a hypothetical example

A. Assumptions

B. Baseline development

C. Development of a status report

5. Indices to monitor performance

A. Performance indexes

B. Project percent complete index

C. Technical performance measurement

D. Software for project cost/schedule systems

E. Additional earned value rules

6. Forecasting final projeet cost

7. Other control issues

A. The costs and problems of data acquisitions

B. Baseline changes

C. Contingency reserve

D. Scope creep

E. Managing the portfolio of projects

8. Summary

9. Key terms

10. Review questions

11. Chapter Exercises

12. Endnotes

13. Case : 29 In-Store Scanner Project

14. Case: Sofftech, Ltd (A)

15. Case: Sotfftech, Ltd (B)

16. Computer Exercises: Parts 4 & 5A & B

17. Appendix 2A: Material Price and Usage Variance

Chapter Objectives

        To understand how organizations track project performance

        To understand and appreciate the significance of earned value

        To be able to calculate and interpret different project performance in dices

        To be able to develop a project reporting system that will ensure project control and progress

        To demonstrate how a project rollup can pinpoint problems in two dimensions

Review Questions

1. How does earned value give a clearer picture of project schedule and cost status than a

simple plan versus actual system?

Earned value gives a clearer picture than a simple plan versus actual system because the earned

value system includes the time variable in measuring progress. Plan versus actual can lead to

false conclusions.

Earned value measures what work was accomplished for the moneys pent.

2. How does a baseline facilitate integrating the planning and controlling of projects?

The baseline is the backbone for integration of planning and controlling. The baseline serves as

an anchor point for measuring and evaluating progress. The baseline represents the project time-

phased budget which is derived from the work pakages in the WBS. When the baseline is held

constant, any changes in project costs and schedule can be quickly identified.

3. Why is it important for project managers to resist changes to the project baseline?

Under what conditions would a project manager make changes to a baseline? When would

a project manager not allow changes to a baseline?

The usefulness and integrity of the baseline, as a mechanism for monitoring progress and tracing

back to problem, can be eroded by constant changing of the baseline. Therefore, changes in

baselines should be limited to majors cope changes for example, when the project will fail or the

change represents a significant improvement of the project. Customers can request scope

changes. Internally scope changes can come from project personnel---e.g., significant design

changes to improve a product. Natural disasters can force a baseline change. Some times the

complete elimination of a cost account can result in a baseline change. Don’t change for small

changes such as price and planning errors. Changes to "improve performance" should not change

a baseline. Change should not occur after a work package or cost account is complete.

4. How does a project rollup help identify project cost and schedule problems?

Project roll up computes the cost and schedule variance for each work package, which can be

tracked to each deliverable and organization/team unit.

5. Costs can be aggregated or disaggregated horizontally and vertically. What are the

advantages of this system?

The ability to aggregate or disaggregate the WBS for costs allows status reports to be customized

for different levels of management. For example, a manager in charge of a cost account needs

detailed information about work packages. A senior level manager may only be interested in

total project cost and schedule variance for major deliverables. The WBS/OBS facilitates easy

adjustment of summer ports according to management level or specific interests.

6. What are the differences among BAC, EAC, and FAC?

BAC is the planned budget at completion. EAC is the estimate at completion EAC usually differs

from FAC in that new cost estimates have been made by project participants concerning specific

work packages; these new estimates are then factored into the EAC. FAC is the forecast at

completion cost; typically, FAC is computed using formulas which use the rate of spending to

date. (Note: there is some confusion in the field concerning the meanings of these terms. Others

may not agree with the distinctions fotmdin these definitions.)

Chapter 14 Project Audit and Closure

Chapter Outline

1. Project audits

A. In-process audits

B. Post-project audits

2. The project audit process

A. Guidelines for conducting a project audit

B. Step 1: Initiation and staffing

C. Step 2: Data collection and analysis

1.) Organizational view

2.) Project team view

D. Step 3: Reporting

1.) Classification

2.) Analysis

3.) Recommendations

4.) Lessons learned

5.) Appendix

6.) Summary booklet

3. Project audits: The bigger picture

4. Project closure

A. Conditions for project closure

1）Normal

2) Premature

3) Perpetual

4) Failed project

5) Changed priority

B. Signals for continuing or early project closure

C. The closure decision

D. Project closure process

5. Team, team members, and project manager evaluations

A. Team evaluation

B. Individual team member and project manager evaluation

C. Performance reviews

7. Key terms

8. Review questions

9. Exercises

9. Case: Maximum Megahertz Project

Chapter Objectives

        To appreciate the importance of engaging in project audits

        To identify the major elements of a project audit

        To understand key issues surrounding project closure

        To provide useful advice for conducting performance reviews of project members

Review Questions

1. How does the project audit differ from the performance measurement control system

discussed in Chapter 13.

The project audit is a macro view of project performance as a part of the total organization.

Although the audit is concerned about current or past performance of the project, project audits

are also concerned with assessing organizational culture and support of projects, the project’s fit

within the total portfolio of projects, project priorities, team performance, and lessons learned.

The audit is intended to include all factors relevant to the project and managing future projects.

2. What major information would you expect to find in a project audit?

Classification of the project---e.g., large/small, platform/incremental, complex/typical

Analysis of information gathered

Recommendations

Lessons learned

An appendix with backup information to support recommendations

3. Why is it difficult to perform a truly independent objective audit?

In most cases those performing the audit have some previous knowledge of the project, which

presents opportunities for bias. Sometimes the audit team is perceived as a jury, but even jury

members come with built- in biases. For example, internal politics have been known to enter into

decisions concerning closure of a project. The simple point is that every attempt should be made

to keep the audit independent and objective. If the audit of projects is a regular procedure for all

projects, the negatives time of audits is minimized.

4. What personal characteristics ands kills would you look for in selecting a project audit

leader?

1. No direct involvement or direct interest in the project

2. Respect—perceived as impartial and fair--of senior management and other project

stakeholders

3. Willingness to listen

4. Independence and authority to report audit results without fear of recriminations from special

interests

5. Perceived as having the best interests of the organization in making decisions

6. Broad-based experience in the organization or industry

5. Comment on the following statement: "We cannot afford to terminate the project now.

We have already spent over 50 percent of the project budget."

If organizational priorities have changed so the project no longer supports organizational

strategy, the project should be terminated. Basically, costs to the time of the audit are sunk costs.

The decision to continue or shut down should rest on estimated future costs and project benefits.

6. Why should you separate performance reviews from pay reviews? How?

These two activities are not compatible. It is difficult to be both a judge and a coach at the same

time.

Performances are views are intended to encourage changes in behavior, encourage career

development, and support continuous organization all earning. These reviews focus on social and

technical contributions the individual contributed to the project team. For example, the 360

degree feedback process has been used successfully to improve the ability of people to work on

teams. As long as performance reviews are not directly related to pay and promotion decisions,

such reviews are more readily accepted and even perceived as positive for the individual and

organization Since pay reviews can result in negative or positive outcomes for a career, they are

perceived as very serious by most individuals. Pay reviews should be more carefully structured

and based on clear standards and criteria known to the person being evaluated. Every attempt

should be made to avoid confrontation.

Chapter 15 INTERNATIONAL PROJECTS

Outline

1. Introduction

2. Assessing the motivation for international projects

3. Environmental factors

A. Legal/political

B. Geography

C. Economic

D. Infrastructure

E. Security

F. Culture

4. Project site selection

5. Cross cultural considerations: a closer look

A. Working in Mexico

B. Working in France

C. Working in Saudi Arabia

D. Working in China

E. Working in the United States

F. Summary comments about working in different cultures

6. Culture shock

A. Honeymoon

B. Irritability and hostility

C. Gradual adjustment

D. Adaptation

7. Selection and training for international projects

8. Summary

9. Key terms

10. Review questions

11. Exercises

12. Case: AMEX Hungary

Chapter Objectives

        To identify factors typically considered in selecting a foreign location for a project

        To heighten an awareness that best practices in the US may not be best practices in a foreign

environment

        To prepare students psychologically for the likelihood that they will work in a foreign

environment as the economy becomes more globally integrated.

        To provide students with strategies for effectively working overseas.

Review Questions:

1. How do environmental factors affect project implementation?

There are several basic factors in a host country’s environment that affect project

implementation. First, the legal/political system has to be adhered to. Labor laws affect recruiting

and treatment of employees. Second, the climate and geography may affect how the project is

completed. Extreme heat and humidity have to be factored into work schedules and the need for

special equipment. Third, the local economy affects the price and availability of goods and

supplies. Fourth, the project may be constrained by the quality of the infrastructure that exists in

the foreign country. The absence of a reliable telephone system may require digital satellite

communication systems. Fifth, there may be security issues that need to be addressed and

contingency plans developed. Finally, the culture of the organization will influence work habits

and values.

2. What role do local intermediaries play in helping an outsider complete a project?

Local intermediaries can perform a variety of functions. They can act as translators. They can

use their connections to expedite transactions and protect the project against undue interference.

They can be used to sidestep bribery dilemmas. They can serve as cultural guides, teaching the

manager how to work more effectively in the foreign country.

3. Why is it important to honor the customs and traditions of a country when working on

an international project?

Honoring customs garners good will and is a sign of respect which leads to cooperation.

Violating customs and traditions leads to resentment, mistrust, and unwillingness to cooperate.

The customs and traditions of a country are the ways things are done in that country.

4. What is culture shock?

Culture shock is the natural psychological disorientation people experience when they live and

work in a culture different from their own. Culture shock may be manifested by frustration,

withdrawal, depression, and physiological responses such as fatigue, sleeplessness, and

headaches.

5. How should one go about preparing oneself for an international project?

You should begin by assessing the degree of cultural fluency required to successfully complete

the project. Cultural fluency depends upon the length of the stay, the extent to which project

success requires working closely with natives, and how different the culture is of the country you

are going to from that of your own country. In general, the higher the level of cultural fluency

required the more extensive the training should be. At a minimum you should do some basic

research about the country in terms of religion, dress codes, business protocols, and social

etiquette as well as be able to exchange basic pleasantries in the native language. Longer, more

intense projects will likely require mastery of the native language and in depth cross-cultural

training.

Chapter 16 THE PROCESS OF PROJECT MANAGEMENT AND THE FUTURE

Chapter Outline

1. Emergence of project driven organizations

2. Future positive trends

A. Organization supports organizational teaming

B. Institutionalization of matrix organization a design

C. System project selection and priority systems

D. Establishment of integrative project management information systems

E. Evaluation and reward systems will support effective project management

F. Project audits will become an integral part of the project management system

G. Managing project interfaces will take on greater significance

H. Partnering will be the norm for managing inter-organizational projects

I. Ad hoc project teams will become more widespread

3. Unresolved issues

A. How far can virtual project management evolve

B. How do we manage projects under high levels of uncertainty?

4. Project management career issues

A. Career paths

B. Temporary assignments

C. Pursuing a career

D. Professional training and certification