FOURTH EDITION A HANDS-ON GUIDE TO BRINGING CTS IN UN TIME A PROJECT PLANNING, SCHEDULING, AND CONTROL Fourth Edition PROJECT PLANNING, SCHEDULING, AND CONTROL A Hands-On Guide to Bringing Projects in on Time and on Budget JAMES P LEWIS McGraw-Hill New York Madrid Seoul Chicago Mexico City Singapore San Francisco Milan Sydney Lisbon New Delhi Toronto London San Juan The McGraw·HiII Companies '{ % Copyright © 2005 by James P Lewis All rights reserved Printed in the United States of America Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher DOC/DOC ISBN 0-07-146037-3 McGraw-Hill books are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs For more information, please write to the Director of Special Sales, McGraw-Hill, Professional Publishing, Penn Plaza, New York, NY 10121-2298 Or contact your local bookstore High Performance Project Management is a trademark of The Lewis Institute, Inc The Lewis Method is a registered trademark of The Lewis Institute, Inc PMI, PMBOK, and PMP are registered trademarks of the Project Management Institute MicrosoftProject is a registered trademark of Microsoft Corporation Mind Map is a registered trademark of Tony Buzan HBDI is a trademark of Herrmann International The grid containing a thinking profile is also copyright by Herrmann International, and all such figures in this book are used by permission MindManager is a trademark of Mindjet, Library of Congress Cataloging-in-Publication Data Lewis, James P Project planning, scheduling, and control; a hands-on guide to bringing projects in on time and on budget / by James P Lewis.- 4th ed p.cm ISBN 0-07-146037-3 (hardcover; alk paper) Project management Scheduling I Title HD69.P75L4932005 658.4'04-dc22 2005021825 This book is printed on recycled, acid-free paper containing a minimum of 50% recycled de-inked fiber This book is dedicated tothe memory of Lars Neko, Fiona, and the score of other frline "children" who have enriched my life over the years There are many ways in which animals are smarter than people It is never too late to be what you might have been -George Elliott CON TEN TS PREFACE xiii ACKNOWLEDGMENTS xv SECTION ONE INTRODUCTION TO PROJECT MANAGEMENT Chapter An Introduction to Project Management What Is a Project? What Is Project Management? How Do You Define Success? 34 The Project Management System 37 Project Management and ISO 9000 47 Project Management and Six Sigma 47 The Lewis Method of Managing Projects In Summary 55 49 vii CONTENTS viii Chapter The Project Management Institute and the PMBOK Processes versus Knowledge Areas Knowledge Areas 59 Summary 63 57 58 Chapter The Role of the Project Manager 65 t/ It's All About People! 66 Do You Really Want to Manage? 73 Making Your Career Decision 82 Chapter How to Achieve High-Performance Project Management" The High-Performance Project Management Model The Need for a New Approach 88 Stages of Development 97 83 Chapter Whole Brain Project Management Thinking Styles 104 Team DYnamics 125 The Balanced Scorecard In Summary 131 103 130 SECTION TWO PROJECT DEFINITION Chapter Headless-Chicken Projects and How to Prevent Them The Cold, Hard Facts 136 135 83 CONTENTS ix The Causes 138 Mission and Vision 147 Problems, Problems 155 Defining Closed-Ended Problems 159 The Fallacy of Project Management Assumptions 178 SECTION THREE PROJECT PLANNING Chapter Developing Project Strategy 183 What Is Strategy? 184 Generating and Choosing the Correct Strategy Putting It All Together 208 189 CHAPTERS Implementation Planning 211 Mistakes in Planning 215 Developing the Work Breakdown Structure 224 Estimating Time, Cost, and Resource Requirements 245 Clarifying Roles and Responsibilities 257 Gaining Commitment from Resource Providers 257 Developing the Project Budget 259 CHAPTER Project Scheduling 261 The Basics of Scheduling 261 Software Capabilities 268 Resource Allocation 275 V Conclusion 287 INDEX Organization behavior, variation (reduction), 77 component See Project management hierarchy, 297 three-sigma quality level, function, 84 Organizations concept, 10 difficulties, 45-46 improvement, 395 paradigm, acceptance, 206-207 problems, 97 rules, 252 Packard, Vance, 69 PAF See Prevention appraisal and failure Pain curves, usage See Project management Paired comparisons, 192, 413 Parallel tasks, 360 Parkinson's Law, 252-253, 469 Partial WBS, 422 Pass-fail judgment, 273 PCTS See Performance cost time scope PDUs See Professional Development Units People importance, 66-73 interaction, 67 issues, 90-92 207 motivation, 117 problems, relationship, 205-207 499 projects, relationship, 205-207 relationship See Tools skills, level, 61 Performance change, 162 norm, knowledge, 163-164 reporting, 291, 299-301 requirements, 14, 373 equation, 15 reviews, 300 Performance cost time scope (PCTS) constraints, 230 pyramidal illustration, 30 relationship, 16 spherical surface, illustration, 29 solutions, 29-32 targets, 84, 131, 179 value, 377 Periodic project reviews, conducting (reasons), 374-375 Personal digital assistant (PDA), usage, 60 Personal effectiveness See Multiple projects Personality conflicts, 129 PERT See Program evaluation and review technique Peters, Tom, Planned value (PV), 259, 334, 336 Planning, 383 See also Unilateral planning component See Project management mistakes See Implementation planning 500 Planning iCont.): time, contrast See Execution time value, 425 PMBOK See Project Management Body of Knowledge PMP See Project Management Professional Practice, value, 93 Prediction, 214 Prevention appraisal and failure (PAF),26 Principle, usage, 16 Priorities, list (need), 424 Probability of occurrence See Occurrence Problem analysis action step, 169-170 analysis step, 166 description step, 164 experiments, design, 170 hypotheses step, 166-168 identification, 162-163 steps, 161 testing step, 168-169 usage See Closed-ended problems Problem statement construction, 160 entry See Chevron receiving, 156 writing, 154 Problems See Closed-ended problems; Open-ended problems definition, development (exercise), 172 INDEX description, analogy/metaphor procedures, 174-175 operational definitions, 407-414 solving, 89-96, 383 Process change, 22-23 identification, 399-401 impact See Tasks improvement See Projects curves, 400 principles, 401-407 knowledge areas, contrast, 58-59 problem, identification (example),410-414 quality, improvement, 403 reviews, 380-384 conducting, 384-388 form, 372, 390 report, 388-390 step, value (addition), 404-405 types, identification, 58 Procurement management, 62 Production schedule, 295 Products constant stream, sales, 286 specifications, updating, 417 Professional Development Units (PDUs), 62-63 Profiles, 107-115 See also Double-dominant profiles; Herrmann Brain Dominance Instrument; Quadruple-dominant profiles; Triple-dominant profiles illustration See Female project managers; Male project managers INDEX Profiles (Cont.) impact, 121 quality, determination, 117-122 Program evaluation and review technique (PERT), 263, 266 creation, 265 scheduling, 11 Progress completion, graph, 277 curve See Knowledge work display, 377-380 Gantt chart, usage, 378 graph See Knowledge work measurement, 323-328 constraints, knowledge, 324 monitoring, 340 reporting, 299 tracking earned-value analysis, usage, 333-339 graphs, usage, 343-359 guidelines, 369-371 spreadsheets, usage, 359-366 visualization, schedules (usage), 330 Project management See Instant pudding project management; Multiple projects; Seat-of-the-pants project management; Whole brain achievement, 96 approach best fit, 49-50 change, need, 88-96 assumptions, fallacy, 178-180 components, 37-41 control component, 45 501 human component, 37-41 introduction, ISO 9000, relationship, 47 KISS principle, 50 methods, component, 43-44 organization component, 44-45 pain curves, usage, 398 planning/information component, 45-47 PMBOK definition, Six Sigma, relationship, 47-49 styles, relationship See Double-dominant profiles system, 37-47 pyramidal illustration, 39 Project Management Body of Knowledge (PMBOK), 5, 57-58 definition See Project management Project Management Institute (PM!), 57 Project Management Professional (PMP), 57-58 exam preparation, 61 requirement, 62 Project managers See Working project manager crises, 68 desire, 70-72 failure, reasons, 73 firing, 301 interaction, 39-40 objective, 147 provisions, 92 right-brain preference, advantage, 121 502 Project managers (Cont.) role, 65 types, 71 Project strategy development, 183 technical strategy contrast, 188 relationship, 187-189 Project teams, concept, 10 Projects balanced scorecard, 132 bar graph, usage, 344 budget, development, 259-260 cancellation, 340 change control, 371-372 characteristics, 33-34 closure, 415 personnel issues, 418-419 communications, management, 289 conditional branch, inclusion, 247 constraints, 13-17 control, 323 deadlines, 189 importance, 217 definition, 5-7 deviation graph, usage, 342 documents, collection/archival, 301,417 facts, 136-138 failure, 40, 137 final report, preparation, 417 fiscal budgeting, 260 handling, issues, 426-427 individuals, involvement, 292 INDEX information relevance, 389 system, 323 integration management, 59 life cycle illustration, 35 model,36 number, prioritization, 97-98 offtrack problems, solutions, 343 organization, 292 plan, development, 238-239 planning, 137, 180 prevention See Headless-chicken projects priority, 284, 424-425 processes improvement, 395 types, PMBOK identification, 58-59 records, 298-299 relationship See People reports, 299 reviews conducting, 373 limitations, 389 types, 375 schedule, development, 60 scheduling, 261 software capabilities, 268-275 size, applicability, 50-51 sponsor, 139 Standish Group survey results, 137 status, 388 success, probability, 251 targets, estimates, 99 INDEX Projects (Cant.) three-sigma quality level, 84 time, plot, 351, 353 time-cost tradeoff curve, 397 work, variability, 163 Project-to-project estimate, 240-241 PV See Planned value Quadruple-dominant profiles, 108-109, 118 illustration, 110 Quality definition, 24-25 ensuring, 374 impact, 23-27 improvement, 405-406 management, 60-61 tracking, 367-369 Queueing, 281-287 Ready-fire-aim approach, 23 mistake, 216-217 Records, updating, 417 Registered Education Provider (REP), 63 Relationships, 387 Relaxation, impact, 444 REP See Registered Education Provider Requirements, conformance (illustration), 48 Resistance, 220 approaches, 202-205 503 circumnavigation, 204 ignoring, 203 neutralization, 204-205 overcoming, 203-204 Resources allocation, 275-287 See Timecritical resource allocation availability, 281-287 clarification, 257 leveling, 270-271 providers, commitment (gaining), 257, 259 requirements, estimating, 245-257 Responsibility, 387 See also Stakeholders chart, 258 clarification, 257 Results, relationship See Expectations Reviews, 375-376 See also Design; Lessons-learned reviews; Process; Projects Reward systems, 101 Rework spiral, 21 trend, decline, 24 Right-brain orientation, 103 Right-brain preference, advantage See Project managers Risk, 305 analysis, 11 execution, 196-199 assessment, 388 avoidance, 314-316 coverage, 260 identification, 306-307, 309, 311 504 Risk (Cant.) ignoring, 314, 319 management, 61-62, 303-304 process, 306-309 planning, failure, 223-224 prevention, 315 quantification, 309-319 responses, 199 seriousness, 209 Risk priority number (RPN), 306, 310 calculation, examples, 311-314 example, 313 Roles, 387 clarification, 257 RPN See Risk priority number Run charts, usage, 366-369 San Diego Building Association, competition, 86,217 Schedule performance index (SPI), 360-361 Schedules advance, example, 353-355, 357 computations, 449 creation, 267 lag example, 344-353, 355-356 plot, 346 minor/major increments, guidelines, 272-275 reporting, disadvantages 329-333 results, forecasting, 363-364 usage see Progress variance, 346-347 INDEX Scheduling, Seealso PERT scheduling; Projects basics, 261-269 computations, 450-459 methods, 43 software, 11 program, usage, 269 Scientific method, 159 Scope additions/deletions, 301 definition, 13 equation, 15 management, 59-60 relationship See Performance cost time scope Seat-of-the-pants project management, 22 Second-order interaction effects, 170 Self-concept, 436-440 components, 438 Self-esteem, 440 Sender-receiver models, 289 Senge, Peter, 93-94 Severity reduction, 316-317 Single-dominant HBD! profile, 112-116 illustration, 107 Single-gender teams, 123 Six Sigma program, 83 relationship See Project management system, requirements, 48 Skewed distribution, 250 Slack, 263 Smith, Hyrum, 447 505 INDEX Software capabilities See Projects program, usage See Scheduling usage, approach, 266-268 Sf'C, See Statistical process control Spending efficiency, 361 SPI See Schedule performance index Spreadsheets, usage See Progress Stage-gate, 416 Stakeholders expectations, clarification, 176, 178 interaction, 67 responsibilities, 292 Standish Group, 136, 179 survey results See Projects Statistical process control (SPC) methodology, 402-403 Status reporting, 299 Steiner, Claude, 70 Stoplight report/reporting, 377, 380 Strategy See Lewis Method alternatives, ranking, 192-195 definition, 184-189 development See Project strategy generation, 189-207 importance, 184-187 invention, 189, 191 priority matrices, 193-195 selection, 189, 192 usage, 54 Stratification, usage See Description Strengths weaknesses opportunities and threats (SWOT), 305 analysis form, 198, 207 execution, 196-199 Student effect, 253 Success as-if behavior, 441-442 conditions, 431-432 defining, 34-30 70 mind, programming, 440-441 Successive abstractions, 174 technique, 173-174 SWOT See Strengths weaknesses opportunities and threats Sykes, Charles, 439 Systems impact See Behavior issues, 93-96 joint optimization, 96 variation, reduction, 78 Tasks See Parallel tasks durations estimation, 215 variability, 276-277 estimates, distribution, 255 performance increments, 280 process, impact, 142 priority, 424-425 process, impact, 383-384 rules, 222 scheduling, 268 Team members conflict, 387 506 Team members (Cont.) misalignment, 146 mission, awareness, 143 Teams dynamics, 125-130 formation, HBDI (usage), 122-125 mission, shared understanding, 147 processes, 383 whole brain, absence, 123 Technical change, 31 Technical requirements, 14 Technical strategy, 208 contrast/relationship See Project strategy Technical team, profile, 124 Technology company, considerations, 188-189 Thinking See Negative thinking; Wishful thinking A quadrant, 110, 112 B quadrant, 112-113, 213 C quadrant, 113-114 Dquadrant, 114-115, 190 modes, preference, 106 preferences, awareness, 128 quadrants, illustration, 111 Thinking styles, 104-116 HBD! profile, illustration, 105 preference, 114, 117 Thought processes application, 49 documentation, contrast, 50 Thou-shall-nets, 78 Threats See Strengths weaknesses opportunities and threats INDEX identification, 306 risks, contrast, 197, 199 Three-activity project, cumulative spending (example), 345 Three-sigma quality level, 25-26, 84 See also Projects Time estimating, 245-257 management, 60 relationship See Performance cost time scope requirement, equation, 15 severity, 312 Time-cost tradeoff, 17-21 curve, 18, 19 See also Projects Time-critical resource allocation, 270 Time-value of money See Money Tools issues, 92-93 people/systems, relationship, 9-13 Tracy, Brian, 431 Training absence, 412 sessions, adequacy, 91 Transactional analysis, impact See Life Transfer, 199,314,317 Transportation, design tree, 177 Tregoe,Benjamin, 189, 191 Trend analysis, 303 forecasting, graphs (usage), 343-359 graphs, plotting, 23 INDEX Triple-dominant profiles, 108 illustration, 109 Turf battles, impact, 99-100 Turnarounds, specialization, 118 Unilateral planning, 215-216 Unintended consequences, impact, 199-200 Value, addition See Process Variance analysis, 300 Vision confusion See Mission defining, 153-154 statement, writing, 154 Waiting time, system loading (relationship), 282 WBS See Work breakdown structure Weaknesses See Strengths weaknesses opportunities and threats identification, 209 Weisbord, Marvin, 396 What-if schedule, 271 Whole brain development, 131 project management, 103 representation, 122 teams, 123 Wilson Learning Systems, 443 507 Wishful thinking, 175-176 Work breakdown structure (WBS), II, 43, 226, 421 See also Partial WBS activities, 243 completion, 127 construction, task sequence, 228 development, 224-244, 307 MindManager software, usage, 244 examples, 227, 229, 242,308 consideration, 235, 237 first pass, 232 guidelines, 239-241, 244 levels, names, 229 list activities, movement, 234 procedure, 238-239 process, steps, 230-231, 235 research, expansion, 236 select site, dissection, 232 sequence determination, 240 steps, 231, 235 terminology, 228-230 Work efficiency, 361 Work motivation, HBDI (relationship), 117-125 Work package, 230 Working project manager, 81, 423 Working time estimates, 256 knowledge, 227 Workspace, inadequacy, 412 Worst-worst case, 248 Wysocki, Bob, 82, 398 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ABOUT THE AUTHOR James P Lewis, Ph.D is an experienced project manager who now teaches seminars on the subject throughout the United States, England, and the Far East His solid, no-nonsense approach is largely the result of the 15 years he spent in industry, working as an electrical engineer engaged in the design and development of communication equipment He held various positions, including Project Manager, Product Engineering Manager, and Chief Engineer, for Aerotron, Inc and ITT Telecommunications, both of Raleigh, NC He also was a Quality Manager for ITT Telecom, managing a department of 63 quality engineers, line inspectors, and test technicians While he was an engineering manager, he began working on a doctorate in organizational psychology, because of his conviction that a manager can only succeed by developing good interpersonal skills Since 1980, Dr Lewis has trained over 30,000 supervisors and managers in Argentina, Canada, England, Germany, India, Indonesia, Malaysia, Mexico, Singapore, Sweden, Thailand, and the United States He has written articles for Training and Development Journal, Apparel Industry Magazine, and Transportation and Distribution Magazine, and is the author of Mastering Project Management, 509 510 ABOUT THE AUTHOR The Project Manager's Desk Reference, Second Edition, Working Together: The 12 Principles Employed by Boeing Commercial Aircraft to Manage Projects, Teams, and the Organization, Project Leadership, and The Project Manager's Survival Guide, and co-author with Louis Wong of Accelerated Project Management, published by McGraw-Hill, and Fundamentals of Project Management, Second Edition; How to Build and Manage a Winning Project Team; and Team-Based Project Management, published by the American Management Association He is co-author, with Bob Wysocki, of The World-Class Project Manager, published by Perseus in 2001 The first edition of Project Planning, Scheduling and Control has been published in a Spanish edition, and the AMACOM book Fundamentals of Project Management has been published in Portuguese and Latvian Several of his books have also been published in Chinese, and Project Leadership has been translated into Spanish and Russian He has a B.S in Electrical Engineering and a PhD in Psychology, both from NC State University in Raleigh He is a member of the Project Management Institute He is also a certified Herrmann Brain Dominance Instrument practitioner He is president of The Lewis Institute, Inc., a training and consulting company specializing in project management, which he founded in 1981 He is a member of the Project Management Institute and the American Society for Training and Development Jim is married to the former Lea Ann McDowell, and they live in Vinton, Virginia I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I ISBN 0- 7- 1460 37- II II 780071 460 78 .. .PROJECT PLANNING, SCHEDULING, AND CONTROL Fourth Edition PROJECT PLANNING, SCHEDULING, AND CONTROL A Hands-On Guide to Bringing Projects in on Time and on Budget... James P Project planning, scheduling, and control; a hands-on guide to bringing projects in on time and on budget / by James P Lewis.- 4th ed p.cm ISBN 0-07-146037-3 (hardcover; alk paper) Project. .. INTRODUCTION TO PROJECT MANAGEMENT Chapter An Introduction to Project Management What Is a Project? What Is Project Management? How Do You Define Success? 34 The Project Management System 37 Project