Project management a managerial approach 5th by merdedith

Project management a managerial approach 5th by merdedith Project management a managerial approach 5th by merdedith Project management a managerial approach 5th by merdedith Project management a managerial approach 5th by merdedith Project management a managerial approach 5th by merdedith

J A C K R MEREDITH SAMUEL J MANTEL, J R w Contain Microsoft Pmiect I and CqpC Ball wnJIYIm- PROJECT MANAGEMENT A MANAGERIAL APPROACH Fifth Edition Jack R Meredith Broyhill Distinguished Scholar and Chair in Operations Babcock Graduate School of Management Wake Forest University Samuel J Mantel, Jr Joseph S Stern Professor Emeritus of Operations Management University of Cincinnati John Wiley & Sons, Inc To Avery and Mitchell, from "papajack " J R M To the new members of the cast, in the order of their appearance: Natalie, Rachel, Rivkah, Tyler, Kyle, Ryan, Alison, Alexandra, Caroline, and Preston, with love S J M., Jr ACQUISITIONS EDITOR Beth Lang Golub ASSISTANT EDITOR Lorraina Raccuia MARKETING MANAGER Gitti Lindner SENIOR PRODUCTION EDITOR Norine M Pigliucci SENIOR DESIGNER Kevin Murphy PHOTO EDITOR Lisa Gee PRODUCTION MANAGEMENT SERVICES Ingrao Associates COVER PHOTO VCLISpencer RowelllGetty Images This book was set in 10.5112Times by Pine Tree Composition and printed and bound by Donnelley Crawfordsville The cover was printed by Lehigh Press, Inc This book is printed on acid-free paper.Copyright O 2003 John Wiley & Sons, Inc All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by ar means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sec tions 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the Publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Cente 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4470 Request to the Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 605 Third Avenue, New York, NY 10158-0012, (212) 850-6011, fax (212) 850-6008, E-Mail:PERMREQ@WILEY.COM To ord books please call (800)-225-05945 Library of Congress Cataloging-in-PublicationData Meredith, Jack R Project management : a managerial approach / Jack R Meredith, Samuel J Mantel, Jr.5th ed p cm Includes index ISBN 0-471-07323-7 (cloth : alk paper) Project management I Mantel, Samuel J 11 Title ISBN 0-471-07323-7 WIE ISBN: 0-47 1-42907-4 Printed in the United States of America Preface APPROACH The use of projects and project management continues to grow in our society and its organizations We are able to achieve goals through project organization that could be achieved only with the greatest of difficulty if organized in traditional ways Though project management has existed since before the days of the great pyramids, it has enjoyed a surge of popularity beginning in the 1960s A project put U.S astronaut Neil Armstrong on the moon A project named "Desert Storm" freed the nation of Kuwait An annual project brings us Girl Scout cookies as a sign that winter is just about finished The use of project management to accomplish the many and diverse aims of society's varied organizations continues to grow Businesses regularly use project management to accomplish unique outcomes with limited resources under critical time constraints In the service sector of the economy, tlie use of project management to achieve an organization's goals is even more common Advertising campaigns, voter registration drives, political campaigns, a family's annual summer vacation, and even management seminars on the subject of project management are organized as projects A relatively new growth area in the use of project management is the use of projects as a way of accomplishing organizational reorganization and change Indeed, there is a rapid increase in the number of firms that use projects as the preferred way of accomplishing almost everything they undertake Not even the most optimistic prognosticators foresaw the explosive growth that has occurred in the field As the field has grown, so has its literature There are "cookbooks" that describe in detail the specific steps required to carry out a project, but they not address the whys nor they usually discuss how and why the parts fit together Another type of book focuses on scheduling networks These are quite helpful for scheduling, but scheduling is only one of the serious problems a project manager must face There are books, seemingly dozens of them, that "talk about" project management-but only occasionally about how to manage a project There are books on earned value calculations, cost estimating, team building, purchasing, project management software, leadership, planning iv PREFACE IT projects, and similar specialized or subspecialized subjects These are valuable for experienced project managers who can profit from an advanced education in specific areas of knowledge, but one cannot learn to manage projects from these specialized sources There are also handbooks-collections of articles written mainly by academics and consultants on selected topics of interest to project managers Handbooks not, nor they pretend to, offer broad coverage of the things project managers need to know Once the project manager has been educated on the basics of project management, these handbooks often represent valuable collections of relevant readings Unfortunately, project management seems to be reentering a stage that we thought had passed-arguments within the profession (and among those who teach it) about what we really need to know to manage projects Must we know "how to manage people" or "how to use computers and quantitative methods"? Lately we have been receiving email from teachers such as the one who urged us to drop "all the m a t h and pay more attention to conflict resolution, and another who suggested that we cut back on the "touchy-feely stuff and stick with the important things like scheduling and budgeting." We believe that insight into human behavior, knowledge of organizational issues, and skill with certain quantitative methods are all necessary (though not necessarily sufficient) for successful project management This book reflects that belief It addresses project management from a management perspective rather than a cookbook, special area treatise, or collection of loosely associated articles Such a book should address the basic nature of managing all types of projects-public, business, engineering, information systems, and so on-as well as the specific techniques and insights required to carry out this unique way of getting things done It should deal with the problems of selecting projects, initiating them, and operating and controlling them It should discuss the demands made on the project manager and the nature of the manager's interaction with the rest of the parent organization The book should cover the difficult problems associated with conducting a project using people and organizations that represent different cultures and may be separated by considerable distances Finally, it should even cover the issues arising when the decision is made to terminate a project This managerial perspective is the view we have taken here As we noted earlier, we are occasionally advised to "cut the BS," apparently a reference to any aspect of project management that is not mathematical, technical, or governed by strict rules of procedure The argument is that "management is just common sense." It is quite possible that such a statement is true, but if so, the word "common" is used in the sense of "common carrier9'-something available to everyone Sadly, everyone does not seem to have managerial common sense If everyone did, there would be no market for Scott Adam's Dilber-t-selected illustrations of which are reproduced here where appropriate The book is primarily intended for use as a college textbook for teaching project management at the advanced undergraduate or master's level The book is also intended for current and prospective project managers who wish to share our insights and ideas about the field We have drawn freely on our personal experiences working with project managers and on the experience of friends and colleagues who have spent much of their working lives serving as project managers in what they like to call the "real world." Thus, in contrast to the books described earlier about project management, this book teaches students how to project management PREFACE v As well as being a text that is equally appropriate for classes on the management of service, product, or engineering projects, we have found that information systems (IS) students in our classes find the material particularly helpful for managing their IS projects Thus, we have included some coverage of material concerning information systems and how IS projects differ from and are similar to regular business projects / /IORGANIZATION AND CONTENT Given this managerial perspective, we have arranged the book to use the project life cycle as the primary organizational guideline We have found it to be a comfortable framework for the reader Following an introductory chapter that comments on the role and importance of projects in our society and discusses project management as a potential career for aspiring managers, the book covers the major events and issues arising during the management of projects in the order in which they usually occur in the life of a project Part I, Project Initiation describes how projects are selected for implementation It also covers the role of the project manager, the various ways that projects can be organized, and the special requirements for managing a cross-cultural project This is followed by a description of the project planning process and some tools used in project planning Part I concludes with a topic of major importance to the project manager: negotiation Project budgeting, scheduling, resource allocation, monitoring/information systems, and controlling are then discussed in Part II, Project Implementation Finally, Part III, Project Termination concludes the discussion with a description of project auditing and termination The book ends with an epilogue that comments on our ideas about the state of the field and notes three fundamental problems that must be solved if project management is to progress beyond its current state of sophistication We have relegated the discussion of two important aspects of projects that usually occur very early in the project life cycle-creativitylidea generation and technological forecasting-to the book's website Although few project managers engage in either of these tasks (typically being appointed to project leadership after these activities have taken place), we believe that a knowledge of these subjects will make the project manager more effective Any way chosen to organize knowledge carries with it an implication of neatness and order that rarely occurs in reality We are quite aware that projects almost never proceed in an orderly, linear way through the stages and events we describe here The need to deal with change and uncertainty is a constant task for the project manager We have tried to reflect this in repeated references to the organizational, interpersonal, economic, and technical glitches that create crises in the life cycle of every project, and thus in the life of every project manager Finally, although we use a life-cycle approach to organization, the chapters include material concerning the major areas of the Project Management Body of Knowledge (PMBOK) as defined by the Project Management Institute (See Bibliography for Chapter 1.) Anyone wishing to prepare thoroughly in some of these areas may have to go beyond the information covered in this text vi PREFACE PEDAGOGY Because this book is primarily a textbook, we have included numerous pedagogical aids to foster this purpose As in earlier editions, short summaries appear at the end of the text of each chapter, followed by glossaries defining key terms and concepts introduced in the chapter End-of-chapter materials also include review questions and problems revisiting the materials covered in the chapter The answers (though not the detailed solutions) to the even-numbered problems are on the book's Web site There are also sets of conceptual discussion questions intended to broaden the students' perspectives and to force them to think beyond the chapter materials to its implications Finally, there are questions covering the Project Management in Practice application examples located throughout the chapters As in the past, we include incidentsfor discussion, which are brief "caselettes" oriented primarily toward the specific subjects covered in the chapter, but sometimes allow use of materials and concepts covered in earlier chapters And at the end of each chapter we offer a reading and/or a case, with questions concerning the reading and/or case at the end In the fourth edition, we removed many of the "major" cases from the book and inserted them in the Instructor's Manual and on the book's Web site Teachers let us know, in no uncertain terms, that these larger cases belonged in the book We returned some of them to the book and added a number of newer cases as well Of course, many of the older cases are still available in the Instructor's Manual and on the website They are laid out to facilitate copying, should the instructor wish to use them for class handouts and discussion We have made some assumptions about student and professional readers in writing this text First, we assume that all readers have taken an elementary course in management or have had equivalent experience The reader with a background in management theory or practice will note that many of the principles of good project management are also principles of good general administrative management Project management and administrative management are not entirely distinct Further, we assume that readers are familiar with the fundamental principles of accounting, behavioral science, finance, and statistics as would be a typical manager Because the assumption concerning statistics is not always met, we include Appendix A on the Web site (http://www.wiley.com/college/project@MGT).Thisappendix on probability and statistics serves as an initial tutorial or as a refresher for rusty knowledge WHAT'S NEW In this fifth edition, we have made quite a few substantial changes, First, in line with the trend in industry, we have taken a more strategic perspective of project management Chapter is now oriented toward using project selection as a major tool for achieving the strategic objectives of the organization through what is called the Project Portfolio Process In addition, Chapter (Scheduling) has been completely rewritten Since all of the easily available and inexpensive software uses activity-on-node (AON) notation, we have given it prominence in Chapter We continue, however, to teach both AOA and AON and use whichever is most pedagogically helpful whenever networks are required For example, we prefer AON for scheduling because network construction is PREFACE vii simpler On the other hand, we adopt AOA for teaching how projects are crashed (Chapter 9) because AOA networks illustrate crashing more clearly Coverage of earned value analysis has been extended once again in Chapter 10 (Monitoring) In addition, a lengthy example has been added illustrating the calculation of earned value during the execution of a project Substantial discussion of the Project Management Office has been added to Chapter (Project Organization) with additional references to the Project Office appearing throughout the text We have also greatly expanded the coverage of risk management The added emphasis on risk management is accompanied by a student version of Crystal all@ 2000, an ~ x c e l @ add-in, that comes with the book This software makes simulation reasonably straightforward and not particularly complicated Discussions of risk management are scattered throughout the entire text, sometimesamounting to a few words and sometimes to whole sections of a chapter The use of simulation as a technique for risk analysis is demonstrated in several ways in different chapters (Because relatively few students are familiar with simulation software, step-by-step instruction is included in the text.) Microsoft projecta has become the dominant application software in the field, outselling its closest competitor about to As with the last edition, a free 120-day trial version of Microsoft Project Professional 0 ~is included on a CD in every copy of the book Our coverage of software tends, therefore, to be centered on Microsoft project' (and on Crystal all@), but includes a brief discussion of the many "add-ons" that are now available to supplement Microsoft projectB and its competitors Because the various versions of Microsoft projecta are quite similar in the way that they perform most of the basic tasks of project management, we generally not differentiate between the versions, referring to any and all simply as Microsoft Project (MSP) We have also added some exercises to the end-of-chapter material that can utilize computer software Similar materials are also available on the website In the past, we grouped the Microsoft projectBand ~ x c e l @ printouts in one chapter This worked fine for those early, simple versions of project management software However, as software capabilities expanded, it became necessary to illustrate them in the same chapters where those capabilities were described For example, when trying to understand a work breakdown structure, it is helpful to see the computer printout and to observe the assignment of WBS numbers as one develops the project plan MSP and ~ x c e l @ printouts therefore now appear where they are relevant to the material being covered There is, of course, the danger that human nature, operating in its normal discreet mode, will shift the task of learning project management to that of learning project management software Projects have often failed because the project manager started managing the software instead of the project Instructors need to be aware of the problem and must caution students not to fall into this trap a SUPPLEMENTS The Instructor's Resource Guide on the CD-ROM provides additional assistance to the project management instructor In addition to the answers/solutions to the problems, questions, readings, and cases, this edition includes teaching tips, a test bank, a computerized test bank, and Power Point slides The books' accompanying Web site (http://www.wiley.corn/college/project@MG) contains, given the password, the following valuable resources for the instructor: an electronic version of the Instructor's viii PREFACE Resource Guide In addition, the student Web site contains Web quizzes, and Appendix A: Probability and Statistics and Appendix B: Answers to the Even-Numbered Problems, a glossary, and additional cases, topics, and incidents for discussion a ACKNOWLEDGMENTS We owe a debt of gratitude to all those who have helped us with this book First, we thank the managers and students who helped us solidify our ideas about proper methods for managing projects and proper ways of teaching the subject Second, we thank the project teams and leaders in all of our project management classes We are especially grateful to Margaret Sutton and Scott Shafer whose creative ideas, extensive skills with software, and ability to sniff out inconsistenciessaved us countless hours of fumbling and potential embarrassment Last, but never least, we thank Suzanne Ingrao, editor nonpareil Special thanks are due those who have significantly influenced our thinking about project management or supplied materials to help us write this book: Jeffrey Camm, James Evans, Martin Levy, John McKinney and William Meyers, all of the University of Cincinnati; Larry Crowley, Auburn University; Jeffrey Pinto, Pennsylvania State University of Erie; Robert Riley, consultant; Gerhard Rosegger, Case Western Reserve University; and the Staff of the Project Management Institute We owe a massive debt of gratitude to the reviewers for previous editions: Nicholas Aquilano, University of Arizona; Bud Baker, Wright State University; Robert J Berger, University of Maryland; Maj Mark D Camdle, Air Force Institute of Technology; Howard Chamberlin, Texas A&M University; Desmond Cook, Ohio State University; Edward Davis, University of Virginia; Kwasi Amoako-Gyampah, University of North Carolina, Greensboro; Richard E Gunther, California State University, Northridge; Jane E Humble, Arizona State University; Richard H Irving, York University; Ted Klastorin, University of Washington; Bill Leban, Keller Graduate School of Management; Barin Nag, Towson University; John E Nicolay, Jr., University of Minnesota; David L Overbye, Keller Graduate School of Management; David J Robb, University of Calgary; Arthur C Rogers, City University, Washington; John Shanfi, DeVry Institute of Technology, Irving, Texas; Richard V Sheng, DeVry Institute of Technology, San Marino, California; Joyce T Shirazi, University of Maryland University College; Herbert Spirer, University of Connecticut; Jerome Weist, University of Utah; Burton Dean, San Jose State University; Samuel Taylor, University of Wyoming; William G Wells, Jr., The George Washington University; and James Willman, University of Bridgeport For this edition, we thank these reviewers: Michael H Ensby, Clarkson University; David L Keeney, Stevens Institute of Technology; Abe Meilich, Walden University; Jaindeep Motwani, Grand Valley State University Jack Meredith Broyhill Distinguished Scholar and Chair in Operations Babcock Graduate School of Management Wake Forest University, P.O Box 7659 Winston-Salem, NC 27 109 jack.meredith@mba.wfu.edu www.mba.wfu.edu Samuel J Mantel, Jr., Joseph S Stern Professor Emeritus of Operations Management University of Cincinnati 608 Flagstaff Drive Cincinnati, OH 45215 mantelsj@Iuc.edu CHAPTER Projects in Contemporary Organization 1.1 The Definition of a "Project" 1.2 Why Project Management? 11 1.3 The Project Life Cycle 13 1.4 The Structure of This Text 19 PROJECT MANAGEMENT I N PRACTICE The Olympic Torch Relay Project 10 PROJECT MANAGEMENT I N PRACTICE 18 Demolishing San Francisco's Bridges Safely READING: Lessons for an Accidental Profession 25 PROJECT INITIATION CHAPTER Strategic Management and Project Selection 37 2.1 Project Management Maturity 39 40 2.2 Project Selection and Criteria of Choice 2.3 The Nature of Project Selection Models 43 2.4 Types of Project Selection Models 46 2.5 Analysis under Uncertainty-The Management of Risk 2.6 Comments on the Information Base for Selection 75 2.7 Project Portfolio Process 78 2.8 Project Proposals 85 PROJECT MANAGEMENT IN PRACTICE Implementing Strategy through Projects at Blue Cross/ 40 Blue Shield 63 NAME INDEX Fabrycky, W., 251,274 Farid, F., 467, 499, 546 Fedor, K J., 148, 165,216 Fendley, L G., 467, 475,476, 499 Fersko-Weiss, H., 546 Finley, R., 667 Fincher, A,, 39,95 Fischer, W A., 65 1,666 Fisher, D., 35, Fisher, R., 313,314,320 Fleming, Q W., 524,529,546 Ford, R C., 140, 165,217,218,227,243,275,547 Fox, T L., 538,540, 547, 552 Frame, J D., 35, 81, 95, 117, 209,226, 227, 352, 365,412,440 Freeman, M., 95,634, 651,652,655,666 Friar, J H., 65 1,666 Fulton, J C., 54, Fusco, J C., 187, 227 Caddis, P 0., 165 Gagne, M., 191 Gagnon, R J., 128, 165,339,341,352,365 Gales, L M., 187,227 Gallagher, C., 395, 440 Ganesh, L S., 471,500 Gantt, Henry L., 390 Garcia, A,, 95 Garrehy, P J., 524, 547 Gemmill, D D., 471,499 Gemmill, G R., 165 Gershanov, K M., 294 Gibson, L., 590,597 Gldo, J., 440 Gilyutin, I., 455,499 Githens, G., 52, 95 Giuliano, J., 167 Glass, G W., 365 Glauber, L W., 482,499 Globerson, S., 476, 500 Gobeli, D H., 228 Gogal,H.C., 151, 158, 159, 165 Goldratt, E M., 379,422,440,443,485,486, 489, 492,493,499 Gonzalez, R F., 255, 275 Goodman, L J., 25, Goodman, M., 667 Gordon, J A,, 352, 365 Gosselin, T., 35, Gotzis, T P., 347 Gousty, Y., 56, 96 Graham, D J., 429,440,580,597 Graham, R G., 153, 158, 165 Graham, R J., 25,35,78, 95, 106, 117, 240,274 Grant, K P., 122, 165 Grant, R A,, 584, 597 Gray, C., 300, 302, 320 Green, G I., 429, 439 Green, S G., 136, 165, 651, 666 Greiner, L E., 185,227,669 Grinbergs, A., 158, 159, 165 Grod, M C., 25, Grossman, J., 315, 320 Gunther, R E., viii Gupta, V K., 429,440,580,597 Haar, J., 147 158, 166 Hajek, V G., 296, 297, 320, 579,597 Hamburger, D H., 165,372 Hamerly, R., 634 Hammer, M., 227 Hare, L B., 412,440 Harris, R D., 255,275 Harrison, F L., 25, 365,479,500 Harwell, G., 566 Hatfield, M A,, 524, 547 Hauptman, 148, 165,267,275 Hayes, C C., 240,268,275,300,321 Hayes, R., 62,95 Helin, A F., 95 Helpem, A., 320 Hertenstein, J H., 362 Hertz, D B., 95 Herzberg, F H., 130, 165, 216 Heywood, G E., 575,585,597 Higgins, C A,, 584,597 Hill, M M., 598 Hill, R., 201, 221, 227 Hinterhuber, H H., 46, 96,651,666 Hirji, K K., 148, 165,267,275 Hitchcock, L., 184 Hjelmas, T A,, 217, 228 Hobbs, B., 227 Hockney, J W., 25,666 Hodge, B J., 187,227 Hoerl, R W., 332,412,440 Holland, R G., 507 Holt, D H., 185, 227 Homer, M 35, Howard, D, C., 597 Hromi, J D., 412,440 Hubbard, D G., 261,275 Huber,,G P., 96 Huber, W D., 472,500 Hughes, T P., 7,25, 120, 131, 146, 165,227,300,311,320 Hulett, D T., 409, 41 1,440 Hulley, S., 597 Hulvey, A G., 276 Humble, J E., viii Humphreys, K K., 25,666 Ibbs, C W., 11,25, 39,96,429,430,440,452,500, 580, 597 Ingram, T., 534,615, 650, 666 Ingrao, S., viii Ireland, L R., 142, 151, 158, 159, 165, Irving, R H., viii, 62, 86, 584, 597 Isbell, A M., 546 Isgar, T., 227 Jackson, B., 634 Jandt, F E., 320 Jay, A,, 522,547 Jensen, C A., 518,547 Jergeas, G F., 86, 96 677 Jiang, J J., 141, 165, 666 Johannessen, O., 217,228 Johnson, J R,, 478,500 Johnson, R A,, W I Johnson, R V., 467,482,500,547 Jones, D P., 345,366 Jordan, B D., 52,96 Jugdev, K., 38,97 Jung, J R., 440 Kahn, R I., 332 Kahneman, D., 641 Kalu, T Ch U., 133, 165, 196,227,268, 275,670 Kamburowski, J., 396,440 Kandt, D B., 593 Kangari, R., 546 Karaa, E A,, 597 Kata, D., 332 Katzenbach, J R., 218, 227 Keefer, D L., 396,440,682 Keeney, D L., viii Kefalas, A, G., 568, 598 Keil, M., 655, 666 Kelton, W., 65,96 Kerzner, H., 25, 184,227, 275,440,597, 634 Ketcham, L., 227 Kharbanda, P., 25,35, 31 1,321 Khorramshahgol, R., 56,96 Khumawala, B., 472, 500 Kidder, T., 11,547 Kimball, R., 646 Kimball, R K., 240, 274 King, W R., 34,35,37,95, 195,227,546 Klastorin, T., viii Klein, G., 141, 165,666 Kleinschmidt, E J., 17, 279, 274 Kloppenborg, T J., 133, 134, 165.65 1,666 Knight, K., 634 Knutson, J., 86,96,227,242,275,430,440, 521,547 Koppleman, J M., 524, 520, 546 Kotter, J P., 125, 165, 187, 227 Kretlow, W J., 96 Kruse, C., 294 Kumar, P., 164 Kumar, U., 666 Kumar, V K., 117,471, 500,655, 666 Kurstedt, H A,, Jr., 286, 294 Kurtulus, I., 467,474,500 Kwak,Y-H., 11,25, 39,96,429,430,440,580,597 Lagadec, P., 294 Lambert, L R., 534,547 Langley, A,, 239, 275 Larsen, M., 478, 500 Larson, E W 194, 227,228, 300, 301, 302, 320, 320 Laufer, A,, 240,275,558 Lavold, G D., 275 Law, A M., 65,96 Lawrence, A O., 353,365 Lawrence, P R 35,332 , Layard, P R G., 365 Leban, W., viii Lee, S A,, 452 500 Lee, T., 547 Lee, W., 655,666 Lefingwell, D., 590,597 Leonard, J B., 294 Levene, H., 558 Levin, G., 39,95 Levine, H A., 185,217,228,409,412,440,538,539,540,541, 547,558 Levinson, N S 148, 165, Levy, F K., 386,441 Levy, M., viii Levy, N S., 476,500 Levy, 4, 25,612,634,667 Li, M I., 452, 500 Liberatore, M J., 62,96,240, 275,440,547 Likert, J G., 216,221, 228 Likert, R., 21 6,221,228 Likierman, A., 597 Lindsay, W M., 21 7,227,s 15,546 Lipshitz, R., 641 Littlefield, T K., Jr., 395, 440 Liu, J , 666 Livingston, J L., 583, 597 Lloyd, J., 294 Lock, D., 25, Long, A,, 315,321 Long, B G., 321 Longman, A,, 78,96 Lorenz, C., 412,440 Lorsch, J.W., 35, 332 Love, S F, 261, 275,301, 321 Lubianiker, S., 39, 96 Lucas, D.C., 148, 164 Luehrman, T A., 366 Lynn, L H., 151, 165 Maes, J D., 301,321 Maier, N R F., 332 Mallak, L M., 286, 294 Mallon, J C., 440 Mandakovic T., 547 Mandelbaum, A,, 499 Mann, G A,, 96 Manoharan, S., 467, 499 Mantel, S J., Jr., 75, 95,96, 128, 134, 135, 151, 165, 166, 337, 339,352,365,422,440,651,655,656,666,667 March J G., 641 Margulis, S., 141, 165 Martin, J E., 353, 366 Martin, M D., 151, 166 Martin, M G 244,275 Martin, P K., 242,275,412,440 Martino, J., 17 Martinez, E V., 244, 275 Massarick, F, 141, 166 Matson, E., 120, 165 Matthews, M D., 547 Matzler, K., 46, 96,651, 666 McCahon, C S., 440 I I I 1 NAME INDEX i McCollum, J K., 228 McFarlan, W., 547 McGregor, D., 216,332 McGuigan, J R., 96 McIntosh, J O., 471,500 McKeown, T J., 151, 165 , McKinney, J M., viii , McLaughlin, F S., 140, 165, 217,218, 227, 243, 275,547 ' McLuhan, M., 157 Meilich, A,, viii Mdnard, P., 227 Mendenhall, W., W I Menon, R., 75,95,654 Meredith, J R., 41,46,49,57,61,65,96,97,229, 350, 351, 356, 366,422,440,441,468,476,500,515,547,598,623 Meyers, W R., viii, 612, 634 Middleman, L I., 294 Might, R., 651,666 Milford, J., 167 Miller, T., 667 Mills, N L., 440, 500 Milosevic, D, Z., 150 Minghe, S., 153, 158, 165 Mintzherg, H., 135, 165 Mixon, R., 666 Moder, J J., 386,424, 440, 500, 558 Moolman, G C., 366 Moore, C C., 301,321 Moore, J.E., 209 Moravec, M., 217,228 Morris, W T., 250, 275 Morse, L C., 471, 500 Moshman, J., 478,500 Motwani, J., viii Mouton, J S., 332 Moyer, R C , 52,96 Murdick, R G., 577,597 Murphy, P C., 35, Myers, C L., 634 Nacco, S., 139 Nadler, D, A,, 597 Nag, B., viii Naik, B., 386,440 Narula, S C., 467,474,500 National Software Testing Laboratories, Inc., 547 Navarre, C., 500 Neale, M, A,, 666 Nelson, B., 217, 228 Neter, J., 412, \+'I l Nevison, J M., 520, 547 Newman, W H., 583,584,597 Newton, J K., 634 Nguyen, V., 499 Nicholas, J, M., 448,500 Nickolay, J E , Jr., viii Nichols, M., 35, Nierenberg, G I., 321 Nixon, M A., 142, 166 Nixon, T R., 582 Northcraft, G B., 666 679 Obrodovitch, M M., 321 O'Connor, L., 35, O'Connor, P J., 294 Odiorne, G S, 216,228,320 Olson, D L., 65 95, 413,440 Ono, D., 127 Opitz, C., 97 Orczyk, J.J., 440 Onvell, George, 15911 O'Toole, J., 117 Ott, S H., 365 Overhye, D L., viii Oz, S., 641 Pacifici, L C., 294 Padgham, H F., 228 Paley, A I., 240, 275 Palla, R W., 547 Partovi, F Y.,51 1, 547, 587, 597 Pascal, B., 121 Pascale, S J., 62,96, 412 Pastin, M., 144, 166 Patterson, J H., 472,476, 477, 499, 500 Patterson, N., 166 Patzak, G A., 286,294 Pawar, K S., 213,228 Peale, N V., 144, 164 Pearson, R., 485 Pelled, L H., 196,228, 31 1,321 Pells, D L., 240, 275 Persaud, A N S., 666 Peters, J F., 218, 228 Peters, T J., 239, 652 Pettersen, N., 35, Phillips, C R., 386, 424, 440, 500 Phillips, R C., 142, 166 Pike, W J., 142, 165 Pill, J., 131, 166, 311, 321 Pinto, J K., viii, 25, 35, 120, 129, 130, 135, 136, 142, 160, 166, 218,221,228,258,275,311,321,650,651,655,666,667 Pinto, M B., 160, 166,218,228 Plath, D A., 651, 666 Popper, M., 641 Porras, J I., 117 Posner, B Z., 35, 180 Pospisil, C J., 547 Powers, J R., 440 Prentis, E L, 240,275 Pritsker, A A B., 424,425, 440 Project Management Institute, 5, 8,25,63, 96,228, 243, 275,352, 524,547,548 Raelin, J A., 633,650, 655, 656, 666,667 Raiffa, H., 296, 299, 321 Rakos, J, J., 240,275,547 Ramamurthy, K., 667 Randall, P., 547 Randolph, P H., 395,440 Randolph, W A,, 35, Ray, A,, 366 Raynal, W., 196,228 Raz, T., 62, 83,96 Reck, R., 321 Reif, W E., 276 Reimus, B., 366 Reingold, J., 517,547 Reith, W D., 593 Remy, R., 39,96, 429, 440 Riggs, J L., 655,667 Riley, R T., viii Ritchey, J A,, 597 Robh, D J., viii, 144, 166 Robinson, P B., 412,440 Robinson, T., 315, 321, Roepcke, L A., 337,339,365 Roetzheim, W H., 591,598 Rogers, A C., viii Rogers, B., 63, Roman, D D., 25,86,96, 184,240,275,591,598 Ronen, R., 583,597 Rook, P., 558 Rosegger, G., viii, 151, 166 Rosenau, M D., Jr., 25, 86.96 Ross, J., 667 Ross, S A,, 52,96 Rossy, G L., 218,228 Rubenstein, A H., 158, 159, 165 Ruffenach, G., 1I, Ruskin, A M., 616,634 Rydberg, J., 209, 226 Saaty, T S., 57, 75, 81,96, 117 Saeed, B I., 590,598 Sahlin, J F?, 122, 166 Saitow, A R., 598 Sandahl, D., 78.96 Sanders, J., 598 Sangameswaran, A,, 61 1, 616,634 Santayana, G., 572 Santell, M P., 440 Sasieni, M W., 395, 396, 441 Sawle, W S., 294 Schaan, J., 500 Schaefer, A G., 142, 166,61 1,634 Schaeffer, R L., I\ I I Schlicter, J., 429, 441 Schmidt, R L., 96 Schoderbek, C G., 568,598 Schoderbek, P P., 568, 598 Schrock, J L., 142, 165 Schultz, R L., 275 Schuyler, J R., 64,96 Schwerer, E., 499 Scott, S G., 141, 166 Seesing, P R., 572,598 Seigle, G., 275 Selen, W J., 429, 439 Sethi, N K., 598 Shafer S M., viii, 41,61,65,96,350,351, 356, 366,422,440, 441,48511,515,547,655,667 Shanfi, J., viii Sharifi, S., 213, 228 Shaw, M., 240,275,300,321 Shaw, M E., 228,268 Shearer, R A,, 301, 321 Sheng, R V., viii Shenhar, A., 4,25, 144, 166,558,612,634,650, 667 Shepard, H A,, 332 Sherman, J D., 228 Shirazi, J T., viii Sholes, C., 336 Sigurdsen, A., 345,366 Silverberg, E C., 425,441 Silverman, M., 25 Simon, H A,, 41,96 Singletary, N., 524,547 Sivak, J., 517 Slack, C., 294 Slevin, D P., 35, 120, 129, 130, 135, 136, 142, 145, 166,258, 275,650,651,655,667 Smith, D K., 21 8, 227 Smith, D P., 270, 274 Smith, L A,, 147, 158, 166, 547 Smith, M B., 300, 321 Smith, R P., 245,275 Snee, R D., 412,440 Snow, H., 228 Snowdon, M., 598 Sohoni, V S., 590,598 Solow, Robert, 153 Souder, W E., 42,48,95,96, 130, 166 Speir, W., 78, 96 Spence, J W., 538,540,547,552 Spinner, M., 548 Spirer, H F., viii, 25, 276, 501 Sproull, L S., 641 Stacey, R D., 117 Starr, M K., 166 Staw, B M., 667 Stephenou, S E., 321 Stewart, J M., 25, Stinson, J P., 472, 500 Stone, G S., 122, 165 Strickland, M W., 298 Stubbs, M., 641 Stuckenbruck, L C., 184,634 Sun, M., 2, 25, Sutton, M M., viii, 422, 440 Sweeney, D, J., 499, M I I Sweet, P., 35, Tadisina, S K., 655, 656, 666, 667 Talhot, F B., 472,500 Tamuz, M., 641 Tan, G W., 240,275,300,321 Tannenbaum, R., 141, 166 Tate, K., 242,275,412,440 Taylor, S G., viii, 645 Tennant, D., 213,228 Teplitz, C J., 352, 365 Thamhain, H J., 35, 165, 184,218,219, 220, 228, 295, 304, 305, 307,309,310,311,321,429,441,539,548,580,598,604 Thomas, H., 95 NAME INDEX Thomas, J., 38, 97 Tiong, R L K., 598 Tipnis, V A., 96 Tippet, D D., 218, 228 Titus, G J., 62, 96, 440 Todryk, L., 21 8,228 Toelle, R A,, 441 Toney, F., 429, 441, 580, 598 Torfason, G., 260 Torkzadeh, G., 558 Town, C., 366 Townsend, H W R., 97 Triantis, A J., 365 Trist, E., 227 Truex, D P., 111, 666 Tsai, Y W., 471, 499 Tukel, I., 422, 441, 471, 500 Turban, E., 41, 57, 61,65,96, 97, 356, 366,441,468,476,500 Turner, R., 35, Turner, W S., 111, 634 Turtle, Q C., 117 Tversky, A,, 641 Umapathy, S., 366 Ury, W., 313, 314, 320 Vallancourt, K A,, 362 Vandament, W F., 345,366 van Gigch, J P., 97, 121, 166, 567,598 Vazsonyi, A., 255 Verdini, W, A., 396,440, M l I Voich, D., Jr., 228 Wackerly, D , L i I I Walker, J A , 294 Walker, M G ,621,634 Wall, J A , Jr , 299, 314, 321 Walles, T K , 301, 321 Warner, J C ,440 Wasserman, W , \\ I I 68 Weaver, J., 482,500 Weber, F M., 598 Webster, J L., 276 Weil, D E., 558 Weist, J D., viii, 386, 441,48011,483, 500 Wells, W G., Jr., viii Welsh, M A., 651,666 Werther, W B., Jr., 148, 165,216 Westerfield, R W., 52,96 Westney, R E., 117,240,276 Wheelwright, S C., 79, 97, 117 White, B J., 201, 221, 227 Whitehouse, G E., 97,472,599 Whitmore, G A,, 682 Whitten, N., 141, 166,561,598, 661, 667 Wilemon, D L., 184, 218,219, 220, 228,296, 304, 305, 307, 309, 310,311,321,604 Wilkens, T T., 392,441 Williams, G., 185, 228 Williams, T A., 499, \\ I Williams, T M., 441 Willie, C T., 471, 500 Willman, J., viii Witherspoon, J., 441 Wolf, G., 666 Wolff, M F., 667 Womer, N K., 352,365 Woodworth, B M., 471,500 Wren, D A,, 228 Wu, C., 566 Wynter, L E., 148, 166 Yahdav, D., 548 Yasin, M M., 120, 122, 140, 141, 166 Yunus, N B., 598 Zaller, A J., 142, 166, I 1, 634 Zimmerer,T W., 120, 122, 140, 141, 166 Zmud, R., 558 Red entry numbers (W ) indicate those names that are located in the appendix section, which can be found on this book's Web site at http://www wiley.com/college/project@MG~y Accounting data assumptions and problems, 76, 338 Action plan, 218,241,251, 380,386-7, 518,534,569 form of, 254-259 hierarchical planning, 25 1-254 as information source, 534,509 monitoring system design, 509, 518 Activity See also Activity times critical, 384 See also Scheduling, and Resource allocation definition, 387 dummy, 389,449,480 earliest finish (EF), earliest finish time (EFT), 396-398 earliest start (ES), earliest start time (EST), 396-398 latest start (LS), latest start time (LST), 396, 398, 478 pseudoactivity, 480 Activity-on-arrow, on-node network (AOA, AON), 385-390, 393, 423,427,448449,455 Activity times, 384412 deterministic, 384, 446 estimate at 95% and 90% levels, 410412, WO W I expected time, 394-395 normal, crash, 384,445-45 optimisticlpessimistic, 392-396 probabilistic, stochastic, 384, 392-396, 399400, 446 standard deviation of, 395-396,402409 variance of, 395-396,399-400,404,406,402-409,410412 Addition rule, 675-676 Airbus Industries, 42, 151 Allison Engine Co., 195 American Automobile Association (AAA), 59n American Society for Quality, 39 American Telephone and Telegraph Co., 147-148,511,645 Analytical approach, 121 Analytic hierarchy process, 57, 75-76, 81 AOA, AON, see Activity-on-arrow, on-node AOL Time Warner, 669 ARPANET (Department of Defense Advanced Research Projects Agency's Internet), Ashby's Law of Requisite Variety, 568 Atlas Intercontinental Ballistic Missile project, 7, 8, 120 Audits, 576,611, 616-619 audit costs, 617-618 baseline, data base, 623-625 definition, 616 depth, 617-618 ethics, 144,611 evaluation, 246, 61 1, 612-6 15 goals, 612-615 See also Project goals ancillary, 613-615 definition, 613 direct, 613 purposes of, 612-615 recommendations, 12-613 life cycle, 623-625 measurement, 628-630 difficulties, 628-630 permission to enter system, 614, 630-631 measures of project success, 612 process, 621-625 reports, 619-621,625,626 contents, 16-61 7,62&621 distribution, 627-628 style, 619420, 627 team, 626-627 access to personnel, 628 access to records, 627-628 timing, 61 8-619 types, 616419 Auditor/evaluator responsibilities, 621-622 trust building, 630-63 Authority conflicts, 235-238 Automotive Composites Consortium, 151 Average Rate of Return, 49 Bank One, 669 Baseline plan See Master plan Bell Labs, Benefit/cost, 95,372,471 Beta distribution, 394-395, 407412,413, 415, b'IO-\4' I I Bill of materials, 255 Boeing Company, 42 Booz-Allen Hamilton, 394 Boston Central ArteryJTunnel, 7, 146 Branch and bound See Resource allocation British Airways, 42 Budget, 246,333-347,573 as plan, 334 activity vs program, 345-346 approval by senior management, 333, 334 baseline, 333, 524 contingency allowance, 265,342,418 control mechanism, 333-334, 344-345 cost estimation See Cost estimation decrement, 648 definition, 333 forecasting problem, 337 general and administrative cost, 341 negotiation process, 341-343 life cycle, 342-343 overhead costs, 341 See also Cost estimation policy, 333-334, 344-345 process, 344-345 program budgeting, 345-346 stability, 337-339 timeliness of reporting, 334 top-downhottom-up, 338-340 work element costing, 340-341 Bureau of Labor Statistics 353 Capability Maturity Model, 429-430 Career ladders, 126 Carnegie Mellon University, 39 Central Limit Theorem, 406n CFM International, 152 Champion See Project, champion Change, 135,589-592 causes for, 302-304,589 management of, 41 technical change procedure, 216 Change control system, 590-591 Change orders, 243-244 Chartering, 301-302, 304, 307 Chernobyl, China, 158, 160n Chiquita Brands International Inc., 142 Chrysler Corporation, 15 1, 186, 196, 267,270, 669 Cincinnati Enquirer, 142 Cisco Systems, Inc., 42, 669 Communications, 123 breadth of, 135-137 multicultural, 157-159 Compudre system, 147,151 Comparative benefit model, 47 Competitive necessity model, 47 Concurrent engineering, 196,245,249-251,267,270-27 See also Systems integration Conflict, 10, 196,218-221,268,295-315 avoidance of, 22 1,308-309 categories, 305-308 creative use of, 268,296 definition, 295-296 intensity, 220, 307 interpersonal, 218-221,306, 308 life cycle, 219-22 1, 304-3 1 parties-at-interest, 123,295-296,305-308 partneringlchartering, 300-302, 304, 307 project manager vs functional manager, 120-123, 128-129, 307-308 reduction/resolution, 295-297 in matrix management, 670-671 Pareto optimal solution, 299, 303 successfuL 295,297 scope change, 302-303 sources, 21 8-221,243-244 Contingency planning, 87, 135 Continuous improvement teams (CIT), 21 Control, 559-593 balance, 585-588 causes of imbalance, 586 characteristics of, 585-586 methods to achieve, 586-87 control of change and scope creep, 575-576, 589-592 causes for, 302-304,589-590 change control system, 590-592 guidelines and process, 590-592 purpose, 589,590 control of creativity, 124, 588-589 methods of, 588-589 critical ratio, 576-579 costhenefit ratio, 569 human response to, 582-585 as motivator, 583 cybernetic control, 584 golno-go control, 584 postcontrol, 584-585 need for, 560-562 on-going process, 561 phase (stage) gates, 269-271 purposes of, 562-564 financial resource control, 563-564 human resource control, 563 physical assets control, 562-563 scope creep control, 575-576 status reports, 57 1-572 system design, 574-580 benchmarking, 576,580 characteristics of, 574-575 critical ratio control charts, 576-579 data requirements, 576 definition, 576-578 timing and frequency, 570-571 early warning system, 570 interpersonal trust, 570 types, 566-574 cybernetic control, 561, 566-569 1st order, 2nd order, 3rd order, 567-568 information requirements, 568-569 gotno-go control, 569-572 information requirements, 571-572 postcontrol, 572-574 elements of, 572-574 postcontrol report, 573 milestones, checkpoints, budgets, 573 project objectives, 573 project results, 573 recommendations, 573-574 Cost cost shifting, 458-459 direct costs, 348 Costlbenefit, 126,454,569 Cost estimation, 336-346,353 accounting data problems, 337-338 allowance for waste and spoilage, 336 bias, 339-340,341-342,353-354,356-361,529 contingency allowance, 348,354 direct costs, 348 errors, 352, 356 estimation models, 352-353 ethical problems, 343, 352, 354 improving estimation process, 347-361 tracking signal, 356-361 learning curve, 349-352 optimistic, pessimistic, most likely estimates, 348, 360 overhead costs, 341,348 price changes, 353 rules of thumb, 336-338,354-355 technological shock, 352 uncertainty, 336-337 work element costing, see Budget Cost/schedule control systems criteria (CISCSC), 524, 534, 540 Crashing a project, 4 5 See also Activity times, Resource alloction, Trade-offs, and CPM cost/time slope, 447-448 rules for crashing, 448 Creativity management, 124,588-589 Crisis of communication, 669-670 Critical chain, 422,485493 optimistic schedule bias, 8 path buffer, 492-493 project buffer, 9 Theory of Constraints 485,492 Critical path method (CPM) See Resource allocation; Scheduling Critical ratio, 576-579 C/SCSC See Cost/schedule control systems criteria Daimler-Chrysler See Chrysler Data See Monitoring Decision aiding model, 41 Decision-making, by simulation (see Simulation) under certainty, 64 under conflict, 64 under risk, 64 under uncertainty, 64 Decision support system (DSS), 46,655-656 Delphi method, 56, 58n, 77, 81, 655, 656 Department of Defense, 86,529,534 Department of General Services, 427 Direct costs, 348 Ditch Witch, 448 DSS See Decision support system Due diligence, 563-564 61 Dummy activities, 389,480 DuPont, Inc., 384 Earliest finish (EF), earliest finish time (EFT), 396-399 Earliest start (ES), earliest start time (EST), 396-399 Earned value, 523-534, see also Monitoring calculations, 524-529 Cost/Schedule Index, 526-527 costlschedule variances, 525-527 cost to complete estimate, 527-529 critical ratio, 527 percent completed estimate, 524-525 estimation rules, 524-525 example, 529-532 of work performed, 525-527 reports, 532-533 El See Employee Involvement Elanco Animal Health Co., 57 Eli Lilly Co., 126n, 384, 571 Employee Involvement (EI), 217, 304, 559-560,617 Environmental impact on project management, 145, 150-154,505 business cycle environment, 152-153 definition, 150 legal environment, 15 1-152 socioeconomic environment, 150-1 technological environment, 153-154 Ethics, 142-144, 354, 515, 61 audit, 144 code of, 142-143 of control system, 575, 583 of negotiation, 299 Evaluation, see Audits Evaluator, see Auditorlevaluator Even planning process, see Hierarchical planning Event, node, 385-389 Expected time, 394-396 Expected value, 64 Expediting projects, 4 5 Experimental probability, Lb Exxon Valdez, Facilitator, see Project manager Factor scoring models See Scoring models Failure, see Project Fast-tracking, 5 Fiat, 152 Float See Slack scheduling Ford Motor Co., 151 Fortune 500, 62, 580 Functional project organization See Organization Game theory, 64 Gantt chart, 390-392,402,427,455,479,571,532 advantagesldisadvantages,391-392 examples of, 391-392 hierarchy of, 479 PERT/CPM diagram vs., 5 relation to PERTICPM, 402 updating, 14 General Electric Co., 8, 152, 669 General Motors Corp., 15 GERT See Graphical Evaluation and Review Technique Goddard Space Flight Center, 427 Goodyear Aircraft Co., 337 Gozinto chart, 255, 260 Graphical evaluation and review technique (GERT), 424426 comparison with PERTICPM, 424425 definition of symbols, 425 methods, 426 Q-GERT, VERT, 424 Grumman Aircraft Co., 474 Haward negotiation project, 14 Heraclitus, 314 Hierarchical planning, 251-254,255,338-339 Holistic approach, 190, 192 See also Systems approach IBM, Incremental profit, 348 Inferent~alstatistics, \\ L\ \! h \I I0 Informatlon system See Project Management Informatlon System Integrated Computer Engrneerlng Inc ,209 Integrat~onmanagement, 266-269 Interdependencies, Interface coordination, 266267,269-271 Interfaces, 267 mapplng, 267-271 Internal Rate of Return, 51 Internatronal Aero Englnes, 152 Internet, 17-5 18,572 Interpersonal conflict, 306-308 Interproject conflict, 307-308 Intraproject conflict, 298-299 IS0 9000,583 IS0 9001,39 Japan Aero Engines, 152 Latest finish (LF), latest finish time (LFT), 396-398 Latest start (LS), latest start time (LST), 396-398, 478 Learning curves, 349-352 Life cycle, 9, 13-16 alternate cycle, 15-16, 342-343 conflict, 304-3 11 project goals, 13-15, 134-135 risk, 17 stages, 13-16 Lincoln Electric Co., 587 Linear responsibility charts, 241,263-264 Lockheed Corp., 192,384 Logical probability, LL Lucent Technologies, 3M, 669 MAD See Mean absolute deviation Management by exception, 515 Management by objectives (MBO), 216-217, 395,586 Management-by-Projects See Organization, project oriented Management of change See Change Management style, 141-144, 158 Manhattan Project, 7, , Manpower Temporary Services, 586 MAR See Mean absolute ratio Massachusetts Department of Highways, Massachusetts Institute of Technology - (MIT), 153 Master (baseline) plan, 333-334 Materials requirements planning (MRP), 255 Matrix organization, 193-198 advantagesldisadvantages, 193-198 authority conflicts, 305-308 balanced matrix, 194-195 conflict in, 196,670-671 strong matrix, 193-195, 215 weak matrix, 193-195,215 Maturity level See al.ro Project Management Maturity MBO See Management by objectives Mead Corp., 587 Mead Data Corp Project Development Guide, 587 Mean absolute deviation (MAD), Mean absolute ratio (MAR), 358-360 Measurement, 76-77 difficulties, 509-51 1, 628-630 quantitativelqualitative, 43, 77 reliablelunreliable, 77 subjective/objective, 43, 76, 509-510 validlinvalid, 77 Meetings, 520-522 rules, 521 Merck, 669 Merge bias, 409,416 Merrill Lynch, 669 Micromanagement, 122-123,259 Microsoft, 668-669 Milestones, 87,389,390,509,518-519,535-537,569-573, 628-629 reports, 535-537 MIT (Massachusetts Institute of Technology), 7, 153 Models, 4 See also Project selection; Scoring models Monitoring, 505-523,566 accounting data, 76,344,337-338 timeliness, 334, 506 data collection procedures, 509-5 1 , s 12-5 16 definition, 505 earned value See Earned value ethical issues, 515 human factors, 509, 516 measurement problems and issues, 509-5 11 planning, monitoring, controlling cycle, 508-516 closed loop information flow, 508-509 purpose of, 506,508,5 19, reports, 17-523, 532-533 benefits of, 19 final report, 519,573 milestone reports, 519, problems, 522-523 project status or progress, 509-51 1,523, 571, 573 proportionality rule, 510, 525 timing and frequency of, 51 1,517,518-519 types of, 520 virtual project reports, 17 schedule, 379-380 standards and criteria, 509-5 11 changes in, 10 system design, 509-5 11 types of data, 508,509-5 11 Internet data, 17-5 18 Motivation, 128-128, 190, 192,218-223,583,614,671 MRP (materials requirements planning), 255 MTU, 152 Multicultural project management, 145-148 cornpadre system, 147, 151 Multicultural project management (cont.) culture impact on project, 146-148 definitions of culture, 146 elements of culture, 146 managerial behavior, 158-159 microcultures, 148 multicultural communication, 157-160 managerial and personal behavior, 158-159 structure and style of communications, 157-158 psychosocial needs of project team, 159 Multicultural projects, 119 Multifunctional teams, 245, 250-251, 267-271 and project risk, 251 structuring, 267-269 multiple project problem, 38-39 venture team, I99 Multiplication rule, W3-W4 Multiproject schedulinglallocation, definition of problem, 474 effectiveness measures, 4 load factor, 476 heuristic methods, 477-485 descheduling/borrowing, 8 effect of alternate life cycles, 481-482 RAMPS, 478 rules for, 467,477479 SPAR-I, 8 Walt-capacity, 485,492493 manufacturing process models, 476 queuing theory, 476 mathematical programming, 476-477 objectiveslconstraints, 477 Mythical Man Month, 354-355 NAFTA (North American Free trade Agreement), 152 Name-Only-Teams (NOTs), 220-221 NASA, 1, 130,427,655 National Cooperative Research Act of 1984, 151 NCR Corp., 645 Negative feedback loop See Control, cybernetic control Negotiation, 137, 154, 158, 198,206,215,259, 295-315 budget, 341-343 definition, 298 ethics of, 299 nature of, 312-313 partneringlchartering, 30G302, 304 definition, 300,301 positional, I4 principles and requirements, 13-3 14 win-win, 296, 299, 313-315, 342 Networks, 384390,514,580 activity-on-arrow, on-node See Activity-on-arrow, on-node (AOA, AON) benefits, 380-384 construction of, 385-390 definition, 384 network slack, 408 path mergers, 409,416 three-time (probabalistic) duration, 396-398, 399-400 terminology, 384-387 New York State Bar Association, 296 Non-projects, 10 Normal probability distribution, 40&407,406n, W I North American Free trade Agreement (NAFTA) 152 Northrup Corp., 474 NOTs (Name-Only-Teams), 220-221 Objectivelsubjective measures See Measurement Ofice of Naval Research, 194 Operating necessity model, 47 Organization, 185-2 13 choosing form, 200-204 procedure for choice, 201-202 functional, 189-190 advantagesldisadvantages, 189-1 90 matrix, see Matrix organization mixed form, 198-200 advantagesldisadvantages, 199-200 project-oriented, 5, 185-187, 668 reasons for, 186 pure project, 191-195 advantagesldisadvantages, 192-193 Pareto optimality See Conflict Parties-at-interest, 10, 123, 135-137, 146, 295-296, 299, 305-308 Partnering, 300-301,304,307 Payback Period, 49 Personnel, acquiring and motivating See Motivation PERT See Program evaluation and review technique PERTICost, 524 Peter Principle, 671 Phase, phase-gates, 269-271 See also, Planning management tool, 269-271 Planning, 239-27 See also Action plan baseline plan, 244-245 charter, 244 client approval, 244 contingency plan, 135 elements of, 245-247 hierarchical (even) planning process, 251-254.255 importance of, 258,508 iterative process, 240-244,259 levels of plan, 242-243 master plan, 244, 333-334,534 meetings, 243 phases, phase gates, 240,249,587 See also Control planning, monitoring, controlling cycle, See Monitoring postplanning review, 244 project launch meeting, 241-243 project plan, 182-184,379 approval process, 243-244 purpose, 239 risk management, 242 risk management group, 242 risk management plan, 242 risk identification, 242 sign-offs, 243-244,301-302,303-304 systems integration, 245,249-251 template, 247 work breakdown structure (WBS), 241,251,260-265 PMBOK, see Project management body of knowledge PMI, see Project Management Institute PMIS, see Project management information system Political sensitivity and tactics, 129, 130-131, 141, 344-345 Pratt & Whitney, 8, 9, 152 Precedence diagramming, 2 4 Priorities, 303-304, 307-308, 309, 7 Probability and statistics, W I \I.' I I event relationships and probability laws, W 1-U addition rule, L\'4-W5 multiplication rule, W i L V types of events, LV3 probability, M I L V definition, \! I experimental probability, W logical probability, W I subjective probability, W I , standard probability distributions, LL'I 0-MI I I statistics, \\ 5-\' I definitions, \l'h-\V I0 descriptive statistics, W5 U'b descriptive vs inferential statistics, W5-LV7 inferential statistics, LI 8-M' 10 measures of central tendency, W7 measures of dispersion, MrM purposes, \V5 Problem oriented individual See Project team Procter & Gamble, 42,60, 125,586,669 Product line extension model, 47 Profitlprofitability models, 49-53 advantagesldisadvantages, 52 average rate of return, 49 discounted cash flow, 49-51 internal rate of return, payback period, 49 profitability indcx, 52 Program, 8-9 Program budgeting, 345-346 Program evaluation and review technique (PERT), 384-385, 386, 388,392,396,445,455457 PERTICost, 524 Project, 8-9 champion, 129,646 characteristics, 9-10 coordination, 24 1-249 definition, 8-9 deliverables, objectives, 34,239-240, 242,244, 571,573, 612-615 changes in, 243 See also Scope change, Scope creep , evaluation, 39-85,611-615 I failure, 134 effect on morale, 134 fear of, 134-135 reasons for, 134-135,651-653 final report, 541,661-663 See also Termination goals, 34.14-16,4446, 133-134,239-240,612-614 ancillary, 613-615 direct, 613 threshold values, 45 history, 241,645, 661-663 See also Termination life cycle See Life cycle master (baseline) schedule, 246, 265-266 meetings, 520-522 nonproject vs., 11 portfolio, 39,240 See also Project Portfolio Process predicting success or failure, 651-653 causes of failure, 651-653 project plan, 240,241,243 proposals, 39, 85-88, 573 executive summary, 86 implementation plan, 81 logistic support, 81-82 technical approach, 81 success, 258, 61 Project budgeting See Budget Project charter, 244, 247 Project Final Report (History) See Termination Project goals, , 6 , 4 , 133-134 Projectitis, 193, 198 Project launch meeting, 241-243 See also Planning Project management advantagesldisadvantages, 11-12, definition, 8-9 forces for, 1-3 limitations, 12 professionalization of, 5-6, purpose of, 11-1 Project management body of knowledge (PMBOK), v, 39, 125, 206,315,580 Project management information system (PMIS), 123,352, 537-542,669-670 desirable capabilities, 540-541 management errors, 539-540 selection process, 541-542 Project Management Institute (PMI), v, 5,63, 125, 142, 143,243, 482,538,669 Project Management Maturity, 39-40.429-430 maturity levels, 345-377 maturity models, , 580 Project management office [PMO), war room, 38,209-213,505, 514,559,580,615 implementing the PMO, 213 purposes, 10-2 1 role of, I, 580 structure of, 212 tasks, 21 1-212 Project manager, 5-6, 118-1 60 acquiring personnel, 129-1 acquiring resources, 128-129 appointment of, 118 authority, 11, 305-308 career, 5-6, 12-13, 124-1 26 credibility, 140-141 demands on, 126-1 dealing with fear of failure, 134-1 35 dealing with obstacles (firefighting), 131-133 extensive communication, 135-137 managing trade-offs, 133-134 motivating personnel, 129-1 diary, 663 ethics, 142-144,5 15-5 16 firefighting, 131-133 information network, 135-137 initial tasks, 18-120 i,nstitutional environments, 152-159 interpersonal sensitivity, 21 leadership, 141-142, 144,221 Project manager (cont.) management style of, 141-142, 144,217-218 multicultural issues, 145-148 See also Multicultural project management orientation, problem vs discipline, 121, 131 political sensitivity, 129, 130-1 31, 141 responsibilities, 123-124 in balanced matrix organization, 195 conflict resolution, 31 control of creative activities, 588-589 decision control systems, 574-580, 566 early warning system, 570 linear responsibility chart, 243,263-264 managerial/personal behavior, 158-1 59 monitoring, 14-5 16 project termination, 658-660 resource loading, 455-457 scheduling, 474 rewarding excellence of, 671 role of, 120-123 selection of, 140-145 stress, 144-1 45 Project master schedule See Project Project office, war room See Project management office Project-oriented organization, 185-187,209,668 See also Organization Project planning See Planning Project Portfolio Process (PPP), 39,43,78-85, 505,559 agregate project p l a n champion, 84 Project Council, 78-79, 559 project catagories and criteria, 79-81 derivative, 79 platform, 80 R&D, 80 purposes, 78 tasks 80,85-80 Project review committee, 521-522 Project scheduling See Scheduling Project selection, 40-90, 307 definition, 38,39 information base, 75-77 models choice of model, criteria, 40-43 Decision Support System (DSS), 46 nature of, 4 nonnumerical models, numerical models, 49-62 objective factors, 4 weighted factors, 44 See also Scoring Models profitability models, 49-50 advantagesldisadvantages, 52 scoring models, 54-61 advantagesldisadvantages, under uncertainty See Simulation Project team, 124,213-221,486 See also Multifunctional teams characteristics, 130-1 31 composition, 213-214 empowerment, 17 advantages, 17 human factors, 216-221 interpersonal conflict, 218-22 See also Conflict morale, 131 motivation, 192, 193,216-217 problem vs discipline orientation, 120, 131 psychosocial needs in multicultural project, 159, 160 team building, 218, 304 Project termination See Termination Proposals See Project, proposals Pseudoactivity, 480 RAND Corporation, 7,56 Raz's iterative rating process, 62 Reports See Audits; Monitoring Request for Proposal (RFP), 86,354,627 Request for Quotation (RFQ), 86 Resource acquisition, 128-1 29 Resource allocation, 443493 See also Trade-offs constrained resource allocation, branch and bound approach, 468,472 Burgess's method, 471 heuristic methods, 4 priority rules, 7 optimizing methods, 7 tree search, 468, 472 critical path method (CPM), 443, 445451 See also Scheduling cost/time slope, 4 7 fast-tracking, 45 multiproject schedulinglallocation See Multiproject scheduling/allocation Resource allocation for multiple project scheduling (RAMPS), 478 Resource Allocation problem, 5 timelresource limited, 454 system constrained, 454 Resource contouring, Resource leveling, cost implications, procedure, 459-460 purpose, 457 uncertainty, 6 Resource loading, 5 crash, 445 definition, 455 normal, 455 Resource scarcity, 453454, 8 finding system capacity, 462-463 Responsibility matrix See Linear responsibility chart Return on Investment for project management, 430 Risk Management, 63-75,206-209,246-247,505,529,559-560 components of, 207-209 data base, 208-209, 505 updating information, 417 group, 207-208,242 risk analysis, 65 risk identification, 242,246-247 risk management plan, 242 risk profile, 65, 412 triangular distribution, 413 415 uncertainty vs risk, 63-64 Rolls Royce, 152, 195 Sacred cow model, 46 SAGE (Semiautomatic Ground Environment) air defense system, 7, 120 Scheduling See also Activity assumptions (ASAP, ALAP, etc.) 398 basic approach, 379-384 benefits, 380-384 control mechanism, 379-380 critical path, 384, 385, 396-398 reverse critical path, 423 uncertainty of path, 41 critical path method (CPM), 384-390,443, 445451 See also Resource allocation critical time, 385, 396-398 definition, 379 distinction between PERT and CMP, 384 388,445 Gantt chart See Gantt chart GERT See Graphical Evaluation and Review Technique importance of, 379-384 master schedule, 246,265,573 networks See Networks other scheduling methods, 427 path merger problems, 409, 41 program evaluation and review technique (PERT), 384-390, 392402,455 project completion time, 4 simulating project completion time, 4 slack, 384,398-399,457 terminology 385 Scheduling program for allocation of resources (SPAR-I), 48 Scope change, 243,302-304 See also Change causes, 302-303 Scope creep, 352,446,575-576,589-592 Scoring models, 54-61 advantagesldisadvantages, 61 constrained weighted factor, 62 Raz's iterative rating process, 60-6 unweighted factor, 54-56 unweighted 0-1 factor, 54 weighted factor, 56-60 Selection See Project selection Self-directed work teams (SDWTs) Self-directed teams, Self-managed teams, 217,576 SEMATECH, 151 Semiautomatic Ground Environment (SAGE) air defense system, 7,120 Sensitivity analysis, 66 Sign-offs See Planning Simulation, 65-75,4 17,489492 Do earlyllate finishes cancel out? 9 Why no early starts? 491-492 Monte Carlo, 65 network capacity, 8 project completion time, 4 risk analysis, 65 vs traditional statistics, 418,422 Slack scheduling, 384,398-399,457,467-469,471 Snecma, 152 Software Engineering Institute, 429 Stakeholders See Parties-at-interest Standard probability distributions, L i 10LLL I I Statistical bias, 356-361 Statistics See Probability and statistics Subjective measures, 76 Subjective probabilities, 64 Subjective probability, W Suboptimize, 12, 190 Success, 258, 612 factors leading to, 650-651 Support from senior management, 120,242,245,333,670 Systems approach, 6, 121, 195-196 Systems integration, engineering, 6, 190, 192 245, 249-251 definition, 249-250 Tactics, political, 129 See also Political sensitivity Task, 8-9 Team building See Project team Teams, multifunctional See Multifunctional teams Technical proposal requirements (TPR), 86 Technological shock, 352 Termination, 643-663 decision, 648-653,654-656 major questions, 649-650 mathematicallstatistical models, 654-656 decision support system (DSS), 655-656 process, 653,654-67 implementation, 657-661 project final report, history, 241,645,652,661-663 content, 66 1-662 purpose, 663 reasons for, 649-651 termination manager, 658-661 duties, 658-660 types of termination, 644-648 by addition, 645-646 by extinction, 644-645 by integration, 647-648 special aspects of, 647-648 by starvation, 648 Texas Instruments, 199 Top management support See Support from senior management Total quality management (TQM), 217, 301, 304, 342, 583, 612, 617 TPR (Technical proposal requirements), 86 TQM See Total quality management Tracking signal, 356-360 as ratio, 358-360 Trade-offs, 4, 133-134, 299, 310, 384,443444,445-451, 454, 475 and life cycle, 133-134, 310 timelcost trade-offs, 445-451 cost shifting, Transdisciplinary projects, 7, 7n TREND, 267,268 Triangular distribution See Risk management Tweed coat management, 124 Uncertainty, 17,45, 302, 336-338 project completion time, 396-398,402-409 range of, 45 risk vs., 63-64 690 SUBJECT INDEX United Wdy, 47 University of California, University of Cincinnati, 187-189 U.S Navy, , 384, 395 Value engineering, 250, 342 Venture team, 199 Virtual positions, 196 Virtual projects, 196, 17 Waits, 485,492-493 War room See Project managenlent ofice Window-of-opportunity analysis, 75 Work breakdown structure (WBS) 14,251, 260-266, 334, 338-340,380.391,402,517,518 as Gantt chart, 260 monitoring and controlling, 265 design of, 264-265 Work packages, units, 8-9, 258 ... Multicultural Communications and Managerial Behavior 157 PROJECT MANAGEMENT IN PRACTICE 126 The Project Management Career Path at AT&T PROJECT MANAGEMENT IN PRACTICE 137 The Wreckmaster at a New York... historian Thomas Hughes examines four large-scale projects that required the use of a nontraditional management style, a nontraditional organizational design, and a nontraditional approach to... The Project Team 213 Human Factors and the Project Team 216 PROJECT MANAGEMENT IN PRACTICE 190 Reorganizing for Project Management at Prevost Car PROJECT MANAGEMENT IN PRACTICE Converting to Project