Managing Projects The University of Sunderland © 2014 The University of Sunderland First published 2005 Revised August 2014 All rights reserved 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 permission of the copyright owner While every effort has been made to ensure that references to websites are correct at time of going to press, the world wide web is a constantly changing environment and the University of Sunderland cannot accept any responsibility for any changes to addresses The University of Sunderland acknowledges product, service and company names referred to in this publication, many of which are trade names, service marks, trademarks or registered trademarks All materials internally quality assessed by the University of Sunderland and reviewed by academics external to the University Instructional design and publishing project management by Wordhouse Ltd, Reading, UK Copyright © 2014 University of Sunderland ii Contents v Introduction Unit Unit Unit Unit The concept of a project Introduction 1.1 A brief history of project management 1.2 The project life cycle 1.3 Types of project 1.4 The role of the project manager and the team Self-assessment questions Summary 13 14 Planning in projects 1: scope, work breakdown, milestones 15 Introduction 2.1 Project feasibility 2.2 Project objectives 2.3 Planning the project 2.4 Milestones 2.5 Work breakdown structure Self-assessment questions Summary 15 16 20 22 25 26 31 32 Planning in projects 2: Gantt charts and network diagrams 33 Introduction 3.1 Gantt charts 3.2 Network diagrams and critical path analysis Case Study: Boeing’s 787 Dreamliner: Failure to Launch Case Study: A critical care hospital in Anytown Case Study: ‘Death Marches’ Projects 3.3 Computerising project management Self-assessment questions Summary 33 34 35 40 42 43 43 45 46 Managing cost in projects 47 Introduction 4.1 Project financial appraisal 4.2 Estimating methods 4.3 Project accounting Self-assessment questions Summary 47 48 53 57 60 61 Copyright © 2014 University of Sunderland iii Unit Unit Unit Unit Risk and uncertainty in projects 62 Introduction 5.1 Risk and uncertainty 5.2 Managing risks Case Study: Avoiding risks on a major construction project 5.3 Risks into issues Self-assessment questions Summary 62 63 65 69 72 74 74 People in projects 76 Introduction 6.1 Developing project teams 6.2 Forming teams Case Study: Plugging a Leaking Oil Well 6.3 Stakeholders Self-assessment questions Summary 76 77 81 87 90 92 93 Quality and change in project management 94 Introduction 7.1 Project quality measures 7.2 Monitoring quality 7.3 Controlling changes in a project Self-assessment questions Summary 94 95 100 111 113 115 Closedown, audit and evaluation 116 Introduction 8.1 Control and reporting Case Study: Kimble College 8.2 Project evaluations 8.3 Closing the project Self-assessment questions Summary 116 117 120 121 124 125 126 Glossary of key terms References Index Copyright © 2014 University of Sunderland 127 131 133 iv Introduction Welcome to the Managing Projects learning pack! It has been designed to assist you in studying for the core module of the BA (Hons) in Business and Management degree and covers all topics in the official module descriptor In this pack we will define the nature of projects and their management We will consider various aspects of the subject, including the key concepts of project management, objective-setting and planning, financial control, the management of risk and uncertainty, human resource elements (building and leading a multidisciplinary team), how to manage change and quality, and finally how to bring projects to a satisfactory conclusion The pack will help you understand how to use a range of standard project management tools and techniques, and contains numerous case studies and examples to illustrate how they can be applied in the real world How to use this pack The learning pack will take you step by step in a series of carefully planned units and provides you with learning activities and self-assessment questions to help you master the subject matter The pack should help you organise and carry out your studies in a methodical, logical and effective way, but if you have your own study preferences you will find it a flexible resource too Before you begin using this learning pack, make sure you are familiar with any advice provided by the University of Sunderland on such things as study skills, revision techniques or support and how to handle formal assessments If you are on a taught course, it will be up to your tutor to explain how to use the pack in conjunction with a programme of face-to-face workshops and seminars – when to read the units, when to tackle the activities and questions, and so on If you are on a self-study course, or studying independently with remote tutor support, you can use the learning pack in the following way: Scan the whole pack to get a feel for the nature and content of the subject matter Plan your overall study schedule so that you allow enough time to complete all units well before your examinations – in other words, leaving plenty of time for revision For each unit, set aside enough time for reading the text, tackling all the learning activities and self-assessment questions and for the suggested further reading Your tutor will advise on how they will plan activities around these materials and opportunities to network with other students Now let’s take a look at the structure and content of the individual units Copyright © 2014 University of Sunderland v Overview of the units The learning pack breaks the content down into eight units, which vary from approximately eight to ten hours’ duration each However, we are not advising you to study for this sort of time without a break! The units are simply a convenient way of breaking the syllabus into manageable chunks Most people would try to study one unit a week, taking several breaks within each unit You will quickly find out what suits you best You will see that each unit is divided into sections It is assumed, for the most part, that you will study the units in the order presented What is more important is that you try to study each section of each unit in the order presented Each unit is written on the strict assumption that you will understand the material in each section before moving to the next Each unit begins with a brief introduction which sets out the areas of the syllabus being covered and explains, if necessary, how the unit fits in with the topics that come before and after After the introduction there is a statement of the unit learning objectives The objectives are designed to help you understand exactly what you should be able to after you’ve studied the unit You might find it helpful to tick them off as you progress through the unit You will also find them useful during revision There is one unit learning objective for each numbered section of the unit Following this, there are prior knowledge and resources sections These will let you know if there are any topics you need to be familiar with before tackling each particular unit, or any special resources you might need, such as calculator, graph paper or specific books Then the main part of the unit begins, with the first of the numbered main sections At regular intervals in each unit, we have provided you with learning activities, which are designed to get you actively involved in the learning process You should always try to complete the activities before reading on You will learn much more effectively if you are actively involved in doing something as you study, rather than just passively reading the text in front of you The feedback or answers to the activities are provided immediately following the activity Do not be tempted to skip the activity Throughout the unit key terms are highlighted in bold where they first appear, or where they are discussed most fully, with the definitions appearing in the ‘Glossary of key terms’, in alphabetical order, at the end of the pack Each unit contains recommended reading which refers you to relevant chapters of supporting textbooks including the core textbook It is essential that you this reading, since it is not possible to put everything you need to know in a single learning pack At level of a degree wider reading is key to developing deeper subject learning through a contemporary, contextual and critical perspective This is important to consider when approaching the related assessment of the module We provide a number of self-assessment questions at the end of each unit These are to help you to decide for yourself whether or not you have achieved the learning objectives set out at the beginning of the unit As with the activities, you should always tackle them The feedback or answers Copyright © 2014 University of Sunderland vi follow immediately after at the end of the unit If you still not understand a topic having attempted the self-assessment question, always try to re-read the relevant passages in the textbook readings or unit, or follow the advice on further reading given Your allocated tutor will be available to deal with questions arising from the material and will assist your study through the unit At the end of the unit is the summary Use it to remind yourself or check off what you have just studied, or later on during revision Finally, where possible, we have made reference to material on the internet since this is easy to access You may find that addresses change This is annoying; but with a bit of effort you will be able to track the material down (nothing disappears completely from the web) And by searching you will learn even more! Good luck and enjoy it Core textbook The core text is Project Management: Achieving Competitive Advantage (3rd edition) by Jeffrey K Pinto, published in 2013 by Pearson Copyright © 2014 University of Sunderland vii Unit The concept of a project ‘All things are created twice; first mentally; then physically The key to creativity is to begin with the end in mind, with a vision and a blue print of the desired result.’ Stephen Covey Introduction This unit introduces the management of projects Traditionally the management of projects was considered more of an art than a science, but with the growing number of project management institutions, associations and academic establishments, project management has become more of a science, and a discipline, as its accepted practices are captured and formalised in the global body of knowledge This unit will consider why project management has become important for organisations and explain what constitutes a project in today’s business world A brief history of project management is reviewed and how companies use project management to improve company performance and introduce new products and processes Some general concepts are introduced and the role of the project manager is also considered, as well as the skills needed for project management success Unit learning objectives On completing this unit, you should be able to: 1.1 1.2 1.3 1.4 Define what a project is Describe the project life cycle Apply a suitable classification system to projects Identify tasks and skills that are, and are not, project orientated Copyright © 2014 University of Sunderland Prior knowledge This is the first unit in the Managing Projects module, and should be studied first No prior study is required, although it would be helpful (but not essential) to have knowledge and experience of business and management You should also think about projects you have been involved in, if not in a work context, perhaps in a home or personal context Resources The core text for this unit is Pinto (2013) It should be referred to throughout the unit and specific further readings are suggested in the text In addition, a number of other sources are cited in the text and listed in the references at the end of the pack 1.1 A brief history of project management Project management has been around since the beginning of time The pyramids in Egypt stand today because of sound project management principles (although at the time the creators probably did not realise they were practicing sound project management principles) But although there have been excellent project managers over the years, project management was not recognised as a formal management concept until the 1950s This first section looks at what project management is and how organisations are being forced to look to project management techniques to improve business performance It also looks at the role of project managers, a brief history of project management and the role of a project’s key stakeholders It was high profile aerospace projects, such as Polaris, NASA and other United States Department of Defense projects that led to the establishment of the project management standards that they expected their contractors to follow Polaris was the first British project on which contractors were required contractually to use advanced project management systems The construction industry started to see the benefits of project management and started to adopt the new techniques The 1970s and 1980s brought more practitioners on project management leading to the development of theories, methods and standards Throughout the 1970s project management continued to grow and develop into a multi-disciplined profession with its distinctive tools and techniques The economic pressures during this decade, OPEC oil embargoes and the rise of environmental pressure groups had caused many projects to be constrained or delayed This in turn led to a period of refinement of project management tools and techniques More high technology companies outside the defence and construction industries started to use project management systems effectively In the 1980s project management tools and techniques were integrated into accepted management practices Such techniques were known as program evaluation and review technique (PERT) and the critical path method (CPM) We will discuss these techniques in more detail in later units Other issues taken on board at this time included the integration Copyright © 2014 University of Sunderland of time, cost and quality These were beginning to be seen as critical by management to the success of projects In the 1990s the globalisation of world trade, and competition from the Far East, encouraged leaner, flatter and more flexible organisational structures, together with more efficient systems Organisations found that by using a management-by-project approach they could assign work to small project teams, which were able to respond to innovation and new ideas and keep the culture of the entrepreneurial enterprise alive In the 1990s large scale reengineering and total quality management (TQM) processes needed a direction for the implementation of these new projects (many of them in-house), and managers turned to project management for direction in tracking such initiatives Project management is a structured approach to planning and controlling projects It is a set of principles, methods and techniques that managers use to effectively plan and control project work We will look at all these principles and techniques in detail in the coming units Business trends It is important to note that in today’s business world, project management is not just about managing a new building or civil engineering project In today’s business world there have been several trends that have made companies concentrate more on project management concepts, notably (As proposed by Richman, 2002): The focus on high quality, speed to market and first class customer satisfaction During the last 15 years there has been a shift from mass production to custom production of goods and services To respond to this, managers have turned to project management to ensure highly responsive management style Organisations are changing from hierarchical management to project management Organisational charts are changing from vertical structures to team-centred structures Jobs in which the same tasks are repeated every day are disappearing Middle management are also disappearing The new focus is on projects and teams assigned to specific tasks or problems Teams might be set up to launch a new project or reengineer a process Projects are conceived, staffed up, implemented and then shut down Organisations offer less job security than before They outsource non-core activities People define themselves less by the organisations they work for, more by their professions Pay is determined by skill level and the marketability of the person’s services rather than by management hierarchy The development in business trends now embraces all aspects of managing projects across the industrial sector (Pinto, 2013) The 1990s also saw increasing deregulation, reduced tariff barriers and, more importantly, expanding IT facilities and communications through the Internet During the 1960s and 1970s the manual tasks and concepts that predominated throughout project management (network diagrams, bar charts, and so on) were computerised using Copyright © 2014 University of Sunderland If quantitative data is about numbers, then qualitative data is about words or descriptions Some things not lend themselves readily to numerical or quantitative analysis, but are no less important to understand, describe, codify and act upon Qualitative data may include things like customer satisfaction or opinions, perceived product quality or intangible benefits The analysis of qualitative data may be problematic, and is often a question of identifying and highlighting recurring themes As Robson (2004) puts it: ‘Regard the task as one of categorisation, establishing what some refer to as themes Essentially you are trying to establish what the data tell you in relation to the evaluation questions … This is a kind of coding exercise.’ Qualitative and quantitative data can combine to convey a compelling message Many people will tell you they just want facts and figures, but personal stories can also be very powerful Facts may be derived from qualitative data, and facts and figures from quantitative data But qualitative data can also yield anecdotes, examples and case studies that bring the facts and figures to life The combination of qualitative and quantitative analysis is known as mixed method evaluation, whereby data is cross-checked for validity This is sometimes called triangulation, even when there are only two, not three, sources! Throughout a project, you will be collecting data and issuing reports to ensure costs, time and resources are being managed effectively Even though these will give you a good idea of the progress you are making, most project managers also hold project reviews to ensure team members are motivated, and customers and clients are happy Project reviews also help motivate the team It is an opportunity to step back and take a good look at the project to be sure that everything is progressing to plan Project reviews also provide feedback to help everyone stay focused on the project objectives People work better when they receive positive feedback; it helps people stay committed and motivated We can break down project evaluations into four general methods: Ongoing reviews These are ongoing reviews, which should ensure that the project standards, as included in the scope statement, are being met Periodic inspections These are weekly or monthly inspections to ensure that project objectives are being met Every bit of work cannot be inspected, therefore it should be agreed, at the beginning of the project, what will be inspected and at what frequency Milestone evaluations Milestones are the completion of major phases in the project Here you are certifying that all the work scheduled to be completed has been completed to the agreed specification Final project audit This happens at the end of the project to confirm that everything was completed as agreed by the customer/client The audit is helpful to gather Copyright © 2014 University of Sunderland 122 lessons learned during the project This asks: what was well done? And what could be learned to improve future projects? Your project may require a specific evaluation method For example, financial success may be measured by return on investment (ROI) Alternatively, the performance of a manufacturing process might be measured using Six Sigma techniques, identifying and removing the causes of defects and aiming to minimise variability in outputs The key is to use the techniques that form your organisation’s usual practice Your project and its outcomes need to be seen within the contextual approach of the wider organisation Learning activity 8b In activity 7b you considered a small project involving redecorating a friend’s house What factors would you consider when carrying out your evaluation? Remember that a key aim of evaluation is to identify ways in which you could carry out a similar project more effectively in the future Alternatively, think of a project you have been involved in, or know well, and consider how you would go about evaluating it You may already have knowledge of how evaluation has been deployed in the project, and if so, you should describe that and consider what, if anything you would differently Feedback on learning activity 8b The aim of this activity is for you to devise an evaluation strategy This strategy should make clear who the evaluation is for, and what purpose it serves – what exactly are you evaluating, for whom, and why? In the case of the decorating project, one key aspect will be the satisfaction of your friend: Are they happy with the results? (Their comments will give you some qualitative results.) Another will be costs: Are you within budget (quantitative data)? What about the condition of your tools and equipment: Will you be able to use them again on another decorating project, and how will this affect your future costs? In a workplace project, you will need to be more formal You need to describe the evaluation method(s) to be used If the evaluation is mainly quantitative, you should identify the key numbers and how they will be calculated; if it is mainly qualitative, you should describe how you will capture the evidence (interviews? focus groups?) and how you will analyse it to pick out key themes You should aim for mixed methods, if possible Lastly, you should show how you will report the evaluation findings Will you report on all the factors or will you create a simpler report by highlighting the particular strengths and weaknesses of the project? Copyright © 2014 University of Sunderland 123 8.3 Closing the project Recommended reading for this section is Pinto (2013), chapter 14 Good project management techniques include procedures for formally closing the project The reason for project closure is to confirm that all the work has been completed as agreed and the customer accepts the final product There may also be a deliverable called project handover This is very close to project completion and is usually the formal handing over of the project to the customer or client As a project comes to an end, a number of stages are required to conclude the initiative (Pinto, 2013) Sometimes not all of it has been completed and this is often termed in management the ‘Pareto principle’, whereby 80 per cent of the work done is on 20 per cent of the tasks See the further detail in Pinto’s section 14.1, ‘Types of Project Termination, along with Figure 14.3 Many projects deliver a working system that is handed over to some other organisation For example, at the end of a chemical plant construction, the plant must formally handed over to the client Prior to this, the maintenance staff would have been trained in the new plant This is to ensure that ease of future operation happens when the plant is on stream The purpose of project closure is to ensure that all the payments have been made and finance reconciled, project documentation complete and final project reports completed Project closure is also a time to recognise individual efforts and celebrate project success The project manager should also ensure that team members have smooth transition to other projects Many project managers use a project closure list to ensure all the items are taken care of during project closure Checklists can clearly indicate the close-out functions, aid project team members who have little experience in this area and reduce oversight of important areas Example project closedown list 10 Have all activities in the project plan been completed? Have all work orders been completed? Have all the contracts been closed out? Has the client accepted the final product? Have all the maintenance procedures been put in place? Have all final project reports been prepared? Have all payments been made to vendors and contractors? Have the project accounts been reconciled and closed? Are all parties aware of the pending closeout? Has excess project material been dealt with? Copyright © 2014 University of Sunderland 124 11 Have all project equipment and other resources been returned to stores or reallocated? The project closedown list will vary according to the size and scope of the project Learning activity 8c Imagine you have been given the responsibility for closedown of a project, where you have not necessarily been the project manager, but you have access to all the project staff and documentation How would you use, or take account of any reviews, audits and evaluations? What relationship they have to project closedown? Feedback on learning activity 8c You would need to start by confirming that the project is, in fact, complete Is the timeline exhausted? Have the goals been achieved and the project’s mission accomplished? Are there any outstanding tasks? Are all contracts concluded? Has all the expenditure been paid? Has the final report been written and submitted? The staff and documentation should answer these questions, and if you are then convinced the project is complete, you would probably follow a process such as the checklist in the section above Any reviews, audits and evaluations would be vital to any comprehension of the project, and they would be a good place to start to understand what has happened The reviews, audits and evaluations would tell you what has actually happened in the project, as distinct from its objectives or intentions, and reveal any variance from the latter They would reveal where the project’s strengths and weaknesses lay, offering lessons for future projects Final discussion, perhaps exit interviews, with the staff, would confirm the findings of the reviews, audits and evaluations Reviews, audits and evaluations feed directly into closedown of a project, as they gather evidence of actual performance and provide a lasting record of what has gone right and wrong They provide a clear guide not just to performance, but to outputs and outcomes, the measurable benefits of the project Self-assessment questions 8.1 Why should audits usually be conducted by someone external to the project? Copyright © 2014 University of Sunderland 125 8.2 8.3 What is the difference between quantitative and qualitative evaluation, and which is better? Give a few examples of when you might use each type of evaluation How would you summarise the ‘human dimension’ of project closedown? Feedback on self-assessment questions 8.1 To ensure independence, objectivity and impartiality An independent audit should confer credibility on the project, and may be a requirement of a quality standard or accreditation 8.2 Qualitative evaluation seeks to obtain descriptive data, quantitative evaluation seeks to obtain numerical data Neither is better; both are complementary to one another Qualitative evaluation might use yield anecdotes, examples and case studies So the outcome of a training project might include comments made by learners, and observations by managers about the newly-gained expertise of their team members In contrast, quantitative evaluation is based facts and figures A training project could be quantitatively evaluated by testing learners before and after the programme Was there a measurable improvement in participants’ knowledge? Work performance could also be measured Was there a significant improvement in people’s work rates, or accuracy at completing a particular task? 8.3 Project closedown needs to be handled sensitively because of the attachment the project team may have to the project, and the possible uncertainty they face about their next assignment They need recognition and praise for their contribution, involvement in the closedown process to impart a sense of closure and help in making the transition to their new role Summary In this unit we have looked at mechanisms for controlling and reporting on projects, including internal reviews, external audits and various forms of evaluation The importance of gathering information and how information is reported effectively in order to support corrective actions was studied We have also considered the steps to take, and the issues to take account of, in closedown of a project This unit concludes the module on Managing Projects Copyright © 2014 University of Sunderland 126 Glossary of key terms Key term Definition backward pass the calculation of the latest time of each event in a network diagram, calculated by working backwards baseline a starting point measurement, taken for comparison with progress, to enable meaningful evaluation brainstorming creativity technique for generating ideas in a non-evaluative way BS 5750 the British standard for quality systems, and the source for ISO 9000 budgeting the process of allocating the cost estimates to work items to establish a cost baseline for measuring project performance compounding the process of adding gained value and reinvesting it to accumulate greater value configuration management the discipline of identifying the components of a continuously evolving system (the configuration) for the purpose of controlling and tracking changes over time corporate culture the collective behaviour of people in an organisation, expressed in values, norms, habits, jargon, symbols and other shared assumptions critical path analysis (CPA) a project management technique that identifies the best sequence for activities in a project to follow critical path method (CPM) an algorithm for scheduling project activities, explored in more detail in Unit dependency an activity linking other project activities, and one on which others depend, or which must precede them deregulation the process of reducing or removing public sector regulation of the private sector discounting the process of re-calculating a future value to its current value by allowing for changes in value such as inflation and depreciation formative a type of review, audit or evaluation conducted to inform improvements Copyright © 2014 University of Sunderland 127 Key term Definition forward pass the calculation of the earliest time of each event in a network diagram, calculated by working forwards gold-plating adding unnecessary perfections when the project, or aspect of it, is already fit for purpose histogram a graphical representation of the distribution of data ISO 9000 an internationally recognised group of standards related to quality management systems, designed to help organisations ensure that they meet the needs of customers and other stakeholders, plus statutory and regulatory requirements issue events that have already occurred and are having a negative impact on the project a repetition of a process, one of a number of iterations that should move the process towards its goal iteration mass production the characteristic process of the industrial age, increasingly superseded by more specialised processes befitting the information age Monte Carlo analysis computational algorithms that use repeated random sampling to obtain numerical results Managing Successful Programmes (MSP®) a complementary methodology to PRINCE2™, whereby sets of complementary projects are clustered into programmes, node a connection point in a network diagram Pareto a system of efficiency or optimality whereby allocation of resources means that for anyone to make a gain someone has to make a loss, named after Italian economist Vilfredo Pareto Pareto principle 80 per cent of effects may be attributed to 20 per cent of causes (and thence it makes sense to focus on the 20 per cent) program evaluation and review technique (PERT) a statistical method used to analyse tasks, widely deployed in project management PRINCE2™ an acronym for Projects in Controlled Environments, version 2, developed by a UK government agency as a project management methodology Copyright © 2014 University of Sunderland 128 Key term Definition project life cycle the distinct stages a project goes through from its initiation, through its life, to its close qualitative concerned with quality, or descriptive characteristics – in project terms, the things that may be described verbally but not counted quantitative concerned with quantity, or numerically measurable amounts – in project terms, the things that may readily be counted return on investment (ROI) a measure of the net benefits after deducting all costs risk management model a conceptual representation of the elements that make up a process for managing risk sampling the process, in statistics, research and evaluation, of choosing a small number of items from a range or population to test or measure the characteristics of the full range or population scope creep a variation of mission creep, an undesirable process whereby a project expands to encompass activities and outcomes not originally intended S-curve a line on a graph (shaped like a letter S) that shows the growth of a variable in terms of another variable, such as time Six Sigma a technique for evaluation or process improvement, whereby six process steps reduce the number of defects in one million items to less than 3.4 stakeholders any people, groups, organisations, members or systems who affect or can be affected by the project summative a type of review, audit or evaluation conducted at the end of a project, or one of its stages, to prove achievement synergy the condition where the whole is greater than the sum of its parts total quality management (TQM) a philosophy of management for continuous improvement triangulation where two or more methods are used in research or evaluation, to verify findings and results Copyright © 2014 University of Sunderland 129 Key term Definition uncertainty the condition of being unknown, unpredictable or unverifiable – in project terms, the context of variables and unknowns that engenders risk work breakdown structure (WBS) decomposition of a project into smaller components, to facilitate scheduling, costing and other project management activities Copyright © 2014 University of Sunderland 130 References APM (2012) APM Body of Knowledge, 6th edition, Princes Risborough: Association for Project Management http://www.apm.org.uk/BOK6 Atrill, P (2003) Financial Management for Non-specialists, 3rd edition, Harlow: FT/Prentice Hall (Pearson) Belbin, M (1996) Management Teams, Oxford: Butterworth-Heinemann Boddy, D, and DA Buchanan (1992) Take the Lead, Harlow: Prentice Hall (Pearson) British Standards Institution (2010) BS 6079-1:2010 Project management Principles and guidelines for the management of projects, British Standards Institution (BSI) Burke, R (2003) Project Management, Planning and Control Techniques, 4th edition, Chichester: John Wiley and Sons Burke, R (2013) Project Management, Planning and Control Techniques, 5th edition, Chichester: John Wiley and Sons Cabinet Office (2009) PRINCE2™ Pocketbook , The Stationery Office Cabinet Office (2011) Managing Successful Programmes Pocketbook, The Stationery Office Crosby, PB (1978) Quality is Free: The Art of Making Quality Certain, London: McGraw-Hill Daft, R L (2011) Management, Fort Worth: South-Western/Cengage Learning Davies, A, and I Mackenzie (2014) ‘Project complexity and systems integration: Constructing the London 2012 Olympics and Paralympic Games’, International Journal of Project Management, 32: 773–90 Field, M, and L Keller (1998) Project Management, Hampshire: South-Western/Cengage Learning and The Open University Gray, C, and E Larson (2005) Project Management: The Managerial Process, London: McGrawHill Handy, C (1993) Understanding Organizations, 4th edition, London: Penguin (Pearson) Harris, J (2001) ‘Death by Data Suffocation’, at Harrison, F (1992) Advanced Project Management, Aldershot: Gower ISO (International Organisation for Standardisation) (n.d.) http://www.iso.org/iso/iso_9000 International Standards (2012) ISO 21500 Guidance on project management, available from The Project Management Institute: http://www.pmi.org/PMBOK-Guide-and Standards.aspx Jordan, EW, and JJ Machesky (1990) Systems Development: Requirements, Evaluation, Design and Implementation, Boston: PWS-Kent Publishing Knight, F (1921) Risk, Uncertainty, and Profit, New York: Dover Publications Copyright © 2014 University of Sunderland 131 Kotter JP (2012) Leading Change, Boston: Harvard Business Review Press Larson, EW, and CF Gray Project Management.The Managerial Process 6th Edition New York: McGraw Hill Martinsu, M, T Korhoren and T Laine (2014) ‘Identifying, framing and managing uncertainties in project portfolios’, International Journal of Project Management, 32: 732– 46 Mendelow, A (1991), ‘Stakeholder Mapping’, Proceedings of the 2nd International Conference on Information Systems, Cambridge, MA Meredith, JR, and SJ Mantel (2012) Project Management A Managerial Approach 8th Edition Singapore: John Wiley Obeng, E (1995) All Change! The Project Leader’s Secret Handbook, Harlow: FT/Prentice hall (Pearson) Pearce, F (1995) ‘How to Build Greener Bridges’, New Scientist, 21 January 1995 Pinto, JK (2013) Project Management: Achieving Competitive Advantage Harlow: Pearson Education PMI (2013) A Guide to the Project Management Body of Knowledge (PMBOK™ Guide), 5th edition), Newtown Square, PA: Project Management Institute http://www.pmi.org/PMBOK-Guide-and-Standards.aspx Reiss, G (1995) Project Management Demystified, 2nd edition, E & FN Spon/Taylor and Francis Richman, L (2002) Project Management Step-by-Step, AMACOM Robson, C (2004) Small-Scale Evaluation, London: Sage Publications Turner, RJ (1993) Handbook of Project-Based Management, 3rd edition, London: McGraw-Hill Veryard, R (1999) Project Types, available at Wanner, R (2013) Project Risk Management: the most important methods and tools for successful projects, Proconis Weiss, JW, and R Wysocki (1992) 5-Phase Project Management: a Practical Planning and Implementation Guide, Cambridge MA: Perseus Books Wideman, RM (ed) (1992) Project and Program Risk Management: A guide to managing project risks and opportunities, Volume (PMBOK Handbooks series), Project Management Institute Wilson, DA (2002) Managing Information, 3rd edition, Oxford: Butterworth Heinemann/Elsevier Copyright © 2014 University of Sunderland 132 Index accounting 57 cash flow 50, 55, 57, 59 earned value analysis 59 activity on node (AON) method 36 Adams, D 33 AON method see activity on node method APM see Association for Project Management Association for Project Management (APM) Atrill, P 50, 51 audit 116, 125 summative 119 backward pass 39 baseline 55, 103, 108, 121, Belbin, M 80, 82 Boddy, D brainstorming 80 BS 5750 98 Buchanan, DA budgeting 54, 60 Burke, R 4–6, 17, 19, 23, 37, 44, 57, 65, 67, 68, 77, 78, 86, 95, 97, 98, 117 business trends Cabinet Office 117, 119 cash flow 50, 55, 57, 59 change 96, 110 configuration management 97, 112, 114 control 111, 117 management 110 Churchill, W 15 closedown 116 compounding 51 configuration management 97, 112, 114 contracts 9, 12, 30, 70, 71 control 117 corporate culture 83 cost-benefit analysis 49 costs 17, 42, 47, 65, 71, 98, 104 financing costs 52 problems 56 Covey, S Copyright © 2014 University of Sunderland CPA see critical path analysis CPM see critical path method critical path analysis (CPA) 22, 33, 35 core team 41 creating the path 40 float 40 lag 40 critical path method (CPM) 2, 40 Crosby, PB 98 Daft, RL 84 Davies, A 46 delegation 87 DeMarco, T 76 Denmark 69 dependency 34, 37, 38,107 deregulation discounted cash flow (DCF) 51, 52 discounting 51 earned value analysis 59 Einstein, A 116 Estimating 53 evaluation 116 feasibility of projects 16, 48 Field, M vii, 7, 8, 13, 17, 20, 34, 39, 53, 59, 63, 69, 77, 101, 103, 114, 118, 119 financial appraisal budgeting 54, 60 compounding 51 cost problems 56 cost-benefit analysis 49 discounted cash flow (DCF) 51, 52 estimating methods 53 financing costs 52 internal rate of return (IRR) 52 net present value (NPV) 51 payback 50, 56 return on investment (ROI) 50, 123 financing costs 52 formative 119, 121 forward pass 39 133 Gantt charts 15, 33, 34, 45, 46, 108 gold-plating 29 Gray, C 14, 25 Handy, C 79 Harris, J 30 Harrison, F 102 Heraclitus 94 histogram 15, 2, 24, 25, 34 internal rate of return (IRR) 52 International Organisation for Standardisation (ISO) 98, 99, 119 IRR see internal rate of return ISO 9000 98, 99, 119 ISO see International Organisation for Standardisation issues 16, 69, 72 iteration 20, 66 Jordan, EW 5, Kadvany, J 66 Keller, L vii, 7, 8, 13, 17, 20, 34, 39, 53, 59, 63, 69, 77, 101, 103, 114, 118, 119 Knight, F 63 Kotter, JP 111 Larson, E 14, 25 leadership, 78, 85, 90 delegation 87 styles 86 Machesky, JJ 6, Mackenzie, I 46 Maimonides 65 Managing Successful Programmes (MSP®) 117, 119 Martinsu, M 115 mass production Mendelow, A 91 milestones 25, 122 Monte Carlo analysis 54, 66 MSP® see Managing Successful Programmes net present value (NPV) 51 Copyright © 2014 University of Sunderland network diagrams 30, 34, 35 activity on node (AON) method 36 dependency 34, , 38, 107 precedence diagramming method (PDM) 36 relationships 36 node 36 NPV see net present value Obeng, E objectives 4, 8, 10, 16, 2, 21, 48, 68, 89, 102, 104, 105, 122 SMART 21 OBS see organisational breakdown structure organisational breakdown structure (OBS) 28 Pareto 17, 124 Pareto principle 124 payback 50 PDM see precedence diagramming method Pearce, F 69 people 810, 17, 23, 29, 40, 41, 72, 73, 76, 100, 104, 122 delegation 87 leadership 78, 85 management 77 stakeholders 90 teams 9, 29, 41, 72, 76, 100, 104 PERT see program evaluation and review technique Pinto, JK 2–10, 12, 14, 16, 17, 19, 20, 22, 25, 26, 28, 31, 34, 35, 39, 40, 43, 48, 49, 52, 53, 59, 60, 63, 70, 72, 73, 77, 81, 87, 88, 90, 93, 95, 100, 110, 111, 114, 117, 118, 120, 124 planning 4, 7, 15, 33, 48, 101, Gantt charts 33, 34, 35 PM see project manager PMI see Project Management Institute precedence diagramming method (PDM) 36 PRINCE2™ 117, 119, 121 program evaluation and review technique (PERT) 2, 40 project accounting 57 134 project audit 116, 122, 125 project budgeting 54, 60 project change 96, 110, 111 project closedown 116 project concept project control 111, 117 project cost 17, 41, 42, 47, 65, 71, 98, 104 project definition 2, 48 project estimating 53 project evaluation 116 project examples project feasibility 16, 48 project financial appraisal 18, 60 project life cycle 5, 57, 65 Project Management Institute (PMI) 121 project manager (PM) 2, 9, 20, 77, 84, 91, 100, 104, 110, 118, 124 project milestones 25, 122 project objectives 4, 8, 10, 16, 20, 21, 48, 68, 89, 102, 104, 105, 111, 122 project planning 4, 7, 15, 33, 48, 101 project quality 3, 94, 119 project reporting 44, 105, 117 project resource loading 24 project resource plans 23 project resource schedules 24 project risk 62 project scope 95 project stakeholders 90 project teams 9, 29, 41, 72, 76, 100, 104 project types project uncertainty 62, 68 qualitative 4, 21, 66, 71, 121–3, 126 quality 3, 94, BS 5750 98 ISO 9000 98, 99, 119 management 3, 98 measures 95 monitoring 100 objectives total quality management (TQM) variances 96, 100, 101, 103–5, 114, 115 quantitative 4, 21, 66, 121, 122, 124 Reiss, G 44, 56, 65 reporting 43, 105, 117 Copyright © 2014 University of Sunderland resource 16, 23, 48, 52, 104 control 104 loading 24 plans 23 schedules 24 return on investment (ROI) 50, 123 Richman, L 3, 10, 27, 55, 107, 113 risk 62 acceptance 70 assessment 67 avoidance 69 categories 66 contracts and 71 financial costs 65 issues 16, 66, 72 management 65 mitigation 70 qualitative issues 66 quantitative issues 66 reduction 70 responses 68 risk management model 67 transfer 70 uncertainty and 62, 68 Robson, C 122 ROI see return on investment sampling 105 scope creep 29, 96, 112 S-curve 55 Shakespeare, W 47 Six Sigma 123 SMART objectives 21 software 4, 29, 37, 41, 43, 66 stakeholders 90 status report 102, 106, 107, 109 summative 119, 121 Sweden 69 synergy 79, 82 teams see project teams total quality management (TQM) TQM see total quality management triangulation 122 Tuckman, B 81 Turner, RJ 4, 27 uncertainty 62, 68 135 Veryard, R Wanner, R 67, 71 WBS see work breakdown structure Weiss, JW 5, 13 Wilson, DA work breakdown structure (WBS) 22, 26– 9, 31, 32, 33, 66 Wysocki, T 5, 13 Copyright © 2014 University of Sunderland 136 ... management You should also think about projects you have been involved in, if not in a work context, perhaps in a home or personal context Resources The core text for this unit is Pinto (2013) It... types: Construction projects, which produce artefacts Research projects, which produce knowledge Reengineering projects, which produce change Procurement projects, which produce business... Anytown Case Study: ‘Death Marches’ Projects 3.3 Computerising project management Self-assessment questions Summary 33 34 35 40 42 43 43 45 46 Managing cost in projects 47 Introduction 4.1 Project