John wiley sons project management a systems approach to planning scheduling and controlling

Page i Project Management Page ii Dr Kerzner's 16 Points to Project Management Maturity Adopt a project management methodology and use it consistently Implement a philosophy that drives the company toward project management maturity and communicate it to everyone Commit to developing effective plans at the beginning of each project Minimize scope changes by committing to realistic objectives Recognize that cost and schedule management are inseparable Select the right person as the project manager Provide executives with project sponsor information, not project management information Strengthen involvement and support of line management Focus on deliverables rather than resources 10 Cultivate effective communication, cooperation, and trust to achieve rapid project management maturity 11 Share recognition for project success with the entire project team and line management 12 Eliminate non-productive meetings 13 Focus on identifying and solving problems early, quickly, and cost effectively 14 Measure progress periodically 15 Use project management software as a tool— not as a substitute for effective planning or interpersonal skills 16 Institute an all-employee training program with periodic updates based upon documented lessons learned Page iii Project Management A Systems Approach to Planning, Scheduling, and Controlling Seventh Edition Harold Kerzner, Ph.D Division of Business Administration Baldwin-Wallace College Berea, Ohio Page iv Copyright © 2001 by John Wiley & Sons 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, scanning or otherwise, except as permitted under Sections 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 Center, 222 Rosewood Drive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4744 Requests 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: PERMREG@WILEY.COM This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold with the understanding that the publisher is not engaged in rendering professional services If professional advice or other expert assistance is required, the services of a competent professional person should be sought This title is also available in print as ISBN 0-471-39342-8 (cloth : alk paper) For more information about Wiley products, visit our web site at www.Wiley.com Page v To Dr Herman Krier, my Friend and Guru, who taught me well the meaning of the word "persistence" Page vii Contents Preface Overview xix 1.0 Introduction 1.1 Understanding Project Management 1.2 Defining Project Success 1.3 The Project Manager–Line Manager Interface 1.4 Defining the Project Manager's Role 1.5 Defining the Functional Manager's Role 12 1.6 Defining the Functional Employee's Role 15 1.7 Defining the Executive's Role 16 1.8 Working with Executives 16 1.9 The Project Manager As the Planning Agent 17 1.10 Project Champions 19 1.11 The Downside Risk of Project Management 20 1.12 Project-Driven Versus Non–Project-Driven Organizations 24 1.13 Marketing in the Project-Driven Organization 26 1.14 Classification of Projects 29 1.15 Location of the Project Manager 30 1.16 Differing Views of Project Management 32 1.17 Concurrent Engineering: A Project Management Approach 34 1.18 Total Quality Management (TQM): A Project Management Approach 35 Problems 39 Case Studies Jackson Industries 42 Kombs Engineering 44 Williams Machine Tool Company 45 Page viii Project Management Growth: Concepts and Definitions 47 2.0 Introduction 47 2.1 General Systems Management 47 2.2 Project Management: 1960–1985 48 2.3 Project Management: 1985–2000 60 2.4 Resistance to Change 65 2.5 Systems, Programs, and Projects: A Definition 70 2.6 Product Versus Project Management: A Definition 72 2.7 Maturity and Excellent: A Definition 74 2.8 Informal Project Management: A Definition 75 2.9 Project Life Cycles 76 2.10 Project Management Methodologies: A Definition 83 2.11 Systems Thinking 86 Problems 89 Case Studies L P Manning Corporation 89 Project Firecracker 90 Organizational Structures 3.0 Introduction 97 97 3.1 Organizational Work Flow 100 3.2 Traditional (Classical) Organization 101 3.3 Developing Work Integration Positions 105 3.4 Line–Staff Organization (Project Coordinator) 109 3.5 Pure Product (Projectized) Organization 110 3.6 Matrix Organizational Form 113 3.7 Modification of Matrix Structures 124 3.8 Center for Project Management Expertise 128 3.9 Matrix Layering 129 3.10 Selecting the Organizational Form 131 3.11 Structuring the Small Company 139 3.12 Strategic Business Unit (SBU) Project Management 141 3.13 Transitional Management 143 Problems 145 Case Studies Jones and Shephard Accountants, Inc 151 Fargo Foods 154 Quasar Communications, Inc 156 Page ix Organizing and Staffing the Project Office and Team 161 161 4.1 The Staffing Environment 162 4.2 Selecting the Project Manager: An Executive Decision 166 4.3 Skill Requirements for Program Managers 173 4.4 Special Cases in Project Manager Selection 180 4.5 Selecting the Wrong Project Manager 180 4.6 Next Generation Project Managers 185 4.7 Duties and Job Descriptions AM FL Y 4.0 Introduction 186 191 4.9 The Project Office 199 4.10 The Functional Team TE 4.8 The Organizational Staffing Process 206 4.11 The Project Organizational Chart 208 4.12 Special Problems 211 4.13 Selecting the Project Management Implementation Team 214 Problems 217 Case Studies Government Project Management 223 Falls Engineering 224 White Manufacturing 227 Martig Construction Company 228 The Carlson Project 229 Team-Fly® Page 1172 B Team members expect the project manager to be supportive and to have ideas This will reinforce your relationship with the team (5 points) C This approach is reasonable as long as your involvement is minimum You must allow the team to evolve without expecting continuous guidance (4 points) D This action is premature and can prevent future creativity The team may allow you to it all Situation A If, in fact, the problem does exist, action must be taken These types of problems not go away by themselves B This will escalate the problem and may make it worse It could demonstrate your support for good relations with your team, but could also backfire (1 point) C Private meetings should allow you to reassess the situation and strengthen employee relations on a one-on-one basis You should be able to assess the magnitude of the problem (5 points) D This is a hasty decision Changing the team's schedules may worsen the morale problem This situation requires replanning, not a strong hand (2 points) Situation A Crisis management does not work in project management Why delay until a crisis occurs and then waste time having to replan? B This situation may require your immediate attention Sympathizing with your team may not help if they are looking toward you for leadership (2 points) C This is the proper balance: participative management and contingency planning This balance is crucial for these situations (5 points) D This may seriously escalate the problem unless you have evidence that performance is substandard (1 point) Situation A Problems should be uncovered and brought to the surface for solution It is true that this problem may go away, or that Bob simply does not recognize that his performance is substandard B Immediate feedback is best Bob must know your assessment of his performance This shows your interest in helping him improve (5 points) C This is not a team problem Why ask the team to your work? Direct contact is best D As above, this is your problem, not that of the team You may wish to ask for their input, but not ask them to perform your job Situation A George must be hurting to finish the other project George probably needs a little more time to develop a quality report Let him it (5 points) B Threatening George may not be the best situation because he already understands the problem Motivation by threatening normally is not good (3 points) C The other team members should not be burdened with this unless it is a team effort D As above, this burden should not be placed on other team members unless, of course, they volunteer Page 1173 Situation A Doing nothing in time of crisis is the worst decision that can be made This may frustrate the team to a point where everything that you have built up may be destroyed B The problem is the schedule slippage, not morale In this case, it is unlikely that they are related C Group decision making can work but may be difficult under tight time constraints Productivity may not be related to the schedule slippage (3 points) D This is the time when the team looks to you for strong leadership No matter how good the team is, they may not be able to solve all of the problems (5 points) Situation A A pat on the back will not hurt People need to know when they are doing well B Positive reinforcement is a good idea, but perhaps not through monetary rewards (3 points) C You have given the team positive reinforcement and have returned authority/responsibility to them for phase III (5 points) D Your team has demonstrated the ability to handle authority and responsibility except for this crisis Dominant leadership is not necessary on a continuous basis Situation 10 A The best approach All is well (5 points) B Why disturb a good working relationship and a healthy working environment? Your efforts may be counterproductive C If the team members have done their job, they have already looked for contingencies Why make them feel that you still want to be in control? However, if they have not reviewed the phase III schedule, this step may be necessary (3 points) D Why disturb the team? You may convince them that something is wrong or about to happen Situation 11 A You cannot assume a passive role when the customer identifies a problem You must be prepared to help The customer's problems usually end up being your problems (3 points) B The customer is not coming into your company to discuss productivity C This places a tremendous burden on the team, especially since it is the first meeting They need guidance D Customer information exchange meetings are your responsibility and should not be delegated You are the focal point of information This requires strong leadership, especially during a crisis (5 points) Situation 12 A A passive role by you may leave the team with the impression that there is no urgency B Team members are motivated and have control of the project They should be able to handle this by themselves Positive reinforcement will help (5 points) C This approach might work but could be counterproductive if employees feel that you question their abilities (4 points) D Do not exert strong leadership when the team has already shown its ability to make good group decisions Page 1174 Situation 13 A This is the worst approach and may cause the loss of both the existing and follow-on work B This may result in overconfidence and could be disastrous if a follow-on effort does not occur C This could be very demoralizing for the team, because members may view the existing program as about to be canceled (3 points) D This should be entirely the responsibility of the project manager There are situations where information may have to be withheld, at least temporarily (5 points) Situation 14 A This is an ideal way to destroy the project-functional interface B This consumes a lot of time, since each team member may have a different opinion (3 points) C This is the best approach, since the team may know the functional personnel better than you (5 points) D It is highly unlikely that you can accomplish this Situation 15 A This is the easiest solution, but the most dangerous if it burdens the rest of the team with extra work (3 points) B The decision should be yours, not your team's You are avoiding your C Consulting with the team will gain support for your decision It is highly likely that the team will want Carol to have this chance (5 points) D This could cause a demoralizing environment on the project If Carol becomes irritable, so could other team members Situation 16 A This is the best choice You are at the mercy of the line manager He may ease up some if not disturbed (5 points) B This is fruitless They have obviously tried this already and were unsuccessful Asking them to it again could be frustrating Remember, the brick wall has been there for two years already (3 points) C This will probably be a wasted meeting Brick walls are generally not permeable D This will thicken the brick wall and may cause your team's relationship with the line manager to deteriorate This should be used as a last resort only if status information cannot be found any other way (2 points) Situation 17 A This is a poor assumption Carol may not have talked to him or may simply have given him her side of the project B The new man is still isolated from the other team members You may be creating two project teams (3 points) C This may make the new man uncomfortable and feel that the project is regimented through meetings (2 points) D New members feel more comfortable one-on-one, rather than having a team gang up on them Briefings should be made by the team, since project termination and phaseout will be a team effort (5 points) Page 1175 Situation 18 A This demonstrates your lack of concern for the growth of your employees This is a poor choice B This is a personal decision between you and the employee As long as his performance will not be affected, he should be allowed to attend (5 points) C This is not necessarily a problem open for discussion You may wish to informally seek the team's opinion (2 points) D This approach is reasonable but may cause other team members to feel that you are showing favoritism and simply want their consensus Situation 19 A This is the best choice Your employees are in total control Do nothing You must assume that the employees have already received feedback (5 points) B The employees have probably been counseled already by your team and their own functional manager Your efforts can only alienate them (1 point) C Your team already has the situation under control Asking them for contingency plans at this point may have a detrimental effect They may have already developed contingency plans (2 points) D A strong leadership role now may alienate your team Situation 20 A A poor choice You, the project manager, are totally accountable for all information provided to the customer B Positive reinforcement may be beneficial, but does nothing to guarantee the quality of the report Your people may get overcreative and provide superfluous information C Soliciting their input has some merit, but the responsibility here is actually yours (3 points) D Some degree of leadership is needed for all reports Project teams tend to become diffused during report writing unless guided (5 points) Page 1177 Author Index A Abell, Derek F., 957, 961, 970, 971 Abernathy, William J., 957, 962 Adam, E E., 1123 Allan, Gerald B., 969 Anderlohr, George, 968 Ansari, A., 1132 Apple, H P., 97, 122, 197, 217 Archibald, Russell D., 40, 169, 201, 269, 694, 817, 830 Argyris, Chris, 98 Armstrong, Scott, 669 Avots, Ivars, 466 B Ball, W B., 171 Baloff, N., 978 Barrie, D S., 171 Bary, Andrew, 669, 670 Beck, Dale R., 124 Blake, R R., 389 Blanchard, Kenneth, 261 Block, Ellery B., 701 Booker, Ellis, 668 Bozman, Jean S., 669, 670 Breyfogle, Forrest W., III, 1126, 1129 Brown, David A., 642, 668 Bryant, Adam, 669 Burke, R J., 389, 399 C Carey, Susan, 670 Carlisle, Howard M., 104 Caspe, Marc S., 129, 130 Chandler, Margaret K., 623 Charles, Mars, 669 Charlier, Marj, 668, 669 Cicero, John P., 182, 260, 268, 387 Cleland, David I., 143, 204, 217, 241, 251, 268, 274, 275, 325, 605, 616, 1069 Cole, V E., 171 Conrow, Edmund H., 903, 904, 924 Conway, R W., 978 D Davis, Keith, 219 Davis, Stanley M., 120, 133 Del Rosso, Laura, 669 Dodge, John, 669 Doering, Robert D., 233, 292 Page 1178 Dubay, Keith, 669 Dugan, H S., 386, 470 E Ebert, R J., 1123 Eglinton, Bill, 238 F Field, Lee J., 526, 546 Fisher, Thomas, 668 Fleming, Quenton W., 844, 850, 851 Flippo, Edwin, 553 Fluor, J Robert, 59, 172 AM FL Y Flynn, Kevin, 669 French, J R P., 434 Frigon, N L., 1103 Gaddis, Paul O., 300 TE G Galbraith, Jay R., 105, 109, 134, 249 Galbraith, John Kenneth, 51 Garvin, David A., 526, 546 Glick, Daniel, 669 Goggin, William C., 55, 104, 121 Goodman, Richard A., 136 Greiner, L E., 137 Grinnell, S K., 97, 122, 197, 217 Gullett, C Ray, 198, 218 H Hall, R., 1133 Hammond, John S., 957, 961, 969–971 Team-Fly® Hartley, J R., 1072 Hartley, K O., 171 Henderson, Dana K., 670 Hersey, Paul, 261, 262 Hillier, F S., 691 Hirschmann, Winfred B., 961, 962, 978 Hodgetts, Richard M., 260, 292 Holcomb, Stacer, 294 Hollenbach, F A., 210 Hughes, David, 669 I Ireland, L R., 453 J Jabez, Alan, 670 Jackson, H K., 1103 Janger, Allen R., 138 Jerome, Chauncey, 952 Johnson, Dirk, 668–670 Jones, D., 1128 K Karger, D W., 243 Kay, E., 434 Kerzner, Harold, 62, 76, 143, 274, 275, 325, 332, 338, 453, 503, 557, 1011, 1064, 1069 Kerzner, J., 1069 Khosh, Mary, 332 Kiemele, J., 1127 Killian, William P., 51, 117, 132, 137, 202, 203, 269 King, William Richard, 241, 268, 605, 616 Knill, Bernie, 669 Koplow, Richard A., 202 Koppelman, J M., 844 L Laufer, A C., 729 Lawrence, Paul R., 59, 120, 389 Lee, Sang M., 1132 Leib, Jeffrey, 669 Leon, Raymond O., 295 Lewin, Kurt, 469 Lieberman, G J., 691 Locke, Tom, 668 Lorsch, Jay W., 59, 389 M MacKenzie, R Alec, 249 Mali, Paul, 625 Mantell, Leroy H., 116 Marquis, Donald, 681 Martin, Charles C., 31, 166, 193, 196, 598 Maslow, Abraham, 235 McGregor, Douglas, 234 Meyer, H H., 434 Meyer, Michael, 669 Middleton, C J., 120, 136 Miller, John J., 449 Miner, John B., 267 Morgan, Len, 669 Mouton, J S., 389 Munsinger, Garry, 553 Page 1179 Murdick, R G., 243 Murray, Brendan, 670 N Newhouse, John, 527, 529 P Parkinson, C N., 834 Pegels, C Carl, 1134–1137 Peters, Shannon, 669 Phillips, Don, 668 Phillips, Edward, 669 Phillips, Robert, 976, 981, 982 Pike, W J., 453 R Rath, J Donald, 33 Rea, P., 1011 Reeser, Clayton, 197 Reinertsen, D E., 1071 Riethmeier, W., 171 Rifkin, Glenn, 670 Rogers, Lloyd A., 293, 587 Romano, Michael, 669 Roy, Ranjit, 1090, 1094 Russell, James S., 670 Ryan, William G., 239 S Sadler, Philip, 98, 99 Sahagun, Louis, 669 Sayles, Leonard R., 623 Schein, V E., 137 Scheler, Rober, 669 Schrock, J L., 453 Schultz, A., 978 Schultz, D P., 210 Shah, Ramesh P., 191, 218 Shannon, Robert E., 121, 146 Simpson, Janet, 526, 546 Smalley, Lionel J., 1000 Smith, Brad, 668 Solomon, Mark B., 668 Souder, William E., 586 Starling, Grover, 1018, 1025 Steiner, George, A., 239 Stewart, John M., 131, 166 Stoner, James A F., 263 Stuckenbruck, Linn, 219 Svaldi, Aldo, 668 T Taylor, W J., 182, 219 Tettemer, John M., 496, 497 Thamhain, Hans J., 250, 386, 389–392, 397, 398, 400–402, 466, 470, 623 V Villoria, R L., 694 W Wallace, W L., 97 Watling, T F., 182, 219 Wayne, Kenneth, 957, 962 Weber, L J., 171 Weiser, Benjamin, 669 Westergard, A F., 171 Whitehouse, Gary E., 701 Wideman, R M., 619 Wilemon, David L., 182, 250, 260, 268, 384, 386, 387, 389–392, 397, 398, 400, 401, 409, 470, 623 Wintermantel, Richard E., 123 Wojcik, Joanne, 670 Wood, Christopher, 668 Woodbury, Richard, 669 Wright, Gordon, 670 Y Young, S L., 978 Z Zeitoun, Al, 987 ... Project Manager 30 1.16 Differing Views of Project Management 32 1.17 Concurrent Engineering: A Project Management Approach 34 1.18 Total Quality Management (TQM): A Project Management Approach. .. lessons learned Page iii Project Management A Systems Approach to Planning, Scheduling, and Controlling Seventh Edition Harold Kerzner, Ph.D Division of Business Administration Baldwin-Wallace... project management has matured to the point where almost every company and industry is using project management in one form or another These companies have come to the realization that project management