Project management case studies

Project Management Case Studies P r oj ect Management Case Studies Fifth Edition Harold Kerzner, Ph.D Senior Executive Director for Project Management The International Institute for Learning New York, New York This book is printed on acid-free paper Copyright © 2017 by John Wiley & Sons, Inc All rights reserved Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada PMI, CAPM, PMBOK, PMP and Project Management Professional are registered marks of the Project Management Institute, Inc 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 Section 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 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about our other products and services, please contact our Customer Care Department within the United States at (800) 762-2974, outside the United States at (317) 572-3993 or fax (317) 572-4002 Wiley publishes in a variety of print and electronic formats and by print-on-demand Some material included with standard print versions of this book may not be included in e-books or in print-ondemand If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com For more information about Wiley products, visit www.wiley.com Cover image: © Aeriform/Getty Images, Inc Cover design: Wiley Library of Congress Cataloging-in-Publication Data: Names: Kerzner, Harold, author Title: Project management: case studies/Harold Kerzner, Ph.D Other titles: Project management (Case studies) Description: Fifth edition | Hoboken, New Jersey: John Wiley & Sons, Inc.,   [2017] | Includes index | Description based on print version record and   CIP data provided by publisher; resource not viewed Identifiers: LCCN 2016056664 (print) | LCCN 2016057574 (ebook) | ISBN   9781119389156 (pdf) | ISBN 9781119389163 (epub) | ISBN 9781119385974   (paperback: acid-free paper) Subjects: LCSH: Project management–Case studies Classification: LCC HD69.P75 (print) | LCC HD69.P75 K472 2017 (ebook) | DDC  658.4/04–dc23 LC record available at https://lccn.loc.gov/2016057574 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 To Andrea and Jeremy For successfully managing the “miracle” project: Our grandson, Asher Kaiden Thompson Contents Preface xiii PROJECT MANAGEMENT METHODOLOGIES  1 Lakes Automotive Ferris HealthCare, Inc Clark Faucet Company Creating a Methodology 11 Honicker Corporation 15 Acquisition Problem 19 IMPLEMENTATION OF PROJECT MANAGEMENT  29 Kombs Engineering 31 Williams Machine Tool Company 33 The Reluctant Workers 37 Macon, Inc 39 Cordova Research Group 41 Cortez Plastics 43 The Enterprise Resource Planning Project 45 The Prioritization of Projects 53 Selling Executives on Project Management 55 The New CIO 59 The Invisible Sponsor 63 The Trade-off Decision (A) 67 The Trade-off Decision (B) 71 The Project Audit 73 vii viii CONTENTS PROJECT MANAGEMENT CULTURES  77 Como Tool and Die (A) 79 Como Tool and Die (B) 83 Apache Metals, Inc 87 Haller Specialty Manufacturing 89 Coronado Communications 91 Radiance International 95 The Executive Director 99 PROJECT MANAGEMENT ORGANIZATIONAL STRUCTURES  105 Quasar Communications, Inc 107 Fargo Foods 113 Government Project Management 117 Falls Engineering 119 White Manufacturing 125 Martig Construction Company 127 NEGOTIATING FOR RESOURCES  129 Ducor Chemical 131 American Electronics International The Carlson Project 139 Communication Failures 141 135 PROJECT ESTIMATING  145 Capital Industries 147 Small-Project Cost Estimating at Percy Company Cory Electric 153 Camden Construction Corporation 157 The Estimating Problem 161 The Singapore Software Group (A) 163 The Singapore Software Group (B) 169 The Singapore Software Group (C) 171 The Singapore Software Group (D) 173 To Bid or Not to Bid 175 PROJECT PLANNING  179 Greyson Corporation 181 Teloxy Engineering (A) 187 151 ix Contents Teloxy Engineering (B) 189 Payton Corporation 191 Kemko Manufacturing 193 Chance of a Lifetime 197 PROJECT SCHEDULING  201 Crosby Manufacturing Corporation The Scheduling Dilemma 207 203 PROJECT EXECUTION  211 The Blue Spider Project 213 Corwin Corporation 229 Quantum Telecom 241 The Trophy Project 243 Margo Company 247 Project Overrun 249 The Automated Evaluation Project 251 The Rise, Fall, and Resurrection of Iridium: A Project Management Perspective 255 Health Care Partners, Inc 287 McRoy Aerospace 293 The Poor Worker 297 The Prima Donna 299 The Team Meeting 301 The Management Control Freak 303 The Skills Inventory Project 307 10 CONTROLLING PROJECTS  309 The Two-Boss Problem 311 The Bathtub Period 313 Irresponsible Sponsors 315 The Need for Project Management Metrics (A) The Need for Project Management Metrics (B) The Need for Project Management Metrics (C) The Need for Project Management Metrics (D) The Need for Project Management Metrics (E) The Need for Project Management Metrics (F) The Need for Project Management Metrics (G) The Need for Project Management Metrics (H) 317 323 329 333 337 341 347 351 x 11 CONTENTS PROJECT RISK MANAGEMENT  355 The Space Shuttle Challengerr Disaster 357 Packer Telecom 405 Luxor Technologies 407 Altex Corporation 411 Acme Corporation 415 The Risk Management Department 419 12 CONFLICT MANAGEMENT  423 Facilities Scheduling at Mayer Manufacturing Scheduling the Safety Lab 429 Telestar International 431 The Problem with Priorities 433 13 MORALITY AND ETHICS  435 The Project Management Lawsuit Managing Crisis Projects 441 Is It Fraud? 457 The Management Reserve 461 14 MANAGING SCOPE CHANGES  465 Denver International Airport 15 437 467 WAGE AND SALARY ADMINISTRATION   507 Photolite Corporation (A) 509 Photolite Corporation (B) 513 Photolite Corporation (C) 517 Photolite Corporation (D) 523 First Security Bank of Cleveland 529 Jackson Industries 533 16 TIME MANAGEMENT   537 Time Management Exercise 539 425 xi Contents 17 INDUSTRY SPECIFIC: CONSTRUCTION   559 Robert L Frank Construction Company 561 The Lyle Construction Project 571 18 INDUSTRY SPECIFIC: DISNEY THEME PARKS  581 Disney (A): Imagineering Project Management 583 Disney (B): Imagineering Project Management in Action— The Haunted Mansion 595 Disney (C): Disney Theme Parks and Enterprise Environmental Factors 613 Disney (D): The Globalization of Disneyland 633 Disney (E): Ocean Park Hong Kong: Competing against Disney 19 INDUSTRY SPECIFIC: THE OLYMPIC GAMES 649 655 Olympics (A): Would You Want to Manage Projects for the City Hosting the Olympic Games? 657 Olympics (B): The Olympics, Project Management, and PMI’s Code of Ethics and Professional Conduct 687 Olympics (C): Would You Want to Manage Projects for the Feeding of Athletes in the Olympic Village? 693 Olympics (D): Managing Health Risks for Some Olympic Venues 703 20 INDUSTRY SPECIFIC: THE COMMERCIAL AIRCRAFT INDUSTRY 709 Philip Condit and the Boeing 777: From Design and Development to Production and Sales 711 Boeing 787 Dreamliner Battery Issues 735 The Airbus A380 Airplane 745 21 AGILE/SCRUM PROJECT MANAGEMENT 763 Agile (A): Understanding Implementation Risks 765 Agile (B): Project Management Mind-set 773 Agile (C): Managing and Reporting Project Agility 777 Index  783 Preface Other than on-the-job training, case studies and situations are perhaps the best way to learn project management Project managers pride themselves on finding solutions to problems, and case studies are an excellent way for this to happen Case studies require that students investigate what went right in the case, what went wrong, and what recommendations should be made to prevent these problems from recurring in the future The use of case studies is applicable both to undergraduate- and graduate-level project management courses as well as training programs to pass various certification examinations in project management Situations are smaller case studies that focus on one or two points that need to be addressed, whereas case studies can focus on a multitude of interrelated issues The table of contents identifies several broad categories for the cases and situations, but keep in mind that the larger case studies, such as “Corwin Corporation,” “The Blue Spider Project,” or “The Rise, Fall, and Resurrection of Iridium,” could have been listed under several topics Some of the case studies, such as “The Need for Metrics” and “The Singapore Software Group,” are well suited for group exercises Other smaller or minicases can be covered during the class period Several smaller cases or situations are included in this edition at the request of faculty members who asked for cases that could be discussed in class and worked on in a team environment These smaller cases can be used as in-class assignments or take-home assignments Almost all of the cases and situations have seed questions either in the case itself or in the instructor’s teaching notes on the case to assist the reader in the analysis of the case The seed questions from the instructor’s manual will be provided by the instructor An instructor’s manual is available from John Wiley & Sons only to faculty members who adopt the book for classroom use Almost all of the case studies are factual In most circumstances, the cases and situations have been taken from the author’s consulting practice The names of many of the companies and the people in the companies have been disguised for obvious reasons xiii 786 Construction industry (Continued) The Lyle Construction Project, 571–580 Martig Construction Company, 127–128 Robert L Frank Construction Company, 561–569 Continental Airlines, 467 bankruptcy filing by, 481 DIA concourse for, 476 enplaned passengers on, 473 flights in and out of Denver by, 469, 470, 478, 486, 489–493 lease agreement at DIA for, 480, 483, 484 Continental Express, 470, 473 Controlling projects, 309 bathtub period, 313–314 irresponsible sponsors, 315–316 management control freaks, 303–305 need for project management metrics, 317–354 two-boss problem, 311–312 Cooper Manufacturing Company, 419–422 Cordova Research Group, 41 Coronado Communications, Inc (CCI), 91–93 competitive system at, 91–92 results of culture change at, 92–93 Corporate Air, 470 Cortez Plastics, 43 Corwin Corporation, 229–239 beginning of work, 233–238 cost summaries, 233, 236 organizational chart, 230 Peters Company project, 230–233 project completion costs, 237 Cory Electric, 153–156 cost positions, 154 negotiations, 153–156 Crisis projects, 441–456 Air France Concorde crash, 444–445 Ford vs Firestone, 443–444 Intel and Pentium chip, 445–446 life-cycle phases, 455–456 public opinion view of, 454 Russian submarine Kursk, 446 Index Tylenol poisonings, 447–454 understanding crisis management, 442–443 victims and villains in, 454 Crock Engineering, 34 Crosby Manufacturing Corporation, 203–206 feasibility study at, 204 schedule at, 205 vendor support evaluation at, 204, 205 Culture(s) See also Project management cultures CIO and change in, 61 at Coronado Communications, Inc., 92–93 and EEFs for Disney theme parks, 614, 618, 619, 623–624 employee, on Boeing 777 Project, 728–729 DaimlerChrysler, 747 Defense Information Systems Agency, 283 Delta Airlines, 470, 473, 483, 719 Delta Company, 15, 16 Denver International Airport (DIA), 467–506 airline agreements with, 483, 503 airline costs per enplaned passenger at, 496–497 and airline deregulation, 468–469 airlines serving, 470–471 Airport Revenue Bonds, 502–506 airports served by, 472 background, 467–468 baggage handling system at, 479 and connecting passenger market, 493 covenants, 505–506 debt, 495–496 design of, 475–477 and enplaned passenger market, 473–474, 492 facilities, 503 and Front Range Airport, 474–475 guaranty, 506 land selection for, 474 and need for new airport, 469–473 opening, 497 Index and passenger origin-destination markets, 471 PM firms chosen for, 477–479 revenue, 496 risk analysis chronology, 480–488 total construction costs for, 493–494 United Airlines service at other hubs vs., 491 United and Continental service characteristics, 470 and United/Continental, 490–495 work breakdown structure, 488–490 Department of Defense (DoD), 182–184, 213, 280 Department of Energy Resources, 431 DHL Worldwide Express, 470 DIA, see Denver International Airport Directorate General of Civil Aviation, 740, 741 Disney Cruise Line, 592 Disneyland See also Globalization of Disneyland and Euro Disney/Disneyland Paris, 614, 617, 618, 620 Haunted Mansion attraction, 599–601, 607, 609, 610 Imagineering at, 584 project constraints, 596 ride capacity, 604 Disneyland Paris, 613 See also Euro Disney attendance, 629, 640 debt restructuring/refinancing, 627, 628, 630, 631 in globalization of Disneyland, 637–638 Haunted Mansion attraction, 600 Hong Kong Disneyland vs., 642 renaming of Euro Disney as, 625–626 revenue from, 630 Disneyland Resort Paris, 629 Disney theme parks, 581 enterprise environmental factors for, 613–632 globalization of Disneyland, 633–647 Haunted Mansion attraction, 595–612 and Ocean Park Hong Kong, 649–654 Walt Disney Imagineering, 583–594 787 Disney University, 621 DoD, see Department of Defense DOE (U.S Department of Energy), 31, 32 Douglas Aircraft Company, 714 Dowly Aerospace, 722 Ducor Chemical, 131–133 customer interface meetings at, 133 resource negotiation at, 131–133 EEFs, see Enterprise environmental factors Eldec, 722 Embrace-Empresa Brasiera de Aeronautica, 722 Emery Worldwide, 471, 484 Emirates Airline: A380 orders and deliveries for, 757, 758 as A380 sponsor, 747 amenities of A380 for, 750, 751, 753 Enron, 442 Enterprise environmental factors (EEFs) for Disney theme parks, 613–632 anti-American sentiment, 622 attendance figures, 629 build decision, 615 chronology, 629–631 competing constraints, 614–615 culture, 614, 618, 619, 623–624 debt restructuring, 626–629 Disney University, 621 integrated services, 620–621 land development, 618–620 missed targets, 624–626 project financing, 616–618 site selection, 616 10K report, 630 understanding EEFs, 613–615 Walt Disney Studios Park, 628 Enterprise resource planning (ERP) projects, 45–52 Audit phase, 48–49 background on Mannix Corporation, 45–46 Execution phase, 51–52 executive involvement in, 46–47 Negotiation phase, 50–51 recovery life-cycle phases for, 48 Restart phase, 51 788 Enterprise resource (Continued) team meetings, 47–48 trade-off categories for, 50 Trade-off phase, 49–50 Understanding phase, 48 Estimating, see Project estimating E-Systems, 722 Ethics, see Morality and ethics Etihad Airways, 750–752 Euro Disney, 613 See also Disneyland Paris and anti-American sentiment, 622 debt restructuring, 626–628 decision to build, 615 and Disney University, 621 and European culture, 618, 623–624 financing, 616–618 in globalization of Disneyland, 637–638 integrated services at, 620–621 land development, 618–620 losses at, 624–626 site, 616 Euro Disney S.C.A., 616–617, 627, 628 Evergreen International Airlines, 471 EWW Airlines, 471 Execution, project, see Project execution Executives: discussing project performance trends with, 57 at Fargo Foods, 114–115 gap analysis for, 56–57 implementation of project management with, 55–57 at Iridium, 258 meetings of, 158–159, 317–321 and need for project management, 55–56 Executive directors, 99–103 assignment of project manager by, 100 at beginning of work, 100–101 challenges with project for, 101–102 at completion of project, 102–103 Internet security project for, 99–100 Express One, 470 Exxon, 442 Exxon Valdez oil spill, 442, 454 Index FAA, see Federal Aviation Administration Facilities scheduling at Mayer Manufacturing, 425–427 Falls Engineering, 119–123 division responsibilities at, 119, 121 organizational chart, 120 organizational structure survey at, 121–122 project size, 121 Fargo Foods, 113–116 estimating group at, 116 executives at, 114–115 project engineers at, 115–116 FCC (Federal Communications Commission), 267, 271 FDA (Food and Drug Administration), 447, 449–451 Federal Aviation Administration (FAA), 472, 482, 484–486, 737–741, 744 Federal Bureau of Investigation, 450 Federal Communications Commission (FCC), 267, 271 Federal Express, 471, 482, 484 Ferris HealthCare, Inc., 5–6 FIFA World Cup, 688, 691 Firestone, 443–444, 454 First Security Bank of Cleveland, 529–531 Fitch Investors Service, 481 Food and Drug Administration (FDA), 447, 449–451 Food services for Olympic Village, 693–701 costs for, 698–699 eating habits of athletes, 694–695 fair trade certification, 697–698 future of, 699–700 project complexity, 693–694 quantity of food consumed, 694, 698 requirements for, 695–696 sustainability, 696–697, 699–700 Ford Motor Company, 24, 79, 83–84, 443–444, 454 Foreign Flag Airlines, 471 Fraud investigation, 457–459 consultant’s audit in, 458–459 meeting on history of contract in, 457–458 Index Frontier Airlines, 483 Front Range Airport, 474–475, 482, 484–486 Fuji Heavy Industries, 721, 722, 724 Fuller-O’Brien Company, 365–366 Gallup, 261 Gamma Company, 15, 16 General Electric, 267, 674, 713, 723 General Motors, 24, 267 Georgia Tech University, 669 Giant Panda Base Rebuilding Fund, 653 Globalization of Disneyland, 633–647 attendance figures, 639, 640 Euro Disney, 637–638 future expansion, 646–647 Hong Kong Disneyland, 641–646 joint ventures, 635–636 licensing agreements, 634–635 Ocean Park Hong Kong, 646 Tokyo Disneyland, 636–637, 639–641 Tokyo DisneySea, 639–640 Walt Disney Studios Park, 638 Globalstar Satellite Communications System, 271, 281 Global Traveler, 760–761 Goldman Sachs & Co., 489 Goldman Sachs Inc., 271 Government project management, 117–118 GP Express Airlines, 470 Great American, 471 Great Lakes Aviation, 470 Green Company, 249–250 Greiner Engineering, 477 Greyson Corporation, 181–185 bidding by, 182–183 chronology, 181–182 contract negotiations with Navy, 184 employee retention at, 182–185 Grumman Corporation, 721, 722 Guanabana Bay project, 705–707 Haller Specialty Manufacturing, 89 Haunted Mansion attraction, 589, 595–612 aesthetics constraint, 606–608 Aging Man character, 608–609 789 Changing Portrait characters, 609 characters, 608–611 Coffin Occupant character, 609 constraints, 596–608 continuous improvements, 612 cost constraint, 605 Duelist characters, 609 Ghost Host character in, 608 Hitchhiking Ghost characters, 609 invitation to, 602 life-cycle phases, 596–597 Madame Leota character, 609 referenced characters, 609–610 safety constraint, 606 scope changes, 599 scope of work, 597–599 special effects, 611–612 Stretching Room characters, 609 time constraints, 600–605 unique characteristics, 595–596 Hawker de Havilland, 722 Health Care Partners, Inc (HCP), 287–292 critical decisions at, 289–290 health check for, 290–291 quarterly review meetings at, 288–289 Health risks, at Olympic venues, 703–708 in Guanabana Bay, 705–706 and water testing, 706–708 Zika virus, 704–705 Hercules Program, 181–183 Hollywood Hotel, 644 Hollywood Studios, 640 Honeywell, 721, 722 Hong Kong Disneyland, 641–646 attendance, 640 benefits, 641–642 criticisms, 645–646 feng shui design, 643–645 Haunted Mansion attraction, 600 and Ocean Park Hong Kong, 651–652 risks, 642–643 Hong Kong Disneyland Hotel, 644 Hong Kong Disneyland Resort, 644 Hong Kong Institute for Education, 653 Hong Kong International Theme Parks, 642 Hong Kong Jockey Club, 650 790 Hong Kong Society for Panda Conservation, 653 Honicker Corporation, 15–18 EPM at, 15–16 establishing team for, 16–17 kickoff meeting at, 17–18 Host cities, project management for, 657–685 anti-Olympics sentiment, 663 budget issues, 680–681 complexities, 658 corporate sponsorship and broadcast rights, 673–675 and cost of worldwide broadcast rights, 675 enterprise environmental factors, 678– 680 financial losses for host cities, 669–671 future host city selection, 683–684 governance structure, 667 IOC reforms, 675–677 life cycle, 660–669 and motives of host cities, 664 project complexity, 677–678 Project Management Legacy Learning, 681–683 public-sector project management, 658–660 revenue sources, 672–673 and short-term profitability of Olympic Games, 668 triple constraints, 678 House Transportation Committee, 743 Hughes Aircraft Company, 267 Human Rights Watch, 689 Hurricane Katrina, 442 IBM, 445, 725 ICO Global Communications, 281 Implementation of agile project management, 765–772 and business value as success measure, 768–769 challenges with, 766–767 customer involvement, 769–770 and flexibility in methodology, 767–768 Index and headcount of project personnel, 771–772 meetings, 770–771 and overlapping of methodologies, 768 scope changes, 770 status reporting, 770 Implementation of project management (generally), 29 Cordova Research Group, 41 Cortez Plastics, 43 enterprise resource planning projects, 45–52 executives in, 55–57 with invisible sponsors, 63–65 Kombs Engineering, 31–32 Macon, Inc., 39–40 with new CIO, 59–62 priortization of projects, 53–54 project audit, 73–76 with reluctant workers, 37–38 trade-off decisions, 67–72 Williams Machine Tool Company, 33–35 Industry-specific project management: for commercial aircraft industry, 709–761 for construction industry, 559–580 at Disney theme parks, 581–654 for Olympic Games, 655–708 Intel, 445–446, 454, 455 International Association of Machinists, 731 International Olympic Committee (IOC): bid books for, 660, 662, 663, 665 financing from, 670 food service and substances banned by, 695 and health risks at venues, 703 host city selection by, 665, 667, 677, 683 housing for, 688 and NOC, 664 and sponsorship/broadcast rights for Olympics, 673–677, 696 International Sailing Federation, 707 Invisible sponsors, 63–65 IOC, see International Olympic Committee Iridium, 255–286 bankruptcy filing, 281, 285 business case for, 261–263 Index CEO change, 272 chronology, 274–280 collective belief of team, 265–266 covenants on credit agreement at, 277 debt financing, 270–271 early years, 267–270 executive support, 258 as failure, 282 initial public offering, 273 Iridium system, 260–261 launching venture, 259–260 M-Star project, 271–272 name of project, 258 project champions, 266–267 purchase of, 283–284 risk management, 263–265 satellite communication architecture, 256 satellite deorbiting plan, 282–283 satellite launches, 272–273 shareholder lawsuits, 284–285 signing up customers for, 273–274 terrestrial and space-based network, 261 white knight, 281 Iridium Africa Corporation, 269, 278 Iridium Canada, Inc., 269 Iridium Corporation, 283 Iridium India Telecom Private Ltd (ITIL), 269 Iridium Italia S.p.A., 269 Iridium Limited Liability Corporation (Iridium LLC), 259–260, 285 Iridium Middle East Corporation, 269 Iridium Satellite Corporation, 283–285 Iridium SudAmerica Corporation, 269 Irresponsible sponsors, 315–316 ITEKO Corporation, 253 ITIL (Iridium India Telecom Private Ltd.), 269 Jackson Industries, 533–535 JAG (Judge Advocate General), 457, 458 Japan Airlines (JAL), 719, 724, 737–740 Japan Air System, 719, 724 Japan Transport Safety Board (JTSB), 740, 741 791 Johnson & Johnson, 442, 447–454, 674 Judge Advocate General (JAG), 457, 458 Kawasaki Heavy Industries, 721, 722, 724 Kemko Manufacturing, 193–195 history of, 193 project initiation at, 193–195 Kennedy Space Center, 383, 389 Kent Corporation, 433–434 Khrunichev State Research and Production Space Center, 269–270 Kodak, 674 Kombs Engineering, 31–32 Korea Mobile TELECOM, 269 Korean Air, 722, 747, 751, 752 Kursk disaster, 442, 446, 454 Lake Placid Olympic Games (1980), 670 Lakes Automotive, 3–4 LAN Airlines, 740–741 LA OCOG (Los Angeles OCOG), 672–673 Lawsuits, project management, 437–439 Lehman Brothers, Inc., 489 Lenore Industries, 20–23 Lenovo, 674 Levon Corporation, 55–57 Lewis Project, 562–569 Lockheed Corporation, 267, 361, 712, 715 Lockheed L-1011 aircraft, 747 Lockheed Martin, 269, 755 Logplan, 488 London OCOG (LOCOG), 696, 697, 699 London Olympic Games (2012): cost of broadcast rights, 675 food service in Olympic Village at, 693– 694, 696, 698–700 lessons from, 682, 683 profitability, 668 security personnel, 680 sponsorship, 674 Loral Corporation, 267, 268, 271 Lord Industries, 214, 216, 218–222, 225 Los Angeles OCOG (LA OCOG), 672–673 Los Angeles Olympic Games (1984): cost of broadcast rights, 675 funding, 662 792 Los Angeles Olympic (Continued) profitability, 666, 668 revenue sources, 672–673 viewership, 676 Lufthansa, 756, 758 Luxor Technologies, 407–410 impact of technical risk, 409 strategic decision making at, 408–410 technical risk likelihood ratings, 408 Lyle Construction Project, 571–580 conducting, 575–579 confrontation about purchasing deviations, 579–580 inception, 572–575 organizational charts, 573, 574 procurement department organizational chart, 576 Lynx Manufacturing, 53–54 Macon, Inc., 39–40 McRoy Aerospace, 293–295 Magic Kingdom, see Walt Disney World Majestic Airlines, 471 Malaysia Airlines Berhad, 752 Management control freaks, 303–305 information overload for, 304–305 working relationship with, 303–304 Management reserve (case), 461–463 contract meetings in, 461–462 project execution in, 463 reviewing cost figures in, 462 and sole-source contracts, 461 Managing scope change, 465 in agile project management, 770 at Denver International Airport, 467–506 at Haunted Mansion attraction, 599 Mannix Corporation, 45–52 Manulife, 674 Margo Company, 247–248 Marine Mammal Breeding and Research Centre, 653 MarkAir, 470, 473, 483, 492 Marshall Space Flight Center, 370, 383, 389, 399 Martig Construction Company, 127–128 Martinair Holland, 471 Index Mask Project, 135–138 Mayer Manufacturing, 425–427 organizational structure of, 425, 426 scheduling conflicts at, 425–427 McDonald’s, 674, 696–698 McDonnell Douglas Corporation, 269, 273, 712, 715–717 McDonnell Douglas DC-10 aircraft, 747 McDonnell Douglas MD11 aircraft, 733, 734 MCI, 722 McNeil, 447, 449 Meetings See also Team meetings contract, 461–462 customer interface, 133 of executives, 158–159, 317–321 in fraud investigation, 457–458 kickoff, 17–18, 165–168 on need for project management metrics, 317–321, 324–326 quarterly review, 288–289 Mergers and acquisitions, 19–27 acquisition objectives, 21 planning for growth, 19–20 postacquisition integration, 22–27 preacquisition decision making, 21–22 strategic timing, 20–21 Merrill Lynch, 489f Mesa Airlines, 470 Methodologies, see Project management methodologies Metrics: agility, 777–782 need for, see Need for project management metrics Mexicana de Aviacion, 471 Mexico City Olympic Games (1968), 675, 676 MGM Film Studio Tour, 628, 638 Midway Airlines, 470 Midwest Express, 470 Mind-set, for agile/Scrum project management, 773–775 Mitsubishi Heavy Industries, 721, 722, 724 Mobile Power Solutions, 739 Montreal Olympic Games (1976), 669, 670, 675, 682 Index Moody’s Investors Service, Inc., 481, 502 Morality and ethics, 435 Code of Ethics and Professional Conduct, 687–692 fraud investigation, 457–459 management reserve, 461–463 managing crisis projects, 441–456 project management lawsuits, 437–439 Moreland Company, 63–65 Morris Air, 470 Morrison-Knudsen Engineering, 477 Morton-Thiokol, Inc (MTI), 401 communication with, 369, 399 launch recommendation from, 383–387, 389, 390, 392 and O-ring problem, 376–378, 380 paperwork and waivers at, 370, 371, 380 putty used by, 365, 366 Rogers Commission findings on, 396–397 solid rocket boosters manufactured by, 361, 362 Moscow Olympic Games (1980), 675 Motorola: business case for Iridium, 262–263 collective belief, 266 executive support for Iridium, 258 and Iridium bankruptcy, 281–285 Iridium funding, 275, 276, 278, 279 Iridium project conception, 257–258 launch and infancy of Iridium Project, 259–260, 267–269 M-Star project, 271–272 risk management, 263–265 satellite knowledge, 273 views of Iridium at, 255–256 M-Star Project, 271–272 MTI, see Morton-Thiokol, Inc Munich Olympic Games (1972), 675 Nagano Olympic Games (1998), 668, 670 National Aeronautics and Space Administration (NASA), 357, 359, 401 Boeing as contractor for, 715 during Challenger accident, 393 communication at, 385, 386, 390, 399–400 793 ice problem for, 392 launch liftoff sequence profile, 371–373 media relations, 395 Mission 51-L, 383 orbiter error at, 755–756 paperwork/waivers at, 369–371 pressures facing, 360–361 risk identification/classification, 368–369 Rogers Commission findings, 396–399 technology used by, 365, 366, 368, 377–380 National Olympic Committee (NOC), 660–661, 663, 664, 673–674 National Transportation Safety Board (NTSB), 739–740 NBC, 674, 676 Need for project management metrics, 317–354 See also Agility metrics boundary boxes, 339 canceling projects, 347–349 capacity metrics, 351–354 categories of metrics, 331, 332, 336 combined listing of metrics, 329–330 executive staff meeting on, 317–321 and failure identification per life cycle phase, 318 financial vs project-based metrics, 326 initial communication about, 323–324 KPI measurement, 337–339 KPI selection, 333–334, 336 and KPIs for value components, 341–346 metric selection, 329–332 R&D termination costs and reasons for failure, 319 team meeting on, 324–326 value metric report, 346 weighting of value components, 344 Negotiating for resources, 129 American Electronics International, 135–138 The Carlson Project, 139–140 communication failures, 141–144 Ducor Chemical, 131–133 Neptune Program, 182–185 Neptune Requalification Program, 183–185 794 Index Nippon Iridium Corporation, 269 No Boston Olympics group, 662–663 NOC, see National Olympic Committee Northwest Airlines, 470, 473, 483 NTSB (National Transportation Safety Board), 739–740 Organizational structures, see Project management organizational structures Organizing Committee for the Olympic Games (OCOG), 667, 674, 703 See also specific committees Oriental Land Company, 616, 636, 639, 640 Ocean Park Academy, 653 Ocean Park Conservation Foundation, Hong Kong (OPCFHK), 652, 653 Ocean Park Corporation, 650 Ocean Park Hong Kong, 640, 646, 649–654 animal attractions at, 652–654 conservation at, 653 enterprise environmental factors, 649–650 history of, 650–651 unique experiences at, 654 and Walt Disney Company, 651–652 OCOG, see Organizing Committee for the Olympic Games ODA (Olympic Delivery Authority), 696 Odyssey Project, 268 OGOC, see Organizing Committee for the Olympic Games Olympic Delivery Authority (ODA), 696 Olympic Games, 655 and Code of Ethics and Professional Conduct of PMI, 687–692 food services for Olympic Village, 693–701 managing health risks at venues, 703– 708 project management for host cities, 657–685 The Olympic Program (TOP), 673–675, 677, 696–697 Olympic Village, 665–666, 672, 689 See also Food services for Olympic Village Omega, 674 OPCFHK (Ocean Park Conservation Foundation, Hong Kong), 652, 653 Opportunities, evaluating, 197–200 awarding contracts, 199 and economic conditions, 197–198 hiring project managers, 198–199 and selling company, 199–200 Pacific Electric Wire & Cable Co Ltd (PEWC), 269 Packer Telecom, 405–406 Panasonic, 674 PAP (Pelex Automotive Products), Park Industries, 313–314 Parks Corporation, 213–226 Payton Corporation, 191–192 Peat Marwick, 467 Pegasus Consulting, 290 Pelex Automotive Products (PAP), Pentium chip, 445–446, 454 Percy Company, 151–152 Peters Company, 230–238 PEWC (Pacific Electric wire & Cable Co Ltd), 269 Phoenix Company, 437–439 Photolite Corporation, 509–528 conflict types and evaluation techniques, 520–521 performance summaries, 527–528 problem definition, 513–515 project information, 510 project office, 510–511 recommendations to senior management, 523–527 types of appraisal techniques, 517–521 Pioneer Company, 159 Planning See also Project planning enterprise resource planning projects, 45–52 for growth, in mergers and acquisitions, 19–20 PMBOK Guide®, 583, 593, 596, 613, 678 PMI (Project Management Institute), 595, 687–692 Poor workers, 297–298 Pratt & Whitney, 713, 721 Index Presidential Commission on Challenger disaster, 358–359 See also Rogers Commission investigation Prima donnas, 299–300 Primco Corporation, 252 Priortization: problem with, 433–434 project, 53–54 Private Jet, 471 Project agility, reporting of, 777–782 Project audit, 73–76 company history, 73–74 decision to undergo, 74 health check report, 75–76 results of, 76 Project Bumper, 147–149 Project estimating, 145 bidding on projects, 175–177 Camden Construction Corporation, 157–160 Capital Industries, 147–149 Cory Electric, 153–156 estimating problems, 161–162 Singapore Software Group, 163–174 small project cost estimating at Percy Company, 151–152 Project execution, 211 The Automated Evaluation Project, 251–254 The Blue Spider Project, 213–227 Corwin Corporation, 229–239 ERP projects, 51–52 Health Care Partners, Inc., 287–292 Iridium, 255–286 management control freaks, 303–305 in management reserve case, 463 Margo Company, 247–248 McRoy Aerospace, 293–295 poor workers, 297–298 prima donnas, 299–300 project overrun, 249–250 Quantum Telecom, 241–242 skills inventory project, 307–308 team meetings, 301–302 The Trophy Project, 243–245 795 Project management cultures, 77 Apache Metals, Inc., 87–88 Como Tool and Die, 79–85 Coronado Communications, 91–93 executive directors in, 99–103 Haller Specialty Manufacturing, 89 Radiance International, 95–97 Project Management Institute (PMI), 595, 687–692 Project management lawsuits, 437–439 Project Management Legacy Learning, 683 Project management methodologies, Clark Faucet Company, 7–9 creating, 11–13 critical issues in creation of, 12–13 Ferris HealthCare, Inc., 5–6 Honicker Corporation, 15–18 Lakes Automotive, 3–4 for mergers and acquisitions, 19–27 need for, 11–12 Project management organizational structures, 105 Falls Engineering, 119–123 Fargo Foods, 113–116 government project management, 117–118 Martig Construction Company, 127–128 at Mayer Manufacturing, 425, 426 Quasar Communications, Inc., 107–111 Robert L Frank Construction Company, 563, 564 White Manufacturing, 125–126 Project overrun, 249–250 Project planning, 179 evaluating opportunities, 197–200 Greyson Corporation, 181–185 Kemko Manufacturing, 193–195 Payton Corporation, 191–192 Teloxy Engineering, 187–189 Project risk management, 355 Acme Corporation, 415–417 Altex Corporation, 411–414 at Iridium, 263–265 Luxor Technologies, 407–410 Packer Telecom, 405–406 796 Project risk (Continued) Risk Management Department, 419–422 The Space Shuttle Challenger disaster, 357–404 Project scheduling, 201 awarding contracts, 208 Crosby Manufacturing Corporation, 203–206 and go-ahead date, 208–209 informing clients about delays, 209 scheduling dilemmas, 207–209 Project Turnbolt, 311–312 Project VX-161, 430 Project X-13, 429 Prylon Company, 45–46, 48–50 Qantas, 719, 720, 747, 756, 758 Qatar Airways, 747, 750, 752 Quantum Telecom, 241–242 Quasar Communications, Inc (QCI), 107–111 capital equipment project management at, 110 large-customer project management at, 109–110 R&D project management at, 108–109 small-customer project management at, 109 QuickPay Project, 287–291 Radiance International (RI), 95–97 reorganization plan, 95–96 results of pool management at, 96–97 Randolph Products, 366 Raytheon, 267, 269 Reliant Airlines, 471 Reluctant workers, 37–38 Remco Corporation, 766–772 Reporting: of project agility, 777–782 status, 770 Research Laboratories, 429–430 Reserve, management, see Management reserve (case) Resource negotiation, see Negotiating for resources Index RI, see Radiance International Rio de Janeiro Olympic Games (2016): managing health risks at, 703–708 project management for, 665–666, 679–680 Risk management, see Project risk management Risk Management Department, 419–422 creation of, 419–420 ergonomics as concern for, 420–422 Riverside Software Group (RSG), 307–308 Robert L Frank Construction Company, 561–569 company background, 562 Lewis project, 526–529 organizational structure, 563, 564 Rockwell, 361, 390–392, 721–723 Rogers Cantel Mobile Communications, 275 Rogers Commission investigation, 380, 386, 390–392, 395–399, 401 Rolls Royce, 713 Rome Olympic Games (1960), 675 Rose Electronics, 739 Rose Industries, 59–62 Rovery Project, 562, 564–566 Royal Aeronautics Society, 730 RSG (Riverside Software Group), 307–308 Russian Ministry of Defense, 446 Russian Olympic Committee, 690 Safety lab, 429–430 Salary, see Wage and salary administration Salt Lake City Olympic Games (2002), 666, 677, 682, 688 Samsung, 674 Scheduling: facilities, at Mayer Manufacturing, 425–427 project, see Project scheduling Scheduling the safety lab (case), 429–430 Scope change, see Managing scope change Scott Corporation, 313 Scott Project, 313–314 Scrum project management, see Agile and Scrum project management Index Securities and Exchange Commission (SEC), 273, 489, 494 Senate and House Commerce Subcommittee, 444 Senior Safety Review Board (NASA), 368 Seoul Olympic Games (1988), 668, 675 Shanghai Disneyland, 646–647 Short Brothers, 722 Singapore Aerospace Manufacturing, 722 Singapore Airlines, 747, 755, 758 Singapore Software Group (SSG), 163–174 bid determination, 169 management’s decision, 171 need for growth at, 164 project pricing summary, 168 proposal kickoff meeting, 165–168 salary information, 167 Taiwan Technologies RFP for, 164–165 technological breakthrough, 173–174 Skills inventory project, 307–308 Small project cost estimating at Percy Company, 151–152 Smiths Industries, 723 Smithsonian Institution, 731 Sochi Olympic Games (2014), 677–678, 687–691, 703 SoftSmart, 287–290 Southwest Airlines, 485 S&P, see Standard & Poor’s Space Booster Program, 380, 389 Space Shuttle Challenger disaster, 357–404, 442, 454 and abort options, 374 accident, 393–395 blowholes in, 364–366 commission findings, 396–399 and communication, 369, 385–390, 399–400 external tank in, 367–368 and ice problem, 390–392 joint rotation in, 366–367 launch liftoff sequence profile, 371–375 and leak test port, 365 and Mission 51-L, 382–385 and NASA-media relations, 395 797 O-rings in, 364, 366, 367, 375–380 and paperwork/waivers, 369–371, 380–382 and pressures facing NASA, 360–361 questions resulting from, 401–404 and risk classification system, 369 and risk identification, 368–369 and solid rocket boosters, 362–363 and space transportation system, 359–360 and spare parts problem, 368 and technology, 362–368, 375–380 Space Shuttle Program, 359–361, 369 Spartan Program, 214, 225 Spear Electronics, 73–76 Sponsors: invisible, 63–65 irresponsible, 315–316 Sprint, 269 SSG, see Singapore Software Group Standard & Poor’s (S&P), 480, 487, 502 Stapleton Airport, 467 cargo carriers at, 482, 484 costs at, 496, 497 enplaned passengers at, 473–474, 491 facilities at, 472, 476–477, 487, 489 fees/revenues at, 484, 486, 487 and Front Range Airport, 474–475 location of, 482, 487 and need for DIA, 469 transfer to DIA from, 485, 503 United and Continental Airlines at, 478, 486, 490, 503 STET, 269 Structures, organizational, see Project management organizational structures Sun Country Airlines, 471 Sundstrand Corporation, 721, 723 Sydney Olympic Games (2000), 669, 670, 675–676, 696, 697 Taiwan Technologies (TT), 164–169, 171, 173–174 Team meetings, 301–302 in agile project management, 770–771 for ERP projects, 47–48 798 Team meetings (Continued) on need for project management metrics, 324–326 for project execution, 301–302 Teijin Seiki America, 723 Teledesic Project, 282 Telestar International, 431–432 Teloxy Engineering, 187–189 make or buy decision, 187–189 manufacturing run change, 189 Thai Airways International, 752 Thai Satellite Telecommunications Co., Ltd., 269 Three Mile Island nuclear disaster, 442 Time management, 537 Time management exercise, 539–557 activity lists, 543, 545, 547, 549, 551 rationale and point awards, 553–556 scoring system, 542–553 work plans, 544, 546, 548, 550, 552 Titan III rocket, 362, 363 Tokyo Disneyland: and Euro Disney/Disneyland Paris, 615–620, 623 future of, 640–641 in globalization of Disneyland, 636–639 Haunted Mansion attraction at, 600, 607, 608, 610–611 Tokyo DisneySea, 639–640 Tokyo Olympic Games (1964), 675 TOP, see The Olympic Program Trade-off decisions, 67–72 breakthroughs related to, 71 competing constraints in, 67–68 as dilemmas, 68–70 in ERP projects, 49–50 making, 71 options in, 70, 72 possible impacts of trade-offs, 69 and quality gap, 69 TransWorld Airlines, 470, 473, 483 Trophy Project, 243–245 TRW, Inc., 267, 268 TT, see Taiwan Technologies Turin Olympic Games (2006), 670 Index Two-Boss Problem, 311–312 Tylenol poisonings, 442, 447–455 Union Carbide, 442, 584 United Airlines, 467 baggage handling system for, 490, 494, 495 and Boeing 777 Project, 718–721 costs per enplaned passenger, 496 DIA concourse, 476, 482, 484 enplaned passengers, 473 financing of DIA project, 486, 487, 490, 503–506 flights in and out of Denver, 469, 470, 478, 490–493 lawsuit by, 485 lease agreement at DIA, 480–484 operating costs at DIA, 486 problems with 787, 737, 740 United Communications Company, 267 United Express, 470, 473, 491–493 United Parcel Service (UPS), 471, 482, 484–485 U.S Air Force, 273, 360, 362, 714 U.S Army, 214, 225, 412 U.S Department of Energy (DOE), 31, 32 U.S Department of Transportation, 738 U.S National Highway Traffic Safety Administration, 444 U.S Navy, 182–184, 457–459 U.S Treasury, 673 United States Olympic Committee (USOC), 673, 704 United Technologies, 361, 362, 721, 723 UPS, see United Parcel Service U.S West Communication Services, 483 US Air, 470 USAir, 473, 483 USOC (United States Olympic Committee), 673, 704 Vancouver Olympic Games (2010), 666, 670, 687 Verbacom, 269 Virgin Atlantic, 752, 757 Visa, 674 799 Index Wage and salary administration, 507 First Security Bank of Cleveland, 529–531 Jackson Industries, 533–535 Photolite Corporation, 509–528 Walt Disney Company See also Disney theme parks acknowledgment of Imagineers, 593 cost monitoring, 605 debt restructuring, 626–631 and Euro Disney project, 615–619, 626, 637–638 globalization of Disneyland concept, 633, 636–643, 647 Imagineering project management, 583, 584, 588 impact of EEFs, 614, 618, 622–626 integrated services, 620–621 interrelated constraints, 615 joint ventures, 635–637 licensing agreements, 634–635 and Ocean Park Hong Kong, 646, 649, 651–652 public relations, 645 Walt Disney Imagineering (WDI), 583–594 See also Haunted Mansion attraction acknowledgment, 593 aesthetics of attractions, 590–592 art of show, 592–593 brainstorming, 586–587 constraints, 585–586 guiding principles, 587–588 innovations, 588–589 mock-ups, 589–590 project deliverables, 584–585 storyboarding, 589 unique project management skills, 593–594 Walt Disney Productions, 589 Walt Disney Studios Park, 628–631, 638–640 Walt Disney World: and Euro Disney/Disneyland Paris, 614, 615, 617, 618, 620 and globalization of Disneyland, 637, 640 Haunted Mansion attraction, 600, 607–610 Wayne Corporation, 67–72 WDI, see Walt Disney Imagineering WED Enterprises, 584 Welton Company, 457–459 Western Aviators, 471 White Manufacturing, 125–126 Williams Machine Tool Company, 33–35 Wilson Engineering Company, 562 WorldCom, 442 World’s Fair, 588, 601, 604–605 Yuasa, 739, 740 Access Your Full PMP® Mock Exam Here Free PMP® Mock Exam Included One Free 200 Question Mock Exam Included Features: Content created by top instructors Questions compliant with the PMP® Exam format, scoring requirements and exam limits Advanced metrics to help you target weaknesses and identify strengths Go to efficientlearning.com/kerzner to gain access to your Wiley PMP® Exam Review Mock Exam ... for Project Management Metrics (C) The Need for Project Management Metrics (D) The Need for Project Management Metrics (E) The Need for Project Management Metrics (F) The Need for Project Management. .. Cataloging-in-Publication Data: Names: Kerzner, Harold, author Title: Project management: case studies/ Harold Kerzner, Ph.D Other titles: Project management (Case studies) Description: Fifth edition | Hoboken, New... implementation of a project management methodology Last year, a c­ onsultant 11 12 Project Management Case Studies was brought in to conduct a morning three-hour session on the benefits of project management