Project management achieving competitive advantage pinto 4e GE

List of Cases by Chapter Chapter Chapter Chapter Chapter Development Projects in Lagos, Nigeria “Throwing Good Money after Bad”: the BBC’s Digital Media Initiative 10 MegaTech, Inc 29 The IT Department at Hamelin Hospital 30 Disney’s Expedition Everest 31 Rescue of Chilean Miners 32 Tesla’s $5 Billion Gamble 37 Electronic Arts and the Power of Strong Culture in Design Teams 64 Rolls-Royce Corporation 67 Classic Case: Paradise Lost—The Xerox Alto 68 Project Task Estimation and the Culture of “Gotcha!” Widgets ’R Us 70 The Building that Melted Cars 224 Bank of America Completely Misjudges Its Customers 230 Collapse of Shanghai Apartment Building 239 Classic Case: de Havilland’s Falling Comet 245 The Spanish Navy Pays Nearly $3 Billion for a Submarine That Will Sink Like a Stone 248 Classic Case: Tacoma Narrows Suspension Bridge 249 Sochi Olympics—What’s the Cost of National Prestige? 257 The Hidden Costs of Infrastructure Projects—The Case of Building Dams 286 Boston’s Central Artery/Tunnel Project 288 69 After 20 Years and More Than $50 Billion, Oil is No Closer to the Surface: The Caspian Kashagan Project 297 Chapter Project Selection Procedures: A Cross-Industry Sampler 77 Project Selection and Screening at GE: The Tollgate Process 97 Keflavik Paper Company 111 Project Selection at Nova Western, Inc 112 Chapter 10 Enlarging the Panama Canal 331 Project Scheduling at Blanque Cheque Construction (A) 360 Project Scheduling at Blanque Cheque Construction (B) 360 Chapter 11 Chapter Leading by Example for the London Olympics— Sir John Armitt 116 Dr Elattuvalapil Sreedharan, India’s Project Management Guru 126 The Challenge of Managing Internationally 133 In Search of Effective Project Managers 137 Finding the Emotional Intelligence to Be a Real Leader Problems with John 138 Chapter “We look like fools.”—Oregon’s Failed Rollout of Its ObamacareWeb Site 145 Statements of Work: Then and Now 151 Defining a Project Work Package 163 Boeing’s Virtual Fence 172 California’s High-Speed Rail Project 173 Project Management at Dotcom.com 175 The Expeditionary Fighting Vehicle 176 Chapter Engineers Without Borders: Project Teams Impacting Lives 187 Tele-Immersion Technology Eases the Use of Virtual Teams 203 Columbus Instruments 215 The Bean Counter and the Cowboy 216 Johnson & Rogers Software Engineering, Inc 217 Chapter Developing Projects Through Kickstarter—Do Delivery Dates Mean Anything? 367 Eli Lilly Pharmaceuticals and Its Commitment to Critical Chain Project Management 385 It’s an Agile World 396 Ramstein Products, Inc 397 137 Chapter 12 Hong Kong Connects to the World’s Longest Natural Gas Pipeline 401 The Problems of Multitasking 427 Chapter 13 New York City’s CityTime Project 432 Earned Value at Northrop Grumman 451 The IT Department at Kimble College 463 The Superconducting Supercollider 464 Boeing’s 787 Dreamliner: Failure to Launch 465 Chapter 14 Duke Energy and Its Cancelled Levy County Nuclear Power Plant 478 Aftermath of a “Feeding Frenzy”: Dubai and Cancelled Construction Projects 490 New Jersey Kills Hudson River Tunnel Project 497 The Project That Wouldn’t Die 499 The Navy Scraps Development of Its Showpiece Warship—Until the Next Bad Idea 500 Fourth Edition Project ManageMent achieving coMPetitive advantage Jeffrey K Pinto Pennsylvania State University Boston Columbus Indianapolis New York San Francisco Hoboken Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo To Mary Beth, my wife, with the most profound thanks and love for her unwavering support And, to our children, Emily, AJ, and Joseph—three “projects” that are definitely over budget but that are performing far better than I could have hoped! VP, Product Management: Donna Battista Editor-in-Chief: Stephanie Wall Acquisitions Editor: Dan Tylman Program Manager Team Lead: Ashley Santora Program Manager: Claudia Fernandes Editorial Assistant: Linda Albelli VP, Marketing: Maggie Moylan Product Marketing Manager: Anne Fahlgren Field Marketing Manager: Lenny Raper Strategic Marketing Manager: Erin Gardner Project Manager Team Lead: Judy Leale Project Manager: Nicole Suddeth Operations Specialist: Carol Melville Cover Designer: Lumina Datamatics, Inc Cover Photo: f11photo/Fotolia VP, Director of Digital Strategy & Assessment: Paul Gentile Manager of Learning Applications: Paul Deluca Digital Editor: Brian Surette Digital Studio Manager: Diane Lombardo Digital Studio Project Manager: Robin Lazrus Digital Studio Project Manager: Alana Coles Digital Studio Project Manager: Monique Lawrence Digital Studio Project Manager: Regina DaSilva Full-Service Project Management and Composition: Integra Printer/Binder: Edwards Brothers Cover Printer: Phoenix Color/Hagerstown Text Font: 10/12 Palatino Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on the appropriate page within text Microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published as part of the services for any purpose All such documents and related graphics are provided “as is” without warranty of any kind Microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement In no event shall Microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from the services The documents and related graphics contained herein could include technical inaccuracies or typographical errors Changes are periodically added to the information herein Microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time Partial screen shots may be viewed in full within the software version specified Microsoft® Windows®, and Microsoft Office® are registered trademarks of the Microsoft Corporation in the U.S.A and other countries This book is not sponsored or endorsed by or affiliated with the Microsoft Corporation Copyright © 2016, 2013, 2010, 2007 by Pearson Education, Inc All rights reserved Manufactured in the United States of America This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise For information regarding permissions, request forms and the appropriate contacts within the Pearson Education Global Rights & Permissions department, please visit www.pearsoned.com/permissions/ Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps Library of Congress Cataloging-in-Publication Data Pinto, Jeffrey K Project management : achieving competitive advantage/Jeffrey K Pinto.—Fourth edition pages cm Includes index ISBN 978-0-13-379807-4 (alk paper)—ISBN 0-13-379807-0 (alk paper) Project management I Title HD69.P75P5498 2016 658.4'04—dc23 2014036595 10 ISBN 10: 0-13-379807-0 ISBN 13: 978-0-13-379807-4 BrIEF COnTEnTS Preface xiii Chapter Chapter Introduction: Why Project Management? The Organizational Context: Strategy, Structure, and Culture Chapter Chapter Chapter Chapter Chapter Chapter Chapter Project Selection and Portfolio Management 76 Leadership and the Project Manager 115 Scope Management 144 Project Team Building, Conflict, and Negotiation 186 Risk Management 223 Cost Estimation and Budgeting 256 Project Scheduling: Networks, Duration Estimation, and Critical Path 296 Project Scheduling: Lagging, Crashing, and Activity Networks Advanced Topics in Planning and Scheduling: Agile and Critical Chain 366 Resource Management 400 Project Evaluation and Control 431 Project Closeout and Termination 477 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Appendix A The Cumulative Standard Normal Distribution Appendix B Tutorial for MS Project 2013 510 Appendix C Project Plan Template 520 Glossary 524 Company Index 534 Name Index 535 Subject Index 538 36 330 509 iii COnTEnTS Preface xiii Chapter IntroduCtIon: Why ProjeCt ManageMent? Project Profile: Development Projects in Lagos, Nigeria Introduction 1.1 What Is a Project? General Project Characteristics 1.2 Why Are Projects Important? Project Profile: “Throwing Good Money after Bad”: the BBC’s Digital Media Initiative 10 1.3 Project Life Cycles 13 ◾ Box 1.1: Project Managers in Practice 1.4 Determinants of Project Success 15 16 ◾ Box 1.2: Project Management Research in Brief 19 1.5 Developing Project Management Maturity 19 1.6 Project Elements and Text Organization 23 Summary  27  •  Key Terms  29  •  Discussion Questions  29 •  Case Study 1.1 MegaTech, Inc.  29  •  Case Study 1.2 The IT  Department at Hamelin Hospital  30  •  Case Study 1.3 Disney’s Expedition  Everest  31  •  Case Study 1.4 Rescue of Chilean Miners  32  •  Internet  Exercises  33  •  PMP Certification Sample Questions  34  •  Notes  34 Chapter the organIzatIonal Context: Strategy, StruCture, and Culture 36 Project Profile: Tesla’s $5 Billion Gamble 37 Introduction 38 2.1 Projects and Organizational Strategy 39 2.2 Stakeholder Management 41 Identifying Project Stakeholders 42 Managing Stakeholders 45 2.3 Organizational Structure 47 2.4 Forms of Organizational Structure 48 Functional Organizations 48 Project Organizations 50 Matrix Organizations 53 Moving to Heavyweight Project Organizations ◾ Box 2.1: Project Management Research in Brief 55 56 2.5 Project Management Offices 57 2.6 Organizational Culture 59 How Do Cultures Form? 61 Organizational Culture and Project Management 63 Project Profile: Electronic Arts and the Power of Strong Culture in Design Teams 64 Summary  65  •  Key Terms  67  •  Discussion Questions  67  •  Case Study 2.1 Rolls-Royce Corporation  67  •  Case Study 2.2 Classic Case: Paradise Lost—The Xerox Alto  68  •  Case Study 2.3 Project Task Estimation and the Culture of “Gotcha!”  69  •  Case Study 2.4 Widgets ’R Us 70 •  Internet Exercises  70  •  PMP Certification Sample Questions  70  •  Integrated Project—Building Your Project Plan  72  •  Notes  74 iv Contents Chapter ProjeCt SeleCtIon and PortfolIo ManageMent Project Profile: Project Selection Procedures: A Cross-Industry Sampler 76 77 Introduction 78 3.1 Project Selection 78 3.2 Approaches to Project Screening and Selection 80 Method One: Checklist Model 80 Method Two: Simplified Scoring Models 82 Limitations of Scoring Models 84 Method Three: The Analytical Hierarchy Process 84 Method Four: Profile Models 88 3.3 Financial Models 90 Payback Period 90 Net Present Value 92 Discounted Payback 94 Internal Rate of Return 94 Choosing a Project Selection Approach 96 Project Profile: Project Selection and Screening at GE: The Tollgate Process 97 3.4 Project Portfolio Management 98 Objectives and Initiatives 99 Developing a Proactive Portfolio 100 Keys to Successful Project Portfolio Management 103 Problems in Implementing Portfolio Management 104 Summary  105  •  Key Terms  106  •  Solved Problems  107  •  Discussion Questions  108  •  Problems  108  •  Case Study 3.1 Keflavik Paper Company  111  •  Case Study 3.2 Project Selection at Nova Western, Inc.  112  •  Internet Exercises  113  •  Notes  113 Chapter leaderShIP and the ProjeCt Manager 115 Project Profile: Leading by Example for the London Olympics—Sir John Armitt 116 Introduction 117 4.1 Leaders Versus Managers 118 4.2 How the Project Manager Leads 119 Acquiring Project Resources 119 Motivating and Building Teams 120 Having a Vision and Fighting Fires 121 Communicating 121 ◾ Box 4.1: Project Management Research in Brief 124 4.3 Traits of Effective Project Leaders 125 Conclusions about Project Leaders 126 Project Profile: Dr Elattuvalapil Sreedharan, India’s Project Management Guru 126 4.4 Project Champions 127 Champions—Who Are They? 128 What Do Champions Do? 129 How to Make a Champion 130 4.5 The New Project Leadership 131 ◾ Box 4.2: Project Managers in Practice 132 Project Profile: The Challenge of Managing Internationally 4.6 Project Management Professionalism 134 133 v vi Contents Summary  135  •  Key Terms  136  •  Discussion Questions  136  •  Case Study 4.1 In Search of Effective Project Managers 137 •  Case Study 4.2 Finding the Emotional Intelligence to Be a Real Leader 137 •  Case Study 4.3 Problems with John  138  •  Internet Exercises  141 •  PMP Certification Sample Questions  141  •  Notes  142 Chapter SCoPe ManageMent 144 Project Profile: “We look like fools.”—Oregon’s Failed Rollout of Its Obamacare Web Site 145 Introduction 146 5.1 Conceptual Development 148 The Statement of Work 150 The Project Charter 151 Project Profile: Statements of Work: Then and Now 151 5.2 The Scope Statement 153 The Work Breakdown Structure 153 Purposes of the Work Breakdown Structure 154 The Organization Breakdown Structure 159 The Responsibility Assignment Matrix 160 5.3 Work Authorization 161 Project Profile: Defining a Project Work Package 5.4 Scope Reporting 163 164 ◾ Box 5.1: Project Management Research in Brief 5.5 Control Systems 167 Configuration Management 5.6 Project Closeout 169 165 167 Summary  170  •  Key Terms  171  •  Discussion Questions  171  •  Problems  172  •  Case Study 5.1 Boeing’s Virtual Fence 172 •  Case Study 5.2 California’s High-Speed Rail Project  173  •  Case Study 5.3 Project Management at Dotcom.com  175  •  Case Study 5.4 The Expeditionary Fighting Vehicle  176  •  Internet Exercises  178  •  PMP Certification Sample Questions  178  •  MS Project Exercises  179  •  Appendix 5.1: Sample Project Charter  180  •  Integrated Project— Developing the Work Breakdown Structure  182  •  Notes  184 Chapter ProjeCt teaM BuIldIng, ConflICt, and negotIatIon 186 Project Profile: Engineers Without Borders: Project Teams Impacting Lives 187 Introduction 188 6.1 Building the Project Team 189 Identify Necessary Skill Sets 189 Identify People Who Match the Skills 189 Talk to Potential Team Members and Negotiate with Functional Heads 189 Build in Fallback Positions 191 Assemble the Team 191 6.2 Characteristics of Effective Project Teams 192 A Clear Sense of Mission 192 A Productive Interdependency 192 Cohesiveness 193 Trust 193 Enthusiasm 193 Results Orientation 194 Contents 6.3 Reasons Why Teams Fail 194 Poorly Developed or Unclear Goals 194 Poorly Defined Project Team Roles and Interdependencies 194 Lack of Project Team Motivation 195 Poor Communication 195 Poor Leadership 195 Turnover Among Project Team Members 196 Dysfunctional Behavior 196 6.4 Stages in Group Development 196 Stage One: Forming 197 Stage Two: Storming 197 Stage Three: Norming 198 Stage Four: Performing 198 Stage Five: Adjourning 198 Punctuated Equilibrium 198 6.5 Achieving Cross-Functional Cooperation 199 Superordinate Goals 199 Rules and Procedures 200 Physical Proximity 201 Accessibility 201 Outcomes of Cooperation: Task and Psychosocial Results 201 6.6 Virtual Project Teams 202 Project Profile: Tele-Immersion Technology Eases the Use of Virtual Teams 203 6.7  Conflict Management  204 What Is Conflict? 205 Sources of Conflict 206 Methods for Resolving Conflict 208 6.8 Negotiation 209 Questions to Ask Prior to the Negotiation Principled Negotiation 210 Invent Options for Mutual Gain 212 Insist on Using Objective Criteria 213 209 Summary  214  •  Key Terms  214  •  Discussion Questions  215  •  Case Study 6.1 Columbus Instruments  215  •  Case Study 6.2 The Bean Counter and the Cowboy  216  •  Case Study 6.3 Johnson & Rogers Software Engineering, Inc.  217  •  Exercise in Negotiation  219  •  Internet  Exercises  220  •  PMP Certification Sample Questions  220  •  Notes  221 Chapter rISk ManageMent 223 Project Profile: The Building that Melted Cars Introduction 224 225 ◾ Box 7.1: Project Managers in Practice 227 7.1 Risk Management: A Four-Stage Process Risk Identification 228 228 Project Profile: Bank of America Completely Misjudges Its Customers Risk Breakdown Structures 231 Analysis of Probability and Consequences Risk Mitigation Strategies 234 231 230 vii viii Contents Use of Contingency Reserves 236 Other Mitigation Strategies 237 Control and Documentation 237 Project Profile: Collapse of Shanghai Apartment Building 239 7.2 Project Risk Management: An Integrated Approach 241 Summary  243  •  Key Terms  244  •  Solved Problem  244  •  Discussion  Questions  244  •  Problems  244  •  Case Study 7.1 Classic Case: de Havilland’s Falling Comet  245  •  Case Study 7.2 The Spanish Navy Pays Nearly $3 Billion for a Submarine That Will Sink Like a Stone  248  •  Case Study 7.3 Classic Case: Tacoma Narrows Suspension Bridge  249  •  Internet  Exercises  251  •  PMP Certification Sample Questions  251  •  Integrated  Project—Project Risk Assessment  253  •  Notes  255 Chapter CoSt eStIMatIon and BudgetIng 256 Project Profile: Sochi Olympics—What’s the Cost of National Prestige? 257 8.1 Cost Management 259 Direct Versus Indirect Costs 260 Recurring Versus Nonrecurring Costs 261 Fixed Versus Variable Costs 261 Normal Versus Expedited Costs 262 8.2 Cost Estimation 262 Learning Curves in Cost Estimation 266 ◾ Box 8.1: Project Management Research in Brief Problems with Cost Estimation 270 272 ◾ Box 8.2: Project Management Research in Brief 8.3 Creating a Project Budget 275 Top-Down Budgeting 275 Bottom-Up Budgeting 276 Activity-Based Costing 276 8.4 Developing Budget Contingencies 274 278 Summary  280  •  Key Terms  281  •  Solved Problems  282  •  Discussion Questions  283  •  Problems  284  •  Case Study 8.1 The Hidden Costs of Infrastructure Projects—The Case of Building Dams 286 •  Case Study 8.2 Boston’s Central Artery/Tunnel Project  288  •  Internet  Exercises  290  •  PMP Certification Sample Questions  290  •  Integrated  Project—Developing the Cost Estimates and Budget  292  •  Notes  294 Chapter ProjeCt SChedulIng: netWorkS, duratIon eStIMatIon, and CrItICal Path 296 Project Profile: After 20 Years and More Than $50 Billion, Oil is No Closer to the Surface: The Caspian Kashagan Project 297 Introduction 298 9.1 Project Scheduling 299 9.2  Key Scheduling Terminology  300 9.3 Developing a Network 302 Labeling Nodes 303 Serial Activities 303 Concurrent Activities 303 Merge Activities 304 Burst Activities 305 9.4 Duration Estimation 307 528 Glossary Forecast An estimate or prediction of conditions and events in the project’s future based on information and knowledge available at the time of the forecast The information is based on the project’s past performance and expected future performance, and includes information that could impact the project in the future, such as estimate at completion and estimate to complete Forward Pass The calculation of the early start and early finish dates for the uncompleted portions of all network activities See also schedule network analysis and backward pass Free Float The amount of time that a schedule activity can be delayed without delaying the early start date of any immediately following schedule activities See also total float Functional Manager Someone with management authority over an organizational unit within a functional organization The manager of any group that actually makes a product or performs a service Sometimes called a line manager Functional Organization A hierarchical organization where each employee has one clear superior, and staff are grouped by areas of specialization and managed by a person with expertise in that area Gantt Chart [Tool] A graphic display of schedule-related information In the typical bar chart, schedule activities or work breakdown structure components are listed down the left side of the chart, dates are shown across the top, and activity durations are shown as date-placed horizontal bars Grade A category or rank used to distinguish items that have the same functional use (e.g., “hammer”), but which not share the same requirements for quality (e.g., different hammers may need to withstand different amounts of force) Hammock Activity See summary activity Historical Information Documents and data on prior projects including project files, records, correspondence, closed contracts, and closed projects Human Resource Plan A document describing how roles and responsibilities, reporting relationships, and staffing management will be addressed and structured for the project It is contained in or is a subsidiary plan of the project the schedule activities without violating a schedule constraint or delaying the project completion date The late finish dates are determined during the backward pass calculation of the project schedule network Late Start Date (LS) In the critical path method, the latest possible point in time that a schedule activity may begin based upon the schedule network logic, the project completion date, and any constraints assigned to the schedule activities without violating a schedule constraint or delaying the project completion date The late start dates are determined during the backward pass calculation of the project schedule network Lead [Technique] A modification of a logical relationship that allows an acceleration of the successor activity For example, in a finish-to-start dependency with a ten-day lead, the successor activity can start ten days before the predecessor activity has finished A negative lead is equivalent to a positive lag See also lag Lessons Learned [Output/Input] The learning gained from the process of performing the project Lessons learned may be identified at any point Also considered a project record, to be included in the lessons learned knowledge base Lessons Learned Knowledge Base A store of historical information and lessons learned about both the outcomes of previous project selection decisions and previous project performance Leveling See resource leveling Life Cycle See project life cycle Log A document used to record and describe or denote selected items identified during execution of a process or activity Usually used with a modifier, such as issue, quality control, action, or defect Logical Relationship A dependency between two project schedule activities, or between a project schedule activity and a schedule milestone The four possible types of logical relationships are Finish-to-Start, Finish-toFinish, Start-to-Start, and Start-to-Finish See also precedence relationship Manage Project Team [Process] The process of tracking team member performance, providing feedback, resolving issues, and managing changes to optimize project performance Identify Risks [Process] The process of determining which risks may affect the project and documenting their characteristics Manage Stakeholder Expectations [Process] The process of communicating and working with stakeholders to meet their needs and addressing issues as they occur Identify Stakeholders [Process] The process of identifying all people or organizations impacted by the project, and documenting relevant information regarding their interests, involvement, and impact on project success Master Schedule [Tool] A summary-level project schedule that identifies the major deliverables and work breakdown structure components and key schedule milestones See also also milestone schedule Imposed Date A fixed date imposed on a schedule activity or schedule milestone, usually in the form of a “start no earlier than” and “finish no later than” date Material The aggregate of things used by an organization in any undertaking, such as equipment, apparatus, tools, machinery, gear, material, and supplies Influence Diagram [Tool] A graphical representation of situations showing causal influences, time ordering of events, and other relationships among variables and outcomes Matrix Organization Any organizational structure in which the project manager shares responsibility with the functional managers for assigning priorities and for directing the work of persons assigned to the project Initiating Processes [Process Group] Those processes performed to define a new project or a new phase of an existing project by obtaining authorization to start the project or phase Methodology A system of practices, techniques, procedures, and rules used by those who work in a discipline Input [Process Input] Any item, whether internal or external to the project, that is required by a process before that process proceeds May be an output from a predecessor process Milestone Schedule [Tool] A summary-level schedule that identifies the major schedule milestones See also master schedule Inspection [Technique] Examining or measuring to verify whether an activity, component, product, result, or service conforms to specified requirements Invitation for Bid (IFB) Generally, this term is equivalent to request for proposal However, in some application areas, it may have a narrower or more specific meaning Issue A point or matter in question or in dispute, or a point or matter that is not settled and is under discussion or over which there are opposing views or disagreements Lag [Technique] A modification of a logical relationship that directs a delay in the successor activity For example, in a finish-to-start dependency with a ten-day lag, the successor activity cannot start until ten days after the predecessor activity has finished See also lead Late Finish Date (LF) In the critical path method, the latest possible point in time that a schedule activity may be completed based upon the schedule network logic, the project completion date, and any constraints assigned to Milestone A significant point or event in the project Monitor Collect project performance data with respect to a plan, produce performance measures, and report and disseminate performance information Monitor and Control Project Work [Process] The process of tracking, reviewing, and regulating the progress to meet the performance objectives defined in the project management plan Monitor and Control Risks [Process] The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process throughout the project Monitoring and Controlling Processes [Process Group] Those processes required to track, review, and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes Monte Carlo Analysis A technique that computes, or iterates, the project cost or project schedule many times using input values selected at random from probability distributions of possible costs or durations to calculate a distribution of possible total project cost or completion dates Glossary 529 Monte Carlo Simulation A process that generates hundreds or thousands of probable performance outcomes based on probability distributions for cost and schedule on individual tasks The outcomes are then used to generate a probability distribution for the project as a whole Near-Critical Activity A schedule activity that has low total float The concept of near-critical is equally applicable to a schedule activity or schedule network path The limit below which total float is considered near critical is subject to expert judgment and varies from project to project Network See project schedule network diagram Network Analysis See schedule network analysis Network Logic The collection of schedule activity dependencies that makes up a project schedule network diagram Perform Qualitative Analysis [Process] The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact Perform Quality Assurance [Process] The process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used Perform Quality Control [Process] The process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes Perform Quantitative Analysis [Process] The process of numerically analyzing the effect of identified risks on overall project objectives Phase See project phase Network Path Any continuous series of schedule activities connected with logical relationships in a project schedule network diagram Plan Communications [Process] The process of determining project stakeholder information needs and defining a communication approach Node One of the defining points of a schedule network; a junction point joined to some or all of the other dependency lines Plan Procurements [Process] The process of documenting project purchasing decisions, specifying the approach, and identifying potential sellers Objective Something toward which work is to be directed, a strategic position to be attained, a purpose to be achieved, a result to be obtained, a product to be produced, or a service to be performed Opportunity A condition or situation favorable to the project, a positive set of circumstances, a positive set of events, a risk that will have a positive impact on project objectives, or a possibility for positive changes Contrast with threat Organizational Breakdown Structure (OBS) [Tool] A hierarchically organized depiction of the project organization arranged so as to relate the work packages to the performing organizational units Organizational Process Assets [Output/Input] Any or all process related assets, from any or all of the organizations involved in the project that are or can be used to influence the project’s success These process assets include formal and informal plans, policies, procedures, and guidelines The process assets also include the organizations’ knowledge bases such as lessons learned and historical information Output [Process Output] A product, result, or service generated by a process May be an input to a successor process Parametric Estimating [Technique] An estimating technique that uses a statistical relationship between historical data and other variables (e.g., square footage in construction, lines of code in software development) to calculate an estimate for activity parameters, such as scope, cost, budget, and duration An example for the cost parameter is multiplying the planned quantity of work to be performed by the historical cost per unit to obtain the estimated cost Pareto Chart [Tool] A histogram, ordered by frequency of occurrence, that shows how many results were generated by each identified cause Path Convergence The merging or joining of parallel schedule network paths into the same node in a project schedule network diagram Path convergence is characterized by a schedule activity with more than one predecessor activity Path Divergence Extending or generating parallel schedule network paths from the same node in a project schedule network diagram Path divergence is characterized by a schedule activity with more than one successor activity Percent Complete An estimate, expressed as a percent, of the amount of work that has been completed on an activity or a work breakdown structure component Perform Integrated Change Control [Process] The process of reviewing all change requests, approving changes, and managing changes to the deliverables, organizational process assets, project documents, and project management plan Performance Measurement Baseline An approved integrated scopeschedule-cost plan for the project work against which project execution is compared to measure and manage performance Technical and quality parameters may also be included Performance Reports [Output/Input] Documents and presentations that provide organized and summarized work performance information, earned value management parameters and calculations, and analyses of project work progress and status Performing Organization The enterprise whose personnel are most directly involved in doing the work of the project Plan Quality [Process] The process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance Plan Risk Management [Process] The process of defining how to conduct risk management activities for a project Plan Risk Responses [Process] The process of developing options and actions to enhance opportunities and to reduce threats to project objectives Planned Value (PV) The authorized budget assigned to the scheduled work to be accomplished for a schedule activity or work breakdown structure component Also referred to as the budgeted cost of work scheduled (BCWS) Planning Package A work breakdown structure component below the control account with known work content but without detailed schedule activities See also control account Planning Processes [Process Group] Those processes performed to establish the total scope of the effort, define and refine the objectives, and develop the course of action required to attain those objectives Portfolio A collection of projects or programs and other work that are grouped together to facilitate effective management of that work to meet strategic business objectives The projects or programs of the portfolio may not necessarily be interdependent or directly related Portfolio Management [Technique] The centralized management of one or more portfolios, which includes identifying, prioritizing, authorizing, managing, and controlling projects, programs, and other related work, to achieve specific strategic business objectives Practice A specific type of professional or management activity that contributes to the execution of a process and that may employ one or more techniques and tools Precedence Diagramming Method (PDM) [Technique] A schedule network diagramming technique in which schedule activities are represented by boxes (or nodes) Schedule activities are graphically linked by one or more logical relationships to show the sequence in which the activities are to be performed Precedence Relationship The term used in the precedence diagramming method for a logical relationship In current usage, however, precedence relationship, logical relationship, and dependency are widely used interchangeably, regardless of the diagramming method used See also logical relationship Predecessor Activity The schedule activity that determines when the logical successor activity can begin or end Preventive Action A documented direction to perform an activity that can reduce the probability of negative consequences associated with project risks Probability and Impact Matrix [Tool] A common way to determine whether a risk is considered low, moderate, or high by combining the two dimensions of a risk: its probability of occurrence and its impact on objectives if it occurs Procurement Documents [Output/Input] The documents utilized in bid and proposal activities, which include the buyer’s Invitation for Bid, Invitation for Negotiations, Request for Information, Request for Quotation, Request for Proposal, and seller’s responses 530 Glossary Procurement Management Plan [Output/Input] The document that describes how procurement processes from developing procurement documentation through contract closure will be managed constantly evolving PMI’s PMBOK® Guide identifies that subset of the project management body of knowledge that is generally recognized as good practice Product An artifact that is produced, is quantifiable, and can be either an end item in itself or a component item Additional words for products are material and goods Contrast with result See also deliverable Project Management Information System (PMIS) [Tool] An information system consisting of the tools and techniques used to gather, integrate, and disseminate the outputs of project management processes It is used to support all aspects of the project from initiating through closing, and can include both manual and automated systems Product Life Cycle A collection of generally sequential, non-overlapping product phases whose name and number are determined by the manufacturing and control needs of the organization The last product life cycle phase for a product is generally the product’s retirement Generally, a project life cycle is contained within one or more product life cycles Product Scope The features and functions that characterize a product, service, or result Product Scope Description The documented narrative description of the product scope Program A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually Programs may include elements of related work outside of the scope of the discrete projects in the program Program Evaluation and Review Technique (PERT) A technique for estimating that applies a weighted average of optimistic, pessimistic, and most likely estimates when there is uncertainty with the individual activity estimates Program Management The centralized coordinated management of a program to achieve the program’s strategic objectives and benefits Progressive Elaboration [Technique] Continuously improving and detailing a plan as more detailed and specific information and more accurate estimates become available as the project progresses, and thereby producing more accurate and complete plans that result from the successive iterations of the planning process Project A temporary endeavor undertaken to create a unique product, service, or result Project Calendar A calendar of working days or shifts that establishes those dates on which schedule activities are worked and nonworking days that determine those dates on which schedule activities are idle Typically defines holidays, weekends, and shift hours See also resource calendar Project Charter [Output/Input] A document issued by the project initiator or sponsor that formally authorizes the existence of a project, and provides the project manager with the authority to apply organizational resources to project activities Project Communications Management [Knowledge Area] The processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information Project Cost Management [Knowledge Area] The processes involved in estimating, budgeting, and controlling costs so that the project can be completed within the approved budget Project Human Resource Management [Knowledge Area] The processes that organize and manage the project team Project Initiation Launching a process that can result in the authorization of a new project Project Integration Management [Knowledge Area] The processes and activities needed to identify, define, combine, unify, and coordinate the various processes and project management activities within the Project Management Process Groups Project Life Cycle A collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project A life cycle can be documented with a methodology Project Management The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements Project Management Body of Knowledge An inclusive term that describes the sum of knowledge within the profession of project management As with other professions, such as law, medicine, and accounting, the body of knowledge rests with the practitioners and academics that apply and advance it The complete project management body of knowledge includes proven traditional practices that are widely applied and innovative practices that are emerging in the profession The body of knowledge includes both published and unpublished materials This body of knowledge is Project Management Knowledge Area An identified area of project management defined by its knowledge requirements and described in terms of its component processes, practices, inputs, outputs, tools, and techniques Project Management Office (PMO) An organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project Project Management Plan [Output/Input] A formal, approved document that defines how the project is executed, monitored, and controlled It may be a summary or detailed and may be composed of one or more subsidiary management plans and other planning documents Project Management Process Group A logical grouping of project management inputs, tools and techniques, and outputs The Project Management Process Groups include initiating processes, planning processes, executing processes, monitoring and controlling processes, and closing processes Project Management Process Groups are not project phases Project Management System [Tool] The aggregation of the processes, tools, techniques, methodologies, resources, and procedures to manage a project Project Management Team The members of the project team who are directly involved in project management activities On some smaller projects, the project management team may include virtually all of the project team members Project Manager (PM) The person assigned by the performing organization to achieve the project objectives Project Organization Chart [Output/Input] A document that graphically depicts the project team members and their interrelationships for a specific project Project Phase A collection of logically related project activities, usually culminating in the completion of a major deliverable Project phases are mainly completed sequentially, but can overlap in some project situations A project phase is a component of a project life cycle A project phase is not a Project Management Process Group Project Procurement Management [Knowledge Area] The processes to purchase or acquire the products, services, or results needed from outside the project team to perform the work Project Quality Management [Knowledge Area] The processes and activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken Project Risk Management [Knowledge Area] The processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project Project Schedule [Output/Input] The planned dates for performing schedule activities and the planned dates for meeting schedule milestones Project Schedule Network Diagram [Output/Input] Any schematic display of the logical relationships among the project schedule activities Always drawn from left to right to reflect project work chronology Project Scope The work that must be performed to deliver a product, service, or result with the specified features and functions Project Scope Management [Knowledge Area] The processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully Project Scope Statement [Output/Input] The narrative description of the project scope, including major deliverables, project assumptions, project constraints, and a description of work, that provides a documented basis for making future project decisions and for confirming or developing a common understanding of project scope among the stakeholders Project Team Directory A documented list of project team members, their project roles, and communication information Glossary 531 Project Time Management [Knowledge Area] The processes required to manage the timely completion of a project structure to help ensure that each component of the project’s scope of work is assigned to a person or team Projectized Organization Any organizational structure in which the project manager has full authority to assign priorities, apply resources, and direct the work of persons assigned to the project Quality The degree to which a set of inherent characteristics fulfills requirements Result An output from performing project management processes and activities Results include outcomes (e.g., integrated systems, revised process, restructured organization, tests, trained personnel, etc.) and documents (e.g., policies, plans, studies, procedures, specifications, reports, etc.) Contrast with product See also deliverable Quality Management Plan [Output/Input] Describes how the project management team will implement the performing organization’s quality policy The quality management plan is a component or a subsidiary plan of the project management plan Risk An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives Rework Action taken to bring a defective or nonconforming component into compliance with requirements or specifications Regulation Requirements imposed by a governmental body These requirements can establish product, process, or service characteristics, including applicable administrative provisions that have government-mandated compliance Risk Acceptance [Technique] A risk response planning technique that indicates that the project team has decided not to change the project management plan to deal with a risk, or is unable to identify any other suitable response strategy Report Performance [Process] The process of collecting and distributing performance information, including status reports, progress measurements, and forecasts Risk Avoidance [Technique] A risk response planning technique for a threat that creates changes to the project management plan that is meant to either eliminate the risk or to protect the project objectives from its impact Request for Information (RFI) A type of procurement document whereby the buyer requests a potential seller to provide various pieces of information related to a product or service or seller capability Risk Breakdown Structure (RBS) [Tool] A hierarchically organized depiction of the identified project risks arranged by risk category and subcategory that identifies the various areas and causes of potential risks The risk breakdown structure is often tailored to specific project types Request for Proposal (RFP) A type of procurement document used to request proposals from prospective sellers of products or services In some application areas, it may have a narrower or more specific meaning Request for Quotation (RFQ) A type of procurement document used to request price quotations from prospective sellers of common or standard products or services Sometimes used in place of request for proposal, and in some application areas it may have a narrower or more specific meaning Requested Change [Output/Input] A formally documented change request that is submitted for approval to the integrated change control process Requirement A condition or capability that must be met or possessed by a system, product, service, result, or component to satisfy a contract, standard, specification, or other formally imposed document Requirements include the quantified and documented needs, wants, and expectations of the sponsor, customer, and other stakeholders Requirements Traceability Matrix A table that links requirements to their origin and traces them throughout the project life cycle Reserve A provision in the project management plan to mitigate cost and/ or schedule risk Often used with a modifier (e.g., management reserve, contingency reserve) to provide further detail on what types of risk are meant to be mitigated Reserve Analysis [Technique] An analytical technique to determine the essential features and relationships of components in the project management plan to establish a reserve for the schedule duration, budget, estimated cost, or funds for a project Residual Risk A risk that remains after risk responses have been implemented Resource Skilled human resources (specific disciplines either individually or in crews or teams), equipment, services, supplies, commodities, material, budgets, or funds Resource Breakdown Structure A hierarchical structure of resources by resource category and resource type used in resource leveling schedules and to develop resource-limited schedules, and which may be used to identify and analyze project human resource assignments Resource Calendar A calendar of working and nonworking days that determines those dates on which each specific resource is idle or can be active Typically defines resource-specific holidays and resource availability periods See also project calendar Risk Category A group of potential causes of risk Risk causes may be grouped into categories such as technical, external, organizational, environmental, or project management A category may include subcategories such as technical maturity, weather, or aggressive estimating Risk Management Plan [Output/Input] The document describing how project risk management will be structured and performed on the project It is contained in or is a subsidiary plan of the project management plan Information in the risk management plan varies by application area and project size The risk management plan is different from the risk register that contains the list of project risks, the results of risk analysis, and the risk responses Risk Mitigation [Technique] A risk response planning technique associated with threats that seeks to reduce the probability of occurrence or impact of a risk to below an acceptable threshold Risk Register [Output/Input] The document containing the results of the qualitative risk analysis, quantitative risk analysis, and risk response planning The risk register details all identified risks, including description, category, cause, probability of occurring, impact(s) on objectives, proposed responses, owners, and current status Risk Tolerance The degree, amount, or volume of risk that an organization or individual will withstand Risk Transference [Technique] A risk response planning technique that shifts the impact of a threat to a third party, together with ownership of the response Role A defined function to be performed by a project team member, such as testing, filing, inspecting, coding Rolling Wave Planning [Technique] A form of progressive elaboration planning where the work to be accomplished in the near term is planned in detail at a low level of the work breakdown structure, while the work far in the future is planned at a relatively high level of the work breakdown structure, but the detailed planning of the work to be performed within another one or two periods in the near future is done as work is being completed during the current period Root Cause Analysis [Technique] An analytical technique used to determine the basic underlying reason that causes a variance or a defect or a risk A root cause may underlie more than one variance or defect or risk Resource Histogram A bar chart showing the amount of time that a resource is scheduled to work over a series of time periods Resource availability may be depicted as a line for comparison purposes Contrasting bars may show actual amounts of resources used as the project progresses Schedule See project schedule and see also schedule model Resource Leveling [Technique] Any form of schedule network analysis in which scheduling decisions (start and finish dates) are driven by resource constraints (e.g., limited resource availability or difficult-to-manage changes in resource availability levels) Schedule Compression [Technique] Shortening the project schedule duration without reducing the project scope See also crashing and fast tracking Responsibility Assignment Matrix (RAM) [Tool] A structure that relates the project organizational breakdown structure to the work breakdown Schedule Baseline A specific version of the schedule model used to compare actual results to the plan to determine if preventive or corrective action is needed to meet the project objectives Schedule Management Plan [Output/Input] The document that establishes criteria and the activities for developing and controlling the project schedule It is contained in, or is a subsidiary plan of, the project management plan 532 Glossary Schedule Model [Tool] A model used in conjunction with manual methods or project management software to perform schedule network analysis to generate the project schedule for use in managing the execution of a project See also project schedule Schedule Network Analysis [Technique] The technique of identifying early and late start dates, as well as early and late finish dates, for the uncompleted portions of project schedule activities See also critical path method, critical chain method, and resource leveling Schedule Performance Index (SPI) A measure of schedule efficiency on a project It is the ratio of earned value (EV) to planned value (PV) The SPI = EV divided by PV Schedule Variance (SV) A measure of schedule performance on a project It is the difference between the earned value (EV) and the planned value (PV) SV = EV minus PV Scheduled Finish Date (SF) The point in time that work was scheduled to finish on a schedule activity The scheduled finish date is normally within the range of dates delimited by the early finish date and the late finish date It may reflect resource leveling of scarce resources Sometimes called planned finish date Scheduled Start Date (SS) The point in time that work was scheduled to start on a schedule activity The scheduled start date is normally within the range of dates delimited by the early start date and the late start date It may reflect resource leveling of scarce resources Sometimes called planned start date Scope The sum of the products, services, and results to be provided as a project See also project scope and product scope Scope Baseline An approved specific version of the detailed scope statement, work breakdown structure (WBS), and its associated WBS dictionary Scope Change Any change to the project scope A scope change almost always requires an adjustment to the project cost or schedule Scope Creep Adding features and functionality (project scope) without addressing the effects on time, costs, and resources, or without customer approval Scope Management Plan [Output/Input] The document that describes how the project scope will be defined, developed, and verified and how the work breakdown structure will be created and defined, and that provides guidance on how the project scope will be managed and controlled by the project management team It is contained in or is a subsidiary plan of the project management plan S-Curve Graphic display of cumulative costs, labor hours, percentage of work, or other quantities, plotted against time Used to depict planned value, earned value, and actual cost of project work The name derives from the S-like shape of the curve (flatter at the beginning and end, steeper in the middle) produced on a project that starts slowly, accelerates, and then tails off Also a term used to express the cumulative likelihood distribution that is a result of a simulation, a tool of quantitative risk analysis Secondary Risk A risk that arises as a direct result of implementing a risk response Seller A provider or supplier of products, services, or results to an organization Sensitivity Analysis A quantitative risk analysis and modeling technique used to help determine which risks have the most potential impact on the project It examines the extent to which the uncertainty of each project element affects the objective being examined when all other uncertain elements are held at their baseline values The typical display of results is in the form of a tornado diagram Sequence Activities [Process] The process of identifying and documenting relationships among the project activities Simulation A simulation uses a project model that translates the uncertainties specified at a detailed level into their potential impact on objectives that are expressed at the level of the total project Project simulations use computer models and estimates of risk, usually expressed as a probability distribution of possible costs or durations at a detailed work level, and are typically performed using Monte Carlo analysis Slack Also called float See total float and free float Special Cause A source of variation that is not inherent in the system, is not predictable, and is intermittent It can be assigned to a defect in the system On a control chart, points beyond the control limits, or non-random patterns within the control limits, indicate it Also referred to as assignable cause Contrast with common cause Specification A document that specifies, in a complete, precise, verifiable manner, the requirements, design, behavior, or other characteristics of a system, component, product, result, or service and, often, the procedures for determining whether these provisions have been satisfied Examples are requirement specification, design specification, product specification, and test specification Specification Limits The area, on either side of the centerline, or mean, of data plotted on a control chart that meets the customer’s requirements for a product or service This area may be greater than or less than the area defined by the control limits See also control limits Sponsor The person or group that provides the financial resources, in cash or in kind, for the project Staffing Management Plan The document that describes when and how human resource requirements will be met It is contained in, or is a subsidiary plan of, the human resource plan Stakeholder Person or organization (e.g., customer, sponsor, performing organization, or the public) that is actively involved in the project, or whose interests may be positively or negatively affected by execution or completion of the project A stakeholder may also exert influence over the project and its deliverables Standard A document that provides, for common and repeated use, rules, guidelines, or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context Start Date A point in time associated with a schedule activity’s start, usually qualified by one of the following: actual, planned, estimated, scheduled, early, late, target, baseline, or current Start-to-Finish (SF) The logical relationship where completion of the successor schedule activity is dependent upon the initiation of the predecessor schedule activity See also logical relationship Start-to-Start (SS) The logical relationship where initiation of the work of the successor schedule activity depends upon the initiation of the work of the predecessor schedule activity See also logical relationship Statement of Work (SOW) A narrative description of products, services, or results to be supplied Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis This information-gathering technique examines the project from the perspective of each project’s strengths, weaknesses, opportunities, and threats to increase the breadth of the risks considered by risk management Subnetwork A subdivision (fragment) of a project schedule network diagram, usually representing a subproject or a work package Often used to illustrate or study some potential or proposed schedule condition, such as changes in preferential schedule logic or project scope Subphase A subdivision of a phase Subproject A smaller portion of the overall project created when a project is subdivided into more manageable components or pieces Successor Activity The schedule activity that follows a predecessor activity, as determined by their logical relationship Summary Activity A group of related schedule activities aggregated at some summary level, and displayed/reported as a single activity at that summary level See also subproject and subnetwork Technical Performance Measurement [Technique] A performance measurement technique that compares technical accomplishments during project execution to the project management plan’s schedule of planned technical achievements It may use key technical parameters of the product produced by the project as a quality metric The achieved metric values are part of the work performance information Technique A defined systematic procedure employed by a human resource to perform an activity to produce a product or result or deliver a service, and that may employ one or more tools Template A partially complete document in a predefined format that provides a defined structure for collecting, organizing, and presenting information and data Threat A condition or situation unfavorable to the project, a negative set of circumstances, a negative set of events, a risk that will have a negative Glossary 533 impact on a project objective if it occurs, or a possibility for negative changes Contrast with opportunity Three-Point Estimate [Technique] An analytical technique that uses three cost or duration estimates to represent the optimistic, most likely, and pessimistic scenarios This technique is applied to improve the accuracy of the estimates of cost or duration when the underlying activity or cost component is uncertain Threshold A cost, time, quality, technical, or resource value used as a parameter, and which may be included in product specifications Crossing the threshold should trigger some action, such as generating an exception report Time and Material (T&M) Contract A type of contract that is a hybrid contractual arrangement containing aspects of both cost-reimbursable and fixedprice contracts Time and material contracts resemble cost-reimbursable type arrangements in that they have no definitive end, because the full value of the arrangement is not defined at the time of the award Thus, time and material contracts can grow in contract value as if they were cost-reimbursable-type arrangements Conversely, time and material arrangements can also resemble fixed-price arrangements For example, the unit rates are preset by the buyer and seller, when both parties agree on the rates for the category of senior engineers Time-Scaled Schedule Network Diagram [Tool] Any project schedule network diagram drawn in such a way that the positioning and length of the schedule activity represents its duration Essentially, it is a bar chart that includes schedule network logic To-Complete-Performance-Index (TCPI) The calculated projection of cost performance that must be achieved on the remaining work to meet a specified management goal, such as the budget at completion (BAC) or the estimate at completion (EAC) It is the ratio of “remaining work” to the “funds remaining.” Tool Something tangible, such as a template or software program, used in performing an activity to produce a product or result Total Float The total amount of time that a schedule activity may be delayed from its early start date without delaying the project finish date, or violating a schedule constraint Calculated using the critical path method technique and determining the difference between the early finish dates and late finish dates See also free float Trend Analysis [Technique] An analytical technique that uses mathematical models to forecast future outcomes based on historical results It is a method of determining the variance from a baseline of a budget, cost, schedule, or scope parameter by using prior progress reporting periods’ data and projecting how much that parameter’s variance from baseline might be at some future point in the project if no changes are made in executing the project Triggers Indications that a risk has occurred or is about to occur Triggers may be discovered in the risk identification process and watched in the risk monitoring and control process Triggers are sometimes called risk symptoms or warning signs Validation The assurance that a product, service, or system meets the needs of the customer and other identified stakeholders It often involves acceptance and suitability with external customers Contrast with verification Value Engineering An approach used to optimize project life cycle costs, save time, increase profits, improve quality, expand market share, solve problems, and/or use resources more effectively Variance A quantifiable deviation, departure, or divergence away from a known baseline or expected value Variance Analysis [Technique] A method for resolving the total variance in the set of scope, cost, and schedule variables into specific component variances that are associated with defined factors affecting the scope, cost, and schedule variables Verification The evaluation of whether or not a product, service, or system complies with a regulation, requirement, specification, or imposed condition It is often an internal process Contrast with validation Verify Scope [Process] The process of formalizing acceptance of the completed project deliverables Virtual Team A group of persons with a shared objective who fulfill their roles with little or no time spent meeting face to face Various forms of technology are often used to facilitate communication among team members Virtual teams can be composed of persons separated by great distances Voice of the Customer A planning technique used to provide products, services, and results that truly reflect customer requirements by translating those customer requirements into the appropriate technical requirements for each phase of project product development Work Authorization A permission and direction, typically written, to begin work on a specific schedule activity or work package or control account It is a method for sanctioning project work to ensure that the work is done by the identified organization, at the right time, and in the proper sequence Work Authorization System [Tool] A subsystem of the overall project management system It is a collection of formal documented procedures that defines how project work will be authorized (committed) to ensure that the work is done by the identified organization, at the right time, and in the proper sequence It includes the steps, documents, tracking system, and defined approval levels needed to issue work authorizations Work Breakdown Structure (WBS) [Output/Input] A deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables It organizes and defines the total scope of the project Work Breakdown Structure Component An entry in the work breakdown structure that can be at any level Work Breakdown Structure Dictionary [Output/Input] A document that describes each component in the work breakdown structure (WBS) For each WBS component, the WBS dictionary includes a brief definition of the scope or statement of work, defined deliverable(s), a list of associated activities, and a list of milestones Other information may include responsible organization, start and end dates, resources required, a cost estimate, charge number, contract information, quality requirements, and technical references to facilitate performance of the work Work Package A deliverable or project work component at the lowest level of each branch of the work breakdown structure See also control account Work Performance Information [Output/Input] Information and data on the status of the project schedule activities being performed to accomplish the project work, collected as part of the direct and manage project execution processes Information includes status of deliverables; implementation status for change requests, corrective actions, preventive actions, and defect repairs; forecasted estimates to complete; reported percent of work physically completed; achieved value of technical performance measures; start and finish dates of schedule activities Workaround [Technique] A response to a negative risk that has occurred Distinguished from contingency plan in that a workaround is not planned in advance of the occurrence of the risk event Company Index a Accident Fund Insurance Co of America, 59 Adelphia Cable Company, 62 Advanced Network & Services, 204 Airbus, 50, 68, 228, 235 Air France, 246 Air India, 467 All Nippon Airlines, 466 Amazon, AMEC Corporation, 63 Apple Computer Corporation, 4, 6, 7–8, 10, 69, 199, 379, 480 B Bank of America, 230 Bayer Corporation, 100 Bechtel Corporation, 10, 62, 135, 213, 290, 465 Ben and Jerry’s Ice Cream, 63 Blanque Cheque Construction (BCC), 360 Boeing Corporation, 4, 20, 50, 68, 113, 168, 172–173, 184n25, 228, 235, 246, 263, 273, 465–466, 475n18 Booz-Allen Hamilton, 302 British Broadcasting Corporation (BBC), 10 British Overseas Airways Corporation (BOAC), 246 Building Contractors of Toledo (BCT), 219–220 C California High-Speed Rail Authority (CHSRA), 173–174 Calloway, 137 Carnegie Mellon University, 21, 35n33 Center for Business Practices, 21, 114n21 Chartered Institute of Building, 329n9 Chevrolet, Chrysler, 49, 167, 377 Ciampino Airport, 247 Civil Aviation Board (CAB), 247 Cleveland, 137 Columbus Instruments, Inc (CIC), 215–216 Computer Sciences Corporation (CSC), 132–133 ConocoPhillips, 297 Construx Software, 270 Cover Oregon, 146 Crown Corporation, 110 d Dallas Cowboys, 146 Data General Corporation, 49, 104 Defense Logistics Agency, 475n2 de Havilland Aircraft Company, 245–246, 247 Denver International Airport, 273 Development Center of Excellence, 385 DHL Express, 999 Disney, 7, 31–32 Dotcom.com, 175–176 Duke Energy, 478–479 DuPont, Inc., 302 534 e Electronic Arts, 64 Eli Lilly Corporation, 385 EMC Corporation, 45, 104 Eni, 297 Enron, 62 Ericsson, Ernst & Young, 134 Escambia High, 147 ESI International, 21, 35n33 European Association for Project Management, 241 European Space Agency (ESA), 235 Exxon Chemical, 77 Exxon Mobil, 297 F Fallujah Police, 419 Federal Geographic Data Committee, 150 Federal Highway Administration, 290 Federal Reserve, 273 Federal Transit Administration (FTA), 498 Fédération Internationale de Football Association (FIFA), 64 Fermi Laboratory, 464 Financial Services Group (FSG), 132 Fluor-Daniel Corporation, 20, 62 Freefield Memorial Hospital, 148 Freefield Public Library, 148 G General Dynamics Corporation, 176, 177 General Electric Company, 4, 10, 61, 63, 67, 97–98, 117, 131, 227 George Washington University, 75n27 Geotec Boyles Brothers, 31 Gillette, 104 Goodrich Corporation, 228 Google, 61 Grace Hospital, 128 H Hamelin Hospital, 30 Hoechst Marion Roussel, 77, 84 Honda, 104 Honeywell, 368 I IBM, 69, 343 Infrastructure Management Group, 174 Institute for Operations Research and the Management Sciences, 200 Institution of Chemical Engineers, 294n19 Intel, 44 International Function Point Users Group, 272n18 Iraqi Army, 419 J Jaguar, 224 Johnson & Rogers Software Engineering, 217–218 JPMorgan Chase, 230 K Keflavik Paper Company, 111–112 Kimble College, 463 L Layne Christensen Company, 32 Lilly Research Labs, 385 Lockheed Corporation, 55, 294n11, 302 Logan Airport, 288 Lucent Technologies, 227, 368 m Macintosh, 8, 61 Martin Marietta, 465 Maryland State Department of Health, 148 Massachusetts Turnpike Authority, 288, 289 McKinsey Group, 270 MegaTech, Inc., 29–30, 285 META Group, Microsoft, 10, 26, 131, 303, 306, 404, 405 Military College of South Carolina, 418 Mobil Chemical, 77 Modern Continental, 289 n National Aeronautics and Space Administration (NASA), 32, 134 National Audit Office, 12 National Research Council, 464 New England Patriots, 289 Nike, 137 Nissan, 37 Northrop Grumman, 451–452 Nova Western, Inc., 112–113 o Occupational Safety and Health Administration (OSHA), 74 Oracle, 4, 26, 41, 145–146 Oxford University, 270 p Palo Alto Research Center (PARC), 62, 68–69 Parson Brinckerhoff, 290 Pentagon, 9, 176, 177, 178 Pfizer, 101, 103 PING, 137 Pitney-Bowes Credit Corporation (PBCC), 61 Pratt & Whitney Jet Engines, 67, 98 Project Management Association, 5, 84n7, 99n24, 101n26 Project Management Institute (PMI), 5, 20, 26, 98, 225, 300, 441 Public Works Administration, 249 Pureswing Golf, Inc., 137 R Ramstein Products, 397 Rauma Corporation, 10, 230 Rolls-Royce plc, 338, 480 Royal Bank of Canada, 77 Rubbermaid Corporation, 40, 78, 103 S Samsung, 10, 103, 341 SAP Corporation, 81, 82–83, 88, 492 Science Applications International Corporation (SAIC), 432–433 Shell, 297 Siemens, 10–11, 77 Software Engineering Institute (SEI), 21 South African Airways, 247 Special Inspector General for Iraq Reconstruction (SIGIR), Standish Group International, 8, 270 SteelFabrik, Inc (SFI), 219 SunTrust, 230 Sylvania, 79 T Taxpayers for Common Sense, 177, 289 Taylor Made, 137 Tesla Motors, 37–38 Texas Instruments, 62, 368 3M, 10, 40, 77 Titleist, 137 Toshiba, 44 Total, 297 Trust and Lucent Technologies, 227 U UCLA, 198 United Technologies Corporation, 67, 98 University of Calgary, 202n18 University of Manchester, 481 University of Pittsburgh, 15 U.S Air Force, 440n2 U.S Army, 132, 237, 251, 440n2, 485 U.S Congress, 177, 464 U.S Customs and Border Protection, 172 U.S Department for Work and Pensions, U.S Department of Defense (DoD), 150, 176, 177, 440n2 U.S Department of Energy, 134, 134n28, 464 U.S Department of Homeland Security (DHS), 172 U.S Department of Civil Engineering, 202n18 U.S House of Representatives, 134n28 U.S Marines, 61, 176–177, 273, 418, 420, 500 U.S Navy, 32, 168, 177, 273, 302, 440n2, 500–501 U.S Nuclear Regulatory Commission (NRC), 15, 478 V Volkswagen, 37 W Walt Disney World Resort, 31 Waste Management, 492, 493n25 Wells Fargo, 230 Westinghouse Electric Company, 15–16 Weyerhaeuser, 77 Widgets ’R Us (WRU), 70 World Bank, 174 WorldCom, 62 World Trade Center, 172 x Xerox Corporation, 62, 68 Xinhua, 240 Name INdex a Aalto, T., 84n7 Ackerman, S., 178n27 Adams, D., 333n1 Adams, J R., 202n18, 204n24 Adams, L L., 202n18 Alexander, R C., 68n38 Allen, D C., 308n6 Amiel, G., 298n1 Amor, J P., 267n8, 267n10 Anderson, C C., 54n23 Ansar, A., 287n25 Antonini, R., 454n6 Antonioni, D., 169n24 Artto, K A., 84n7, 99n24, 228n3, 243n14 Atkinson, R., 18n29 Aubry, M., 57n28 Axe, D., 501n31 Ayas, K., 134n28, 134n29 Azani, H., 80n5 B Badiru, A B., 267n8, 300n3 Baime, A J., 104n30 Baker, B N., 455n10 Balachandra, R., 488n17 Bard, J F., 272n19, 354n5 Barndt, S E., 204n24 Barnes, M., 272n18, 391n30 Beale, P., 16n25 Beck, D R., 456n13 Beck, K., 377n10 Beedle, M., 373n6 Belout, A., 455n12 Bennett, S C., 494n7 Bennis, W., 131n24 Bishop, T., 489n21 Bisson, P., 45n16 Blakeslee, T R., 104n30 Blank, E L., 203n20, 203n21 Blass, G., 467n18 Bloch, M., 270n15 Block, P., 118n5 Block, R., 45n15 Block, T., 57n28 Blomquist, T., 57n28 Blumberg, S., 270n15 Boctor, F F., 407n6 Boddy, D., 5n6 Book, S A., 474n19 Bose, M., 117n1 Brandon, Jr., D M., 445n3, 450n3 Bredillet, C N., 454n6 Brooks, F P., Jr., 343n3 Brown, A., 41n9 Brown, S L., 103n28 Bryde, D., 128n19 Buchanan, D A., 5n6 Budd, C S., 390n25 Budzier, A., 270n15, 287n25 Bughin, J., 45n16 Buhl, S., 275n21 Burgess, T F., 167n19, 169n22 C Callahan, J., 300n3, 321n10 Cameron, D., 467n18 Camm, J D., 267n8 Campanis, N A., 308n6 Carland, J C., 78n2 Carland, J W., 78n2 Casey, W., 58n29 Castaneda, V., 175n26 Cavas, C P., 501n31 Chae, K C., 302n4 Chakrabarti, A K., 130n21 Chan, M., 204n24 Chan, T., 96n17 Chapman, C B., 228n3, 241n13 Chapman, R J., 230n4 Charette, R., 433n1 Charvat, J P., 483n9 Christensen, D S., 276n22, 454n6 Chui, M., 45n16 Clark, C E., 300n3 Clark, K B., 55n25, 78n2 Clarke, N., 124n11 Clausing, J., 8n18 Cleland, D I., 5n5, 6n11, 20n31, 40n3, 41n10, 42n12, 44n14, 81n6, 142n3, 153n11, 204n24, 259n3, 455n9, 455n10, 456n13, 479n2 Clements, J P., 194n7 Cohan, P., 467n18 Collins, D., 433n1 Conlan, T., 12n23 Cooke-Davies, T., 18n29, 482n5, 482n6, 486n14 Cooper, K G., 343n3 Cooper, M J., 390n25 Cooper, R G., 97n19, 98n23, 100n25, 104n29, 489n19 Copeland, L., 377n10 Coutu, D L., 202n19 Cowley, S., 368n1 Crawford, J K., 20n32, 21n33, 77n1 Crawford, J R., 269n11 Cullen, J., 402n1 Curnow, R., 4n2 d Daft, R L., 47n20, 54n23, 61n32, 122n7 Dai, C., 57n27 Dai, C X., 57n28, 85n11 Daly, M., 8n18 Daniel, E., 12n23 Dastmachian, A., 125n13 David, F R., 39n2 Davis, C., 248n16 Davis, T E., 201n15 Dean, B V., 488n16 Dehler, G E., 488n18 Delisle, C., 202n18 DeLone, W H., 19n28 DeMarco, T., 320n9 DeYoung-Currey, J., 308n6 Dignan, L., 493n25 Dillibabu, R., 272n18 DiMarco, N., 125n13 Ditlea, S., 204n23 Dixit, A K., 96n17 Dobbs, R., 45n16 Dobson, M., 104n29 Done, K., 467n18 Dulewicz, V., 118n3 Dumaine, B., 403n2 Duncan, W R., 153n10, 391n28 Duthiers, V., 4n2 Dvir, D., 17n27, 391n30 Dworatschek, S., 57n26 Dye, L D., 98n21 e Edgett, S J., 100n25, 104n29 Edwards, J., 368n1 Eidsmoe, N., 57n28 Einsiedel, A A., 125n14 Eisenhardt, K M., 103n28 Eksioglu, S D., 380n17 Elmaghraby, S E., 300n3 Elmes, M., 60n31 Elton, J., 98n22, 379n14, 391n29 Emam, K E., 390n26 Emsley, M., 320n9 Englund, R L., 59n30 Engwall, M., 55n24 Enthoven, A., 175n26 Evans, D A., 88n14, 96n16 Evans, J R., 267n8 F Faganson, Z., 333n1 Fagerhaug, T., 202n18 Fazar, W., 300n3 Feickert, A., 178n27 Felan, J., 388n22 Fendley, L G., 407n6, 407n7 Field, M., 5n8, 417n8 Field, T., 493n25 Fields, M A., 267n8 Fisher, D., 455n10 Fisher, R., 46n17, 210n34, 211n35, 211n36, 213n37 Fleming, M M K., 54n23 Fleming, Q., 59n30, 440n2 Flyvbjerg, B., 258n1, 270n15, 275n21, 287n25 Ford, R C., 54n23 Foreman, E H., 86n12 Foti, R., 20n32, 77n1 Frame, J D., 5n7, 46n18¸ 57n28, 168n21, 201n16, 484n11, 484n12, 489n20, 494n28 Francis, D., 9n20 Freeman, M., 16n25 G Galbraith, J R., 200n14 Gale, S., 58n29 Gallagher, C., 302n4 Garbuio, M., 275n21 Gareis, R., 20n32 Garrahan, M., 175n26 Gauvreau, C., 455n12 Geere, D., 258n1 Geoghegan, L., 118n3 Gersick, C., 198n11 Gido, J., 194n7 Gilbreath, Robert D., 5n5 Globerson, S., 163n15, 272n19, 354n5 Gobeli, D H., 50n22, 55n24, 57n26 Goldman, D., 368n1 Goldratt, E., 378n12, 379n14, 387n21 Goleman, D., 124n11 Gong, D., 300n3, 302n4 Goodson, J R., 125n13 Gordon, J A., 276n22, 404n4 Gousty, Y., 80n5 Govan, F., 248n16 Govekar, M., 118n3 Gower, P., 225n1 Goyal, S K., 272n19 Grae, K., 193n5 Graham, R J., 7n13, 59n30 Grant, K P., 20n30 Graves, R., 231n9 Gray, C F., 9n21, 57n26, 57n27, 279n24, 302n5, 353n4, 420n9 Gray, V., 388n22 Green, S G., 192n3, 488n18 Grindley, W., 175n26 Gross, S., 433n1 Grundy, T., 46n19 H Hackbarth, G., 241n13 Hamburger, D., 272n19, 479n2, 490n23, 496n29 Hamburger, D H., 236n11 Hannon, E., 127n16 Hansford, M., 117n1 Hartman, F T., 132n26, 193n5, 193n6 Hatfield, M A., 440n2 Hauschildt, J., 125n15 Hayward, S., 103n27 Heiser, J., 269n12 Henderson, B., 479n1 Hennelly, B., 433n1 Hewlett, S., 12n23 Hill, J., 308n6 Hillier, B., 64n36 Hillson, D., 40n4, 231n7, 231n8 Hobbs, B., 57n28 Hodge, N., 178n27 Hoegl, M., 192n3 Hoel, K., 382n19 Hoffman, E J., 134n29 Holm, M S., 275n21 Horner, R M W., 320n9 Houser, H F., 125n13 Howell, G., 340n2 Huchzermeier, W., 96n17 Huemann, M., 20n32 Hugsted, R., 300n3 Hulett, D., 302n4, 340n2 Hull, S., 247n15 Humphrey, W S., 21n33 Hunger, J D., 41n8 I Ibbs, C W., 20n31, 20n32 Ive, G., 482n8 J Javidan, M., 125n13 Jeffery, R., 272n18 Jenkins, Robert N., 27n34 Jensen, M A., 196n8, 196n9 Johnsson, J., 467n18 Johnston, K., 333n1 Jones, W., 146n1 Joy, O., 4n2 Judy, S., 479n1 K Kadefors, A., 193n5 Kahkonen, K., 228n3 Kahneman, D., 275n21 Kallqvist, A S., 55n24 Kamburowski, J., 300n3, 302n4 Kanaracus, C., 493n25 Kapur, G K., 8n16 Karlsen, J T., 193n5 Keefer, D L., 302n4 Keim, G., 125n15 Keller, L., 5n8, 417n8 Kelley, M., 9n20 Keown, A J., 96n16 Kermeliotis, T., 4n2 Kerzner, H., 5n8, 21n33, 57n28, 59n30, 259n3 Kezbom, D., 134n29 Kharbanda, O P., 68n38, 118n4, 250n18 Khorramshahgol, R., 80n5 Kidd, C., 167n19, 169n22 Kidd, J B., 300n3 Kilmann, R H., 61n34 Kim, S., 302n4 535 536 Name Index Kim, W C., 118n2 Kimball, R K., 147n3 King, W R., 5n5, 41n10, 42n12, 81n6, 142n3, 153n11, 204n24, 259n3, 455n9, 455n10, 456n13, 479n2 Kinlaw, C S., 134n29 Kinlaw, D C., 134n29 Kirsner, S., 61n32 Kleinschmidt, E J., 100n25, 489n19 Knoepfel, H., 57n26 Koppelman, J., 59n30, 440n2 Koru, A G., 390n26 Koskela, L., 4n13 Kostner, J., 202n18 Kotoky, A., 467n18 Kouri, J., 173n25 Kouzes, J M., 122n7, 125n12, 132n25 Krigsman, M., 173n25, 493n24 Krishnaiah, K., 272n18 Kumar, U., 489n20 Kumar, V., 489n20 Kwak, Y H., 20n32 L Laartz, J., 270n15 Lai, K -K., 96n17 Lakshman, N., 127n16 Lallanilla, M., 225n1 Lander, M C., 193n5 Lane, D., 146n1 Lanier, J., 203n22 Larson, E W., 9n21, 50n22, 55n24, 57n26, 57n27, 279n24, 302n5, 353n4, 420n9 Laufer, A., 148n5 Lavallo, D., 275n21 Lavold, G D., 153n11 Leach, L P., 368n2, 378n13, 382n19, 388n23, 388n24 Lederer, A L., 308n6 Lee, J., 302n4 Lee, S A., 343n3 Lehtonen, M., 101n26 Leigh, W., 193n5 Lemer, J., 467n18 Levene, H., 404n4 Levine, H A., 236n11 Levy, F K., 302n4 Levy, O., 17n27 Li, M I., 343n3 Libertore, M J., 308n6 Light, M., 103n27 Lipke, W H., 454n7, 474n19 Lipowicz, A., 173n25 Loch, C H., 96n17 Lock, D., 263n7, 458n15 Logue, A C., 202n17 Longman, A., 104n29 Lorenz, C., 231n9 Louk, P., 259n3 Lovallo, D., 275n21 Low, G C., 272n18 Lundin, R A., 7n12 Lunn, D., 287n25 m MacLeod, K., 404n4 Magnaye, R., 454n8 Magnaye, R B., 454n8 Maher, M., 276n23 Malanga, S., 499n30 Malcolm, D G., 300n3 Manley, J H., 457n14 Mantel, S J., Jr., 50n21, 79n4, 96n18, 159n14, 168n20, 261n4, 267n9, 276n22, 310n7, 405n5, 420n10, 422n11, 480n3, 480n4, 481n9 Manyika, J., 45n16 Marrs, A., 45n16 Marsh, P., 494n26 Marshall, B., 382n19, 403n3 Marshall, R A., 454n6 Martin, J D., 96n16 Martin, M G., 150n6 Martin, P., 230n5 Martinsuo, M., 84n7 Massaoud, M J., 193n5 Matheson, D., 100n25 Matheson, J E., 100n25 Mauborgne, R A., 118n2 Mayhew, P., 493n24 McComb, S A., 192n3 McConnell, S., 270n17 McCray, C G., 407n6 McCray, G E., 193n5, 407n6 McIntosh, J O., 407n6 McKain, S., 17n26 McKinney, J., 454n6 McLean, E R.19n28 Medcof, J W., 125n15 Mendelow, A., 41n10 Menon, P., 490n22 Mepyans-Robinson, R., 147n3 Meredith, J A., 50n21, 79n4, 96n18, 128n19, 159n14, 168n20, 261n4, 267n9, 276n22, 310n7, 405n5, 420n10, 422n11, 480n3, 480n4, , 481n9, 487n15 Merle, R., 178n27 Merrill, J., 385n20 Mersino, A., 489n19 Mian, S A., 85n11 Milani, K., 452n5 Miller, G J., 259n3 Millet, I., 8n15, 84n8, 85n10, 87n13 Mitchell, J., 175n26 Moder, J J., 302n4 Mollick, E R., 368n1 Mongalo, M A., 302n4 Moore, D., 47n20 Moretton, B., 300n3, 321n10 Morris, P W G., 17n26, 455n9, 455n11 Morse, L C., 407n6 Müller, R., 57n28, 125n13 Mulrine, A., 9n20 Mummolo, G., 302n4 Murphy, D C., 455n10 N Navarre, C., 354n5 Needy, K S., 259n2, 261n5, 262n6 Newbold, R C., 380n17 Nicholas, J M., 340n2 Nonaka, I., 371n3, 371n4 Noqicki, D., 454n8 Norris, G., 467n18 O Obradovitch, M M., 154n12, 163n16 Oglesby, P., 340n2 Ogunbiyi, T., 4n2 Olson, D L., 18n29 Onsrud, H J., 130n20 Osborne, A., 117n1 P Padgett, T., 333n1 Palmer, T., 118n3 Panknin, S., 274n20 Parboteeah, K P., 192n3 Parker, H., 340n2 Pascale, S., 78n2, 231n9 Pasztor, A., 467n18 Patanakul, P., 454n8 Patch, J., 501n31 Patel, P., 188n1 Patrick, F., 382n19 Patterson, J H., 417n8 Peck, W., 58n29 Penn, I., 479n1 Pennypacker, J S., 20n30, 98n21 Pepitone, J., 368n1 Peters, T A., 4n3, 128n18 Petersen, P., 404n4 Petri, K L., 259n2, 261n5, 262n6 Petro, T., 452n5 Petroski, H., 10n22 Pettersen, N., 125n13 Petty, J W., 96n16 Phillips, C R., 302n4 Pindyck, R S., 96n17 Piney, C., 392n32 Pinto, J K., 8n15, 9n21, 20n31, 68n38, 84n8, 118n3, 118n4, 128n19, 130n20, 153n10, 192n4, 199n12, 250n18, 272n19, 376n9, 391n31, 455n12, 483n9, 486n13, Pinto, M B., 199n12, 486n13 Pondy, L., 205n26 Posner, B Z., 118n3, 122n7, 125n12, 132n25, 204n24, 207n30 Prasad, J., 308n6 Prescott, J E., 192n4, 199n12, 486n13 Pressman, R., 131n23 Pritchard, C L., 21n33, 489n20 Purvis, R L., 193n5, 407n6 Q Qiu, F., 96n17 R Raelin, J A., 488n17 Ramirez-Marquez, J E., 454n8 Ramnath, N S., 127n16 Ramsey, M., 38n1 Randall, W., 454n8 Randolph, W A., 54n23 Rathi, A., 258n1 Raz, T., 80n5, 382n19, 391n30, 403n3 Reginato, P E., 20n31 Reilly, F K., 88n15 Reina, P., 117n1 Reinen, J., 146n1 Render, B., 269n12 Richey, J., 173n25 Robinson, P B., 440n2 Roe, J., 98n22, 379n14, 391n29 Rom, W O., 380n17 Roseboom, J H., 300n3 Ross, J., 65n37, 489n19 Rosser, B., 103n27 Rouhiainen, P., 9n21 Rowlings, J E., 302n4 Royer, I., 130n22, 489n19 Ruiz, P., 454n6 S Saaty, T L., 84n9, 86n12 Sandahl, D., 104n29 Sanders, P., 467n18 Sasieni, M W., 302n4 Sauser, B J., 454n8 Saxton, M J., 61n34 Schaan, J., 354n5 Scheck, J., 298n1 Scheid, J., 230n6 Schein, E H., 60n31 Schmidt, W H., 205n25 Schon, D A., 128n17 Schoner, B., 87n13 Schuerman, M., 499n30 Schwaber, K., 372n5, 373n6, 375n7 Scott, Jr., D F., 96n16 Seddon, P B.19n28 Selly, M., 86n12 Serpa, R., 61n34 Serrador, P., 376n9 Sersaud, A N S., 489n20 Severston, A., 175n26 Shachtman, N., 501n31 Shafer, S M., 489n19 Shalal, A., 501n31 Shanahan, S., 417n8 Sharp, D., 501n31 Shenhar, A J., 17n27, 134n31 Shepheard, C., 146n1 Sherif, M., 199n13 Sherman, E., 379n16 Sherman, J D., 78n3 Shtub, A., 272n19, 354n5 Sigurdsen, A., 272n19 Silver, D., 133n27 Singletary, N., 440n2 Slevin, D P., 20n31, 118n3, 123n9, 128n19, 130n22, 209n33, 455n12, 483n9 Smart, M., 499n30 Smith, D K., 68n38 Smith, N J., 272n19 Smith, P G., 203n20, 203n21 Smith-Daniels, D E., 300n3 Smith-Daniels, V., 300n3 Smith-Spark, L., 225n1 Smyth, H J., 193n5 Soderholm, A., 7n12 Sohmen, Victor, 14n24 Souder, W E., 78n3, 88n14, 96n16 Speir, W., 104n29 Spiller, P T., 489n19 Spirer, H F., 479n2, 490n23, 496n29 Staw, B M., 65n37, 489n19 Stephanou, S E., 154n12, 163n16 Stewart, A., 258n1 Stewart, T H., 4n4 Steyn, H., 379n15, 381n18, 392n32 Stuckenbruck, L C., 148n5 Sutherland, J., 372n5, 375n7 Swanson, S., 127n16 Sweeting, J., 272n19 T Tadasina, S K., 489n19 Takahashi, D., 64n36 Takeuchi, H., 371n3, 371n4 Talbot, B F., 417n8 Talhouni, B T., 320n9 Tate, K., 230n5 Taylor, A., 258n1 Taylor, S G., 382n19 Teplitz, C J., 267n8, 267n10 Teubal, M., 489n19 Thamhain, H J., 131n23, 204n24, 205n27, 207n30 Thomas, K W., 205n25, 205n26 Thomas, L C., 308n6 Thompson, N J., 193n5 Thoms, P., 118n3 Thorp, F., 146n1 Tjosvold, D., 202n17 Toney, F., 272n19 Trailer, J., 118n3 Troilo, L., 231n9 Tuchman, B W., 196n8, 196n9 Tukel, O I., 380n17 Tulip, A., 404n4 Turbit, N., 272n18 Turner, J R., 125n13, 169n23, 482n7 Name Index 537 U Umble, E., 388n22 Umble, M., 388n22 Ury, W., 46n17, 210n34, 211n35, 211n36, 213n37 V Valery, Paul, 2n1 Vandevoorde, S., 474n19 Vanhouckel, M., 474n19 Venkataraman, R., 272n19 Verdini, W A., 302n4 Verma, V K., 122n6, 189n2, 197n10, 205n28, 207n29, 208n31 Viswanathan, B., 231n8 Vrijhoef, R., 44n13 W Waldron, R., 86n12 Waldron, T., 258n1 Ward, J., 12n23 Ward, S C., 228n3, 241n13 Ware, J., 208n32 Warren, W., 175n26 Waters, K., 376n8 Weaver, P., 428n12 Weihrich, H., 40n4 Weikel, D., 175n26 Weiser, B., 433n1 Wells, W G., 57n28 Welsh, M A., 488n18 Westney, R E., 146n2 Wheatley, M., 77n1 Wheelen, T L., 41n8 Wheelwright, S C., 55n25, 78n2 Whitehouse, G E., 407n6 Wideman, R M., 42n11, 134n31, 153n10, 225n2 Wiener, E., 41n9 Wiest, J D., 302n4 Wilemon, D L., 60n31, 204n24, 205n27, 207n30 Williams, S., 298n1 Williams, T M., 243n14, 302n4 Willie, C J., 407n6 Winch, G M., 41n10 Womer, N K., 267n8 Woodworth, B M., 407n6 Wright, J N., 128n19 Y Yaffa, J., 258n1 Yasin, M M., 123n10 Yeo, K T., 96n17 Young, J., 258n1 Yourdon, E., 166n18 Yourker, R., 47n20 Yukl, G., 122n7, 122n8 Z Zalmenson, E., 391n27 Zhang, J., 96n17 Zimmerer, T W., 123n10 Subject Index A Acceleration of project, 340–346 Acceptance of conflict, 208 of project, 482 of risk, 234 Accessibility, 201 Accounting, 44–45 Acquisition control, 167 Activities, 299, 333 burst, 301 concurrent, 303–304 merge, 301 ordered, 299 splitting, 417 Activity-based costing (ABC), 276–278 Activity duration estimates, 302, 309–311 Activity late finish dates, determining, 412 Activity-on-Arrow networks (AOA), 348–354 Activity-on-Node networks vs., 353–354 backward passes on, 352–353 definition of, 302, 348 differentiation of, 348–350 dummy activities, 351 forward passes on, 352–354 Activity-on-Node networks (AON) Activity-on-Arrow networks vs., 353–354 definition of, 302, 348 Acts of God, 237 Actual cost of work performed (AC), 442 Adding details to networks, 515–519 Addition, termination by, 480 Adjourning, 198 Administrative conflict, 205 Administrative performance, 495 Affordable Care Act (ACA), 145 Aggregation of risk, 379–380 Agile PM, key terms burndown chart, 372 development team, 373 product backlog, 373 product owner, 373 scrum master, 372 scrum, 372 sprint backlog, 372 sprint, 372 time-box, 372 user stories, 372 work backlog, 373 Agile process, steps in daily scrums, 374 development work, 374 problems with, 376 sprint planning, 374 sprint retrospective, 376 sprint views, 375 work of, 376 Agile Project Management (Agile PM), 369 designed for managing projects, 370–371 evolve customer needs, 369 iterative planning process, 369 key terms in, 372–373 reduces the complexity, 471 rolling wave process, 371 scrum process, 371–372 steps in, 373–376 538 tasks vs stories, 371–373 unique about, 370–371 waterfall model, project development, 369–370 Agile World, 396–397 Alternative analysis, in conceptual development, 148–149 Analytical Hierarchy Process (AHP), 84–87 criteria for, 84–85 evaluation dimensions of, assignment of numerical values to, 86 project proposals, evaluation of, 86–87 Arbitration, 494 of conflict, 208 Armitt, John, 116 Arrow, 302, 348 Assessments in risk management, 228–229 b Backward pass, 301, 313–314, 313–316, 354–356 Balanced matrix, 54 Ballpark estimates, 263 Baseline definition of, 167 project, 435 scope, 153 BBC’s Digital Media, 10–12 Behavioral view of conflict, 205 Benchmarking, 20 Beta distributions, 308 “Big Dig” project, 288–290 Blanque Cheque Construction, project scheduling at, 360 Boeing’s 787 Dreamliner, 465–467 Boston’s Central Artery/Tunnel Project, 288–290 Bottom-up budgeting, 276 Breakeven point, 91 Brook’s Law, 343 Brown, Mike, 480–481 Budget/budgeting, 275 activity-based costing, 276–278 bottom-up, 276 contingencies, development of, 278–280 crashing projects, effects of, 344–346 creation of, 275–278 top-down, 275–276 Budgeted cost at completion (BAC), 442 Build, Operate, and Transfer (BOT), 482 Build, Own, Operate, and Transfer (BOOT), 482 Building Dams, hidden costs, 286–287 Burst activities, 301, 304–307 c California High-Speed Rail Project, 173–175 Capability Maturity Model, 44–45 Capacity constraint buffer (CCB), 387 Caspian Kashagan Project, 297–298 Center for Business Practices, 21 Central limit theorem, 379–380 Change management, 238 Checklist model, 80–81 CityTime Project, New York, 432 Claims following early project termination, 493–494 Clearinghouse effect, 57 Client acceptance, 457 Client consultation, 456–457 Clients, 43 acceptance of, 16 Closeout process, 482–487 Cohesiveness, 193 Columbus Instruments, Inc (CIC), 215–216 Comet, 245–247 Commercial risk, 229 Communication, 457 faulty, 207 freedom of, 103 poor, 194 project manager, 119–125 team members, with potential, 189–190 Comparative estimates, 263 Competitors, 44 Conceptual development, 148–153 Conceptualization phase, 13–14 Conclusion to project, 485 Concurrent activities, 303–304 Conduct codes, 203 Confidence interval, 309 Configuration control, 167 Configuration management, 167–169 Conflict acceptance, 208 administrative, 205 arbitration, 208 control, 208 definition of, 205–206 elimination of, 208–209 goal-oriented, 205 interpersonal, 205, 207 management of, 205–209 mediation of, 208 organizational causes of, 206–207 resolving, methods for, 208–209 resource, 386–387 sources of, 206–208 from unclear goals, 194 Consequences analysis of, 229, 231–233 of failure, 233 to top management, notification of, 191 Conservative technical communities, 104 Contingencies of budget, development of, 278–280 Contingency reserves, 236–237 managerial contingency, 236–237 task contingency, 236–237 Contracts fixed-price, 235 turnkey, 164 Contractual risk, 229 Control, 237–239 of conflict, 208 cycle, 434 definition of, 229 Control systems, 167–169 configuration management, 167–169 Control tower PMO, 59 Corporate strategy, 40 Cost control accounts, 159 Cost estimation, 259, 262–275 learning curves in, 266–268 problems with, 272–275 of software project, 270–271 Cost Performance Index (CPI), 442, 447 Cost-plus contracts, 164 Cost Variance, 449, 460 Costs See also Project budget direct vs indirect, 260–261 fixed vs variable, 261–262 management of, 259–261 normal vs expedited, 262 recurring vs nonrecurring, 261 Crashing, 262, 302, 340 Crashing projects, 340–348 acceleration of projects, options for, 340–346 budget, effects of, 344–346 definition of, 340 Creative originator, 128 Criteria weights, in AHP, 85–86 Critical chain activity network, development of, 381–383 critical chain solutions vs critical path solutions, 383–384 Critical chain methodology, 379 Critical Chain Project Management (CCPM) critiques of, 391 definition of, 368 of Elli Lilly Pharmaceuticals, 385 of project portfolio, 387–389 Critical chain project scheduling See also Critical Chain Project Management (CCPM) critical chain activity network, development of, 381–383 critical chain solution to, 379–380 introduction to, 368–369 theory of constraints and, 378–379 Critical chain scheduling, 390 Critical chain solutions, 379–384 critical path solutions vs., 383–384 resource conflicts, 386–387 Critical incidents, 63 Critical path, 379 backward pass, 313–316 construction of, 311–321 critical chain solutions vs solutions of, 383–384 definition of, 301, 337 forward pass, 312–313 hammock activities, 319 identification of, 512 laddering activities, 318–319 network, calculation of, 311–312 project completion, probability of, 316–321 reduction of, options for, 320–321 Critical Path Model (CPM), 301–302 Critical success factors, 456–457 Cross-functional cooperation, achievement of, 199–202 accessibility, 201 outcomes of, 201 physical proximity, 201 procedures, 200 rules, 200 superordinate goals, 199–200 Cross-training, 237 Crowdsourcing, 367 Culture, 59 Subject Index 539 d DDG 1000 Zumwalt destroyer, 500–501 “Death Marches, project”, 165–166 Decision making, 99 for early project termination, 488–489 Default claims, 493 Definitive estimates, 264 Defusion, 208 de Havilland Aircraft Company, 245–247 Deliverables, Department managers, negotiating with, 189–190 Departments, 159, 161 Design control, 167 Differentiation, 192, 206 Direct vs indirect costs, 260–261 Disagreements, resolution of, 193, 203 Disbanding project team, 486 Discounted cash flow (DCF) method, 90 Discounted payback, 94 Discount rate, 92 Disney, 31–32 Disputes following early project termination, 493–494 Documentation, 237–239 definition of, 229 Document control, 167 Dotcom.com, project management at, 175–176 Drum, 387 Drum buffers, 387 Dual hierarchy, 53 Duke Energy, Nuclear Power Plant, 478–479 Dummy activities, 351 Duration estimation of project, 307–311 Dysfunctional behavior, 196 e Early project termination, 487–494 claims following, 493–494 decision making for, 489–490 disputes following, 493–494 shutting down project, 490–492 Early start (ES) date, 301, 333 Early termination, 487 Earned Schedule (ES), 470–474 definition of, 471 Earned value (EV), 440, 441 at Northrop Grumman, 451–452 assessment of, 445–449 Earned Value Management (EVM), 440–450 definition of, 440 earned value, assessment of, 445–449 effective use of, issues in, 452–454 for portfolio management, use of, 450–451 project baselines, creation of, 442 for project management, use of, 450–451 purpose of, 443–444 steps in, 444–445 terminology for, 441 Effective natural termination, prevention of, 487 Efficient frontier, 88 Elimination of conflict, 208–209 Elli Lilly Pharmaceuticals, critical chain project management of, 385 Emotional commitment of project champions, 131 Emotional intelligence, leadership and, 124, 137 Emotions negotiation and, 211 project termination and, 490 Empathy, 124 Enthusiasm, 193–194 Entrepreneur, 128 Environments, 62 See also Multiproject environments assessment of, 45 external, 48 scanning of, low-cost, 103 Estimation at Completion (EAC), 449 Event, 301 Event marker, 349 Execution phase, 13–14 Execution risk, 229 Ex-gratia claims, 493 Expedited vs normal costs, 262 Expeditionary Fighting Vehicle (EFV), 167, 170, 176–178 Expedition Everest (Disney), 31–32 Expert opinion, 229, 308 External environment, 48 Extinction, termination by, 480 Extreme Programming (XP), 377 vs Agile PM, 377 for Chrysler Corporation, 377 guiding features of, 377 pair programming, 377 software development methodology, 377 F Failure, probability and consequences of, 228, 233–235 Fallback positions, team building in, 191–192 Fast-tracking, 334 Faulty attributions, 207 Feasibility estimates, 264 Feedback, 457 Feeder buffers, 381–383 Feeding Frenzy, construction project, 490 50/50 rule, 452–453 Final project report, preparation of, 494–496 Financial risk, 228 Finish to finish, 334 Finish to start, 333–334 Finishing work, 482 Firefighting, 121 First in line resource allocation, 421–422 Fixed-price contracts, 235 Fixed vs variable costs, 261–262 Flexible schedule, 103 Float, 301, 315–316, 334 Forming, 197 Forrest, Brett, 257 Forward pass, 301, 312–313, 352–354 Frustration, 207 Fultz, Christopher, 338 Functional managers, 45 Functional matrix, 54 Functional organizations, 48–50 Functional siloing, 49 Functional structure, 48–50 Function point analysis, 271 Function points, 271 G Gantt charts, 335–338 definition of, 335 lags in, incorporation of, 338 on networks, 515 resources to, addition of, 337–338 tracking, 439 Gehry, Frank, 224 General Electric Corporation, project screening and selection at, 97–98 Geographical location, organizational culture and, 62 Gibeau, Frank, 64 Goal-oriented conflict, 205 Goals employee commitment to, 63 scope statement and, 153 Godfather, 129 Group development, stages of, 196–199 adjourning, 198 forming, 196–199 norming, 198 performing, 198 punctuated equilibrium, 198–199 storming, 197 Group maintenance, 122 Giuliani, Rudolph, 432 H Hamelin Hospital, information technology at, 30 Hammock activates, 319 Heavyweight project organizations, moving to, 55–56 Henry, Simon, 298 Hudson River Tunnel Project, 497–499 Human factors in project evaluation and control, 454–458 I Immelt, Jeff, 117 India, 126–127 Indirect vs direct costs, 260–261 Inflation, 90, 94, 273 Information technology (IT) “Death March” projects, 165–166 at Hamelin Hospital, 30 project termination in, 490–491 success project, 19 In-process inventory, 421 Integrated Project cost estimation and budgeting, 256–280 organization context, 36–65 project scheduling, 296–321 resource management, 400–423 risk management, 223–243 scope management, 144–171 Integration, termination by, 480 Interaction, 193 Interactionist view of conflict, 205 Interdependencies, 192 Interests vs positions, focusing on, 211–212 Internal rate of return (IRR), 90, 94–95 International management, challenge of, 133 Interpersonal conflict, 205 causes of, 207–208 Intervenor groups, 44 Iribe, Brendan, 367 Iron triangle, 19 j James, John, 138–140 Jobs, Steven, 117 Johnson & Rogers Software Engineering, Inc., 217–218 K Keflavik Paper Company, 111 Key organizational members, 63 Kickstarter, projects, 367–368 Kimble College, 463–464 L Labor costs, 259 Laddering activates, 318–319 Lag, 333 Late start (LS) date, 301, 337 Leadership definition of, 117 emotional intelligence and, 124, 138 introduction to, 117 poor, 194–195 project, 131–132 project champions, 127–131 project leaders, 125–126 project management professionalism, 134–135 project manager, 117–123 Learning curves in cost estimation, 266–268 Legal risk, 229 Lessons learned, 484 Leveling heuristics, 407 Linear responsibility chart, 160 Liquidated damages, 235 London Olympics, 116–117 Lump sum contracts, 164 M Managerial contingency, 236–237 Matching skills, identification of, 189 Materials, costs for, 259 Mathematical programming, 422–423 Matrix organizations, 53–55 Matrix structure, 53–54 Maturity models, 19–23 Mediation of conflict, 208 MegaTech, Inc., 29–30 Melted Cars, building, 224–225 Member turnover rate, 196 Mentoring, 237 Merge activities, 301, 304 Microsoft Project 2013 tutorial on networks adding details to, 515–519 construction of, 510–511 critical path, identification of, 512 Gantt chart, 515 network diagram, 515 resource conflicts, 513–514 resources, assigning and leveling of, 512 updating, 515–519 Milestone analysis, 437–438 definition of, 437 problems with, 438–439 Minimum late finish time, 422 Mission, clarity of, 192 Mission statements, 39 Mixed-constraint project, 403–404 Monitoring, 457 Motivation lack of, 195 leadership and, 120, 124 Mowery, Bill, 132–133 Multiproject environments in-process inventory, 421 540 Subject Index Multiproject environments (continued) resource allocation, resolution of, 421–423 resource management in, 420–423 resource utilization, 420 schedule slippage, 420 Multitasking, 427–428 Murphy’s law, 279 Musk, Elon, 37 Mutual gain, invention of options for, 212 n Natural gas pipeline, Hong Kong, 401–402 Natural termination, 482–487 acceptance of project, 483 benefits, harvesting, 483 closeout process, 482–487 conclusion to project, 485 definition of, 479 disbanding project team, 486 effective, prevention of, 487 finishing work, 482 review project, 483–485 transferring project, 482–483 Necessary skills, identification of, 189 Need statement, 148 Negative float, 316 Negotiation, 209–213 definition of, 209 with department managers, 189–190 mutual gain, invention of options for, 212 objective criteria, 213 for partial assistance, 191 principled, 210–212 questions to ask prior to, 209–210 Nemtsov, Boris, 258 Net present value (NPV), 92–94 Network diagram, 299–300, 515 Networks See also Microsoft Project 2013 tutorial on networks calculation of, 311–312 controversies in using, 354–355 development of, 302–307 New project leadership, 131–133 Nigeria’s Kainji Dam, 287 Nodes, 301, 303, 348 Nonnumeric models, 79 Nonrecurring vs recurring costs, 261 Normal vs expedited costs, 262 Norming, 198 Norms, 59–60, 198 Northrop Grumman, earned value at, 451–452 Nova Western, Inc., project selection procedures for, 112 Numeric models, 79 O Objective criteria, 213 Objectives, 39 O’Donnell, Kevin, 418–420 Operating risk, 236 Operational reality, 40 Options models, 96 Ordered activity, 299 Order of magnitude, 263 Organizational causes of conflict, 206 Organizational context introduction to, 38 organizational culture, 59–65 organizational strategy of project, 39–41 organizational structure, 47 project management office, 57–59 stakeholder management, 41–47 Organizational culture, 59–65 formation of, 61–63 project management and, 63–64 Organizational entrepreneur, 128 Organizational strategy of project, 39–41 Organizational structure, 47, 494 forms of, 47–56 project performance, 56–57 Organization Breakdown Structure (OBS), 159–160 Orientation, 194 O’Rourke, Ray, 116 Outcomes, 194 Out-of-sync projects and portfolios, 104 P Pair programming, XP, 377 Pairwise comparison approach, 85 Panama Canal, enlarging, 331–333 Parametric estimation, 263 Partial assistance, negotiating for, 191 Path, 301 Paul, Mathew, 227 Payback period, 90–91 People skills, 189 Percentage complete rule, 453 Performing, 198 Personal grudges, 207 Peterson, Laura, 177 Physical constraints, 403 Physical proximity, 201 Planned value (PV), 441 Planning, 6, 13, 24, 63, 168, 299 Positions vs interests, focusing on, 211–212 Precedence relationships, 333–335 finish to finish, 334 finish to start, 333–334 start to finish, 335 start to start, 334–335 Preceding activities, 299 Predecessors, 301 Prejudices, 207 Present value of money, 90 Principal actors, identification of goals of, 46 Principled negotiation, 210–212 interests vs positions, focusing on, 211–212 separation of person and problem, 210–211 Prioritization, 99 adjusting, 191 Private Finance Initiatives (PFIs), 482–483 Probability analysis of, 229, 231–234 of failure, 233, 234 Problem, defining, 46 Procedures, organizational, 62, 200 Process definition of, orientation, Productive interdependency, 192–193 Profile models, 90–97 discounted payback, 94 internal rate of return, 94–95 net present value, 92–94 options models, 96 payback period, 90–91 project selection approach, choosing of, 97–98 Program Evaluation and Review Technique/Critical Path Method (PERT/CPM), 302, 354–355 Project baseline, 434, 442 Project budget, 275–278 Project charter, 151, 180–181 Project champions, 127–131 definition of, 128 development of, 130–131 emergence of, 131 emotional commitment of, to their project, 131 identification of, 131 nontraditional duties of, 131 risk takers, encouraging and rewarding, 131 role of, 129–130 Project closeout, 169–170 Project completion, probability of, 316–318 Project control, 434 See also Earned Value Management (EVM) cycles of, 434–435 human factors in, 454–458 introduction to, 434 Project evaluation See also Earned Value Management (EVM) human factors in, 454–458 Project Execution Plan, 520–523 Project leaders conclusions about, 126 project managers vs., 117–123 traits of effective, 124–125 Project leadership, 131–132 Project life cycle, 13 Project management definition of, at Dotcom.com, 175–176 Earned Value Management for, use of, 450–451 India, 126–127 introduction to, maturity models, development of, 19–23 organizational culture and, 63–64 professionalism, 134–135 techniques of, 495 Project Management Body of Knowledge (PMBOK), 153 Project Management Institute (PMI), 5, 26–27 Project management maturity models, development of, 19–23 Project management office (PMO), 57–59 Project manager, 119, 129 communication, 121–123 effective, 137 firefighting, 121 process of, 119–123 project leaders vs., 117–123 project resources, acquisition of, 119–120 strategic vision, 121 teams, motivation and building of, 120 Project matrix, 54 Project monitoring See also Earned Value Management (EVM) conclusions to, 458 human factors in, 454–458 introduction to, 434 of performance, 435–440 Project network diagram (PND), 301 Project organizations, 50–53 heavyweight, moving to, 55–56 Project performance, 435–440, 494 benefits of, 440 drawbacks of, 440 milestone analysis, 437–438 organizational structure’s impact on, 56–57 project S-curve, 435–436 tracking Gantt chart for, 439–440 Project Plan Template, 520–523 Project planning, 299, 457 Project portfolio Critical Chain Project Management of, 387–389 definition of, 78 proactive, development of, 100–103 Project portfolio management, 98–105 definition of, 98 Earned Value Management for, use of, 450–451 implementation of, problems in, 104–105 initiatives of, 99 introduction to, 78 keys to successful, 103 objectives of, 99–100 proactive project portfolio, development of, 100–103 Project resources, acquisition of, 119–120 Project risk, 225 Project Risk Analysis and Management (PRAM), 241–242 Projects acceleration of, 340–346 acceptance of, 483 characteristics of, 6–9 conclusion to, 485 definition of, 5–6 duration estimation of, 307–311 elements of, 23–26 importance of, 9–12 organizational strategy of, 39–41 out-of-sync, 104 scope, 146, 301 shutting down, 490–492 success of, determinants of, 16–19 text organization in, 23–27 transferring, 482 unpromising, 104 Projects in Lagos, 6–8 development, 2–4 Project safety, 379, 391 Project scheduling/schedules, 299–300 See also Critical chain project scheduling Activity-on-Arrow networks (AOA), 348–354 adjusting, 191 conclusion on, 356 crashing projects, 340–348 critical path, construction of, 311–321 duration estimation, 307–311 Gantt charts, 335–338 introduction to, 299, 335 networks, 302–307, 354–355 precedence relationships, lags in, 333–335 terminology, 301–302 Project screening Analytical Hierarchy Process (AHP), 84–87 approaches to, 80–90 checklist model, 80–81 at General Electric Corporation, 97–98 simplified scoring models, 82–84 Project S-curve, 435–436 drawback of, 437 Subject Index 541 Project selection, 77, 78–80 approach to, 97–98 at General Electric Corporation, 97–98 introduction to, 78 for Nova Western, Inc., 112 profile models, 90–97 project screening and, approaches to, 80–90 Project stakeholders, 41 analysis of, 41 definition of, 14 identification of, 41–47 management of, 45–47 project, 41 Project structure, 50–53 Project task estimation, 69 Project team building of, 189–192 characteristics of effective, 192–194 conflict management, 205–209 cross-functional cooperation, achievement of, 199–202 disbanding, 486 failure of, reasons for, 194–195 group development, stages of, 196–199 impacting lives, 187–188 members of, 45 negotiation, 209–213 virtual, 203 Project termination conclusions to, 496 definition of, 479 early, 487–494 final project report, preparation of, 494–496 in information technology, 490–491 introduction to, 479 natural termination, 482–487 types of, 480 Project work packaging, defining, 163 Psychosocial outcomes, 201 Psychosocial results, 201 Punch list, 482 Punctuated equilibrium, 198–199 Putin, Vladimir, 258 Q Quadruple constraint, 17 Qualitative risk assessment, 253 Quantitative risk assessment, 254 Questions to ask prior to negotiation, 209–210 R Ramstein Products, Inc., 397–398 Realignment, 100 Recurring vs nonrecurring costs, 261 Refactoring process, extreme programming, 377 Reprioritization, 100 Required rate of return (RRR), 94 Resource allocation, resolution of, 421–423 first in line, 421–422 mathematical programming, 422–423 minimum late finish time, 422 resource demands, 422 Resource conflicts, 386–387 in networks, 512–513 Resource-constrained project, 403 Resource constraints, 402–405 definition of, 402 resources, scarcity of, 402–405 time, scarcity of, 403–405 Resource demands greatest, 422 resource allocation and, 422 utilization of, 422 Resource leveling, 407–416 activity late finish dates, determining, 412 resource-loading table, 411–416 resource overallocation, identification of, 412 Resource-limited schedule, 302 Resource loading, 405–407 Resource-loading charts, 416–418 Resource-loading table development of, 411–412 leveling of, 412–416 Resource management introduction to, 402 in multiproject environments, 420–423 resource constraints, 403–405 resource leveling, 407–416 resource loading, 405–407 resource-loading charts, 416–418 Resource overallocation, identification of, 412 Resource pool PMO, 59 Resources assigning, 513 definition of, 53 for Gantt charts, 337–338 leveling, 514 in networks, 515 scarcity of, 206, 403–405 Resource smoothing, 407 Resource usage table, 405–407 Resource utilization in multiproject environments, 420 Responsibilities, poorly defined, 195 Responsibility Assignment Matrix (RAM), 160–161 Results orientation, 194 Return on investment (ROI), 96, 99 Review, 99, 484–485 Reward systems, 62, 206 Risk acceptance of, 234 commercial, 229 contractual, 229 execution, 229 financial, 228 identification of, 228–231 legal, 229 minimization of, 235 project, 225 sharing of, 235 technical, 228 transferring of, 235 Risk Breakdown Structure (RBS), 231 Risk impact matrix, 231–232 Risk management breakdown structures, 231 consequences, analysis of, 231–234 contingency reserves, use of, 236–237 control, 237–239 definition of, 225 documentation, 237–239 four-stage process for, 228–239 integrated approach to, 241–242 insurance, 237 introduction to, 225–226 probability, analysis of, 231–234 risk identification, 228–230 risk mitigation strategies, 234–235 Risk mitigation strategies, 228, 234–235 See also Risk other types of, 237 Risk/return options, 88–89 Risk takers, encouraging and rewarding, 131 Roles, poorly defined, 195 Rolls-Royce Corporation, 67–68, 480–481 Rules, organizational, 62, 200 S Scarce resources, 104–105 Scaroni, Paolo, 298 Schedule Performance Index (SPI), 442 Schedule slippage, 420 Scheduling See Project scheduling/ schedules Scheduling at Blanque Cheque Construction, 360 Scope baseline, 153 Scope management conceptual development, 148–153 control systems, 167–169 definition of, 146 introduction to, 146 project closeout, 169–170 scope reporting, 164–165 scope statement, 153–160 work authorization, 161–164 Scope, project, 146, 301 Scope reporting, 164–165 Scope statement, 153–160 organization breakdown structure, 159–160 responsibility assignment matrix, 160–161 work breakdown structure, 153–159 Selection models, 78 Self-capabilities, assessment of, 46 Self-regulation, 124 Separation of person and problem, 210–211 Serial activates, 303 Serial path, 333 Shanghai apartment building collapse, 239–240 Sharing of risk, 235 Shepherd, Chris, 224 Showpiece Warship, Navy Scraps Development, 500–501 Shutting down project, 490–492 Siloing, 49–50 Simplified scoring models, 82–83 limitations of, 84 Skills matching, identification of, 189–190 necessary, identification of, 189 Slack, 315–316 Smith, Stephanie, 15–16 Smoothing, 407 Sochi Olympics, 257–258 Software project cost estimation, 272–273 cost estimation of, 270–271 development, delays and solutions to, 321 function points, 270–271 Solutions development of, 46–47 testing and refining, 47 Specification control, 167 Splitting activities, 417 Sponsor, 129 Sreedharan, Elattuvalapil, 126–127 Stakeholder management, 41–47 See also Project stakeholders Start to finish, 335 Start to start, 334–335 Starvation, termination by, 480 Statement of Work (SOW), 150–151 Storming, 197 Strategic management, 39 Strategic vision, 121 Strong matrix, 54 Subsequent activity, 299 Successors, 301, 333 Success project, 19 Superconducting Supercollider (SSC), 464–465 Superordinate goals, 199–200 Suppliers, 44 t Tacoma Narrows suspension bridge, 249–251 Task contingency, 236 Task outcomes, 201 Tasks, 299, 333 Team building, 189–192 definition of, 189 department managers, 189–190 in fallback positions, 191–192 introduction to, 189 priorities, adjusting, 191 project schedules, adjusting, 191 skills, 189 team members, 189–191 top management, notification of consequences to, 191–192 Team members assembly of, 191–192 communication with potential, 189–190 Team performance, 495 Teams, motivation and building of, 121 Technical communities, conservative, 104 Technical risk, 228 Technical tasks, 457 Technology, 62 organizational culture and, 59–61 Tele-Immersion Technology, 203–204 Termination by addition, 480 by extinction, 480 by integration, 480 by starvation, 480 Tesla Model S, 38 Text organization, 23–27 Theory of constraints (TOC), 378–379 Time, scarcity of, 403–405 Time-constrained project, 403 Time-paced transition, 104 Time-phased budget, 277 Time value of money, 90 Tollgate process, 97–98 Top-down budgeting, 275–276 Top management, 44 consequences to, notification of, 191 support of, 456 Torrijos, Martin, 331 TOWS matrix, 40 Tracking Gantt chart, 439–440 Transferring of risk, 235–236 Transferring project, 482–483 Trend monitoring, 167 Triple constraint, 16 Troubleshooting, 457 542 Subject Index Trust, 192 Tunnel Project, Hudson River, 497–499 Turnkey contracts, 164 u Uncertainty, 14, 206 Unclear goals, 194 U.S Army, 132, 237 U.S Marine Corps, 418–420 Unnatural termination, 479 Unpromising projects, 104 Updating networks, 515–519 V Valid consideration, 147, 163 Variable vs fixed costs, 261–262 Variance, 309 Viñoly, Rafael, 224 Virtual Fence Project, 172–173 Virtual project team, 202 Virtual teams, 202, 203–204 W Waterfall model, 369, 370 to address the critical issue, created, 370 development process in, 370 different phases, 369–370 logical series of steps, 370 WBS codes, 156 Weak matrix, 54 Weather station PMO, 58 Welch, Jack, 117 Westinghouse Electric Company, 15–16 Widgets ’R Us (WRU), 70 Winterkorn, Martin, 37 Work authorization, 161–164 Work Breakdown Structure (WBS), 153–154, 231, 301 purpose of, 154–159 Work packages, 13, 156–157, 301 x Xerox Alto, 68–69 Xerox Corporation, 62 Z 0/100 rule, 452 ... Summary 27 Project Management Integration Management Scope Management Time Management 4.1 4.2 4.3 4.4 4.5 Develop Project Charter Develop Project Management Plan Direct & Manage Project Work... for project management organizations Project management maturity models are used to allow organizations to benchmark the best practices of successful project management firms Project management. .. cutting edge 1.5 Developing Project Management Maturity Project Scheduling Personnel Development for Projects Structural Support for Project Management Networking Between Projects Portfolio Management