Project Management Process,Technology, and Practice

Transcription

1 Project Management Process,Technology, and Practice Indiana University PEARSON Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

2 CONTENTS Preface xxi Acknowledgments xxix Chapter 1 Projects and Project Management 1 Learning Objectives 1 Projects 2 Information Systems Projects 3 Healthcare Projects 4 New Product Development Projects 4 Construction Projects 6 Classification of Projects 6 Project Lifespan 8 Phase 1: Conceptualization or Pre-Feasibility 9 Phase 2: Planning or Feasibility or Demonstration 9 Phase 3: Design/Development or Development or Engineering/Manufacturing Development 10 Phase 4: Implementation or Execution andtesting or Production and Deployment 10 Phase 5: Launch ortermination or Closure 10 Phase 6: Post-Implementation Review 11 Project Management 12 Understanding Project and Project Management Success Factors 15 Project Management Components 17 Summary 21 Review Questions 21 Problem Solving and Critical Thinking Questions 21 Class Discussions 22 Study Projects 22 CASE STUDY: Information Systems 24 CASE STUDY: Healthcare 27 CASE STUDY: Financial Services 29 CASE STUDY: Construction 32 References 33 Chapter 2 Process and Methods 36 Learning Objectives 37 Project Process in Organizations 38 ^ PMBOK Project Management Processes 40 Project Integration Management 40 Project Scope Management 41 Project Time Management 42 Project Cost Management 42 Project Quality Management 42 Project Human Resources Management 42

3 Project Communications Management 42 Project Risk Management 42 Project Procurement Management 42 Process Improvement in Projects 43 Continuous Improvement Management of Projects 44 Six Sigma 48 Define 50 Measure 50 Analyze 50 Improve 51 Control 51 Capability Maturity Model Integration 52 The Five Levels of Software Process Maturity 54 Level 1: Initial 54 Level 2: Repeatable 55 Level 3: Defined 55 Level 4: Managed 56 Level 5: Optimizing 56 Systems Development Life Cycle (SDLC) 57 Iterative SDLC 60 Spiral Model 61 Unified Process 63 Inception 63 Elaboration 64 Construction 64 Transition 64 Agile Modeling (AM) 66 Scrum 68 Extreme Programming (XP) 69 Summary 74 Review Questions 74 Problem Solving and Critical Thinking Questions 75 Class Discussions 76 Study Projects 76 CASE STUDY: Information Systems 77 CASE STUDY: Healthcare 80 CASE STUDY: Financial Services 86 CASE STUDY: Construction 89 References 91 Further Reading 92 Chapter 3 Project Management Tools 93 Learning Objectives 93 Tools for Project Management 94 Brainstorming 96 Brainstorming Procedure 96 Thought Process Map (TMAP) 96 TMAP Procedure 97 TMAP Example 97

4 xi Quality Functional Deployment 103 QFD Procedure 104 QFD Example 104 Step 1: Voice of Customer 104 Step 2:Technical Requirements 106 Step 3: Planning Matrix 106 Step 4: Interrelationships 106 Step 5:Technical Correlations 106 Step 6: Complete Technical Properties, and Set DesignTargets and Benchmarks 106 Kano Model 106 Must-Be Requirements 107 One-Dimensional Requirements 107 Attractive Requirements 107 Indifferent Requirements 108 Reverse Requirements 108 Kano Model Procedure 108 Kano Model Example 108 Affinity Diagram 110 Affinity Diagram Procedure 110 Affinity Diagram Example 110 Fishbone Diagrams 111 Fishbone Diagrams Procedure 112 Example of a Fishbone Diagram 112 Check Sheets 113 Check Sheet Procedure 114 Check Sheet Example 114 Pareto Chart 115 Nominal GroupingTechnique 115 NGT Procedure 116 DelphiTechnique 116 DelphiTechnique Procedure 117, SWOT Analysis 118 SWOT Analysis Procedure 119 Burndown Charts 120 Burndown Chart Procedure 121 Communication and CollaborationTools 121 IBM Lotus Domino 121 Microsoft Office Groove 122 Project Management Software 123 Summary 124 Review Questions 125 Problem Solving and Critical Thinking Questions 126 Class Discussions 127 Study Projects 127

5 xii CASE STUDY: Information Systems 128 CASE STU DY: Healthcare 130 CASE STUDY: Financial Services 132 CASE STUDY: Construction 132 References 136 Further Reading 136 Chapter 4 Project Initiation 137 Learning Objectives 137 Organizational Strategy, Project Selection, and Prioritization Process 138 Form Upper ManagementTeam,140 Identify All Projects 141 Gather Data on All Projects 141 Estimate Resources Required 142 Analyze and Decide on Projects 142 Implement Initial Plans 143 Initial Project Proposals 145 Project Selection 146 Net Present Value of Projects 148 Return on Investment 149 Internal Rate of Return 149 Payback Analysis 150 Scorecard Analysis to Select and Prioritize Values Based on Many Qualitative Criteria 152 Decision Trees 153 Project Charter 159 Project Manager Selection 161 Project Manager Skills 163 Characteristics and Qualifications of a Project Manager 164 Project Manager Duties 165 Building a Project Team 166 Stakeholders 166 Identifying Stakeholders 166 Stakeholder Analysis 168 Requirements Gathering 171 Requirements Gathering Practices 174 Project Scope 176 Summary 179 Review Questions 180 Problem Solving and Critical Thinking Questions 180 Class Discussions 182 Study Projects 182 CASE STUDY: Information Systems 183 CASE STU DY: Healthcare 187 CASE STUDY: Financial Services 188 CASE STUDY: Construction: 192 References 193

6 xiii Chapter 5 Planning 195 Learning Objectives 195 Planning Process 198 Project Planning 199 Project Management Plan 206 Change Management Plan 207 Configuration Management Plan 207 Scope Management Plan 207 Requirements Management Plan 208 Schedule Management Plan 208 Cost Management Plan 209 Quality Management Plan 209 Process Improvement Plan 209 Human Resources Plan 210 Staffing Management Plan 210 Communications Management Plan 210 Risk Management Plan 211 Procurement Management Plan 211 Scope Baseline and Work Breakdown Structures 212 Delivery-Based Structure 214 Lifespan-Based Structure 216 Responsibility Matrices 219 Responsibility, Accountability, Consultative, and Informative (RACI) Matrix 219 Contracts 220 Fixed-Price Contracts 221 Fixed-Price Incentive Fee Contracts 222 Cost-Pius Fixed Fee Contracts 222 Cost-Pius Percentage Fee Contracts 223 Cost-Pius Incentive Fee Contracts 223 Guaranteed Maximum-Shared Savings Contract 223 Procurement 223 Make-or-Buy Decision 228 > Lease-or-Buy Decision 229 v Summary 230 Review Questions 231 Problem Solving and Critical Thinking Questions 231 Class Discussions 231 Study Projects 232 CASE STUDY: Information Systems 232 CASE STUDY: Healthcare 236 CASE STUDY: Financial Services 237 CASE STUDY: Construction 244 References 246

7 xiv Chapter 6 Risk Management 247 Learning Objectives 247 Risk 248 Risk Identification 249 Influencing Factors Specific to the Firm 250 Influencing Factors Specific to Project Manager 251 Influencing Factors Specific to the Stakeholder 251 Risk Breakdown Structure Using Risk Categorization 252 Internal Risks 255 External Risks 257 Tools andtechniques of Identifying Risks 257 Risk Assessment 259 Qualitative Risk Assessment 259 Quantitative Risk Assessment 266 Risk Planning and Analysis 268 Transferring Risk 268 Avoid Risk 269 Reduce Risk 269 Risk MitigationTechniques 269 Accept Risk 272 Positive Risks 272 Contingency Planning 272 Risk Monitoring and Control 276 Inputs to Risk Monitoring and Control 279 Tools andtechniques for Risk Monitoring and Control 281 Outputs of Risk Monitoring and Control 283 Summary 283 Review Questions 284 Problem Solving and Critical Thinking Questions 284 Class Discussions 285 Study Projects 286 CASE STUDY: Information Systems 286 CASE STUDY: Healthcare 288 CASE STUDY: Financial Services 289 CASE STUDY: Construction 290 References 291 Chapter 7 Quality and Performance 293 Learning Objectives 293 Performance and Quality 294 Quality Management 296 ISO: International Organization for Standardization 298

8 xv Quality Planning 301 Developing a Project Quality Plan 302 Benchmarking 303 Quality Assurance and Control 304 Quality Assurance 304 Quality Process Analysis 306 Quality Control 306 Process Maps 306 Control Charts 307 Design of Experiments 313 Taguchi Method 315 Statistical Sampling 316 Random Sampling 317 Reviews 317 Testing and Inspection 319 Project Metrics 322 Project Scope and Metrics 324 Project Performance and Metrics 326 Cost of Quality 327 ProjectValue and Metrics 329 Summary 331 Review Questions 332 Problem Solving and Critical Thinking Questions 332 Class Discussions 334 Study Projects 334 CASE STUDY: Information Systems 335 CASE STUDY: Healthcare 339 CASE STUDY: Financial Services 341 CASE STUDY: Construction 342 Chapter 8 Scheduling 347 References 345 Further Reading 346 Learning Objectives 347 Project Networks 350 PDM Network Diagrams 353 Variance in Scheduling Activities 359 Critical Chain Project Management (CCPM) 361 Project Crash 364 FastTracking 368 Summary 371 Review Questions 372 Problem Solving and Critical Thinking Questions 372 Class Discussions 374 Study Projects 374 CASE STUDY: Information Systems 375 CASE STUDY: Healthcare 377 CASE STUDY: Financial Services 377 CASE STUDY: Construction 381 References 382

9 xvi Chapter 9 Resourcing, Costing, and Control 383 Learning Objectives 383 Integrated Change Control 385 Integrated Change Control Process 385 Cost Management in Projects 387 Direct Material and Labor Costs 388 Indirect Material and Labor Costs 389 Fixed Costs 389 Variable Costs 389 Overhead Costs 389 General and Administrative (G&A) Costs 389 Tangible Costs 389 Intangible Costs 389 Sunk Costs 390 Opportunity Costs 390 Cost Estimation 391 Rough Order of Magnitude Estimate (ROME) 391 Approximate Historical Estimate (AHE) 393 Detailed Estimate (DE) 393 Budgeting 394 Project Cost and Schedule Metrics 394 Earned Value Analysis 395 Cost Management Checklist 400 Resource Planning 400 Project Resource Metrics 405 Monitoring and Control 408 Summary 414 Review Questions 415 Problem Solving and Critical Thinking Questions 415 Class Discussions 417 Study Projects 418 CASE STUDY: Information Systems 418 CASE STUDY: Healthcare 420 CASE STUDY: Financial Services 423 CASE STUDY: Construction 424 References 425 Chapter 10 Project Closure 427 Learning Objectives 427 Acceptance of Projects 429 Project Audit 430 AuditTeam 433 Project Audit Process 433 Project Closure 439 Premature Projects 440 Endless Projects 440

10 xvii Field Projects 440 Complete Projects 440 Early Project Closure 440 Incomplete Requirements 440 Lack of User Involvement 440 Lack of Resources 441 Unrealistic Expectations 441 Lack of Executive Support 441 Scope Changes 441 Technology 441 Market Forces 441 Economic Factors 441 Environment and Legal Factors 442 Project Closure Decision and Process 443 Administrative Closure 443 Contract Closure 443 Handover of Project Results 444 Project Closure Checklist 444 Phase Gate Process and Project Implementation Review 445 Plan Review 447 Collect Data 447 Postmortem Analysis 449 Feedback 450 Summary 452 Review Questions 453 Problem Solving and Critical Thinking Questions 454 Class Discussions 454 Study Projects 454 CASE STUDY: Information Systems 455 CASE STUDY: Healthcare 457 CASE STUDY: Financial Services 459 CASE STUDY: Construction 461 References 462 Chapter 11 Project Organizational Structures 463 Learning Objectives 463 Organizational Structure 465 Authority 465 Responsibility 466 Accountability 467 Reliability 467 Functional Structure 468 Advantages of Functional Structure 468 Disadvantages of Functional Structure 469

11 xviii Department Structure 470 Advantages of Department Structure 472 Disadvantages of Department Structure 472 Matrix Structure 473 Weak Matrix 474 Balanced Matrix 474 Strong Matrix 474 Advantages of Matrix Structure 475 Disadvantages of Matrix Structure 476 Flat Structure 477 Advantages of Flat Structure 477 Disadvantage 477 Virtual Structure 478 Advantages of Virtual Structure 479 Disadvantages of Virtual Structure 479 Organizational and Project Strategy 480 Project Organizational Structures 483 Construction Projects 483 R&D Projects 484 New Product Development Projects 486 MIS Projects 486 Immature Versus Mature Organizations 487 Project Management Office 488 Project Office 490 PMO 490 The Center of Excellence 491 Policies and Procedures 491 General Project Policies 493 Roles and Responsibilities 496 ProjectTeam Roles 496 Team Building 499 VirtualTeams and Global ProjectTeams 500, Outsourcing 502 Offshoring 502 Nearshoring 502 Insourcing 503 Co-sourcing 503 Multi-sourcing 503 Outsourcing Projects and Project Management 503 Drivers of Outsourcing Projects 504 Outsourcing Business Model 506

12 xix Best Practices of Outsourcing 508 Selection of Projects 508 Selection of Outsourcing Company 508 Project Requirements 509 Delivery and Documentation of Projects 509 Hidden Costs 509 Project Control 510 Personnel Issues 510 KnowledgeTransfer 510 Conflict Management 511 Communication Management 511 Contracts 512 Relationships 513 Exit Strategy 514 Summary 514 Review Questions 516 Problem Solving and Critical Thinking Questions 516 Class Discussions 517 Study Projects 518 CASE STUDY: Information Systems 519 CASE STUDY: Healthcare 520 CASE STUDY: Financial Services 520 CASE STUDY: Construction 522 References 523 Further Reading 526 Chapter 12 Project Success 527 Learning Objectives 527 Project Success Variables in Project Processes 530 Integration Management 530 Scope Management 530 Time or Schedule Management 530 Cost Management 530 Quality Management 530 Human Resource Management 531 Communication Management 531 Risk Management 531 * Procurement Management 531 Project Success Variables in Project Organizations 531 Success Variables for Project Manager 531 Success Variables for Executive Champions and Organizations 532 Success Variables for Customers 533 Success Variables for ProjectTeam 534 People Management and Leadership 534 People Management 536 Leadership 537

13 xx Leadership Behavior for Establishing People Management 538 Effective Communications 541 Listening 543 Conflict Resolution 544 PersonalTime Management 547 Process of Decision Making 548 Knowledge Management 549 KnowledgeTypes and Processes 550 Knowledge Management and Learning 551 Lessons Learned from Past Projects 552 Learning Curves 553 Appendix A Support Tables 571 Code of Ethics and Expected Behaviors in Project Management 556 Summary 556 Review Questions 558 Problem Solving and Critical Thinking Questions 558 Class Discussions 559 Study Projects 559 CASE STUDY: Information Systems 560 CASE STUDY: Healthcare 562 CASE STUDY: Financial Services 565 CASE STUDY: Construction 568 References 568 Appendix B PMI, PMR and CAPM Certification 576 Appendix C Microsoft Project Tutorial 583 Appendix D Project Metrics 603 Glossary 612, Index 624