PROJECT MANAGEMENT CASE STUDIES, THIRD EDITION. HAROLD KERZNER, Ph.D

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1 PROJECT MANAGEMENT CASE STUDIES, THIRD EDITION HAROLD KERZNER, Ph.D Senior Executive Director for Project Management The International Institute for Learning New York, New York WILEY John Wiley & Sons, Inc.

2 Contents Preface xi PROJECT MANAGEMENT METHODOLOGIES Lakes Automotive 3 Ferris HealthCare, Inc. 5 Clark Faucet Company 7 2 IMPLEMENTATION OF PROJECT MANAGEMENT 11 Kombs Engineering 13 Williams Machine Tool Company 15 Wynn Computer Equipment (WCE) 17 The Reluctant Workers 20 Hyten Corporation 22 Macon, Inc. 35 Continental Computer Corporation 37 Goshe Corporation 43 Acorn Industries 49 MIS Project Management at First National Bank 56 Cordova Research Group 70 Cortez Plastics 71 L. P. Manning Corporation 72 ;..-, Project Firecracker 74

3 Vi CONTENTS Philip Condit and Boeing 777: From Design and Development to Production and Sales 81 AMP of Canada (A) 105 AMP of Canada (B) AMP of Canada (C) Lipton Canada 118 Riverview Children's Hospital 124 The Evolution of Project Management at Quixtar PROJECT MANAGEMENT CULTURES 151 Como Tool and Die (A) 153 Como Tool and Die (B) 157 Apache Metals, Inc. 160 Haller Specialty Manufacturing 162 The NF3 Project: Managing Cultural Differences 163 An International Project Manager's Day (A) 172 An International Project Manager's Day (B) An International Project Manager's Day (C) (see handout provided by instructor) An International Project Manager's Day (D) Ellen Moore (A): Living and Working in Korea 177 Ji'nan Broadcasting Corporation PROJECT MANAGEMENT ORGANIZATIONAL STRUCTURES 205 Quasar Communications, Inc. 207 Jones and Shephard Accountants, Inc. 212 Fargo Foods 216 Government Project Management 220 Falls Engineering 222 White Manufacturing 227 Martig Construction Company 229 Mohawk National Bank NEGOTIATING FOR RESOURCES 235 Ducor Chemical 237 American Electronics International 241 The Carlson Project 245

4 Contents vii 6 PROJECT ESTIMATING 247 Capital Industries 249 Polyproducts Incorporated 251 Small Project Cost Estimating at Percy Company 258 Cory Electric 259 Camden Construction Corporation PROJECT PLANNING 267 Greyson Corporation 269 Teloxy Engineering (A) 274 Teloxy Engineering (B) 276 Payton Corporation 277 Spin Master Toys (A): Finding a Manufacturer for E-Chargers 279 Spin Master Toys (B): A New E-Chargers' Supplier Spin Master Toys (C): Keeping E-Chargers' Wings on 8 PROJECT SCHEDULING 293 Crosby Manufacturing Corporation PROJECT EXECUTION 299 The Blue Spider Project 301 Corwin Corporation 317 Quantum Telecom 329 The Trophy Project 331 Concrete Masonry Corporation 334 Margo Company 343 Project Overrun 345 The Automated Evaluation Project 347 The Rise, Fall, and Resurrection of Iridium: A Project Management Perspective 351 Missing Person Peter Leung 391 Zhou Jianglin, Project Manager CONTROLLING PROJECTS 403 The Two-Boss Problem 405 The Bathtub Period 407 Ford Motor Co.: Electrical/Electronic Systems Engineering 410

5 viii CONTENTS 11 PROJECT RISK MANAGEMENT 423 The Space Shuttle Challenger Disaster 425 The Space Shuttle Columbia Disaster 475 Packer Telecom 482 Luxor Technologies 484 Altex Corporation 488 Acme Corporation CONFLICT MANAGEMENT 495 Facilities Scheduling at Mayer Manufacturing 497 Scheduling the Safety Lab 500 Telestar International 502 The Problem with Priorities MORALITY AND ETHICS 507 The Tylenol Tragedies MANAGING SCOPE CHANGES 537 Denver International Airport (DIA) WAGE AND SALARY ADMINISTRATION 583 Photolite Corporation (A) 585 Photolite Corporation (B) 588 Photolite Corporation (C) 591 Photolite Corporation (D) 596 First Security Bank of Cleveland 602 Jackson Industries TIME MANAGEMENT 609 Time Management Exercise INDUSTRY SPECIFIC: CONSTRUCTION 635 Robert L. Frank Construction Company 637 The Lyle Construction Project 647

6 Contents IX Bank Headquarters (A) 657 Bank Headquarters (B) Bank Headquarters (C) Bank Headquarters (Cl) Index 677

COPYRIGHTED MATERIAL. Contents. Preface

COPYRIGHTED MATERIAL. Contents. Preface Contents Preface xi 1 PROJECT MANAGEMENT METHODOLOGIES 1 Lakes Automotive 3 Ferris HealthCare, Inc. 5 Clark Faucet Company 7 Creating a Methodology 11 Honicker Corporation 14 Acquisition Problem 18 2 IMPLEMENTATION

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