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Project Management


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CHAPTER 1 Projects in Contemporary Organizations 1 1.1 The Definition of a Project 10 1.2 Why Project Management? 16 1.3 The Project Life Cycle 18 1.4 The Structure of This Text 23 PROJECT MANAGEMENT IN PRACTICE A Unique Method for Traveler-Tracking at Copenhagen Airport 12 The Smart-Grid Revolution Starts in Boulder, Colorado 13 The Australian Pavilion at the World Expo 2010 15 Turning London s Waste Dump into the 2012 Olympic Stadium 21 DIRECTED READING: Lessons for an Accidental Profession 30 PROJECT INITIATION 39 CHAPTER 2 Strategic Management and Project Selection 41 2.1 Project Management Maturity 43 2.2 Project Selection Criteria and Models 44 2.3 Types of Project Selection Models 47 2.4 Risk Considerations in Project Selection 64 2.5 The Project Portfolio Process (PPP) 65 2.6 Project Bids and RFPs (Requests for Proposals) 74 PROJECT MANAGEMENT IN PRACTICE Implementing Strategy through Project Management Tools 43 Taipei 101: Refitted as World s Tallest Sustainable Building 50 Virtual Project Team Strategy 55 Using a Project Portfolio to Achieve 100% On-Time Delivery at Decor Cabinet Company 66 CASE: Pan-Europa Foods S.A. 82 DIRECTED READING: From Experience: Linking Projects to Strategy 90 CHAPTER 3 The Project Manager 101 3.1 Project Management and the Project Manager 103 3.2 Special Demands on the Project Manager 108 3.3 Attributes of Effective Project Managers 118 3.4 Problems of Cultural Differences 124 PROJECT MANAGEMENT IN PRACTICE Churchill as a Project Manager 107 A Surprise Director of Storm Logistics for Katrina 109 Channel Tunnel 115 Why Project Managers Need to Have Local Knowledge 123 Success at Energo by Integrating Two Diverse Cultures 126 CASE: The National Jazz Hall of Fame 134 DIRECTED READING: What It Takes to Be a Good Project Manager 140 CHAPTER 4 Managing Conflict and the Art of Negotiation 145 4.1 Conflict and the Project Life Cycle 148 4.2 The Nature of Negotiation 155 4.3 Partnering, Chartering, and Scope Change 156 4.4 Some Requirements and Principles of Negotiation 161 PROJECT MANAGEMENT IN PRACTICE Quickly Building a School through Negotiation 147 Consideration of Waste During Project Implementation 154 Habitat for Humanity Wins a Big One 157 Project Assessment and Recovery 163 DIRECTED READING: Methods of Resolving Interpersonal Conflict 168 CHAPTER 5 The Project in the Organizational Structure 175 5.1 Projects in a Functional Organization 177 5.2 Projects in a Projectized Organization 180 5.3 Projects in a Matrixed Organization 183 5.4 Projects in Composite Organizational Structures 188 5.5 Selecting a Project Form 189 5.6 The Project Management Office (PMO) 192 5.7 The Project Team 197 5.8 Human Factors and the Project Team 200 PROJECT MANAGEMENT IN PRACTICE Managing Risk in a Competitive Market 180 Software Firm Yunio Avoids Complex Technologies 187 Trinatronic, Inc. 191 A Project Management Office Success for the Transportation Security Administration 193 The Empire Uses Floating Multidisciplinary Teams 199 South African Repair Success through Teamwork 204 CASE: Dizplaze 210 DIRECTED READING: The Virtual Project: Managing Tomorrow s Team Today 213 PROJECT PLANNING 219 CHAPTER 6 Project Activity and Risk Planning 221 6.1 Initial Project Coordination and the Project Charter 224 6.2 Starting the Project Plan: The WBS 232 6.3 Human Resources: The RACI Matrix and Agile Projects 240 6.4 Interface Coordination through Integration Management 245 6.5 Project Risk Management 249 PROJECT MANAGEMENT IN PRACTICE Beagle 2 Mars Probe a Planning Failure 222 Child Support Software a Victim of Scope Creep 225 Timetable Scheduling and Operational Plan Generation for London Underground 227 Facebook Risks Interruption to Move a Terabyte 230 Disaster Project Planning in Iceland 243 Trying to Install a Wind Farm in the Middle of the North Sea 246 An Acquisition Failure Questions Recommended Practice 248 Risk Analysis vs. Budget/Schedule Requirements in Australia 250 Ignoring Risk Contrasted with Recognizing Risk in Two Industries 255 CASE: Caprico 268 DIRECTED READING: Planning for Crises in Project Management 275 CHAPTER 7 Budgeting: Estimating Costs and Risks 283 7.1 Estimating Project Budgets 284 7.2 Improving the Process of Cost Estimating 297 7.3 Risk Estimation 307 PROJECT MANAGEMENT IN PRACTICE Pathfinder Mission to Mars on a Shoestring 285 Oresund Bridge: Seeing Projects Through Different Lenses 288 Managing Costs at Massachusetts Neighborhood Health Plan 291 Completing the Limerick Nuclear Facility Under Budget 298 The Emanon Aircraft Corporation 304 CASE: Gujarat Auto 321 DIRECTED READING: Three Perceptions of Project Cost 324 CHAPTER 8 Scheduling 331 8.1 Background 331 8.2 Network Techniques: PERT (ADM) and CPM (PDM) 334 8.3 Risk Analysis Using Simulation with Crystal Ball(R) 363 8.4 Using These Tools 370 PROJECT MANAGEMENT IN PRACTICE Production Scheduling 332 Election Returns within Three Hours 342 Hosting the Annual Project Management Institute Symposium 361 Rapid Project Deployment at Kineo 370 CASE: Topline Arena 380 CHAPTER 9 Resource Allocation 383 9.1 Critical Path Method Crashing a Project 385 9.2 The Resource Allocation Problem 394 9.3 Resource Loading 396 9.4 Resource Leveling 399 9.5 Constrained Resource Scheduling 404 9.6 Multiproject Scheduling and Resource Allocation 410 9.7 Goldratt s Critical Chain 414 PROJECT MANAGEMENT IN PRACTICE Expediting Los Angeles Freeway Repairs after the Earthquake 384 Architectural Associates, Inc. 387 Thirty Days to Rescue 393 Benefit/Cost Analysis Saves Chicago s Deep Tunnel Project 395 Benefits of Resource Constraining at Pennsylvania Electric 409 CASE: D. U. Singer Hospital Products Corp. 426 PROJECT EXECUTION 431 CHAPTER 10 Monitoring and Information Systems 433 10.1 The Planning-Monitoring-Controlling Cycle 434 10.2 Information Needs and Reporting 441 10.3 Earned Value Analysis 446 10.4 Computerized PMIS (Project Management Information Systems) 457 PROJECT MANAGEMENT IN PRACTICE Tracking Scope Creep: A Project Manager Responds 434 Drug Counseling Program 441 Earned Value at CERN 455 CASE: Kroon Chemische Fabriek 466 CHAPTER 11 Project Control 471 11.1 The Fundamental Purposes of Control 475 11.2 Three Types of Control Processes 476 11.3 The Design of Control Systems 485 11.4 Control of Change and Scope Creep 493 11.5 Control: A Primary Function of Management 497 PROJECT MANAGEMENT IN PRACTICE Regaining Control of Nuclear Fusion 473 Delhi Metro 477 Schedule and Cost Control for Australia s New Parliament House 487 Major Scope Creep in a Consultancy Project 494 Better Control of Development Projects at Johnson Controls 496 CASE: Peerless Laser Processors 506 DIRECTED READING: Controlling Projects According to Plan 510 CHAPTER 12 Project Auditing 517 12.1 Purposes of Evaluation Goals of the System 518 12.2 The Project Audit 521 12.3 The Project Audit Life Cycle 526 12.4 Some Essentials of an Audit/Evaluation 529 12.5 Measurement 532 PROJECT MANAGEMENT IN PRACTICE Lessons from Auditing 110 Client/Server and Open Systems Projects 521 Management of the Typhoon Project 527 CASE: Theater High Altitude Area Defense (THAAD): Five Failures and Counting (B) 537 DIRECTED READING: An Assessment of Postproject Reviews 540 CHAPTER 13 Project Termination 547 13.1 The Varieties of Project Termination 548 13.2 When to Terminate a Project 553 13.3 The Termination Process 558 13.4 The Final Report A Project History 564 13.5 Afterword 566 PROJECT MANAGEMENT IN PRACTICE Project Termination Practices in Indian Industry 550 Pulling the Plug: Projects in a Risky World 552 Terminating the Superconducting Super Collider Project 557 When You Have to Kill a Project 564 Photo and Copyright Credits 571 Name Index 573 Subject Index 579 Please visit for Appendices. A: Probability and Statistics and Appendix B: Answers to the Even-Numbered Problems.

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