>>教学大纲《项目管理教学大纲》 （Project Management，072106SD） 一、前 言 1、课程性质 项 目管理作为管理科学的重要分支，已经被广泛应用于建筑、信息技术、金融、软件开发、航空 航天、政府机关等许多行业。项目管理是一项应用性极强的综合性的经 济技术工作，是企业管理的重 要思想方法。当今社会，作为经济管理等相关专业的学生来说，掌握项目管理的思想、方法、基本原 理尤为重要。 2、教学目的 学习本课程的目的，要求学生在全面了解项目管理基本理论、基本知识的基础上，系统掌握投资 项目管理的内容、理论和方法，为将来从事项目管理的实际工作及研究奠定良好的基础。 3、使用对象 本大纲适用专业：项目管理、工程管理、管理科学的本科生教学。 4、基本教学要求 本 课程定位于培养学生项目管理的系统思想和项目管理的实际动手、操作能力，因 此，在教学过程中应在立足于项目管理基本知识体系、基本理论及项目周期各阶段管 理 的基础上，重点围绕项目管理的思想和技术展开。同时，整个教学过程中应贯穿模拟教 学、启发式教学，不仅使学生掌握项目管理的基本方法，而且使学生建立项 目管理的系 统理念和思想。 5、要求先修课程 微观经济学、财务管理学、统计学、投资经济学、证券投资学、工程投资概预算（或 估算）等。 二、教学内容（具体到章、节、目名称，每章开头说明教学要求，后附 思考题） Chapter 1 MODERN PROJECT MANAGEMENT 1．What is a project? A. The project life cycle B. The project manager 2．The importance of project management A. Product life cycle B. Global competition C. Knowledge explosion D. Corporate downsizing E. Increased customer focus F. Rapid development of third world economies G. Small projects represent big problems 3．The evolution toward integrated project management systems A. Integration of projects with the strategic plan B. Integration within the process of managing actual projects 4．Summary Text overview Key terms Review questions Exercises Case exercise: South American Adventures Unlimited Case exercise: A Day in the Life Chapter Objectives To explain why project management is crucial in today’s world. To define a project and differentiate projects from routine operations To establish the importance of projects in implementing organization strategy To introduce the concept of a project maturity model that traces the evolution of project management systems. To establish managing projects is an act of balancing the technical and socio/cultural sides of the project To make students aware of the Project Management Institute that is made up of over 75,000 project management professionals. Review Questions 1. Define a project. What are four characteristics which help differentiate projects from other functions carried out in the daily operations of the organization? A project is a complex, non routine, one-time effort limited by time, budget, resource, and specifications. Differentiating characteristics of projects from routine, repetitive daily work are below: a. a defined life span b. a well-defined objective c. typically involves people from several disciplines d. a project life cycle e. specific time, cost, and performance requirements 2. What are some of the key environmental forces that have changed the way projects are managed? What has been the impact of these forces on the management of projects? Some environmental forces that have changed the way we manage projects are the product life cycle, knowledge growth, global competition, organization downsizing, technology changes, time-to-market. The impacts of these forces are more projects per organization, project teams responsible for implementing projects, accountability, changing organization structures, need for rapid completion of projects, linking projects to organization strategy and customers, prioritizing projects to conserve organization resources, alliances with external organizations, etc. 3. Why is the implementation of projects important to strategic planning and the project manager? Strategic plans are implemented primarily through projects e.g., a new product, a new information system, a new plant for a new product. The project manager is the key person responsible for completing the project on time, on budget, and within specifications so the project’s customer is satisfied. If the project is not linked to the strategic plan of the organization, resources devoted to the project are wasted and a customer need is not met. This lack of connectivity occurs more in practice than most would believe. 4. The technical and socio/cultural dimensions of project management are two sides to the same coin. Explain. The system and social/cultural dimensions of project management are two sides of the same coin because successful project managers are skillful in both areas. The point is, successful project managers need to be very comfortable and skillful in both areas. 5. Implementing project management techniques into an organization appears to be evolutionary rather than revolutionary. Why is it improbable that an organization will be able to leapfrog to a holistic project management system in one year? Development of a holistic project management system does not happen overnight! Each organization project management process will be unique and will usually require dramatic changes. Typical changes will be needed in the following areas: A. developing organization structures which facilitate implementing projects. B. developing a strong linkage between strategy and projects. C. prioritizing projects to conserve organization resources. D. transferring authority and resources to project managers and their teams, Such changes can take from 3-5 years. 6. What is meant by an integrative approach to project management? Why is this approach important in today’s environment? An integrative approach to project management is one in which all the parts are interrelated. This approach is important because it can give an organization a competitive edge in today’s environment. An integrative approach includes two parts. First, projects must have a strong link to the organization strategic plan, which is directed toward meeting the customer’s needs. A project priority system reinforces this linkage by prioritizing projects according to their contribution to the strategic plan and allocates resources by the priorities set. Second, an integrative approach provides an integrated system for the actual implementation of the projects. This includes an information system which supports decision making and a social/cultural environment which creates a positive, active contribution from team members responsible for completing the project. Exercises 1. Review the front page of your local newspaper and try to identify all the projects contained in the articles. How many were you able to find? It is near impossible to open a newspaper and not find articles relating to projects. Sunday editions are especially good for this exercise. Even experienced project managers find the number of projects far greater than they would have predicted. Each one was managed by a project manager! This is a good illustration of the important role projects play in our daily lives. 2. Individually identify what you consider to be the greatest achievements accomplished by mankind in the last five decades. Now share your list with three to five other students in the class and come up with an expanded list. Review these accomplishments in terms of the definition of what a project is. What does your review suggest about the importance of project management? Typical responses center technology, medical, space--e.g., computer advances, laser operations and new drugs, building the space station. We usually select two or three student suggestions of projects (there will be plenty!) and ask the students to identify the kinds of problems the project manager of the project may have had to deal with. Again, once the students get into the exercise, the problems they can envision are many. These problems are placed on the board. After the board is near filled and most students have participated, we try to show or classify on the board the problems by the content of the text chapters. The intent is to demonstrate to the class the course and text will address many of the problems suggested by the students. 3. Individually identify projects assigned in previous terms. Were both socio/cultural and technical elements factors in the success of difficulties of the projects? Students will naturally focus on socio-cultural aspects in part because they are more familiar with concepts such as leadership, problem-solving, and team work than scope, WBS, and baseline budgets. Furthermore interpersonal friction is often a source of consternation on student projects. The instructor may have to point out that interpersonal conflicts often arise from ill defined scopes, uneven work schedules, and poor planning. 4. Check out the Project Management. Institute’s home page at: www.pmi.org A. Review general information about PMI a s well as membership information. B. See if there is a PMI chapter in your state. If not, where is the closest one? C. From the news link, access information on PMI’s Project Management Body of Knowledge (PMBOK), or go directly to it at: coauthor of this text: www. Assessing the effectiveness of the priority system over the long haul model . What is PMBOK? D.www. Review and define the organizational mission B. A project portfolio management system A. Four activities of the strategic management process A.org/publictn/pmboktoc. Creating support for a central project portfolio management system 5. Selection criteria C. you can find up-to-date addresses on the home page of Dr. Sources and solicitation of project proposals 6. Implementing strategy through projects 3. Balancing the portfolio for risks and types of projects 7. Analyze and formulate strategy to reach objectives D. The need for an effective project portfolio management system Absence of a priority system linked to strategy creates problems Problem 1: The Implementation gap Problem 2: Organizational politics Problem 3 : Resource conflicts and multitasking 4. Erik Larson. The strategic management process: an overview 2. Explore other links that PMI provides. Managing the portfolio System B.edu/faculty/larson Chapter 2 ALIGNING PROJECTS WITH ORGANIZATION STRATEGY Chapter Outline 1. What do these links tell you about the nature and future of project management? If you have any difficulty accessing any of the Web addresses listed here or elsewhere in the text.bus.htm.orst. Set long range goals and objectives C. Classification of the project B.pmi. Ranking proposals and selection of projects A. 8. analyzing of the external and internal environments C. Strategy is implemented primarily through projects. Key terms 10. formulating strategies to reach objectives E. and how we are going to get there. setting objectives D. Case: Hector Gaming Company 13. The generic major component of the process includes the following: A. The strategic management process involves assessing what we are. implementing strategies through projects 2. Review questions 11. defining the mission of the organization B. Explain the role projects play in the strategic management process. Summary 9. . Case: Jarvis Communication Corporation 12. Successful implement at in projects means reaching the goals of the organization and thus meeting the needs of its customers Projects that do not contribute to the strategic plan waste critical organization resources. Describe the major components of the strategic management process. Case: Film Prioritization the balanced score card Chapter Objectives To identify the significant role that projects contribute to the strategic direction of the organization To stress the importance of establishing project priorities and top management support To describe the linkages of strategies and projects To write a set of hierarchical objectives for an organization To describe a scheme for prioritizing projects that ensures top management involvement and minimizes conflicts To apply an objective priority system to project selection Review Questions 1. what we want to become. and operations projects. To some. this approach may look intimidating but rarely is in practice. etc. If the priority system is not open. senior management typically a lot budgets for each category independent of actual project selection. strategic. risk portfolio. assessing the relative importance of organization objectives . having clear definitions of what constitutes compliance. you may in crease the chances of it being selected. published priority system ensures projects are selected on the basis of their contribution to the organization. how ever it does discourage projects that clearly will not make positive. senior managements. Why does the priority system described in this chapter require that it be open and published? Does the process encourage bottom-up initiation of projects? Does it discourage some projects? Why? An open.3. Thus. or operations projects will go far in avoiding the latter problem. Since some projects are more important than others. squeaky wheels. significant contributions to the organization vision. Knowledge of funds available. Bottom-up is encouraged because every organization member can self evaluate their project idea against priorities--and so can everyone lse in the organization. may cause some to attempt to move their project proposal to a different classification to improve the chances of the project being selected. and key departments get their projects selected for the wrong reasons. 5. the best way to maximize the organization’s scarce resources is through a priority scheme that allocates resources to a portfolio of projects that balancer is and contribute the most to the strategic plan. strategic. What impact can this classification have on project selection? By carefully aligning your project proposal with one classification. strong people. Describe an operative system that will prioritize projects by their contribution to the strategic plan. How does this system assist in allocating organizational resources and avoid over commitment of resources? How does your system differ from the case study model? A generic project priority system might include the following activities: A. How are projects linked to the strategic plan? Projects are linked to the strategic plan because projects represent how a strategy is to be implemented. 4. 6. The portfolio of projects is typically represented by compliance. Remember. Choosing the appropriate project management structure 4. public image. monitoring projects and use of organization resources 7. Other considerations such as developing new technology. What is organization culture? B. Project management structures A. Organizing projects within virtual organizations 3. Organizing projects within a matrix arrangement D.g. Identifying cultural characteristics . and maintaining core competencies should be considered. allocating resources to these selected projects E. Why should an organization not rely only on ROI to select projects? Financial criteria. Balanced matrix (3). brand loyalty. prioritizing projects based on these criteria (and a balance of risk) using a weighting scheme D.. Functional matrix (2). While ROI is likely to be a key consideration for many organizations. developing criteria for selecting projects based on the project’s contribution to the organization’s objectives (value added) C. Chapter 3 ORGANIZATION: STRUCTURE AND CULTURE Chapter Outline 1. ethical position. will not ensure that selected projects contribute to the mission and strategy of a firm. Further more. Organization culture A. Organizing projects as dedicated teams C. Organizing projects within the functional organization B. compliance projects). multiple screening criteria are recommended for selecting and prioritizing projects. Different matrix forms (1). like ROI alone. it is difficult or next to impossible to assess ROI for many important projects (e.B. Project matrix 2. Compare the advantages and disadvantages of the functional. Methods for maintaining culture (1). Formal statement of principles (2). Case: Orion A and B 13. Selection of new members B. Exercises 11. stories. Removal of deviants Summary Review questions Exercise Chapter Objectives To be able to identify different types of project management structures To understand the strengths and weaknesses of different project management structures To appreciate the significance that organizational culture plays in managing projects To be able to interpret the culture of an organization To understand the interaction between project management structure and the culture of an organization Review Questions 1. and symbols C. Implication of organization culture for organizing projects 7. Reaction to crisis (4). Appendix: How culture is created and communicated in organizations A. Allocation of rewards and status (5). Top management behavior (3). matrix. Key terms 9.6. Summary 8. Review questions 10. Case: Moss and McAdams Accounting firm 12. Rituals. and dedicated . In-depth expertise can be brought to bear on specific components of the project. Specialists maintain ties with their functional group Balances project prerogatives with technical requirements The weaknesses of the matrix approach include: Decision making can bet bogged down as agreements have to be negotiated between project managers and functional managers. Strong cross-functional integration. (1)The advantages of the functional approach include: No radical alteration in basic structure of the parent organization. Project focus is provided by having a designated project manager.team approaches to managing projects. We/they attitude emerges between project team and rest of organization which inhibits . Concentrated project focus. The weaknesses of dedicated project team include: Dilemma of what to do with people once the project is over. Technical expertise limited to the people on the team. Stress induced by multiple superiors. Maximum flexibility in use of staff within functional units. (3)The advantages of the dedicated team approach: Does not disrupt the basic structure of the parent organization. Projects tend to get done quickly. Normal career paths can be maintained. The weaknesses of the functional approach include: Lack of project focus Poor cross-functional integration Slow Lack of project ownership (2)The advantages of the matrix approach include: Flexible utilization of resources across projects and functional duties. 2. (4)The advantages of virtual organization approach: Cost reduction. End the discussion by relating the advantages and disadvantages of virtual organization to what has already been discussed. The functional managers are responsible for supporting project completion. High level of technical expertise can be applied. Increased flexibility in the kinds of projects the organization can initiate. The functional managers are responsible for managing their segment of the project.creation of project management role and duplication of services across projects. the project manager controls most aspects of the project including design tradeoffs and assignment of project personnel. A project manager in the functional matrix is not likely to be involved in performance appraisals and compensation decisions while project managers in a project matrix would. Expensive . Record responses on the left side of a large black board. Next identify the strengths and weaknesses of the dedicated team approach on the right side of the board. Suggestion: Begin the discussion by identifying the strengths and weaknesses of the functional organization.integration of project with mainstream operations. . The project manager has little formal authority over the project. Conflicts and misunderstandings created by people coming from different organizational cultures. The weaknesses of the virtual organization approach include: Difficulty in coordinating the efforts of people from different organizations. In a project matrix. In the middle record the strengths and weaknesses of the matrix organization. What distinguishes a functional matrix from a project matrix? The most distinguishing characteristic between a functional and project matrix is the relative influence the project manager has over project participants and functional managers. In a functional matrix the project manager role is limited to coordinating project activities. Potential loss of control. Use this framework to discuss the relative merits of different kinds of matrix organizations. Conversely. project matrix) to be successful. Organizational cultures that do not encourage teamwork. 5. a functional matrix is likely to be disastrous in a negative culture that encourages competition and looking out only for yourself. a functional matrix can be effective in an organization in which the culture of the organization is conducive to project management. 4. A positive organizational culture can compensate for the inherent weaknesses of the formal structure. one could argue that an organization can circumvent a negative culture by creating an independent project team or a strong project matrix. Alternatively. Dedicated project teams are also recommended when the prevalent culture within the organization does not support collaboration and innovation.e. Why is it important to assess the culture of an organization before deciding what project management structure should be used to complete a project? The culture of the organization can impact the effectiveness of different project management structures. For example a functional matrix can be effective if the norms and customs of the organization value teamwork and effective problem solving. Exercises . The bias of the authors is that culture is more important than structure since it more directly impacts behavior.3. Under what conditions would it be advisable to use a project matrix instead of a dedicated project team? Both structures can be quite effective. project team. collaboration.. In either the case. The project matrix would be recommended when the organization cannot afford to have people work full-time on the project and when the culture of the organization supports the dual authority structure. the strategy is to insulate the project team from the dominant organizational culture and create a unique project subculture. Dedicated project teams are recommended when speed is essential to success and there is not enough project work to warrant a formal matrix structure. and crossfunctional integration need a stronger project management structure (i. What do you believe is more important for successfully completing a project the formal project management structure or the culture of the parent organization? Both are important and an argument can be made for either structure or culture. Conversely. be honest in their dealings. which is likely to lead to better coordination and higher quality information. Review the Corporate web-site for Hewlett-Packard. Key practices include: Management by wandering around(MBWA). H-P is objective driven. which is likely to lead to early problem detection and more effective problem solving. People are expected to take initiative. 4. b. We conduct our business with uncompromising integrity. We have trust and respect for individuals. Open door policy. Management by objective(MBO). The open door policy encourages people to speak their minds. 2. People are expected to identify what they are trying to achieve and document progress. achievement. which is a key element of project management. We achieve our common objectives through teamwork. Check and identify other company web-sites that discuss their organizational culture to provide a basis for comparison. . 5. How does the H-P Way help create a culture which supports effective project management? The core values place a premium on trust. work as a team. What are the main elements of the H-P Way? The HP way is reflected in its core organizational values and practices. The five core values include: 1. We focus on a high level of achievement and contribution. Students should be encouraged to read supportive documents associated with the H-P Way and asked to rate H-P on the cultural dimensions that support effective project management. a. MBWA encourages direct interaction between people who work together. Strong evidence is provided to suggest that H-P fits the ideal profile of an organization culture that is conducive to project management (see: Figure 9-8 in the text). Variations on the Exercise. We encourage flexibility and innovation. integrity.1. and innovate. and innovation. 3. set high standards. teamwork. Assign this as an individual or group written exercise. Students are likely to focus on heavy workload periods (Exam week. You work for LL Company which builds high-end optical scopes for hunting rifles. Students should be encouraged to discuss the trade-offs they make between competing . Midterms) when multiple assignments are due. LL Company has been the market leader for the past 20 years and has decided to diversify by applying their technology to develop a top quality binocular. then the project may essentially be a manufacturing one and could be completed within the manufacturing department with minimal input from other functional areas. What problems does this create for you? How does it affect your performance? How could the system be better managed to make your life less difficult and more productive? This could be used as a written assignment or the subject of in-class discussion. Going to college is analogous to working in a matrix environment in that most students take more than one class. an exam question. or a basis for class discussion. If so. What is the culture like at LL? Does it support informal collaboration and teamwork? Will whoever is in charge of the binocular project have trouble getting the support and cooperation of people needed to complete the project? If yes. What kind of project management structure would you recommend that they use for this project? What information would you like to have to make this recommendation and why? This could be used as a short written assignment. and must distribute their time across multiple classes. If true. 3. If. How important is project management to LL Company? LL Company appears to have a stable product line and does not engage heavily in product development. then a dedicated project team would be recommended to reduce the project dependencies on other parts of the organization. then an informal matrix could be arranged where a project manager is assigned to oversee the completion of the project. Regardless of how it is used. then a formal matrix structure should not be recommended. no. How much innovation is required to produce the binoculars? Chances are very little given the similarity between rifle scopes and binoculars. 2. Ask students to review the H-P website prior to class and use H-P as a vehicle for discussing culture and how it relates to project management. the following issues should be addressed. A significant portion of an organization’s culture is communicated symbolically through rituals. Students should be encouraged to explore the basis for making these trade-offs. The instructor should be prepared to answer why this does not occur and explore barriers to coordinating assignments made by instructors and parallels it has for business organizations. Top management serves as role models and its behavior is scrutinized to determine those qualities and habits that the organization values. Which mechanism do you believe has the biggest effect on the culture of an organization and why? . Crisis situations present an opportunity for an organization to clearly communicate its values and priorities. values. Some colleges (most notably Colorado College) have a curriculum in which students take one class at a time. Organizations reinforce desired behavior and discourage inappropriate behavior through their formal reward and punishment systems. myths. During new employee orientation sessions. Appendix: How Culture is Created and Communicated in Organizations Review Questions 1. Most students will recommend leveling the work load to more evenly spread out assignments across the term. stories.assignments and the impact it has on their performance. organization’s preserve their culture by removing either voluntarily or non-voluntarily people who deviate from the norms and values of the organization. A variety of mechanisms are used to reinforce and socialize employees to the norms and customs of the organization. Finally. and attitudes are consistent with the norms and values of the organization. You may offer this as an alternative and ask students what they think about this approach. 2. and the physical lay-out of the operations. formal statements of values-and operating principles are discussed. Why do students devote more time to one class rather than another? Students should be encouraged to discuss whether similar reasons would be given for working harder on one project over another in a business situation. What are the mechanisms that are used to sustain the culture of an organization? Organizations actively recruit new employees whose habits. Major groupings found in a WBS B. Others will question the effect that rituals and myths play in sustaining a culture. We often use this question to initiate class discussion of the framework. Most students will argue that promulgating formal statements of principles is the least significant mechanism especially if these principles are not supported by the other mechanisms. Employing a project scope list 1. Chapter 4 DEFINING THE PROJECT Chapter Outline 1. Step four: Integrating the WBS with the organization . We like to conclude this discussion by stressing that the different mechanisms need to be consistent and mutually reinforcing. Similarly. Many students will argue that the reward system has the biggest effect on sustaining culture. Deliverables 3. Students should be encouraged to provide examples to support their arguments. How WBS helps the project manager C. the organization’s reward system needs to be aligned with goals and values of the organization.There is no definitive answer to this question. Step one: Defining the project scope A. Top management needs to behave in ways consistent with organizational principles. The question is included to encourage students to probe deeper into the role these different mechanisms play in shaping employee attitudes and behavior. Technical requirement s 5. While others will advocate that recruitment of employees is the most important mechanism. WBS development 4. Project objectives 2. Step two: Establishing project priorities 3. Review with customer 2. Step three: Creating the work break down structure A. Milestones 4. Limits and exclusions 6. resources needed to complete work package . time to accomplish the work package c. Review questions 12. Process breakdown structure 8. Summary 10. Exercises 13. work to accomplish a segment of the project b. time-phased budget for the work package and total cost to complete the work package d. Responsibility matrices 9. What kinds of information are included in a cost account? Cost accounts include one or more work packages linked to a deliverable and an organization unit. 2. Step five: Coding the WBS for the information system 6. Computer project exercise—Conveyor belt project Chapter Objectives To recognize the importance of a completes cope statement acceptable to your customer as a condition for project success To layout guidelines for creating a WBS for a project To demonstrate the importance of WBS to the management of projects and how it serves as a data base for planning and control To demonstrate how the OBS establishes accountability to organizational units To apply a WBS to a case or suggested project Review Questions 1. Key terms 11. Project rollup 7. Case: Manchester United Soccer Club 14.5. What kinds of information are included in a work package? Work packages include the following types of information: a. Develop a WBS matrix for a local stage play. The stage play is a good team or small group exercise. accounting and finance departments need budgets in this form to predict cash inflows and out flows. The term is derived from the fact that work package budgets can be cumulated two ways--by deliverable and organization unit. When would it be appropriate to create a responsibility matrix rather than a full blown WBS? On smaller projects where verbal. Sometime as responsibility matrix is used for a segment of a project or one in which a team wishes to stress responsibility. A Time phasing work package budget is especially important in work packages over one-week duration. face-to-face communication possible. What is a time-phased budget in a work package? A time-phased budget for a work package is one that sets up costs (budget)f or each time period over the duration of the work package. single person responsible for accomplishment of the work package f. monitoring points for measuring progress during implementation of work package g. How would you code your system? Give an example of the work packages in one of your cost accounts." and what is its significance to the project manager? The term" roll up" refers to the process used to develop a status report for the project. Developing a WBS for a local stage play is a project to which most groups can easily relate. We usually give the teams a blank WBS /OBS transparency (and pens) so each team can present their breakdown to the class. A time-phased budget for a work package is needed for primarily two purposes. to a major deliverable. 5. any specifications critical to the work package 3. The exercise usually points out the difficulty of . First. 4. Second. Be sure to identify the deliverables and organizational units (people) responsible. placing the budget in a time-phased format allows the project manager to compute variances from schedule as the project is implemented.e. Many forms of WBS structure will be presented. What is the meaning of the term project "roll up. Exercises 1. Problems are easily isolated by deliverable and organization unit responsible— from a single work package. a responsibility matrix should be adequate. This exercise reinforces the idea of the WBS/OBS matrix as a method for organizing a database for planning and control. Factors influencing the quality of estimates A. The exercise is frequently used as a homework assignment. Use an example of a project with which you are familiar with or are interested in. Chapter 5 Estimating Project Times and Costs Chapter Outline 1. if possible. This exercise is usually easily done by students. e. and. Planning horizon B. Project duration C. Macro versus micro estimating 3.defining "deliverables. As in exercise 2 above. Estimating project times and costs A. Identify the deliverables and organizational units (people) responsible." For most purposes a "milestone" can typically be used as a deliverable.. Organization culture 2. Macro approaches for estimating project times and costs B. 2. Padding estimates F. People D. Be careful that deliverables do not represent organization departments. Develop a responsibility matrix that evenly distributes the work that needs to be done prior to starting your trip. Micro approaches for estimating project times and costs . Check student structure to ensure deliverables are something any project team member could clearly identify. You are the father or mother of a family of five planning a weekend camping trip. How would you code your system? Give an example of the work packages in one of your cost accounts. 3. Be prepared for many different approaches to a camping trip. engineering design. the deliverable should be something you can easily see or touch. be sure the student selects activities that have clear start and end points. Project structure and organization E.g. Summary 11. Tolstoy feels she can take care of the interior decorating. Estimating guidelines for times. Key terms 12. uses. per square foot. Serge. . The plans for the house show the size of the house to be 2. Fortunately. costs. Exercises 13. AG 14. Types of costs 7. Refining estimates and contingency funds 9. Case: Sharp Printing.900 square feet. Serge is a retired plumber and feels he can save money by installing the plumbing himself. Creating a data base for estimating 10. are planning their dream house. Mrs. and resources 8.4. Mrs. and advantages and disadvantages of macro and micro estimating methods to understand the need for time-phasing budgets to understand he different types of costs used to compute total project cost to suggest estimating guidelines for time. Level of detail 5. Developing budgets--Time-phased budgets 6. Appendix: Learning Curves Chapter Objectives to understand estimating project times and costs are the foundation for project planning and control to sensitize the student to the many factors that influence project time and cost estimates to have an awareness of the methods. cost and resources to suggest a scheme for developing an estimating data base for future projects Exercises 1. The average price for a lot and house similar to this one has been $120. The lot for the house sits high on a hill with a beautiful view of the Appalachian Mountains. Tolstoy and her husband. 24% Excavation and framing complete 8% Roof and fireplace complete 3% Wiring roughed in 6% Plumbing roughed in 5% Siding on 17% Windows.000. What is the estimated cost for the Tolstoy’s house if they use contractors to complete all of the house? B. Estimate what the cost of the house would be if the Tolstoy’s use their talents to do some of the work themselves? Estimated total cost for the house 2. x $120 per foot is $348. ft.The following average cost information is available from a local bank that makes loans to local contractors and disperses progress payments to contractors when specific tasks are verified as complete. walks. Estimated savings of Serge’s plumbing work Rough plumbing in 6% × $348.000 =$13.$48.000 . and garage complete 9% Furnace installed 4% Plumbing fixtures installed 10% Exterior paint.880 Plumbing fixtures installed 4% × $348. Firewall Project XT .720 Estimated total cost for the completed house using the talents $348.000 =$13.920 Interior decorating Total saving 4% × $348.720 = $299. light fixtures installed. finish hardware in stalled 6% Carpet and trim installed 4% Interior decorating 4% Floors laid and finished A. insulation.900 sq.280 2.000 =$20. plaster.920 $ 48. Developing the project network 2. what is the estimated project duration? c. The project duration will be approximately 12. how many people will be needed for the project? a. Basic rules to follow in developing project networks . Complexity Weight Table Number of inputs 10 Rated complexity low Number of outputs 20 Rated complexity average Number of inquires 10 Rated complexity average Number of files 30 Rated complexity high Number of interfaces 50 Rated complexity high a.Using the "complexity weighting" scheme shown in Table 5-2 and the function point complexity weighted table shown below. Two approaches C. From work package to network 3. 1290/5 function points = 258 person months. 43 people will be needed to complete the project in approximately 6 months (258/6 = 43) Chapter 6 DEVELOPING A NETWORK PLAN Chapter Outline 1. What is the estimated project duration? b. estimate the total function point count.9 months if 20 people are available (258/20 = 12. b. Assuming six people available.9). Terminology B. Assume historical data suggest 5 function points equal on person month and six people can work on the project. The total function point count is: Complexity Element Count Low Average High Total Inputs 10 10×2 = 20 Outputs 20 20×6 = 120 Inquiries 10 10×4 = 40 Files 30 30×12 = 360 Interfaces 50 50×15 = 750 TOTA L = 1290t a. If the project must be complete in 6 months. c. Constructing a project network A. If 20 people are available for the project. the project duration will be approximately 43 months (258/6 = 43). Network computation process A. Level of detail for activities 9. Summary 14. Laddering B. Case: Pilot’s Stadium 20. Hammock activities 13. Determining slack (or float) D. Backward pass--latest times C. Forward pass---earliest times B. Extended network techniques to come closer to reality A. Calendar dates E. Use of lags 11. Computer exercises Computer case: Zuma Project . Case: Nightingale Project-A 18. An example using lag relationships--the forward and backward pass 12. Case: Nightingale Projeet-B 19. Activity numbering C. Using the forward and backward pass information 8. Use of computer to develop networks D. Practical considerations A. Exercises 17. Multiple starts and multiple projects 10. Review questions 16. Start and finish network computations 6. Key terms 15. Free slack (float) 7. Network logic errors B.4. Activity-on-node (AON) fundamentals 5. The networks sets all project work. Appendix exercises Chapter Objectives To establish the linkage between the WBS and the project network To diagram a project network using AON methods To provide a process for computing early. Backward pass--latest times C. and slack activity times and identify the critical path To demonstrate understanding and application of "lags" in compressing projects or constraining the start or finish of an activity To provide an overview framework for estimating times and costs To suggest the importance of slack in scheduling projects Review Questions 1. the WBS does not provide this information C.Computer case: Conveyor Belt Project Chapter 6 Appendix: Activity on Arrow Method 1. resources needs. The WBS is hierarchical while the project network is sequential B. The WBS is used to identify each project deliverable and the organization unit responsible for its accomplishment within budget and within a time duration . Design of an AOA project network A Forward pass--earliest times B. Choice of method 4. How does the work breakdown structure differ from the project network? A. Review questions 6. The network provides a project schedule by identifying sequential dependencies and timing of project activities. AOA summary 5. late. Computer generated networks 3. and budgets into a sequential time frame. Description 2. When an activity in a chain (except the last activity) is delayed. 4. gives the project manager little flexibility in changing resources or rearranging work. The network is derived from the WBS. Network doesn’t E. The dates are computed after the network is developed. What is the difference between free slack and total slack? Total slack is the amount of time an activity can be delayed and not delay the project. Focus attention on deliverables G. 5. For example. Link deliverables. Assign responsibility and budgets F.D. It is designed to provide different information for decision making. Remember. budgets. How are the WBS and project network linked? The network uses the time estimates found in the work packages of the WBS to develop the network. 2. Provide information for different levels in the organization The project network does not provide all this information. all following activities will be delayed by . Track schedule and cost variance. organization units. the time estimates. Provide for control C. 3. little slack. The WBS provides a framework for tracking costs to deliverables and organization units response. but without dates. Why is slack important to the project manager? Slack is important to the project manager be cause it represents the degree of flexibility the project manager will have in rearranging work and resources. A project network with several near critical paths and hence. and customer B. Isolate problems to source D. this database provides information for the following types of decisions: A. Why bother creating a WBS? Why not go straight to the project network and forget the WBS? The WBS is the database for decision making. and resources required for a work package in the WBS are set in time finances. inspection. These activities are used to identify overhead resources or costs tied directly to the project. To allow work to be accomplished parallel when the finish-to-start relationship is too restrictive 7. (5-10minutes) Students share their networks with each other in class (in groups of two to three students). A hammock activity typically uses resources and is handled as an overhead cost--e. 6. and make suggested improvements. Step 1.g. Exercises Creating a Project Network: This exercise is designed to demonstrate how one uses a WBS to create a network for a project. What is a hammock activity and when is it used? A hammock activity is a special purpose activity that exists over a segment of the life of the project. Therefore managers of those following activities need to be notified their activity start will be delayed. Why are lags used in developing networks? A. The project involves a wedding which most students have an easy time understanding. temporarily tape on the . Free slack is the maximum amount of time an activity can be delayed and not delay the early start of an activity immediate following it . Step 2. The hammock duration is determined by the beginning of the first of a string of activities and the ending of the last activity in the string. To closer represent real situations found in projects B. covering a wholes network within a project. Ask the students to nominate a student’s network that they think is particularly good. As an assignment. This latter approach gives top management overview of the project by avoiding detail. discuss differences.g. They should convert their network to paper either by using a project management software package that draws CPM diagrams or simply by drawing on paper. Hammock activities are also used to aggregates actions of projects to avoid project detail--e. Frees lack is usually the last activity in a sub path within a project network.the same amount time. coordination with other activity manager is not necessary. have the students use the yellow-sticky approach to create a network prior to class. (5minutes) Prepare in advance a set of 21 heavy stock cards with the name of each of the activities to be included in the network printed on them.. In this case. Step 3. Choose one of the nominees and ask him/her to display the network using the heavy stock cards. Contingency Funding A. Scenario Analysis B. Scenario analysis (B) Semi quantitative 3. Contingency Planning A. Check the network by starting from the beginning and asking for each task if it is the only thing that is needed immediately before the start of the next task. Cost risks D. (10-20minutes) Review and discuss the network. Risk Assessment A. Retaining risk 4. Hybrid analysis approaches D. Probability analysis F. and to draw lines to connect the activities. Failure Mode and Effects Analysis (FMEA) E. Risk Identification 3. Step 4. Budget reserves B. Management reserves 6. Risk Response Control . Correct mistakes when necessary. Sharing risk D. Schedule risks C. Risk management process 2. Risk Response Development A. Technical risks B. Ratio/Rand Analysis C. Funding risks 5. Chapter 7 Risk Management Chapter Outline 1.blackboard (or on butcher paper). Transferring risk C. Mitigating risk B. Explain. Review questions 11. PERT simulation 16. or shared. Exercises 12. Key terms 10. Case: Alaska Fly-Fishing Expedition 13. analysis. Undesirable events identified before the project begins can be transferred. Change Control Management 8. Contingency plans with trigger points and responsibility should be established before the project begins. Case: Javacom LAN project 15. Case: International Capital. Exercises 18. Summary 9. The chances of risk events occurring and their respective costs change over the project . Program Evaluation Review Technique (PERT) B. Inc. and assessment To suggest approaches for responding to project risks To propose the use of contingency reserves to cover risk events To recognize the need for a change control process/system for any size project Review Questions 1. Project risks can/cannot be eliminated if the project is carefully planned. A hypothetical PERT example C. retained/reduced.7. Case: Silver Fiddle Construction 14. Chapter Objectives To describe the risk management process To identify different kinds of risks To illustrate approaches for risk identification. It is impossible to be aware of all things that might happen when a project is being implemented. Project risks cannot be eliminated. 2. Appendix 5: PERT and PERT simulation A. Review questions 17. such changes could be significant enough to require changes in scope. Think of a project most students would understand and be familiar with the kinds of tasks involved. the funds are returned to the management reserve. How much reserve would your team estimate for the whole project? Justify your choices and estimates. What are the likely outcomes if a change control process is not used? Why? If a change control process is not used. Gather a small team of students. Budget reserves are established to cover identified risks that occur while implementing a project work package or activity. These events will impact project change control mechanisms. Any change from the baseline developed from the WBS needs to be recorded. The wrap-up usually requires refocus on some . he owner. If the risk does not materialize. and/or the project manager. Assign contingency reserves. Students enjoy this exercise. Estimate costs. Budget and management reserves are independent of each other. the exercise is open-ended and allows the students to think of fun projects. Others will depend on past experience or simply ignore the text material. Tracking changes facilitates control and accountability of budgets and time. Some groups will follow the text materials closely. The management reserve covers unforeseen risks and applies to the total project. Moreover. Explain the difference between budget reserves and management reserves. The project manager must ensure that these changes are recorded and kept updated. budgets and plans will self-destruct quickly. What is the significance of this phenomenon to a project manager? The chances of risk events and estimated costs changing over the project life cycle are high. How are the work breakdown structures and change control connected? The WBS and change control are directly linked. Exercises 1. 4. Develop a contingency plan for two to four identified risks. change control allows for coordination of changes further on in the project. 3. 5. In addition. These reserves are usually controlled by top management. Identify and assess major and minor risks inherent to the project. This link allows management to trace changes and problems directly to deliverables and the organization unit responsible. Otherwise the integrity of the project control system will quickly deteriorate and be come useless as a management tool. Decide on a response type.life cycle. " Managers with project experience sometimes divide risk events into segments of the project life cycle--defining. 2.. team activities (4). For example. The responses from participants with project experience are very different from those of undergraduate students. marketing or construction. team objectives (2). Experienced managers are very good at assessing downstream secondary risks which result from a risk event occurring. The assumed type of firm and type of projects will make for interesting variations in presentations before a class or group. complexity. one information technology group of managers organized their model around the type of project and the key factors influencing risk--"Size. The discussion can be ended by reviewing the minimum building blocks needed to manage project risk events. The team activities and outputs requirements are sometimes weak for undergrads. control issues. process for handling risk events (3). some of their models will cover secondary risks. people problems. it is hoped that your team will develop a process which can be used on all future projects. Your first team meeting is next Monday morning. in as much detail as possible. Each team member has been asked to prepare for the meeting by developing.g. Undergraduates usually follow the chapter outline with small deviations related to the kinds of risk events which might occur and team objectives. executing. Each group will provide some .formalized method which accomplishes the major issues discussed in the chapter. More experienced managers will be more creative in types of objectives and outputs. Your outline should include but not be limited to the following information: (1). Since this is the first time your organization has formally set up a risk team for a project. team outputs This exercise has been used in executive development seminars and college project management classes. planning. Each team member will hand out their proposed outline at the beginning of the meeting. an outline which describes how you believe the team should proceed in handling project risks. Differences frequently relate to the background of the participants and their experience--e. You have been assigned to a project risk team of five members. This exercise requires very little guidance from the instructor. novelty. delivery. The problem 2. 3. ask students to conduct a similar search with the key words "risk project management". Picking two or three of the unique approaches teams come up with can be used to demonstrate important points.unique views and approaches. Resource constraints C. In addition to finding consulting firms that may provide valuable services. Physical constraints . benchmarking information. Technical or logic constraints B. Among the sites the authors found included consulting firms advertising training and assessments. but project execution. For a more risk specific exercise. Types of project constraints A. project management" What did you find? How might this information be useful to a project manager? Students should discover a wide range of information with this search. open forums concerning specific kinds of projects. students should be aware of the variety of internet communities related to project management that provide valuable information not only about risk management. and after the project. and technical risks? The wrap-up comes back to the minimum requirements for a risk model for a firm and the kinds of activities a risk team might perform--before. Chapter 8 SCHEDULING RESOURCE Chapter Outline 1. during. Search the World Wide Web (WWW) using the key words: "best practices. cost. and risk portfolios. The session can be supplemented with discussion questions such as the following: How do you get people to talk about risk in a practical manner? How can you articulate risk? Where is the greatest opportunity to reduce project risks? How do you get management o support contingency funds? How can we improve estimating procedures for time. Appendix Critical Chain Approach Computer exercise: Zuma Project Chapter Objectives To contrast the differences between time and resource constrained projects To explain the implications for managing time and resource constrained projects To demonstrate an understanding of one heuristic method for scheduling resource constrained projects . 15. Summary 11. Resource constrained projects D. People B. Time constrained projects: smoothing resource demand C. Exercises 14. Computed remonstration of resource constrained scheduling 7. Materials C.3. Part 3 16. Impact of resource constrained scheduling 6. Splitting/Multitasking 8. Benefits of scheduling resources 9. Kinds of resources A. Resource allocation methods A. Case: Power Train. Multi project resource schedules 10. Review questions 13. Equipment D. Assumptions B. Key terms 12. Working capital 4. Ltd. Convey Belt Project. Classification of a scheduling problem 5. Assess the impact if another project is added to the pool 4. flexibility is lost and the risk of delaying the project increases. How can outsourcing project work alleviate the three most common problems associated with multi project resource scheduling? Out sourcing can be used to reduce project slippage. improve utilization of critical resources. To explain the potential for hidden critical paths To demonstrate the use of responsibility matrixes to assign individuals and responsibility. and avoid resource bottlenecks. Check if existing resources are adequate and available 2. Determine where the real critical path is. To introduce multi project resource scheduling Review Questions 1. there are many more reasons for scheduling resources. computer routines use slack to get an "efficient" schedule. If the resource conflict occurs on the critical path. 3. Decide if outside contractors have to be used 7. Decide which resources have priority 3. Remember. Are there unforeseen dependencies? 5. project delays can be avoided by contracting key activities when resources are not available internally. How does resource scheduling reduce flexibility in managing projects? Resource scheduling systems usually reduce flexibility because when resources are considered. hiring consultants to help with . the priority system ranks projects which then determines which project each resource should work on first. Likewise. Decide if an imposed project duration is realistic Students should not be limited to these reasons. Present six reasons why scheduling resources is an important task Six reasons for scheduling resources are to: 1. the project is delayed. see what happens to the risk of being late 6. For example. 4. How does resource scheduling tie to project priority? Resource scheduling ties to project priority because resources are limited. When slack is used up. If slack is used up developing a schedule. 2. 5. and "catch up" are similar to those noted in question 2. Having time buffers (see TOC) at merge points before the project begins could help a voids one of the need to crash activities. Using the project a cost-duration graph B. Options for accelerating project completion . Constructing a project cost-duration graph A. The risks associated with leveling.Y2K problems allows critical IT people to work on specific problems. Choice of activities to crash revisited E. and imposed durations or "catch up" as the project is being implemented. Crash times C. however. lack is used up and may cause other bottlenecks later in a sequence of activities. Time reduction decision and sensitivity 5. Rationale for reducing project time 2. Practical considerations A. compressing or crashing projects. Decoupling critical activities can help to cut time if decoupling is possible and resources can be shifted. Linearity assumption D. F or examples.) Project indirect costs 2. Explanation of project costs 1. Chapter 9 REDUCING PROJECT DURATION Chapter Outline 1. Flexibility is decreased and risk of delay is increased. Not only doest he project get done on time. Determining which activities to shorten B. while the outsiders work on standard programs.) Project direct costs 3. but the company avoids hiring IT personnel to meet a short term need. A simplified example 4. Explain the risks associated with leveling resources. Project cost-duration graph A. the risk is typically reduced only slightly. crashing. Identify five indirect costs you might find on a moderately complex project. Case exercise: Whitbread World Sailboat Race Chapter Objectives To recognize that compression costs additional money To demonstrate an understanding of the problems with imposed project durations To understand the real costs of crashing projects To explain the risks associated with compressing or crashing a project To recognize when a project manager should try for the optimum cost-time Review Questions 1. Review questions 10. Examples of indirect costs are supervision. consultants. debt interest charges. What are the advantages and disadvantages of reducing project scope to accelerate a project? What can be done to reduce these disadvantages? Advantages: Savings and/or reduction of costs . Why are these costs classified as indirect? Indirect (overhead) costs are costs that cannot be attributed to a specific activity or work package. What if cost reduction. is the issue? 7. Key terms 9. penalties or incentives for early or late complete or LI n practice it is amazing how many project compression decisions are made without serious consideration of indirect costs. accounting and information processing. low cost point. Any alternative that moves the project duration away from the optimum cost-time point will increase costs. 3. 2. incentives and penalties can be evaluated against the total.6. Exercises 11. How can a cost-time graph be used by the project manager? Explain. A cost-time graph is useful to the project manager for comparing alternatives. machinery common to several activities. public relations. Case exercise: International Capital (B) 12. Summary 8. not time. Additionally. When slack of noncritical activities is reduced. Unfortunately some project managers evaluate alternatives by comparing only direct costs. hence. If these indirect costs are high. It is possible to shorten the critical path and save money. The difference is a savings. may increase costs 5. The only way to shorten the critical path and save moneys to have indirect costs which are greater than the additional direct costs of shortening the critical path one unit of time. Why are indirect costs significant in analysis of potential project alternatives? When indirect costs are high relative to direct costs. Chapter 10 BEING AN EFFECTIVE PROJECT MANAGER Chapter Outline 1. the chance of new critical paths occurring increases. reduces flexibility by using slack B. significant savings are possible. Explain. In addition. can increase number of critical activities C can increase interdependencies of paths D. Managing project stakeholders . Compressing the project duration means slack (float) on noncritical activities will be reduced. compressing will have the following other impacts on managing the project: A.Quicker time to market Disadvantages: Reduction of functionality Unhappy customer 4. Reducing the project duration increases the r/sk of being late. Managing versus leading a project 2. makes resource scheduling tighter (critical) E. eliminating them for a specific time period of the project duration can result in significant savings. Explain how this is possible. the risk of the project becoming a increases. 6. Shortening the project duration will reduce indirect costs that continue as long as the project is in progress. Project team B. Customers 3. Sub-contractors H. Ethics and project management 6. Management by wandering around C. Project sponsors G. Project managers C. Administrative support D. Managing upward relations D. Influence as exchange A. Personal-related currencies 4.A. Position-related currencies C. Top management F. Social network building A. Inspiration-related currencies D. Mapping dependencies B. Relationship-related currencies E. Functional managers E. Leading by example 1) Priorities 2) Urgency 3) Problem solving 4) Cooperation 5) Standards of performance 6) Ethics 5. Building trust: the key to exercising influence . Government I. Other organizations J. Task-related currencies B. To identify the "currencies" a project manager can use to influence others To encourage students to engage in MBWA To highlight the importance of maintaining positive relationships with project sponsors .7. Review questions 11. Traits of an effective project manager 1) Systems thinker 2) Personal integrity 3) Proactive 4) High tolerance of stress 5) General business perspective 6) Good communicator 7) Effective time management 8) Skillful politician 9) Optimist 8. Qualities of an effective project manager A. Exercise 12. Key terms 10. Summary 9. Case: Western Oceanography Institute Chapter Objectives To create an awareness of the network of relationships that need to be managed to be a successful project manager. Contradictory nature of work 1) Innovate/maintain stability 2) See big picture/get hands dirty 3) Encourage individuals/stress team 4) Hands-off/hands-on 5) Flexible/firm 6) Team/organizational loyalties B. Draw a dependency map identifying the major groups of people who are likely to affect the success of this project. To understand and discuss the importance of building trust for project success To identify some of the qualities of an effective project manager Review Questions 1.unc. Why is a conductor of an orchestra an appropriate metaphor for being a project manager? What aspects of project managing are not reflected by this metaphor? Can you think of other metaphors that would be appropriate? 2. heavy metal rock groups and guest speakers. Who do you think will be most cooperative? Who .edu/personality/keirsey. You are organizing an AIDS Benefit concert in your home town which will feature local. Access the Project Management Institute website at www.pmi. Access the Keirsey Temperament Sorter Questionnaire at http://sunsite.html 2.org and review the standards contained in PMIM ember Ethical Standards section. You are the project manager responsible for the overall construction of a new international airport. Which of the nine traits/skills associated with being an effective project manager is the most important one? Which is least important one? Exercises 1. What does the exchange model of influence suggest you do to build a cooperative relationship to complete a project? 3. Who do you think will be most cooperative? Who do you think will be the least cooperative? Why? 4. Why is trust a function of both character and competence? 7. Why is it critical to keep the project sponsor informed? 6. Draw a dependency map identifying the major groups of people likely to affect the success of this project. How useful is the information for helping someone decide what behavior is appropriate and inappropriate? 3. Why is it important to build a relationship before you need it? 5. What differences would you expect to see between the kinds of influence currencies that a project manager in a functional matrix would use and the influence a project manager of a dedicated project team would use? 4. Building a high performance project team 4. Five stage team development model A. Situational factors which influence team development 3. What kinds of influence currency have you been exchanging in this relationship? Is the "bank account "for this relationship in the "red" or the "black"? What kinds of influence would be appropriate for building a stronger relationship with that person? 6. Managing subsequent meetings 6. Ethical Dilemmas Chapter 11 MANAGING PROJECT TEAMS Chapter Outline 1. Norming D. friend. Storming C. Assess this relationship in terms of the influence currency model. The first project team meeting B. Creating a shared vision . Managing project meetings A.. Identify an important relationship (co-worker. Forming B. Recruiting project team members 5. Adjourning 2. .do you think will be the least cooperative? Why? 5..) in which you are having trouble gaining cooperation. Establishing team identity 7. boss. Performing E. Establishing ground rules 1) Planning decisions 2) Tracking decisions 3) Managing change decisions 4) Relationship decisions C. Project team pitfalls A. Case: Kerzner Office Equipment 19. Team spirit becomes team infatuation E. Facilitating group decision making 1) Problem identification 2) Generating alternatives 3) Reaching a decision 10. Entrepreneurs disease D. Managing functional conflict B. Case: Franklin Equipment Ltd. Review questions 17. Managing the decision making process A. Group think B. Managing project reward systems 9. Exercises 18. Summary 15. Going native 14. Rejuvenating the project team 12. Managing conflict within the project team A. Managing dysfunctional conflict 11. Managing virtual project teams 13. Key terms TM11-1 16. Chapter Objectives To identify key characteristics of a high performance project team To appreciate the impact situational factors have on project team development To develop strategies for developing a high performance project team To build skills that encourage functional conflict and discourage dysfunctional conflict . Bureaucratic bypass syndrome C.8. The project manager must have a passion to achieve the vision so that it is seen as being credible and has the full support of the project manager. the punctuated equilibrium model suggests that groups begin by combining the forming and norming phases. Second. visions motivate superior performance and therefore must be a source of inspiration to others. What are the major differences between the Five Stage Team Development Model and the Punctuated Equilibrium Model of group development? The five stage model asserts that effective project groups evolve in a predictable manner. First. storming. one must be able to communicate it to others. Third. but encounter a mid-point crisis which forces members to elevate their performance and establish new roles and norms for achieving project objectives. The Punctuated Equilibrium Model argues that groups do not naturally evolve into an effective team over time. Recognizing individuals can distract from team unity. the vision must make strategic sense. Finally. One must be able to communicate the vision to others so that they understand it and choose to pursue it. Within the context of the five stage model. 2. Why should a project manager emphasize group rewards over individual rewards? Because most project work is a collaborative effort. the project leader must have a personal passion to achieve it. it makes sense that the reward system encourages teamwork. Because project work is interdependent it can be very difficult to distinguish who truly deserves individual credit. Group cohesion can be undermined if members feel that others are receiving special treatment. followed by storming. They progress from forming. . norming to performing and conclude by Adjourning once the project is about to be completed. 3. the vision should inspire others to give optimal effort. Finally. What are the elements of an effective project vision? Why are they important? There are four key elements to an effective vision. then a period of high performance. otherwise others will not see it as appropriate or realistic. and finally adjourning. then go through a period of relatively low performance. To understand the challenges of managing virtual project teams To recognize the importance of the project manager’s behavior in shaping how a team performs Review questions 1. The vision must make strategic sense. This would especially be true at the beginning of a project when the session would help develop a team identity among a group of strangers. People tend to find it difficult to trust some one whom they have met one or two times or not at all. The key is how conflict affects project performance. virtual team. unlike when members work side by side and can readily assess the . not how individuals feel. if the conflict distracts from project performance by degenerating into personality clashes or creating unnecessary delays in critical project work. Two of the biggest challenges are developing trust within the team and effective communication patterns. 4.Camaraderie can vanish. 5. Furthermore. 6. then the conflict is considered dysfunctional. but as long as the conflict enhances project performance then it is considered functional. Members can be upset and dissatisfied with each other. Such distractions can absorb a tremendous amount of energy that would otherwise be directed to completing the project. team-building activities could be used to assimilate new project members once the project is underway. Likewise. The sessions would be useful in identifying and changing dysfunctional behavior as well as re-energizing the team to higher levels of performance. Individual rewards should only be used when there is clear agreement that a member deserves special recognition. It might be wiser to utilize team-building sessions earlier to encourage collaboration and to prevent small problems from escalating into major problems within the team. to be replaced by bickering and obsessive preoccupation with internal group politics. Conversely. Devoting time and attention to team building would also be appropriate when the project team is experiencing problems working together or needs to elevate its performance to meet new project demands. One mistake project managers make is that they resort to formal team-building activities after they realize the team is in trouble. When would it be appropriate to hold a formal team-building session on a project? Formal team-building sessions should be used whenever it is believed that such activities will enhance the performance of the project team. What is the difference between functional and dysfunctional conflict on a project? It can be difficult to discern whether a conflict among project members is functional or dysfunctional. What are the unique challenges of managing a virtual project team? There are many challenges associated with managing a spatially separated. They can also encourage functional conflict and discourage the group from developing a "holier than thou" attitude. Finally. project managers need to be aware that there is a potential downside to a highly cohesive team and be able to recognize the symptoms associated with the pathologies described in the chapter. Continuous improvement C. What can a project manager do to avoid some of the pitfalls of a highly cohesive project team? First. They can also use the Nominal Group technique to encourage the surfacing of dissenting opinions.building sessions to identify and eliminate dysfunctional norms and refocus the team’s attention on project objectives. Team building: the project managers C. Team building: the stakeholders 3. Managers not only have to overcome time zone differences and cross-cultural variations. Pre-project activities A. as opposed to direct communication. Third. Introduction 2. Problem resolution B. Selecting partner(s) B. Reliance on electronic. the actions of distant members are not visible. they can take pre-emptive action to reduce the isolation of the team by encouraging the maintenance of ties with the rest of the organization as well as with other project stakeholders. they can hold formal team.competence and effort displayed by fellow team members. physical separation prohibits informal socializing that contributes to trust among participants. Project implementation A. but they are missing visual cues that contribute to effective communication. Finally. Chapter 12 PARTNERING: MANAGING INTER-ORGANIZATIONAL RELATIONS Chapter Outline 1. can be problematic. Second. Joint evaluation . they can personally reinforce the connection between the project and the mission and policies of the parent organization. 7. Review questions Chapter Objectives To understand the need and value of engaging in project partnering To be able to set and implement a partnering arrangement on a major project To understand why project partnering efforts succeed or fail To develop an evaluation procedure for evaluating partnering arrangements that results in early detection of potential problems To be able to practice principle negotiation To provide helpful advice for managing customer relations Review Questions . Focus on interests. When possible. The art of negotiating A. Key terms 11. Case: Partnering: The Accounting Software Installation Project 12. Persistent leadership 4.D. Contract change control system D. Separate the people from the problem B. Contract management in perspective 13. Why project partnering efforts fail or succeed 6. Invent options for mutual gain D. Summary 9. not positions C. Dealing with unreasonable people 7. A note on managing customer relations 8. Fixed-price contracts B. Appendix 12A: Contract management A. Cost-plus contracts C. Project completion--celebrating success 5. Review questions 10. use objective criteria E. Neither wants rework. habits. 2. it is in the best interest of both the owners and contractors to collaborate instead of compete with each other. Potential problems are identified and members establish expectations and guidelines for resolving them before they can escalate into larger problems. 24 hours) or they are "escalated" to the next level management.1. It empowers people to solve problems. Partnering requires significant investment up front in team building sessions so that people can discuss differences and begin to build a relationship with each other before the project begins. Furthermore. Both contractors and owners benefit when the project is completed on time and safely. This process is repeated until the problem is resolved. Partnering is based on the assumption that the traditional adversarial relationship between owners and contractors is ineffective and self-defeating. Why should contractors and owners want to enter a partnering arrangement with each other? Under most conditions. What does the term "escalate" refer to and why is it essential to project partnering success? Escalation is a control mechanism for dealing with and resolving problems. and escalation contributes to quick and effective problem solving. and priorities. 3. Why do proponents of partnering claim that it is a pro-active approach to managing projects? Partnering accepts that one of the major barriers to effective collaboration is that participants come from different organizations with different standards. At the same time. a joint evaluation system is established so that different partners routinely assess how well they are working together so that corrective action can be taken to ensure collaboration. Both would prefer to avoid costly litigation. Escalation discourages participants from forcing concessions by delaying decisions. There is no shame in pushing significant problems up the hierarchy. . Win/lose turns into lose/lose for everyone. Time is money on the project. partnering assumes that both parties share enough common goals to warrant a more collaborative relationship. The basic principle is that problems should be resolved at the lowest appropriate level within a set time limit (for example. at the same time management discourages subordinates from passing up problems that the subordinates should have resolved. customer satisfaction is a function of the extent to which perceived performance exceeds expectations. then you are more likely to have to concede to the demands of the other party. through frequent communication. 5. How can a project manager influence customer satisfaction with the project? According to the met expectations model. project managers can influence customers’ base expectations (what they expect to get) and perceptions of performance (what they actually received). Through their interactions with customers. educates clients so that they can make valid judgments as to project performance and reduces misunderstandings that can lead to disappointment and dissatisfaction. Principle Negotiation is a method for developing win/win solutions while protecting yourself against those who would take advantage of your forthrightness. People on a project are not opponents but allies attempting to complete a project. Step 2: Measuring progress and performance C. and honesty. What does the acronym BATNA refer to? Why is it important to being a successful negotiator? BATNA stands for "best alternative to a negotiated agreement." If you have a weak BATNA. Step 1: Setting a baseline plan B. The project manager. Step 3: Comparing plan against actual D. Step 4: Taking action 2.4. For this alliance to work there has to be a degree of trust. unless we work towards a win-win scenario. The project control process A. 6. Why is the principle negotiation approach recommended for negotiating agreements on projects? Project management is not a contest. If you have a strong BATNA you can walk away from a deal and say "’no. Chapter 13 Progress and Performance Measurement and Evaluation Chapter Outline 1. Monitoring time performance ." Essentially it represents the-best alternative if you are unable to reach an agreement with the party you are negotiating with. BATNA reflects how dependent you are on the other party. cooperation. BATNA is a true benchmark for determining whether you should accept an agreement. Forecasting final projeet cost 7. An Integrative cost/schedule system A. Technical performance measurement D. Contingency reserve D. Project percent complete index C. Outline for an integrative cost/schedule system D. Development of project baselines E. Additional earned value rules 6.A. Failure of budget comparison systems C. Rules for placing costs in baselines G. Baseline development C. Tracking Gantt chart B. Methods of variance analysis 4. Summary 9. Assumptions B. Control chart 3. Scope creep E. Software for project cost/schedule systems E. What costs are included in baselines? F. Key terms . Indices to monitor performance A. Developing a status report: a hypothetical example A. The costs and problems of data acquisitions B. Performance indexes B. The need for an earned value (EV) system B. Development of a status report 5. Managing the portfolio of projects 8. Other control issues A. Baseline changes C. How does a baseline facilitate integrating the planning and controlling of projects? The baseline is the backbone for integration of planning and controlling. Appendix 2A: Material Price and Usage Variance Chapter Objectives To understand how organizations track project performance To understand and appreciate the significance of earned value To be able to calculate and interpret different project performance in dices To be able to develop a project reporting system that will ensure project control and progress To demonstrate how a project rollup can pinpoint problems in two dimensions Review Questions 1. How does earned value give a clearer picture of project schedule and cost status than a simple plan versus actual system? Earned value gives a clearer picture than a simple plan versus actual system because the earned value system includes the time variable in measuring progress. Chapter Exercises 12. Case: Sofftech. Ltd (A) 15. When the baseline is held constant. Review questions 11. 2. Plan versus actual can lead to false conclusions. Endnotes 13.10. Earned value measures what work was accomplished for the moneys pent. Computer Exercises: Parts 4 & 5A & B 17. The baseline represents the project timephased budget which is derived from the work pakages in the WBS. Case: Sotfftech. Case : 29 In-Store Scanner Project 14. Why is it important for project managers to resist changes to the project baseline? Under what conditions would a project manager make changes to a baseline? When would a . 3. Ltd (B) 16. any changes in project costs and schedule can be quickly identified. The baseline serves as an anchor point for measuring and evaluating progress. as a mechanism for monitoring progress and tracing back to problem. Therefore. How does a project rollup help identify project cost and schedule problems? Project roll up computes the cost and schedule variance for each work package. 6. Natural disasters can force a baseline change.. (Note: there is some confusion in the field concerning the meanings of these terms. and FAC? BAC is the planned budget at completion. can be eroded by constant changing of the baseline. For example.g. Customers can request scope changes. EAC is the estimate at completion EAC usually differs from FAC in that new cost estimates have been made by project participants concerning specific work packages. 4. Don’t change for small changes such as price and planning errors. What are the advantages of this system? The ability to aggregate or disaggregate the WBS for costs allows status reports to be customized for different levels of management. Change should not occur after a work package or cost account is complete. Some times the complete elimination of a cost account can result in a baseline change. when the project will fail or the change represents a significant improvement of the project. Changes to "improve performance" should not change a baseline. typically. changes in baselines should be limited to majors cope changes for example. which can be tracked to each deliverable and organization/team unit. A senior level manager may only be interested in total project cost and schedule variance for major deliverables. Others may not agree with the distinctions fotmdin these definitions.) Chapter 14 Project Audit and Closure . FAC is computed using formulas which use the rate of spending to date. a manager in charge of a cost account needs detailed information about work packages.project manager not allow changes to a baseline? The usefulness and integrity of the baseline. Costs can be aggregated or disaggregated horizontally and vertically. Internally scope changes can come from project personnel---e. significant design changes to improve a product. 5. What are the differences among BAC. The WBS/OBS facilitates easy adjustment of summer ports according to management level or specific interests. EAC. FAC is the forecast at completion cost. these new estimates are then factored into the EAC. and project manager evaluations .) Analysis 3.Chapter Outline 1.) Classification 2. The project audit process A.) Recommendations 4.) Organizational view 2.) Appendix 6. Step 2: Data collection and analysis 1. Signals for continuing or early project closure C. Project audits: The bigger picture 4. Project audits A. Post-project audits 2. The closure decision D. team members. Project closure A.) Project team view D. Step 1: Initiation and staffing C.) Summary booklet 3. Guidelines for conducting a project audit B. Conditions for project closure 1）Normal 2) Premature 3) Perpetual 4) Failed project 5) Changed priority B. Project closure process 5. Step 3: Reporting 1.) Lessons learned 5. In-process audits B. Team. and lessons learned. project priorities. Although the audit is concerned about current or past performance of the project. team performance. platform/incremental. How does the project audit differ from the performance measurement control system discussed in Chapter 13. large/small.g. Performance reviews 7. Sometimes the audit team is perceived as a jury. Key terms 8. The audit is intended to include all factors relevant to the project and managing future projects. 2. What major information would you expect to find in a project audit? Classification of the project---e. Exercises 9. Review questions 9. but even jury . which presents opportunities for bias. the project’s fit within the total portfolio of projects. Why is it difficult to perform a truly independent objective audit? In most cases those performing the audit have some previous knowledge of the project. project audits are also concerned with assessing organizational culture and support of projects. complex/typical Analysis of information gathered Recommendations Lessons learned An appendix with backup information to support recommendations 3. Team evaluation B. Individual team member and project manager evaluation C.A. The project audit is a macro view of project performance as a part of the total organization. Case: Maximum Megahertz Project Chapter Objectives To appreciate the importance of engaging in project audits To identify the major elements of a project audit To understand key issues surrounding project closure To provide useful advice for conducting performance reviews of project members Review Questions 1.. and support continuous organization all earning. Perceived as having the best interests of the organization in making decisions 6. As long as performance reviews are not directly related to pay and promotion decisions. Willingness to listen 4. These reviews focus on social and technical contributions the individual contributed to the project team. If the audit of projects is a regular procedure for all projects. It is difficult to be both a judge and a coach at the same time." If organizational priorities have changed so the project no longer supports organizational strategy. What personal characteristics ands kills would you look for in selecting a project audit leader? 1. Performances are views are intended to encourage changes in behavior.in biases. Comment on the following statement: "We cannot afford to terminate the project now. 4. Basically. such reviews are more readily accepted and even perceived as positive for the individual and organization Since pay reviews can result in negative or positive outcomes for a career. The decision to continue or shut down should rest on estimated future costs and project benefits. We have already spent over 50 percent of the project budget. the 360 degree feedback process has been used successfully to improve the ability of people to work on teams. The simple point is that every attempt should be made to keep the audit independent and objective. Independence and authority to report audit results without fear of recriminations from special interests 5. the negatives time of audits is minimized. Broad-based experience in the organization or industry 5. For example.members come with built. internal politics have been known to enter into decisions concerning closure of a project. No direct involvement or direct interest in the project 2. For example. 6. encourage career development. costs to the time of the audit are sunk costs. they are . the project should be terminated. Respect—perceived as impartial and fair--of senior management and other project stakeholders 3. Why should you separate performance reviews from pay reviews? How? These two activities are not compatible. Culture shock A. Introduction 2. Culture 4. Legal/political B. Working in Saudi Arabia D. Working in the United States F. Pay reviews should be more carefully structured and based on clear standards and criteria known to the person being evaluated. Chapter 15 INTERNATIONAL PROJECTS Outline 1. Working in China E. Economic D. Summary comments about working in different cultures 6. Project site selection 5.perceived as very serious by most individuals. Gradual adjustment D. Security F. Honeymoon B. Cross cultural considerations: a closer look A. Infrastructure E. Assessing the motivation for international projects 3. Selection and training for international projects . Geography C. Environmental factors A. Irritability and hostility C. Every attempt should be made to avoid confrontation. Working in Mexico B. Adaptation 7. Working in France C. First. They can act as translators. Key terms 10. How do environmental factors affect project implementation? There are several basic factors in a host country’s environment that affect project implementation. the climate and geography may affect how the project is completed.8. . What role do local intermediaries play in helping an outsider complete a project? Local intermediaries can perform a variety of functions. the legal/political system has to be adhered to. Review Questions: 1. Fourth. To provide students with strategies for effectively working overseas. Summary 9. Third. Case: AMEX Hungary Chapter Objectives To identify factors typically considered in selecting a foreign location for a project To heighten an awareness that best practices in the US may not be best practices in a foreign environment To prepare students psychologically for the likelihood that they will work in a foreign environment as the economy becomes more globally integrated. The absence of a reliable telephone system may require digital satellite communication systems. They can use their connections to expedite transactions and protect the project against undue interference. They can be used to sidestep bribery dilemmas. Review questions 11. Fifth. Extreme heat and humidity have to be factored into work schedules and the need for special equipment. teaching the manager how to work more effectively in the foreign country. Second. Finally. Labor laws affect recruiting and treatment of employees. there may be security issues that need to be addressed and contingency plans developed. Exercises 12. the project may be constrained by the quality of the infrastructure that exists in the foreign country. the culture of the organization will influence work habits and values. the local economy affects the price and availability of goods and supplies. They can serve as cultural guides. 2. Emergence of project driven organizations 2. business protocols. How should one go about preparing oneself for an international project? You should begin by assessing the degree of cultural fluency required to successfully complete the project. and unwillingness to cooperate. Chapter 16 THE PROCESS OF PROJECT MANAGEMENT AND THE FUTURE Chapter Outline 1. What is culture shock? Culture shock is the natural psychological disorientation people experience when they live and work in a culture different from their own. Institutionalization of matrix organization a design C. and physiological responses such as fatigue. the extent to which project success requires working closely with natives. depression. Organization supports organizational teaming B. Future positive trends A. Longer. 4. sleeplessness. Cultural fluency depends upon the length of the stay. withdrawal. and social etiquette as well as be able to exchange basic pleasantries in the native language. more intense projects will likely require mastery of the native language and in depth cross-cultural training. The customs and traditions of a country are the ways things are done in that country. mistrust. Culture shock may be manifested by frustration. the higher the level of cultural fluency required the more extensive the training should be. Establishment of integrative project management information systems . Violating customs and traditions leads to resentment. At a minimum you should do some basic research about the country in terms of religion. and headaches. 5. In general. Why is it important to honor the customs and traditions of a country when working on an international project? Honoring customs garners good will and is a sign of respect which leads to cooperation.3. System project selection and priority systems D. dress codes. and how different the culture is of the country you are going to from that of your own country. Temporary assignments C. Ad hoc project teams will become more widespread 3. Unresolved issues A.E. Project management career issues A. Partnering will be the norm for managing inter-organizational projects I. Project audits will become an integral part of the project management system G. Career paths B. Managing project interfaces will take on greater significance H. Evaluation and reward systems will support effective project management F. Professional training and certification . How far can virtual project management evolve B. How do we manage projects under high levels of uncertainty? 4. Pursuing a career D.