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Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 9th Edition

ISBN: 978-0-470-16439-6
1040 pages
May 2007
Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 9th Edition (0470164395) cover image
This Ninth Edition of the industry-leading project management “bible” applies its streamlined approach to new, authoritative coverage aligned with the Project Management Institute’s Project Management Body of Knowledge (PMI’s PMBOK), the new mandatory source of training for the Project Management Professional (PMP) Certification Exam. Written by one of the best-known authorities on the subject, this extraordinary edition gives a profound understanding of project management.

Content from this book is available as an online continuing professional education course at http://www.wiley.com/WileyCDA/Section/id-320255.html#intro_pm.  WileyCPE courses are available on demand, 24 hours a day, and are approved by the American Institute of Architects.

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Preface.

1. OVERVIEW.

1.0 Introduction.

1.1 Understanding Project Management.

1.2 Defining Project Success.

1.3 The Project Manager-Line Manager Interface.

1.4 Defining the Project Manager's Role.

1.5 Defining the Functional Manager's Role.

1.6 Defining the Functional Employee's Role.

1.7 Defining the Executive's Role.

1.8 Working with Executives.

1.9 The Project Manager as the Planning Agent.

1.10 Project Champions.

1.11 The Downside of Project Management.

1.12 Project-Driven versus Non-Project-Driven Organizations.

1.13 Marketing in the Project-Driven Organization.

1.14 Classification of Projects.

1.15 Location of the Project Manager.

1.16 Differing Views of Project Management.

1.17 Concurrent Engineering: A Project Management Approach.

1.18 Studying Tips for the PMI Project Management Certification Exam.

Problems.

Case Study (Williams Machine Tool Company).

2. PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS.

2.0 Introduction.

2.1 General Systems Management.

2.2 Project Management: 1945-1960.

2.3 Project Management: 1960-1985.

2.4 Project Management: 1985-2003.

2.5 Resistance to Change.

2.6 Systems, Programs, and Projects: A Definition.

2.7 Product versus Project Management: A Definition.

2.8 Maturity and Excellence: A Definition.

2.9 Informal Project Management: A Definition.

2.10 The Many Faces of Success.

2.11 The Many Faces of Failure.

2.12 The Stage-Gate Process.

2.13 Project Life Cycles.

2.14 Gate Review Meetings (Project Closure).

2.15 Project Management Methodologies: A Definition.

2.16 Organizational Change Management and Corporate Cultures.

2.17 Systems Thinking.

2.18 Studying Tips for the PMI Project Management Certification Exam.

Problems.

3. ORGANIZATIONAL STRUCTURES.

3.0 Introduction.

3.1 Organizational Work Flow.

3.2 Traditional (Classical) Organization.

3.3 Developing Work Integration Positions.

3.4 Line-Staff Organization (Project Coordinator).

3.5 Pure Product (Projectized) Organization.

3.6 Matrix Organizational Form.

3.7 Modification of Matrix Structures.

3.8 The Strong, Weak, Balanced Matrix

3.9 Center for Project Management Expertise.

3.10 Matrix Layering.

3.11 Selecting the Organizational Form.

3.12 Structuring the Small Company.

3.13 Strategic Business Unit (SBU) Project Management.

3.14 Transitional Management.

3.15 Studying Tips for the PMI Project Management Certification Exam.

Problems.

Case Study (Jones and Shephard Accountants, Inc.).

4. ORGANIZING AND STAFFING THE PROJECT OFFICE AND TEAM.

4.0 Introduction.

4.1 The Staffing Environment.

4.2 Selecting the Project Manager: An Executive Decision.

4.3 Skill Requirements for Program Managers.

4.4 Special Cases in Project Manager Selection.

4.5 Selecting the Wrong Project Manager.

4.6 Next Generation Project Managers.

4.7 Duties and Job Descriptions.

4.8 The Organizational Staffing Process.

4.9 The Project Office.

4.10 The Functional Team.

4.11 The Project Organizational Chart.

4.12 Special Problems.

4.13 Selecting the Project Management Implementation Team.

4.14 Studying Tips for the PMI Project Management Certification Exam.

Problems.

5. MANAGEMENT FUNCTIONS.

5.0 Introduction.

5.1 Controlling.

5.2 Directing.

5.3 Project Authority.

5.4 Interpersonal Influences.

5.5 Barriers to Project Team Development.

5.6 Suggestions for Handling the Newly Formed Team.

5.7 Team Building as an Ongoing Process.

5.8 Leadership in a Project Environment.

5.9 Life-Cycle Leadership.

5.10 Organizational Impact.

5.11 Employee-Manager Problems.

5.12 Management Pitfalls.

5.13 Communications.

5.14 Project Review Meetings.

5.15 Project Management Bottlenecks.

5.16 Communication Traps.

5.17 Proverbs.

5.18 Management Policies and Procedures.

5.19 Studying Tips for the PMI Project Management Certification Exam.

Problems.

Case Studies (The Trophy Project).

Leadership Effectiveness (A).

Leadership Effectiveness (B).

Motivational Questionnaire.

6. MANAGEMENT OF YOUR TIME AND STRESS.

6.0 Introduction.

6.1 Understanding Time Management.

6.2 Time Robbers.

6.3 Time Management Forms.

6.4 Effective Time Management.

6.5 Stress and Burnout.

6.6 Studying Tips for the PMI Project Management Certification Exam.

Problems.

Case Study (The Reluctant Workers).

7. CONFLICTS.

7.0 Introduction.

7.1 Objectives.

7.2 The Conflict Environment.

7.3 Conflict Resolution.

7.4 Understanding Superior, Subordinate, and Functional Conflicts.

7.5 The Management of Conflicts.

7.6 Conflict Resolution Modes.

7.7 Studying Tips for the PMI Project Management Certification Exam.

Problems.

Case Studies (Facilities Scheduling at Mayer Manufacturing).

Telestar International.

Handling Conflict in Project Management.

8. SPECIAL TOPICS.

8.0 Introduction.

8.1 Performance Measurement.

8.2 Financial Compensation and Rewards.

8.3 Effective Project Management in the Small Business Organization.

8.4 Mega Projects.

8.5 Morality, Ethics, and the Corporate Culture.

8.6 Professional Responsibilities.

8.7 Internal Partnerships.

8.8 External Partnerships.

8.9 Training and Education.

8.10 Integrated Product/Project Teams.

8.11 Studying Tips for the PMI Project Management Certification Exam.

Problems.

9. THE VARIABLES FOR SUCCESS.

9.0 Introduction.

9.1 Predicting Project Success.

9.2 Project Management Effectiveness.

9.3 Expectations.

9.4 Lessons Learned.

9.5 Understanding Best Practices.

9.6 Studying Tips for the PMI Project Management Certification Exam..

Problems.

10. WORKING WITH EXECUTIVES.

10.0 Introduction.

10.1 The Project Sponsor.

10.2 Handling Disagreements with the Sponsor.

10.3 The In-House Representatives.

10.4 Studying Tips for the PMI Project Management Certification Exam. 

Problems.

Case Study (Corwin Corporation).

11. PLANNING.

11.0 Introduction.

11.1 General Planning.

11.2 Life-Cycle Phases.

11.3 Proposal Preparation.

11.4 Understanding Participants' Roles.

11.5 Project Planning.

11.6 The Statement of Work.

11.7 Project Specifications.

11.8 Milestone Schedules.

11.9 Work Breakdown Structure.

11.10 WBS Decomposition Problems.

11.11 Role of the Executive in Project Selection.

11.12 Role of the Executive in Planning.

11.13 The Planning Cycle.

11.14 Work Planning Authorization.

11.15 Why Do Plans Fail?.

11.16 Stopping Projects.

11.17 Handling Project Phaseouts and Transfers.

11.18 Detailed Schedules and Charts.

11.19 Master Production Scheduling.

11.20 Program Plan.

11.21 Total Project Planning.

11.22 The Project Charter.

11.23 Management Control.

11.24 The Project Manager-Line Manager Interface.

11.25 Fast-Tracking.

11.26 Configuration Management.

11.27 Studying Tips for the PMI Project Management Certification Exam.

Problems.

12. NETWORK SCHEDULING TECHNIQUES.

12.0 Introduction.

12.1 Network Fundamentals.

12.2 Graphical Evaluation and Review Technique (GERT).

12.3 Dependencies.

12.4 Slack Time.

12.5 Network Replanning.

12.6 Estimating Activity Time.

12.7 Estimating Total Program Time.

12.8 Total PERT/CPM Planning.

12.9 Crash Times.

12.10 PERT/CPM Problem Areas.

12.11 Alternative PERT/CPM Models.

12.12 Precedence Networks.

12.13 Lag.

12.14 Understanding Project Management Software.

12.15 Software Features Offered.

12.16 Software Classification.

12.17 Implementation Problems.

12.18 Studying Tips for the PMI Project Management Certification Exam.

Problems.

Case Study (Crosby Manufacturing Corporation).

13. PROJECT GRAPHICS.

13.0 Introduction.

13.1 Customer Reporting.

13.2 Bar (Gantt) Chart.

13.3 Other Conventional Presentation Techniques.

13.4 Logic Diagrams/Networks.

13.5 Studying Tips for the PMI Project Management Certification Exam.

Problems.

14. PRICING AND ESTIMATING.

14.0 Introduction.

14.1 Global Pricing Strategies.

14.2 Types of Estimates.

14.3 Pricing Process.

14.4 Organizational Input Requirements.

14.5 Labor Distributions.

14.6 Overhead Rates.

14.7 Materials/Support Costs.

14.8 Pricing Out the Work.

14.9 Smoothing Out Department Man-Hours.

14.10 The Pricing Review Procedure.

14.11 Systems Pricing.

14.12 Developing the Supporting/Backup Costs.

14.13 The Low-Bidder Dilemma.

14.14 Special Problems.

14.15 Estimating Pitfalls.

14.16 Estimating High-Risk Projects.

14.17 Project Risks.

14.18 The Disaster of Applying the 10 Percent Solution to Project Estimates.

14.19 Life-Cycle Costing (LCC).

14.20 Logistics Support.

14.21 Economic Project Selection Criteria: Capital Budgeting.

14.22 Payback Period.

14.23 The Time Value of Money.

14.24 Net Present Value (NPV).

14.25 Internal Rate of Return (IRR).

14.26 Comparing IRR, NPV, and Payback.

14.27 Risk Analysis.

14.28 Capital Rationing.

14.29 Studying Tips for the PMI Project Management Certification Exam.

Problems 560.

15. COST CONTROL.

15.0 Introduction.

15.1 Understanding Control.

15.2 The Operating Cycle.

15.3 Cost Account Codes.

15.4 Budgets.

15.5 The Earned Value Measurement System (EVMS).

15.6 Variance and Earned Value.

15.7 The Cost Baseline.

15.8 Justifying the Costs.

15.9 The Cost Overrun Dilemma.

15.10  Recording Material Costs Using Earned Value Measurement.

15.11 The Material Accounting Criterion.

15.12 Material Variances: Price and Usage.

15.13 Summary Variances.

15.14 Status Reporting.

15.15 Cost Control Problems.

15.16 Studying Tips for the PMI Project Management Certification Exam.

Problems.

Case Study (The Bathtub Period).

16. TRADE-OFF ANALYSIS IN A PROJECT ENVIRONMENT.

16.0 Introduction.

16.1 Methodology for Trade-off Analysis.

16.2 Contracts: Their Influence on Projects.

16.3 Industry Trade-off Preferences.

16.4 Conclusion.

16.5 Studying Tips for the PMI Project Management Certification Exam.

17. RISK MANAGEMENT.

17.0 Introduction.

17.1 Definition of Risk.

17.2 Tolerance for Risk.

17.3 Definition of Risk Management.

17.4 Certainty, Risk, and Uncertainty.

17.5 Risk Management Process.

17.6 Risk Planning.

17.7 Risk Assessment.

17.8 Risk Identification.

17.9 Risk Analysis.

17.10 The Monte Carlo Process.

17.11 Risk Handling.

17.12 Selecting the Appropriate Response Mechanism.

17.13 Risk Monitoring.

17.14 Some Implementation Considerations.

17.15 The Use of Lessons Learned.

17.16 Dependencies between Risks.

17.17 The Impact of Risk Handling Measures.

17.18 Risk and Concurrent Engineering.

17.19 Studying Tips for the PMI Project Management Certification Exam.

Problems.

Case Studies.

Teloxy Engineering (A).

Teloxy Engineering (B).

18. LEARNING CURVES.

18.0 Introduction.

18.1 General Theory.

18.2 The Learning Curve Concept.

18.3 Graphic Representation.

18.4 Key Words Associated with Learning Curves.

18.5 The Cumulative Average Curve.

18.6 Sources of Experience.

18.7 Developing Slope Measures.

18.8 Unit Costs and Use of Midpoints.

18.9 Selection of Learning Curves.

18.10 Follow-on Orders.

18.11 Manufacturing Breaks.

18.12 Learning Curve Limitations.

18.13 Prices and Experience.

18.14 Competitive Weapon.

18.15 Studying Tips for the PMI Project Management Certification Exam.

Problems.

19. CONTRACTS AND PROCUREMENT.

19.0 Introduction.

19.1 Procurement.

19.2 Requirement Cycle.

19.3 Requisition Cycle.

19.4 Solicitation Cycle.

19.5 Award Cycle.

19.6 Types of Contracts.

19.7 Incentive Contracts.

19.8 Contract Type Versus Risk.

19.9 Contract Administration Cycle.

19.10 Using a Checklist.

19.11Proposal-Contractual Interaction.

19.12 Summary.

19.13 Studying Tips for the PMI Project Management Certification Exam.

20. QUALITY MANAGEMENT.

20.0 Introduction.

20.1 Definition of Quality.

20.2 The Quality Movement.

20.3 Comparison of the Quality Pioneers.

20.4 The Taguchi Approach.

20.5 The Malcolm Baldrige National Quality Award.

20.6 ISO 9000.

20.7 Quality Management Concepts.

20.8 The Cost of Quality.

20.9 The Seven Quality Control Tools.

20.10 Process Capability (Cp).

20.11 Acceptance Sampling.

20.12 Operating Characteristic Curves.

20.13 Implementing Six Sigma.

20.14 Quality Leadership.

20.15 Responsibility for Quality.

20.16 Quality Circles.

20.17 Just-in-Time Manufacturing (JIT).

20.18 Total Quality Management (TQM).

20.19 Studying Tips for the PMI Project Management Certification Exam.

21. MODERN DEVELOPMENTS IN PROJECT MANAGEMENT. 

21.0 Introduction.

21.1 The Project Management Maturity Model (PMMM)..

21.2 Developing Effective Procedural Documentation..

21.3 Project Management Methodologies.

21.4 Continuous Improvement.

21.5 Capacity Planning.

21.6 Competency Models.

21.7 Managing Multiple Projects.

21.8 End-of-Phase Review Meetings.

22. CRITICAL CHAIN PROJECT MANAGEMENT.

22.0 Introduction.

22.1 Anatomy of a Task Estimate.

22.2 Task Execution.

22.3 Protection in a Critical Chain Project.

22.4 Buffer Management.

22.5 Managing the Execution of a Critical Chain Project.

22.6 Critical Chain Multiproject Problem and Solution.

22.7 Implementing Multiproject Critical Chain.

22.8 How Critical Chain Extends Critical Path.

Problems.

Lucent Technologies.

Elbit Systems Ltd..

Seagate Technology.

23. THE PROJECT OFFICE.

23.1 Introduction.

23.2 Present-Day Project Office.

23.3 Types of Project Offices.

23.4 Networking Project Management Offices.

23.5 Project management Information Systems.

23.6 Dissemination of Information.

23.7 Mentoring.

23.8 Development of Standards and Templates.

23.9 Project management Benchmarking.

23.10 Business Case Development.

23.11 Customized Training (Related to Project management).

23.12 Managing Stakeholders.

23.13 Continuous Improvement.

23.14 Capacity Planning.

23.15 Risks of Using a Project Office.

Appendix A: Solutions to the Project Management Conflict Exercise.

Appendix B: Solution to Leadership Exercise.

Appendix C: Dorale Products Case Studies.

Appendix D: Dorale Products Case Studies Answers.

Appendix E: Crosslisting of PMBOK® to the Ninth Edition.

Author Index.

Subject Index.

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HAROLD KERZNER, Ph.D., a prominent instructor for the International Institute of Learning (IIL), is currently Professor of Systems Management at Baldwin-Wallace College in Ohio and President of Project Management Associates, a consulting and training firm that conducts seminars for leading U.S. and international corporations. He is the recipient of a Distinguished Alumni Award from the University of Illinois and has taught engineering at that institution and business administration at Utah State University, where he received the 1998 Distinguished Service Award. The Northeast Ohio Chapter of the Project Management Institute has honored Dr. Kerzner by instituting the Kerzner Award for Project Management Excellence.
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* Revised and updated for course use including expanded problems and exercises.

* Content will be more closely aligned with the new PMBOK 3E from the Project Management Institute (PMI).

*  For the first time the book will be supplemented with an online test-bank for those preparing for PMI’s PMP Certification Exam.

* Supplemented by instructors packages for both academic use and corporate trainers, will include online powerpoint presentations, and instructor's manual.

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