Aaron, 80
Abernathy, 17
Abram, 130
Ackoff, 261
Action plan. See Planning
Activity. See also Scheduling
budgeting, 121
definition, 153
dummy, 155
time estimation. See also Time estimation
at the 90% and 95% levels, 163
deterministic, 153
expected time, 162
probabilistic (stochastic), 153, 162–165
standard deviation of, 162
variance of, 163
Activity-on-arrow (AOA), activity-on-node (AON). See Scheduling
Adams, 253
Adler, 227
Afzalur, 61
Aggregate project plan, 23–24. See also Project Portfolio Process
breakthrough projects, 23–24, 78
R&D projects, 24
Uses, 24
Amor, 125
Analytical approach, 37
Atlantic States Chemical Laboratories, 291
financial vs. project audits, 283–284
types of, 283
Australia's M5 East Tunnel, 99
Australian Parliament House project, 263
Autoweek, 63
Badiru, 125
Bailetti, 64
Bailey, 67
Baker, 289
Barr, 257
Baseline plan. See Planning
Beta distribution, 135, 162–163, 174, 309
BetaPERT distribution, 139
Block, 55
Boeing, 39
Bolles, 55
Booz-Allen Hamilton, 153
Boston's Big Dig, 130
Bracker, 79
Bratta, 80
Budget. See also Cost
activity budgeting, 121
budgeting in practice, 133–134
changes,
causes, 131
handling changes, 133
life cycle, impact of, 118–119
monitoring, 112
multiproject, 121
program budgeting, 121
Failure Mode and Effect Analysis (FMEA), 98–99
Risk Priority Number (RPN), 99
Buffers. See Critical chain
Bureau of Labor Statistics (BLS), 128, 133
Callahan, 64
Camm, 125
Central Arizona Project (CAP), 38
Central Limit Theorem. See Statistics
Change order, 133
Charter. See Project charter
Cisco Systems, 27
Clark, 23
Comparative benefit selection method, 13
of change, 93
Concurrent engineering, 63
Conflict and conflict resolution, 2, 4, 36, 38, 43, 54, 55, 59–62, 63–64
project evaluation, 282
sources of, 59
Conflict avoidance, 61
Conger, 44
Control
mechanisms of, 263
milestone status reports, 264–265
plan-monitor-control cycle, 244–246
project baseline, 83, 246, 254, 257
project management maturity model, 56–57, 267
components of, 264
control charts, 268
types of control systems, 264–265
cybernetic controls, 264
post-project controls, 264–265
Cost. See also Budget
account numbers, 115
direct, 117
GS&A, 117
overhead, 117
perspectives on, 115
Cost estimation, 113, 117–122, 122–130
direct cost (work element costing), 117
errors, correcting for
bias, 127
random, 127
forms, 123
price information, 128
mean absolute ratio (MAR), 128
influence of organizational climate, 129
overhead costs, 117
padding cost estimates, 230
Cost variance. See Earned value
CPM. See Scheduling
Crashing a project. See Resource allocation
definition, 235
early completion time
“not reporting” simulation, 231–232
ProChain®, 246
project buffers, 235
student syndrome, 188, 223, 230, 231, 234
Theory of Constraints, 227, 234
time buffers, 235
Critical path. See Scheduling
Critical Path Method (CPM). See Scheduling
Critical time. See Scheduling
Crystal Ball®,* 134–143, See also, Simulation
Assumption cell, 136
CB User's Group, 136
Distribution Gallery, 137, 138–139
fitting statistical distribution to data, 248
Forecast cell, 137
simulation,
not reporting early task completion, 231–232
Decision Sciences Institute, (aka: American Institute of Decision Sciences), 261
Decision table (payoff matrix). See Risk management
Delphi Method, 26
Design Structure Matrix (DSM), 65–66
DiPietro, 64
Ditch Witch, 201
Dupont de Nemours, 153
actual cost of work performed (AC), 255
baseline plan. See Planning
budget at completion (BAC), 257
conventions for calculations, 254–255
cost performance index (CPI), 255, 257
cost (spending) variance, 255–256
definition, 254
estimated (cost) at completion (EAC), 257
estimated (cost) to complete (ETC), 257
differences from PMI standards, 257–259
MSP estimate at completion (EAC), 257
MSP variance at completion (VAC), 257
planned (budgeted) cost of the work performed (EV), 254–255
planned (budgeted) cost of the work scheduled (PV), 255
schedule performance index (SPI), 255–256, 257
schedule variance, 255
Employee Involvement (EI), 66. See also Empowerment
Empowerment (work teams), 66–67
Enterprise project management. See Project-oriented organization
Eppinger, 66
conflict, 282
measurement, 282
definition, 280
evaluation report, 281
post-project evaluation, 281
Evans, 125
Event (node)
definition, 153
Excel®,
calculating probabilities, 172–173
resource loading display, 220
Solver, use of, 161
Expected value. See Risk management
Fendley, 225
Fiat, 49
Flemming, 257
Flynn, 39
Ford, 83
Functional project organization. See Organization
Gantt chart. See Scheduling
General Electric Co., 13
Global competition, 3
Goldratt, 37, 186, 222, 227, 230
Gozinto chart, 84
Graham, 267
Grumman Aircraft. See Northrup-Grumman
Gupta, 267
Hamburger, 115
Harwell, 262
Hauptman, 64
Hayes, 17
Health Insurance Portability and Accountability Act (HIPAA), 115
Hertz, 99
Hertzberg, 58
Hierarchical planning process. See Planning
Hildebrand, 27
Hirji, 64
Hyunsberger, 68
Hurdle rate of return, 14, 16, 135
Hurricane Katrina, 143
Hussain, 228
Integration management, 62, 63–64
Interface coordination (Interface management), 62, 64–65
ISO 9001, 56
Jones, 46
Kamburowksi, 162
Kandt, 269
Kent, 68
Kimball, 291
Koppleman, 257
Knutson, 81
Kurstedt, 102
Kurtulus, 205
Labor pools, 219
Langley, 76
Last Minute Panic (LMP), 261
Launch meeting. See Project launch meeting
resource allocation, impact on, 226–227
S-shaped, 10
Limerick nuclear power generator, 117
Line balancing, 221
Lockheed Martin Corp., 153
Logic chart, 103
Lubianiker, 56
Mallak, 102
Manage by exception, 4
Management by projects. See Project oriented management
Mandelbaum, 227
Mars Probe, 280
Matrix management. See Organization
McLaughlin, 83
McMahon, 186
Mean absolute ratio (MAR), 128
Meetings, 40–41, 81–83, 252–254
launch. See Project launch meeting
Micromanagement, 38, 85, 67, 201
Microsoft Excel®*. See Excel®
Microsoft Project® (MSP),
earned value. See also Earned value calculations, 260
strengths and weaknesses, 185
multiple project scheduling, 223–227
loading display, 211
resource loading, leveling reports, 213–221
tracking a project, 246
use to build networks, 159–161
use to calculate critical path, time, and slack, 151–161
use in probabilistic networks, 166–172
Microsoft Word®, 252
definition, 153
Mind mapping. See Planning
Mindtree, 25
Mission, 3
Mission statement, 11, 77. See also Planning
Mixed form. See Organization
Monitoring
formats for reporting, 247
definition, 244
earned value. See Earned value
objectives of, 244
plan-monitor-control cycle, 244–246
system design, 246
updating reports, 249
tracking a project, 246
Monte Carlo simulation. See Crystal Ball® and Simulation
Multidisciplinary teams, 62–68
Multiple projects, 124
budgeting, 124
resource allocation and scheduling, 223–227. See also Resource allocation
Multitasking. See Critical chain
Mythical man month, 129
Name-only team, 61
Narula, 205
National Association of Industrial and Office Properties, 56
Negotiation, 5–6, 43–44, 59, 61, 92
life cycle, impact of, 118–119
plan, 92
Net present value. See Discounted cash flows
Network. See Scheduling
Nguyen, 227
Nippon Sanso, Inc., 63
Nixon, 263
Node. See Event
Normal probability distribution table, 171
Northrop-Grumman Corp., 43
Operating/Competitive Necessity selection method, 13
Opportunity cost of capital, 16–18
Organization (of projects)
balanced, 53
strong, 53
weak, 53
mixed form, 55
Ortec International, 291
Participatory decision making/ management, 37, 83, 116, 66–67, 18–119
Paralysis by analysis, 76
Pasternak, 161
Path. See Scheduling
Patterson, 35
Patzak, 102
Pells, 79
Pennypacker, 56
People for the Ethical Treatment of Animals (PETA), 77
Persuasion, 44
PERT. See Scheduling
Peters, 76
Philadelphia Transportation Authority (SEPTA), 79
Plan-monitor-control cycle, 244–246
Planning
baseline plan, 83, 246, 254, 255, 263
hierarchical planning process, 84–85
rolling wave planning, 79
sequence (steps to plan), 80
sign-offs, 83
work breakdown structure (WBS), 83–85, 116
process of constructing, 83–92
PM Network, 47
Portfolio management. See Aggregate project plan
Post-project evaluation. See Evaluation
Precedence diagramming. See Scheduling
Precedence of tasks, 86
Prentis, 79
addition rule, 304
multiplication rule, 303
standard distributions, 309
Procter & Gamble, 2
budgeting, 121
Program evaluation and review technique (PERT). See Scheduling
Project
as a system, 37
definition, 2
quality, 7
quality, See Project, goals
R&D, 24
resource constrained, 201
reports. See Monitoring
time constrained, 201
why use, 2
Project audit. See Auditing
Project champion, 40, 56, 58, 81
Project Charter, 76–79, 83, 112
Project control. See Control
Project evaluation. See Evaluation
Project final report. See Termination
Project history (project final report), 249, 292–293
Projectitis, 51
Projectizing, 3
Project launch meeting, 35, 81–83
Project management maturity, 3, 56
Project Management Body of Knowledge (PMBOK), 2, 4, 8, 22, 47, 56, 77, 92, 115, 130, 134, 249, 255, 257, 267, 270,
Project Management Institute (PMI), 2, 19, 46–47, 46, 47, 130, 257, 280
PMI Certification, 47
PMI Code of Ethics, 19, 46, 102, 129
Project Management Journal, 47
Project management maturity model, 56–57, 267
Project management office (PMO), 3, 8, 23, 23, 56, 59
Enterprise project management office (EPMO) (aka: Corporate proj. mgt. office, CPMO), 56
Project management v. general management, 4
Project manager
responsibilities, 4–6, 38, 41–44
firefighting, 42
negotiation, conflict resolution, persuasion, 43–44
selection of, 11–22, 44, 44–46
required characteristics, 44–46
sensitivity, interpersonal and political, 45, 58
Project monitoring. See Monitoring
Project office. See Project management office
Project oriented organization, 11, 47
Project Portfolio Process, 22–27. See also Aggregate project planning
Project scope, 4, 7, 77, 81, 131, 133, 269–271
comparative benefits, 13
operating/competitive necessity, 13
sacred cow, 12
payback period, 14
financial options and opportunity costs, 18
weighted factor method, 20–22, 23
Project success, 281, 289. See also Evaluation and Termination
Project team, 57–62. See also Multidisciplinary teams
characteristics of effective team, 57–58
Project termination. See Termination
Project uncertainty. See Risk management
Pudong International Airport, 78
Pure project. See Organization
Q-sort, 13
Quality circles (QC), 66. See also Empowerment
Quasi-projects, 3
Queues (waiting lines), 226
length of queue, formula, 226
Random number generation. See Excel® and Crystal Ball®
Reif, 79
Reith, 269
Remy, 57
Required rate of return. See Hurdle rate of return
Resource allocation. See also Scheduling
constrained resources, 222
Critical Path Method (CPM), 201–207
expediting in practice, 205
life cycle, impact of, 227
multiple project scheduling, 224–227
using Microsoft Project®, 224–225
priority rules, 212–213, 225, 226–227
resource availability calendar, 209, 210, 213
using Microsoft Project®, 213–221
Microsoft Project® display, 209, 211
monitoring, 212
resource loading, leveling reports, 213–219
resource pools, 219
resource usage
Resource calendar. See Resource allocation
Resource constraints. See Resource allocation
Resource leveling. See Resource allocation
Resource loading. See Resource allocation
Responsible, Accountable, Consult, Informed matrix. See RACI matrix
Return on investment, 14
Risk management, 97–104, 134–143
contingency planning, 78, 102–103
decision table (payoff matrix), 19–20, 100–102
disaster, 143
Failure Mode and Effect Analysis (FMEA), 98–99
Risk Priority Number (RPN), 99
outcome estimates, 100
path merge calculation problem, 173–174
probability of path (project) completion, 166–172
probabilistic activity times, 163–165
quantitative risk analysis, 99–102
risk identification, 98
scenario analysis, 98
risk management planning, 98
risk monitoring and control, 103
risk register, 8
risk response, 102
simulation. See Simulation
uncertain activity times. See Activity
uncertainty of critical path and time, 164
San Francisco Metro Turnback project, 262
Sacred cow selection method, 12–13
Sarbanes-Oxley Act (SOX), 115
Schedule variance. See Earned value
Scheduling. See also Activity
computer, use of, 159–161, 165–172
crashing a project. See Resource Allocation
definition, 153
critical path method (CPM), 153–158, 201–205. See also Resource Allocation
definition, 153
earliest start (finish) time (ES, EF), 156–158
construction of, 181
strengths and weaknesses, 185
latest start (finish) time (LS, LF), 156–158
Microsoft Project, use of, 159–161
constructing network, 159–161, 165–166
constructing Gantt chart, 181–185
precedence diagramming, 186–187
multiple projects. See Resource allocation
network (AOA and AON), 154
definition, 153
path merge problem, 173–174, 177
precedence diagramming, 186–187
probability of project or path completion, 166–172
project (network) slack, 159
program evaluation and review technique (PERT), 98, 153–159
simulating a schedule. See Simulation
free slack, 161
total slack, 161
sources of problems for schedules, 234–235
Schwerer, 227
Scope creep (change), 39, 44, 59, 119
change control system, 269–271
reasons for, 131, 133. See also Project selection
Selection. See Project selection
Self-directed teams (SDT), 66. See also Empowerment
Self-directed work teams (SDWT), 66. See also Empowerment
Self-managed teams (SMT), 66. See also Empowerment
SEPTA (Philadelphia Transit Authority), 79
Sheffi, 143
Simulation. See also Crystal Ball®
Monte Carlo simulation, 8, 102, 134–143, 174–181, 228–233, 231–232
project network simulation Crystal Ball®, 174–181
vs. statistical analysis, 179–181
Simon, 99
Six Sigma, 66
Slack (aka: float). See Scheduling and Activity
Slevin, 58
Smith, 80
Central Limit Theorem, 170, 307–308
descriptive statistics, 305–306
inferential statistics, 305, 307–308
measures of central tendency: mean, median, mode, 306
measures of dispersion
range, 306
sample mean, 306
sample standard deviation, 307
sample variance, 307
normal probability distribution table, 171
path merge probability calculation, 173–174, 179–180
population mean (μ), 306
population standard deviation (σ), 307
population variance (σ2), 307
statistical independence, 179
stochastic, 166
Strategy, 3
Student syndrome, 188, 222, 230, 231, 234
Subtask, 2
Superconducting supercollider (SSC), 289
Systems engineering. See Concurrent engineering
Task, 2
predecessors, successors, 86, 85–90
Tate, 81
Teplitz, 125
project final report (history), 249, 292–293
Texas Instruments Inc., 55, 260
Theory of Constraints, 227, 234
Thermos Co., 63
Thomas, 99
Time estimation
at the 90% and 95% levels, 163
deterministic, 153
expected time, 162
errors, correcting for
bias, 127
random, 127
mean absolute ratio (MAR), 128
probabilistic (stochastic), 162–165
standard deviation of, 162
variance of, 163
3M Corp., 289
Toney, 267
Total quality management (TQM), 66. See also Empowerment
mean absolute ratio, 128
influence of organizational climate on, 42–43
Transdisciplinary teams. See Multidisciplinary teams
Trends in Project Management, 3
Triangular distribution, 135
Uncertainty, 7–9, 134–143, 130–133 See also Risk management
United Kingdom Child Support Agency, 270–271
United States Department of Commerce, 128
United States Federal Transportation Security Administration, 56
United States Navy, 153
Unity of Command, 54
ViewStar Corporation, 260
Virtual projects manager, 39–40
meetings. See Monitoring
reports. See Monitoring
Walt Disney Co., 59
War room, 59. See also Project management office
Wearne, 228
Webster, 79
Wheelwright, 23
Whole-brain planning, See Planning
Wilemon, 60
Womer, 125
Work breakdown structure (WBS). See Planning
Work teams, 66–67. See also Multidisciplinary teams
World Trade Center, 143
Wu, 262
Young Men's Christian Association (YMCA), 166–169
*Oracle's Crystal Ball® is referenced frequently throughout the book, and page entries will not be cited except for discussions of the use of the software.
*Microsoft Excel® is referenced frequently throughout the book, so page entries will not be cited except for discussions of the use of the software.