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PROJEO ASystems Approach to Planning
Scheduling and Controlling SECOND EDITION
RESOURCES
Harold Kerzner PhD
PROJECT MANAGEMENT A SYSTEMS APPROACH
m PLANNINGmiddot SCHEDULING
AND CONTROLLING Second Edition
HAROLD KERZNER PhD Division of Business Administration
Baldwin-Wallace College
Berea Ohio
CBS
CBS PUBLISHERS amp DISTRIBUTORS PVTLTD
New Delhi bull Bengaluru bull Chennai bull Kochi bull Mumbai bull Pune
ISBN 81-239-0867-9
First Indian Edition 1987 Reprint 19982000200220032004
Branches
bull Bengaluru Seema House 2975 17th Cross KR RoadBansankari nd Stage Bengaluru - 560070bull Ph +91-30-2677167879 bull Fax +91-80-26771680bull E-mail cbsbnggmailcom bangalorecbspdcom
bull Pune Bhuruk Prestige Sr No 52122+ I+ 32Narhe Haveli (Near Katraj-Dehu Road By-pass) Pune - 411041bull Ph +91-20-6470405859 020-32392277 bull E-mail punecbspdcomKochi 3614 Kalluvilakam Lissie Hospital RoadKochi - 682018 Kerala bull Ph +9 l-484-4059061-65 bull Fax +QJ 484-4059065 bull E-mail cochincbspdcom Clrennat 20 West Park Road Shenoy Nagar Chennai - 600030Ph +91-44-26260666 26208620 bull Fax +91-44-42032115bull E-mail chennaicbspdcomMumbai 83-C 1st Floor Dr E Moses Road Worli Mumblaquo-400 0 8Mahau1shtra Ph +91-9833017933 02-249023402490234 lbull E-mail mumbaicbspdcom
Printed at
-
Nikunj Print Process Delh
to
DR HERMAN KRIER
my Friend and Guru
who taught me well the
meaning of the word persistence
I
Pref ace to the Second Edition
The early 1980s have brought an accekrated demand for the implementation of project management to a degree never before dreamed possible Executives have finally realized that project management and productivity are related both trying to make effective and efficient utilization of existing resources This book was developed to provide a hands-0n approach to learning the necessary tools and techniques by which activiiies can be integrated throughout an orgashynization regardless of organizational size project complexity or type of industry
This book is addressed not only to those undergraduate and graduate stushydents who wish to understand the contributions to modern management theory and practice resulting from project management applications but also to those functional managers and upper-level executives who must either directly or indirectly provide their continuous support to all projects
The first five chapters are the basic core of knowledge needed to understanc project management Chapters 6 through 8 deal with the support functions of time management conflict resolution and other special topics Chapters 9 and IO describe executive involvement and the overall variables for predicting proshyject success Chapters 11 through 15 describe the quantitative tools for project management planning scheduling and cost control Chapter 16 identifies the various methodologies for trade-0ffs on time cost and performance Chapters 17 through 20 consider the more advanced topics of proposal preparation information systems international project management and future trends in project management The text contains forty-two case studies two multipleshychoice exams and 332 diswssion questions An instructors manual is available to collegeuniversity seminar adopters by writing to either the publisher or the author
The problems and case studies at the end of eah chapter cover a variety of real-world situations Almost all of the case studies are factual and many have come directly from my consulting practice Feedback from colleges and unishyversities that have adopted this text at the graduate and undergraduate levels have provided me with fruitful criticism most of which has been incorporated 4Jto the second edition
Valuable criticisms and contributions were made by many colleagues In
vii
vii PREFACE TO THE SECOND EDITllN
particular I am indebted to Roy Loring for the many Saturdays and Sundays that he sacrificed to spend time dicussing methodologies for training project managers and selling project management to companies not already engulfed in the world of project management Mr Lorings invaluable comments have resulted in the addition of several new chapters To Patricia Ray typist extraordinaire I owe maily thanks for her having typed five of my texts on project management and being able to adhere to the time cost and perforshymance constraint set forth on these projects To Dynamic Graphics Incorposhyrated I express my sincere gratitude for permission to use many of their carshytoons throughout the text Unless otherwse indicated
All cartoon artwork is provided by Dynamic Graphics Inc 6707 N Sherishydan Road Peoria Illinois 61614 This artwork is copyrighted Any reprer duction is strictly prohibited without permission of Dynamic Graphics Inc
Finally I v1ish to express my deepest appreciation to Dr Mark Collier_ Vice President for Academic Affairs for his invaluable support assistance and encouragement toward conducting meaningful research for this text
Harold Kerzner Baldwin-Wallace College
4
Contents
Prf(11ce vii
l OVERVIEW I
10 Introduction 1 11 Understanding Project Managment 2 12 The Project Manager-Line Manager Interface 6 13 Debing the Project Managers Role gt
14 Defining the Functional Managen Role 12 15 Defining the Executives Role 15 16 The Project Manager as the Planning Agent ) I 7 The Down Side Risk of Project Management I 7 I 8 The Growth of Project Management 19 19 Project-Driven vs Noii-Project Driven Organizations 36 110 Marketing in the Project-Driven Organization 38 111 Location of the Project Manager 40 112 Differing Views of Project Management 44
Case Studies Jackson Industries 48 TRW-Nelson Division 50
2 SYSTFMS THEORY AND CONCEPTS 58
20 Introduction 58 21 General Systems Theory Growth 58 22 Systems Tneory and Business 60 23 Cevelopment of the Business System 61 24 Modeling the Business System 64 25 Systems Programs and Projects A Definition 66 26 Product vs Project Managen-ent A Definition 69 27 Project Life Cycles 71 28 Systems Thinking 80
Case Studies L P Manning 84 Project Firecracker 85
x CONTENTS
1 ORGANIZATION STRUCTURES 9 1
3 0 I ntroduction 9 1 3 1 Organizat ional Work Flow 9 5 3 2 Tradi tional (Classica l ) Organization 96 3 3 Developing Work I ntegration Posi tions J OO 3 4 Line-Staff Organization I OS
Pure Product Organizat ion I 07 3 6 Matrix Organizat ional Form 1 09 3 7 Modification of Matr ix StructurPs 1 2 1 3 8 Matrix Layering 1 26 3 9 Select i ng the Organizational Form 1 27 3 1 0 Structu ring the Smal l Company 1 36
Case Studies
Jones and Shephard Accountants 1 44 Fargo Foods 1 47 Quasar Communications I SO
4 ORGANIZING AND STA FFING THE PROJECT OFFICE AND TEAM 1 54
4 0 I nt roduction I 54 4 1 The Staffing Environment I 5 5 4 2 Selecting t h e Project Manager An Executive Dec ision t 59 4 3 Sk i l l Requ irements for Program Managers 1 66 44 Spec ia l Cases i n Project Manager Selection 1 74 4 5 Selec t i ng the Wrong Project Manager 1 74 4 6 Dut ies and Job Descript ions 1 79 4 7 The Organ iza t ional Staffing Process 1 83 4 8 The Project Office 1 92 4 9 The Functiona l Team 200 4 1 0 The Project Organizational Chart 202 4 1 1 Special Problems 206
Case Studies
Government Project Management 2 1 S Fal ls Engineering 2 1 6 White Manufacturing 2 1 9 Martig Construction Company 220 The Carlson Project 22 1
5 MANAGEM ENT FUNCTIONS 223
50 l nt rvduction 223 5 1 Control l ing 224 5 2 Directing 2 25 5 3 Authority t30 54 I nt erpersonal I nfluences 239 5 5 to Project Team Development l42
CONTENTS 1lt
5 6 Suggestions for t he Newly Formed Team 249 57 Team Bui lding as an Process 252 58 in a Project Environment 2 54 5 9 Organizational I mpact 255 5 1 0 Employee Manager Problems 2 57 5 1 1 Management Pitfal ls 26 1 5 1 2 Communications 265 5 1 3 Project Review Meetings 269 5 1 4 Management Bott lenecks 272 5 1 5 Communicat ion Traps 274 5 1 6 Proverbs 276 5 1 7 Management Policies and Procedures 277
Case Studies Webster I ndustrial Controls 29 1 Liberty Construction 294 Wynn Computer 303 The Trophy Project 305 Starr Air Force Base 307
6 TIM E MANAGEMENT 3 1 7
6 0 In t roduction 3 1 7 6 1 Time Management Survey 3 1 7 6 2 Effect ive Time Management 334 6 3 Management Pitfal ls 338 64 Project Communications 339 6 5 Project Management Bottenecks 34 l
Case Studies
The Reluctant Workers 3 4 1
7 CONFLICTS 343
middot o I ntroduction 343 7 1 343
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
PROJECT MANAGEMENT A SYSTEMS APPROACH
m PLANNINGmiddot SCHEDULING
AND CONTROLLING Second Edition
HAROLD KERZNER PhD Division of Business Administration
Baldwin-Wallace College
Berea Ohio
CBS
CBS PUBLISHERS amp DISTRIBUTORS PVTLTD
New Delhi bull Bengaluru bull Chennai bull Kochi bull Mumbai bull Pune
ISBN 81-239-0867-9
First Indian Edition 1987 Reprint 19982000200220032004
Branches
bull Bengaluru Seema House 2975 17th Cross KR RoadBansankari nd Stage Bengaluru - 560070bull Ph +91-30-2677167879 bull Fax +91-80-26771680bull E-mail cbsbnggmailcom bangalorecbspdcom
bull Pune Bhuruk Prestige Sr No 52122+ I+ 32Narhe Haveli (Near Katraj-Dehu Road By-pass) Pune - 411041bull Ph +91-20-6470405859 020-32392277 bull E-mail punecbspdcomKochi 3614 Kalluvilakam Lissie Hospital RoadKochi - 682018 Kerala bull Ph +9 l-484-4059061-65 bull Fax +QJ 484-4059065 bull E-mail cochincbspdcom Clrennat 20 West Park Road Shenoy Nagar Chennai - 600030Ph +91-44-26260666 26208620 bull Fax +91-44-42032115bull E-mail chennaicbspdcomMumbai 83-C 1st Floor Dr E Moses Road Worli Mumblaquo-400 0 8Mahau1shtra Ph +91-9833017933 02-249023402490234 lbull E-mail mumbaicbspdcom
Printed at
-
Nikunj Print Process Delh
to
DR HERMAN KRIER
my Friend and Guru
who taught me well the
meaning of the word persistence
I
Pref ace to the Second Edition
The early 1980s have brought an accekrated demand for the implementation of project management to a degree never before dreamed possible Executives have finally realized that project management and productivity are related both trying to make effective and efficient utilization of existing resources This book was developed to provide a hands-0n approach to learning the necessary tools and techniques by which activiiies can be integrated throughout an orgashynization regardless of organizational size project complexity or type of industry
This book is addressed not only to those undergraduate and graduate stushydents who wish to understand the contributions to modern management theory and practice resulting from project management applications but also to those functional managers and upper-level executives who must either directly or indirectly provide their continuous support to all projects
The first five chapters are the basic core of knowledge needed to understanc project management Chapters 6 through 8 deal with the support functions of time management conflict resolution and other special topics Chapters 9 and IO describe executive involvement and the overall variables for predicting proshyject success Chapters 11 through 15 describe the quantitative tools for project management planning scheduling and cost control Chapter 16 identifies the various methodologies for trade-0ffs on time cost and performance Chapters 17 through 20 consider the more advanced topics of proposal preparation information systems international project management and future trends in project management The text contains forty-two case studies two multipleshychoice exams and 332 diswssion questions An instructors manual is available to collegeuniversity seminar adopters by writing to either the publisher or the author
The problems and case studies at the end of eah chapter cover a variety of real-world situations Almost all of the case studies are factual and many have come directly from my consulting practice Feedback from colleges and unishyversities that have adopted this text at the graduate and undergraduate levels have provided me with fruitful criticism most of which has been incorporated 4Jto the second edition
Valuable criticisms and contributions were made by many colleagues In
vii
vii PREFACE TO THE SECOND EDITllN
particular I am indebted to Roy Loring for the many Saturdays and Sundays that he sacrificed to spend time dicussing methodologies for training project managers and selling project management to companies not already engulfed in the world of project management Mr Lorings invaluable comments have resulted in the addition of several new chapters To Patricia Ray typist extraordinaire I owe maily thanks for her having typed five of my texts on project management and being able to adhere to the time cost and perforshymance constraint set forth on these projects To Dynamic Graphics Incorposhyrated I express my sincere gratitude for permission to use many of their carshytoons throughout the text Unless otherwse indicated
All cartoon artwork is provided by Dynamic Graphics Inc 6707 N Sherishydan Road Peoria Illinois 61614 This artwork is copyrighted Any reprer duction is strictly prohibited without permission of Dynamic Graphics Inc
Finally I v1ish to express my deepest appreciation to Dr Mark Collier_ Vice President for Academic Affairs for his invaluable support assistance and encouragement toward conducting meaningful research for this text
Harold Kerzner Baldwin-Wallace College
4
Contents
Prf(11ce vii
l OVERVIEW I
10 Introduction 1 11 Understanding Project Managment 2 12 The Project Manager-Line Manager Interface 6 13 Debing the Project Managers Role gt
14 Defining the Functional Managen Role 12 15 Defining the Executives Role 15 16 The Project Manager as the Planning Agent ) I 7 The Down Side Risk of Project Management I 7 I 8 The Growth of Project Management 19 19 Project-Driven vs Noii-Project Driven Organizations 36 110 Marketing in the Project-Driven Organization 38 111 Location of the Project Manager 40 112 Differing Views of Project Management 44
Case Studies Jackson Industries 48 TRW-Nelson Division 50
2 SYSTFMS THEORY AND CONCEPTS 58
20 Introduction 58 21 General Systems Theory Growth 58 22 Systems Tneory and Business 60 23 Cevelopment of the Business System 61 24 Modeling the Business System 64 25 Systems Programs and Projects A Definition 66 26 Product vs Project Managen-ent A Definition 69 27 Project Life Cycles 71 28 Systems Thinking 80
Case Studies L P Manning 84 Project Firecracker 85
x CONTENTS
1 ORGANIZATION STRUCTURES 9 1
3 0 I ntroduction 9 1 3 1 Organizat ional Work Flow 9 5 3 2 Tradi tional (Classica l ) Organization 96 3 3 Developing Work I ntegration Posi tions J OO 3 4 Line-Staff Organization I OS
Pure Product Organizat ion I 07 3 6 Matrix Organizat ional Form 1 09 3 7 Modification of Matr ix StructurPs 1 2 1 3 8 Matrix Layering 1 26 3 9 Select i ng the Organizational Form 1 27 3 1 0 Structu ring the Smal l Company 1 36
Case Studies
Jones and Shephard Accountants 1 44 Fargo Foods 1 47 Quasar Communications I SO
4 ORGANIZING AND STA FFING THE PROJECT OFFICE AND TEAM 1 54
4 0 I nt roduction I 54 4 1 The Staffing Environment I 5 5 4 2 Selecting t h e Project Manager An Executive Dec ision t 59 4 3 Sk i l l Requ irements for Program Managers 1 66 44 Spec ia l Cases i n Project Manager Selection 1 74 4 5 Selec t i ng the Wrong Project Manager 1 74 4 6 Dut ies and Job Descript ions 1 79 4 7 The Organ iza t ional Staffing Process 1 83 4 8 The Project Office 1 92 4 9 The Functiona l Team 200 4 1 0 The Project Organizational Chart 202 4 1 1 Special Problems 206
Case Studies
Government Project Management 2 1 S Fal ls Engineering 2 1 6 White Manufacturing 2 1 9 Martig Construction Company 220 The Carlson Project 22 1
5 MANAGEM ENT FUNCTIONS 223
50 l nt rvduction 223 5 1 Control l ing 224 5 2 Directing 2 25 5 3 Authority t30 54 I nt erpersonal I nfluences 239 5 5 to Project Team Development l42
CONTENTS 1lt
5 6 Suggestions for t he Newly Formed Team 249 57 Team Bui lding as an Process 252 58 in a Project Environment 2 54 5 9 Organizational I mpact 255 5 1 0 Employee Manager Problems 2 57 5 1 1 Management Pitfal ls 26 1 5 1 2 Communications 265 5 1 3 Project Review Meetings 269 5 1 4 Management Bott lenecks 272 5 1 5 Communicat ion Traps 274 5 1 6 Proverbs 276 5 1 7 Management Policies and Procedures 277
Case Studies Webster I ndustrial Controls 29 1 Liberty Construction 294 Wynn Computer 303 The Trophy Project 305 Starr Air Force Base 307
6 TIM E MANAGEMENT 3 1 7
6 0 In t roduction 3 1 7 6 1 Time Management Survey 3 1 7 6 2 Effect ive Time Management 334 6 3 Management Pitfal ls 338 64 Project Communications 339 6 5 Project Management Bottenecks 34 l
Case Studies
The Reluctant Workers 3 4 1
7 CONFLICTS 343
middot o I ntroduction 343 7 1 343
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
ISBN 81-239-0867-9
First Indian Edition 1987 Reprint 19982000200220032004
Branches
bull Bengaluru Seema House 2975 17th Cross KR RoadBansankari nd Stage Bengaluru - 560070bull Ph +91-30-2677167879 bull Fax +91-80-26771680bull E-mail cbsbnggmailcom bangalorecbspdcom
bull Pune Bhuruk Prestige Sr No 52122+ I+ 32Narhe Haveli (Near Katraj-Dehu Road By-pass) Pune - 411041bull Ph +91-20-6470405859 020-32392277 bull E-mail punecbspdcomKochi 3614 Kalluvilakam Lissie Hospital RoadKochi - 682018 Kerala bull Ph +9 l-484-4059061-65 bull Fax +QJ 484-4059065 bull E-mail cochincbspdcom Clrennat 20 West Park Road Shenoy Nagar Chennai - 600030Ph +91-44-26260666 26208620 bull Fax +91-44-42032115bull E-mail chennaicbspdcomMumbai 83-C 1st Floor Dr E Moses Road Worli Mumblaquo-400 0 8Mahau1shtra Ph +91-9833017933 02-249023402490234 lbull E-mail mumbaicbspdcom
Printed at
-
Nikunj Print Process Delh
to
DR HERMAN KRIER
my Friend and Guru
who taught me well the
meaning of the word persistence
I
Pref ace to the Second Edition
The early 1980s have brought an accekrated demand for the implementation of project management to a degree never before dreamed possible Executives have finally realized that project management and productivity are related both trying to make effective and efficient utilization of existing resources This book was developed to provide a hands-0n approach to learning the necessary tools and techniques by which activiiies can be integrated throughout an orgashynization regardless of organizational size project complexity or type of industry
This book is addressed not only to those undergraduate and graduate stushydents who wish to understand the contributions to modern management theory and practice resulting from project management applications but also to those functional managers and upper-level executives who must either directly or indirectly provide their continuous support to all projects
The first five chapters are the basic core of knowledge needed to understanc project management Chapters 6 through 8 deal with the support functions of time management conflict resolution and other special topics Chapters 9 and IO describe executive involvement and the overall variables for predicting proshyject success Chapters 11 through 15 describe the quantitative tools for project management planning scheduling and cost control Chapter 16 identifies the various methodologies for trade-0ffs on time cost and performance Chapters 17 through 20 consider the more advanced topics of proposal preparation information systems international project management and future trends in project management The text contains forty-two case studies two multipleshychoice exams and 332 diswssion questions An instructors manual is available to collegeuniversity seminar adopters by writing to either the publisher or the author
The problems and case studies at the end of eah chapter cover a variety of real-world situations Almost all of the case studies are factual and many have come directly from my consulting practice Feedback from colleges and unishyversities that have adopted this text at the graduate and undergraduate levels have provided me with fruitful criticism most of which has been incorporated 4Jto the second edition
Valuable criticisms and contributions were made by many colleagues In
vii
vii PREFACE TO THE SECOND EDITllN
particular I am indebted to Roy Loring for the many Saturdays and Sundays that he sacrificed to spend time dicussing methodologies for training project managers and selling project management to companies not already engulfed in the world of project management Mr Lorings invaluable comments have resulted in the addition of several new chapters To Patricia Ray typist extraordinaire I owe maily thanks for her having typed five of my texts on project management and being able to adhere to the time cost and perforshymance constraint set forth on these projects To Dynamic Graphics Incorposhyrated I express my sincere gratitude for permission to use many of their carshytoons throughout the text Unless otherwse indicated
All cartoon artwork is provided by Dynamic Graphics Inc 6707 N Sherishydan Road Peoria Illinois 61614 This artwork is copyrighted Any reprer duction is strictly prohibited without permission of Dynamic Graphics Inc
Finally I v1ish to express my deepest appreciation to Dr Mark Collier_ Vice President for Academic Affairs for his invaluable support assistance and encouragement toward conducting meaningful research for this text
Harold Kerzner Baldwin-Wallace College
4
Contents
Prf(11ce vii
l OVERVIEW I
10 Introduction 1 11 Understanding Project Managment 2 12 The Project Manager-Line Manager Interface 6 13 Debing the Project Managers Role gt
14 Defining the Functional Managen Role 12 15 Defining the Executives Role 15 16 The Project Manager as the Planning Agent ) I 7 The Down Side Risk of Project Management I 7 I 8 The Growth of Project Management 19 19 Project-Driven vs Noii-Project Driven Organizations 36 110 Marketing in the Project-Driven Organization 38 111 Location of the Project Manager 40 112 Differing Views of Project Management 44
Case Studies Jackson Industries 48 TRW-Nelson Division 50
2 SYSTFMS THEORY AND CONCEPTS 58
20 Introduction 58 21 General Systems Theory Growth 58 22 Systems Tneory and Business 60 23 Cevelopment of the Business System 61 24 Modeling the Business System 64 25 Systems Programs and Projects A Definition 66 26 Product vs Project Managen-ent A Definition 69 27 Project Life Cycles 71 28 Systems Thinking 80
Case Studies L P Manning 84 Project Firecracker 85
x CONTENTS
1 ORGANIZATION STRUCTURES 9 1
3 0 I ntroduction 9 1 3 1 Organizat ional Work Flow 9 5 3 2 Tradi tional (Classica l ) Organization 96 3 3 Developing Work I ntegration Posi tions J OO 3 4 Line-Staff Organization I OS
Pure Product Organizat ion I 07 3 6 Matrix Organizat ional Form 1 09 3 7 Modification of Matr ix StructurPs 1 2 1 3 8 Matrix Layering 1 26 3 9 Select i ng the Organizational Form 1 27 3 1 0 Structu ring the Smal l Company 1 36
Case Studies
Jones and Shephard Accountants 1 44 Fargo Foods 1 47 Quasar Communications I SO
4 ORGANIZING AND STA FFING THE PROJECT OFFICE AND TEAM 1 54
4 0 I nt roduction I 54 4 1 The Staffing Environment I 5 5 4 2 Selecting t h e Project Manager An Executive Dec ision t 59 4 3 Sk i l l Requ irements for Program Managers 1 66 44 Spec ia l Cases i n Project Manager Selection 1 74 4 5 Selec t i ng the Wrong Project Manager 1 74 4 6 Dut ies and Job Descript ions 1 79 4 7 The Organ iza t ional Staffing Process 1 83 4 8 The Project Office 1 92 4 9 The Functiona l Team 200 4 1 0 The Project Organizational Chart 202 4 1 1 Special Problems 206
Case Studies
Government Project Management 2 1 S Fal ls Engineering 2 1 6 White Manufacturing 2 1 9 Martig Construction Company 220 The Carlson Project 22 1
5 MANAGEM ENT FUNCTIONS 223
50 l nt rvduction 223 5 1 Control l ing 224 5 2 Directing 2 25 5 3 Authority t30 54 I nt erpersonal I nfluences 239 5 5 to Project Team Development l42
CONTENTS 1lt
5 6 Suggestions for t he Newly Formed Team 249 57 Team Bui lding as an Process 252 58 in a Project Environment 2 54 5 9 Organizational I mpact 255 5 1 0 Employee Manager Problems 2 57 5 1 1 Management Pitfal ls 26 1 5 1 2 Communications 265 5 1 3 Project Review Meetings 269 5 1 4 Management Bott lenecks 272 5 1 5 Communicat ion Traps 274 5 1 6 Proverbs 276 5 1 7 Management Policies and Procedures 277
Case Studies Webster I ndustrial Controls 29 1 Liberty Construction 294 Wynn Computer 303 The Trophy Project 305 Starr Air Force Base 307
6 TIM E MANAGEMENT 3 1 7
6 0 In t roduction 3 1 7 6 1 Time Management Survey 3 1 7 6 2 Effect ive Time Management 334 6 3 Management Pitfal ls 338 64 Project Communications 339 6 5 Project Management Bottenecks 34 l
Case Studies
The Reluctant Workers 3 4 1
7 CONFLICTS 343
middot o I ntroduction 343 7 1 343
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
to
DR HERMAN KRIER
my Friend and Guru
who taught me well the
meaning of the word persistence
I
Pref ace to the Second Edition
The early 1980s have brought an accekrated demand for the implementation of project management to a degree never before dreamed possible Executives have finally realized that project management and productivity are related both trying to make effective and efficient utilization of existing resources This book was developed to provide a hands-0n approach to learning the necessary tools and techniques by which activiiies can be integrated throughout an orgashynization regardless of organizational size project complexity or type of industry
This book is addressed not only to those undergraduate and graduate stushydents who wish to understand the contributions to modern management theory and practice resulting from project management applications but also to those functional managers and upper-level executives who must either directly or indirectly provide their continuous support to all projects
The first five chapters are the basic core of knowledge needed to understanc project management Chapters 6 through 8 deal with the support functions of time management conflict resolution and other special topics Chapters 9 and IO describe executive involvement and the overall variables for predicting proshyject success Chapters 11 through 15 describe the quantitative tools for project management planning scheduling and cost control Chapter 16 identifies the various methodologies for trade-0ffs on time cost and performance Chapters 17 through 20 consider the more advanced topics of proposal preparation information systems international project management and future trends in project management The text contains forty-two case studies two multipleshychoice exams and 332 diswssion questions An instructors manual is available to collegeuniversity seminar adopters by writing to either the publisher or the author
The problems and case studies at the end of eah chapter cover a variety of real-world situations Almost all of the case studies are factual and many have come directly from my consulting practice Feedback from colleges and unishyversities that have adopted this text at the graduate and undergraduate levels have provided me with fruitful criticism most of which has been incorporated 4Jto the second edition
Valuable criticisms and contributions were made by many colleagues In
vii
vii PREFACE TO THE SECOND EDITllN
particular I am indebted to Roy Loring for the many Saturdays and Sundays that he sacrificed to spend time dicussing methodologies for training project managers and selling project management to companies not already engulfed in the world of project management Mr Lorings invaluable comments have resulted in the addition of several new chapters To Patricia Ray typist extraordinaire I owe maily thanks for her having typed five of my texts on project management and being able to adhere to the time cost and perforshymance constraint set forth on these projects To Dynamic Graphics Incorposhyrated I express my sincere gratitude for permission to use many of their carshytoons throughout the text Unless otherwse indicated
All cartoon artwork is provided by Dynamic Graphics Inc 6707 N Sherishydan Road Peoria Illinois 61614 This artwork is copyrighted Any reprer duction is strictly prohibited without permission of Dynamic Graphics Inc
Finally I v1ish to express my deepest appreciation to Dr Mark Collier_ Vice President for Academic Affairs for his invaluable support assistance and encouragement toward conducting meaningful research for this text
Harold Kerzner Baldwin-Wallace College
4
Contents
Prf(11ce vii
l OVERVIEW I
10 Introduction 1 11 Understanding Project Managment 2 12 The Project Manager-Line Manager Interface 6 13 Debing the Project Managers Role gt
14 Defining the Functional Managen Role 12 15 Defining the Executives Role 15 16 The Project Manager as the Planning Agent ) I 7 The Down Side Risk of Project Management I 7 I 8 The Growth of Project Management 19 19 Project-Driven vs Noii-Project Driven Organizations 36 110 Marketing in the Project-Driven Organization 38 111 Location of the Project Manager 40 112 Differing Views of Project Management 44
Case Studies Jackson Industries 48 TRW-Nelson Division 50
2 SYSTFMS THEORY AND CONCEPTS 58
20 Introduction 58 21 General Systems Theory Growth 58 22 Systems Tneory and Business 60 23 Cevelopment of the Business System 61 24 Modeling the Business System 64 25 Systems Programs and Projects A Definition 66 26 Product vs Project Managen-ent A Definition 69 27 Project Life Cycles 71 28 Systems Thinking 80
Case Studies L P Manning 84 Project Firecracker 85
x CONTENTS
1 ORGANIZATION STRUCTURES 9 1
3 0 I ntroduction 9 1 3 1 Organizat ional Work Flow 9 5 3 2 Tradi tional (Classica l ) Organization 96 3 3 Developing Work I ntegration Posi tions J OO 3 4 Line-Staff Organization I OS
Pure Product Organizat ion I 07 3 6 Matrix Organizat ional Form 1 09 3 7 Modification of Matr ix StructurPs 1 2 1 3 8 Matrix Layering 1 26 3 9 Select i ng the Organizational Form 1 27 3 1 0 Structu ring the Smal l Company 1 36
Case Studies
Jones and Shephard Accountants 1 44 Fargo Foods 1 47 Quasar Communications I SO
4 ORGANIZING AND STA FFING THE PROJECT OFFICE AND TEAM 1 54
4 0 I nt roduction I 54 4 1 The Staffing Environment I 5 5 4 2 Selecting t h e Project Manager An Executive Dec ision t 59 4 3 Sk i l l Requ irements for Program Managers 1 66 44 Spec ia l Cases i n Project Manager Selection 1 74 4 5 Selec t i ng the Wrong Project Manager 1 74 4 6 Dut ies and Job Descript ions 1 79 4 7 The Organ iza t ional Staffing Process 1 83 4 8 The Project Office 1 92 4 9 The Functiona l Team 200 4 1 0 The Project Organizational Chart 202 4 1 1 Special Problems 206
Case Studies
Government Project Management 2 1 S Fal ls Engineering 2 1 6 White Manufacturing 2 1 9 Martig Construction Company 220 The Carlson Project 22 1
5 MANAGEM ENT FUNCTIONS 223
50 l nt rvduction 223 5 1 Control l ing 224 5 2 Directing 2 25 5 3 Authority t30 54 I nt erpersonal I nfluences 239 5 5 to Project Team Development l42
CONTENTS 1lt
5 6 Suggestions for t he Newly Formed Team 249 57 Team Bui lding as an Process 252 58 in a Project Environment 2 54 5 9 Organizational I mpact 255 5 1 0 Employee Manager Problems 2 57 5 1 1 Management Pitfal ls 26 1 5 1 2 Communications 265 5 1 3 Project Review Meetings 269 5 1 4 Management Bott lenecks 272 5 1 5 Communicat ion Traps 274 5 1 6 Proverbs 276 5 1 7 Management Policies and Procedures 277
Case Studies Webster I ndustrial Controls 29 1 Liberty Construction 294 Wynn Computer 303 The Trophy Project 305 Starr Air Force Base 307
6 TIM E MANAGEMENT 3 1 7
6 0 In t roduction 3 1 7 6 1 Time Management Survey 3 1 7 6 2 Effect ive Time Management 334 6 3 Management Pitfal ls 338 64 Project Communications 339 6 5 Project Management Bottenecks 34 l
Case Studies
The Reluctant Workers 3 4 1
7 CONFLICTS 343
middot o I ntroduction 343 7 1 343
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
I
Pref ace to the Second Edition
The early 1980s have brought an accekrated demand for the implementation of project management to a degree never before dreamed possible Executives have finally realized that project management and productivity are related both trying to make effective and efficient utilization of existing resources This book was developed to provide a hands-0n approach to learning the necessary tools and techniques by which activiiies can be integrated throughout an orgashynization regardless of organizational size project complexity or type of industry
This book is addressed not only to those undergraduate and graduate stushydents who wish to understand the contributions to modern management theory and practice resulting from project management applications but also to those functional managers and upper-level executives who must either directly or indirectly provide their continuous support to all projects
The first five chapters are the basic core of knowledge needed to understanc project management Chapters 6 through 8 deal with the support functions of time management conflict resolution and other special topics Chapters 9 and IO describe executive involvement and the overall variables for predicting proshyject success Chapters 11 through 15 describe the quantitative tools for project management planning scheduling and cost control Chapter 16 identifies the various methodologies for trade-0ffs on time cost and performance Chapters 17 through 20 consider the more advanced topics of proposal preparation information systems international project management and future trends in project management The text contains forty-two case studies two multipleshychoice exams and 332 diswssion questions An instructors manual is available to collegeuniversity seminar adopters by writing to either the publisher or the author
The problems and case studies at the end of eah chapter cover a variety of real-world situations Almost all of the case studies are factual and many have come directly from my consulting practice Feedback from colleges and unishyversities that have adopted this text at the graduate and undergraduate levels have provided me with fruitful criticism most of which has been incorporated 4Jto the second edition
Valuable criticisms and contributions were made by many colleagues In
vii
vii PREFACE TO THE SECOND EDITllN
particular I am indebted to Roy Loring for the many Saturdays and Sundays that he sacrificed to spend time dicussing methodologies for training project managers and selling project management to companies not already engulfed in the world of project management Mr Lorings invaluable comments have resulted in the addition of several new chapters To Patricia Ray typist extraordinaire I owe maily thanks for her having typed five of my texts on project management and being able to adhere to the time cost and perforshymance constraint set forth on these projects To Dynamic Graphics Incorposhyrated I express my sincere gratitude for permission to use many of their carshytoons throughout the text Unless otherwse indicated
All cartoon artwork is provided by Dynamic Graphics Inc 6707 N Sherishydan Road Peoria Illinois 61614 This artwork is copyrighted Any reprer duction is strictly prohibited without permission of Dynamic Graphics Inc
Finally I v1ish to express my deepest appreciation to Dr Mark Collier_ Vice President for Academic Affairs for his invaluable support assistance and encouragement toward conducting meaningful research for this text
Harold Kerzner Baldwin-Wallace College
4
Contents
Prf(11ce vii
l OVERVIEW I
10 Introduction 1 11 Understanding Project Managment 2 12 The Project Manager-Line Manager Interface 6 13 Debing the Project Managers Role gt
14 Defining the Functional Managen Role 12 15 Defining the Executives Role 15 16 The Project Manager as the Planning Agent ) I 7 The Down Side Risk of Project Management I 7 I 8 The Growth of Project Management 19 19 Project-Driven vs Noii-Project Driven Organizations 36 110 Marketing in the Project-Driven Organization 38 111 Location of the Project Manager 40 112 Differing Views of Project Management 44
Case Studies Jackson Industries 48 TRW-Nelson Division 50
2 SYSTFMS THEORY AND CONCEPTS 58
20 Introduction 58 21 General Systems Theory Growth 58 22 Systems Tneory and Business 60 23 Cevelopment of the Business System 61 24 Modeling the Business System 64 25 Systems Programs and Projects A Definition 66 26 Product vs Project Managen-ent A Definition 69 27 Project Life Cycles 71 28 Systems Thinking 80
Case Studies L P Manning 84 Project Firecracker 85
x CONTENTS
1 ORGANIZATION STRUCTURES 9 1
3 0 I ntroduction 9 1 3 1 Organizat ional Work Flow 9 5 3 2 Tradi tional (Classica l ) Organization 96 3 3 Developing Work I ntegration Posi tions J OO 3 4 Line-Staff Organization I OS
Pure Product Organizat ion I 07 3 6 Matrix Organizat ional Form 1 09 3 7 Modification of Matr ix StructurPs 1 2 1 3 8 Matrix Layering 1 26 3 9 Select i ng the Organizational Form 1 27 3 1 0 Structu ring the Smal l Company 1 36
Case Studies
Jones and Shephard Accountants 1 44 Fargo Foods 1 47 Quasar Communications I SO
4 ORGANIZING AND STA FFING THE PROJECT OFFICE AND TEAM 1 54
4 0 I nt roduction I 54 4 1 The Staffing Environment I 5 5 4 2 Selecting t h e Project Manager An Executive Dec ision t 59 4 3 Sk i l l Requ irements for Program Managers 1 66 44 Spec ia l Cases i n Project Manager Selection 1 74 4 5 Selec t i ng the Wrong Project Manager 1 74 4 6 Dut ies and Job Descript ions 1 79 4 7 The Organ iza t ional Staffing Process 1 83 4 8 The Project Office 1 92 4 9 The Functiona l Team 200 4 1 0 The Project Organizational Chart 202 4 1 1 Special Problems 206
Case Studies
Government Project Management 2 1 S Fal ls Engineering 2 1 6 White Manufacturing 2 1 9 Martig Construction Company 220 The Carlson Project 22 1
5 MANAGEM ENT FUNCTIONS 223
50 l nt rvduction 223 5 1 Control l ing 224 5 2 Directing 2 25 5 3 Authority t30 54 I nt erpersonal I nfluences 239 5 5 to Project Team Development l42
CONTENTS 1lt
5 6 Suggestions for t he Newly Formed Team 249 57 Team Bui lding as an Process 252 58 in a Project Environment 2 54 5 9 Organizational I mpact 255 5 1 0 Employee Manager Problems 2 57 5 1 1 Management Pitfal ls 26 1 5 1 2 Communications 265 5 1 3 Project Review Meetings 269 5 1 4 Management Bott lenecks 272 5 1 5 Communicat ion Traps 274 5 1 6 Proverbs 276 5 1 7 Management Policies and Procedures 277
Case Studies Webster I ndustrial Controls 29 1 Liberty Construction 294 Wynn Computer 303 The Trophy Project 305 Starr Air Force Base 307
6 TIM E MANAGEMENT 3 1 7
6 0 In t roduction 3 1 7 6 1 Time Management Survey 3 1 7 6 2 Effect ive Time Management 334 6 3 Management Pitfal ls 338 64 Project Communications 339 6 5 Project Management Bottenecks 34 l
Case Studies
The Reluctant Workers 3 4 1
7 CONFLICTS 343
middot o I ntroduction 343 7 1 343
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
Pref ace to the Second Edition
The early 1980s have brought an accekrated demand for the implementation of project management to a degree never before dreamed possible Executives have finally realized that project management and productivity are related both trying to make effective and efficient utilization of existing resources This book was developed to provide a hands-0n approach to learning the necessary tools and techniques by which activiiies can be integrated throughout an orgashynization regardless of organizational size project complexity or type of industry
This book is addressed not only to those undergraduate and graduate stushydents who wish to understand the contributions to modern management theory and practice resulting from project management applications but also to those functional managers and upper-level executives who must either directly or indirectly provide their continuous support to all projects
The first five chapters are the basic core of knowledge needed to understanc project management Chapters 6 through 8 deal with the support functions of time management conflict resolution and other special topics Chapters 9 and IO describe executive involvement and the overall variables for predicting proshyject success Chapters 11 through 15 describe the quantitative tools for project management planning scheduling and cost control Chapter 16 identifies the various methodologies for trade-0ffs on time cost and performance Chapters 17 through 20 consider the more advanced topics of proposal preparation information systems international project management and future trends in project management The text contains forty-two case studies two multipleshychoice exams and 332 diswssion questions An instructors manual is available to collegeuniversity seminar adopters by writing to either the publisher or the author
The problems and case studies at the end of eah chapter cover a variety of real-world situations Almost all of the case studies are factual and many have come directly from my consulting practice Feedback from colleges and unishyversities that have adopted this text at the graduate and undergraduate levels have provided me with fruitful criticism most of which has been incorporated 4Jto the second edition
Valuable criticisms and contributions were made by many colleagues In
vii
vii PREFACE TO THE SECOND EDITllN
particular I am indebted to Roy Loring for the many Saturdays and Sundays that he sacrificed to spend time dicussing methodologies for training project managers and selling project management to companies not already engulfed in the world of project management Mr Lorings invaluable comments have resulted in the addition of several new chapters To Patricia Ray typist extraordinaire I owe maily thanks for her having typed five of my texts on project management and being able to adhere to the time cost and perforshymance constraint set forth on these projects To Dynamic Graphics Incorposhyrated I express my sincere gratitude for permission to use many of their carshytoons throughout the text Unless otherwse indicated
All cartoon artwork is provided by Dynamic Graphics Inc 6707 N Sherishydan Road Peoria Illinois 61614 This artwork is copyrighted Any reprer duction is strictly prohibited without permission of Dynamic Graphics Inc
Finally I v1ish to express my deepest appreciation to Dr Mark Collier_ Vice President for Academic Affairs for his invaluable support assistance and encouragement toward conducting meaningful research for this text
Harold Kerzner Baldwin-Wallace College
4
Contents
Prf(11ce vii
l OVERVIEW I
10 Introduction 1 11 Understanding Project Managment 2 12 The Project Manager-Line Manager Interface 6 13 Debing the Project Managers Role gt
14 Defining the Functional Managen Role 12 15 Defining the Executives Role 15 16 The Project Manager as the Planning Agent ) I 7 The Down Side Risk of Project Management I 7 I 8 The Growth of Project Management 19 19 Project-Driven vs Noii-Project Driven Organizations 36 110 Marketing in the Project-Driven Organization 38 111 Location of the Project Manager 40 112 Differing Views of Project Management 44
Case Studies Jackson Industries 48 TRW-Nelson Division 50
2 SYSTFMS THEORY AND CONCEPTS 58
20 Introduction 58 21 General Systems Theory Growth 58 22 Systems Tneory and Business 60 23 Cevelopment of the Business System 61 24 Modeling the Business System 64 25 Systems Programs and Projects A Definition 66 26 Product vs Project Managen-ent A Definition 69 27 Project Life Cycles 71 28 Systems Thinking 80
Case Studies L P Manning 84 Project Firecracker 85
x CONTENTS
1 ORGANIZATION STRUCTURES 9 1
3 0 I ntroduction 9 1 3 1 Organizat ional Work Flow 9 5 3 2 Tradi tional (Classica l ) Organization 96 3 3 Developing Work I ntegration Posi tions J OO 3 4 Line-Staff Organization I OS
Pure Product Organizat ion I 07 3 6 Matrix Organizat ional Form 1 09 3 7 Modification of Matr ix StructurPs 1 2 1 3 8 Matrix Layering 1 26 3 9 Select i ng the Organizational Form 1 27 3 1 0 Structu ring the Smal l Company 1 36
Case Studies
Jones and Shephard Accountants 1 44 Fargo Foods 1 47 Quasar Communications I SO
4 ORGANIZING AND STA FFING THE PROJECT OFFICE AND TEAM 1 54
4 0 I nt roduction I 54 4 1 The Staffing Environment I 5 5 4 2 Selecting t h e Project Manager An Executive Dec ision t 59 4 3 Sk i l l Requ irements for Program Managers 1 66 44 Spec ia l Cases i n Project Manager Selection 1 74 4 5 Selec t i ng the Wrong Project Manager 1 74 4 6 Dut ies and Job Descript ions 1 79 4 7 The Organ iza t ional Staffing Process 1 83 4 8 The Project Office 1 92 4 9 The Functiona l Team 200 4 1 0 The Project Organizational Chart 202 4 1 1 Special Problems 206
Case Studies
Government Project Management 2 1 S Fal ls Engineering 2 1 6 White Manufacturing 2 1 9 Martig Construction Company 220 The Carlson Project 22 1
5 MANAGEM ENT FUNCTIONS 223
50 l nt rvduction 223 5 1 Control l ing 224 5 2 Directing 2 25 5 3 Authority t30 54 I nt erpersonal I nfluences 239 5 5 to Project Team Development l42
CONTENTS 1lt
5 6 Suggestions for t he Newly Formed Team 249 57 Team Bui lding as an Process 252 58 in a Project Environment 2 54 5 9 Organizational I mpact 255 5 1 0 Employee Manager Problems 2 57 5 1 1 Management Pitfal ls 26 1 5 1 2 Communications 265 5 1 3 Project Review Meetings 269 5 1 4 Management Bott lenecks 272 5 1 5 Communicat ion Traps 274 5 1 6 Proverbs 276 5 1 7 Management Policies and Procedures 277
Case Studies Webster I ndustrial Controls 29 1 Liberty Construction 294 Wynn Computer 303 The Trophy Project 305 Starr Air Force Base 307
6 TIM E MANAGEMENT 3 1 7
6 0 In t roduction 3 1 7 6 1 Time Management Survey 3 1 7 6 2 Effect ive Time Management 334 6 3 Management Pitfal ls 338 64 Project Communications 339 6 5 Project Management Bottenecks 34 l
Case Studies
The Reluctant Workers 3 4 1
7 CONFLICTS 343
middot o I ntroduction 343 7 1 343
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
vii PREFACE TO THE SECOND EDITllN
particular I am indebted to Roy Loring for the many Saturdays and Sundays that he sacrificed to spend time dicussing methodologies for training project managers and selling project management to companies not already engulfed in the world of project management Mr Lorings invaluable comments have resulted in the addition of several new chapters To Patricia Ray typist extraordinaire I owe maily thanks for her having typed five of my texts on project management and being able to adhere to the time cost and perforshymance constraint set forth on these projects To Dynamic Graphics Incorposhyrated I express my sincere gratitude for permission to use many of their carshytoons throughout the text Unless otherwse indicated
All cartoon artwork is provided by Dynamic Graphics Inc 6707 N Sherishydan Road Peoria Illinois 61614 This artwork is copyrighted Any reprer duction is strictly prohibited without permission of Dynamic Graphics Inc
Finally I v1ish to express my deepest appreciation to Dr Mark Collier_ Vice President for Academic Affairs for his invaluable support assistance and encouragement toward conducting meaningful research for this text
Harold Kerzner Baldwin-Wallace College
4
Contents
Prf(11ce vii
l OVERVIEW I
10 Introduction 1 11 Understanding Project Managment 2 12 The Project Manager-Line Manager Interface 6 13 Debing the Project Managers Role gt
14 Defining the Functional Managen Role 12 15 Defining the Executives Role 15 16 The Project Manager as the Planning Agent ) I 7 The Down Side Risk of Project Management I 7 I 8 The Growth of Project Management 19 19 Project-Driven vs Noii-Project Driven Organizations 36 110 Marketing in the Project-Driven Organization 38 111 Location of the Project Manager 40 112 Differing Views of Project Management 44
Case Studies Jackson Industries 48 TRW-Nelson Division 50
2 SYSTFMS THEORY AND CONCEPTS 58
20 Introduction 58 21 General Systems Theory Growth 58 22 Systems Tneory and Business 60 23 Cevelopment of the Business System 61 24 Modeling the Business System 64 25 Systems Programs and Projects A Definition 66 26 Product vs Project Managen-ent A Definition 69 27 Project Life Cycles 71 28 Systems Thinking 80
Case Studies L P Manning 84 Project Firecracker 85
x CONTENTS
1 ORGANIZATION STRUCTURES 9 1
3 0 I ntroduction 9 1 3 1 Organizat ional Work Flow 9 5 3 2 Tradi tional (Classica l ) Organization 96 3 3 Developing Work I ntegration Posi tions J OO 3 4 Line-Staff Organization I OS
Pure Product Organizat ion I 07 3 6 Matrix Organizat ional Form 1 09 3 7 Modification of Matr ix StructurPs 1 2 1 3 8 Matrix Layering 1 26 3 9 Select i ng the Organizational Form 1 27 3 1 0 Structu ring the Smal l Company 1 36
Case Studies
Jones and Shephard Accountants 1 44 Fargo Foods 1 47 Quasar Communications I SO
4 ORGANIZING AND STA FFING THE PROJECT OFFICE AND TEAM 1 54
4 0 I nt roduction I 54 4 1 The Staffing Environment I 5 5 4 2 Selecting t h e Project Manager An Executive Dec ision t 59 4 3 Sk i l l Requ irements for Program Managers 1 66 44 Spec ia l Cases i n Project Manager Selection 1 74 4 5 Selec t i ng the Wrong Project Manager 1 74 4 6 Dut ies and Job Descript ions 1 79 4 7 The Organ iza t ional Staffing Process 1 83 4 8 The Project Office 1 92 4 9 The Functiona l Team 200 4 1 0 The Project Organizational Chart 202 4 1 1 Special Problems 206
Case Studies
Government Project Management 2 1 S Fal ls Engineering 2 1 6 White Manufacturing 2 1 9 Martig Construction Company 220 The Carlson Project 22 1
5 MANAGEM ENT FUNCTIONS 223
50 l nt rvduction 223 5 1 Control l ing 224 5 2 Directing 2 25 5 3 Authority t30 54 I nt erpersonal I nfluences 239 5 5 to Project Team Development l42
CONTENTS 1lt
5 6 Suggestions for t he Newly Formed Team 249 57 Team Bui lding as an Process 252 58 in a Project Environment 2 54 5 9 Organizational I mpact 255 5 1 0 Employee Manager Problems 2 57 5 1 1 Management Pitfal ls 26 1 5 1 2 Communications 265 5 1 3 Project Review Meetings 269 5 1 4 Management Bott lenecks 272 5 1 5 Communicat ion Traps 274 5 1 6 Proverbs 276 5 1 7 Management Policies and Procedures 277
Case Studies Webster I ndustrial Controls 29 1 Liberty Construction 294 Wynn Computer 303 The Trophy Project 305 Starr Air Force Base 307
6 TIM E MANAGEMENT 3 1 7
6 0 In t roduction 3 1 7 6 1 Time Management Survey 3 1 7 6 2 Effect ive Time Management 334 6 3 Management Pitfal ls 338 64 Project Communications 339 6 5 Project Management Bottenecks 34 l
Case Studies
The Reluctant Workers 3 4 1
7 CONFLICTS 343
middot o I ntroduction 343 7 1 343
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
Contents
Prf(11ce vii
l OVERVIEW I
10 Introduction 1 11 Understanding Project Managment 2 12 The Project Manager-Line Manager Interface 6 13 Debing the Project Managers Role gt
14 Defining the Functional Managen Role 12 15 Defining the Executives Role 15 16 The Project Manager as the Planning Agent ) I 7 The Down Side Risk of Project Management I 7 I 8 The Growth of Project Management 19 19 Project-Driven vs Noii-Project Driven Organizations 36 110 Marketing in the Project-Driven Organization 38 111 Location of the Project Manager 40 112 Differing Views of Project Management 44
Case Studies Jackson Industries 48 TRW-Nelson Division 50
2 SYSTFMS THEORY AND CONCEPTS 58
20 Introduction 58 21 General Systems Theory Growth 58 22 Systems Tneory and Business 60 23 Cevelopment of the Business System 61 24 Modeling the Business System 64 25 Systems Programs and Projects A Definition 66 26 Product vs Project Managen-ent A Definition 69 27 Project Life Cycles 71 28 Systems Thinking 80
Case Studies L P Manning 84 Project Firecracker 85
x CONTENTS
1 ORGANIZATION STRUCTURES 9 1
3 0 I ntroduction 9 1 3 1 Organizat ional Work Flow 9 5 3 2 Tradi tional (Classica l ) Organization 96 3 3 Developing Work I ntegration Posi tions J OO 3 4 Line-Staff Organization I OS
Pure Product Organizat ion I 07 3 6 Matrix Organizat ional Form 1 09 3 7 Modification of Matr ix StructurPs 1 2 1 3 8 Matrix Layering 1 26 3 9 Select i ng the Organizational Form 1 27 3 1 0 Structu ring the Smal l Company 1 36
Case Studies
Jones and Shephard Accountants 1 44 Fargo Foods 1 47 Quasar Communications I SO
4 ORGANIZING AND STA FFING THE PROJECT OFFICE AND TEAM 1 54
4 0 I nt roduction I 54 4 1 The Staffing Environment I 5 5 4 2 Selecting t h e Project Manager An Executive Dec ision t 59 4 3 Sk i l l Requ irements for Program Managers 1 66 44 Spec ia l Cases i n Project Manager Selection 1 74 4 5 Selec t i ng the Wrong Project Manager 1 74 4 6 Dut ies and Job Descript ions 1 79 4 7 The Organ iza t ional Staffing Process 1 83 4 8 The Project Office 1 92 4 9 The Functiona l Team 200 4 1 0 The Project Organizational Chart 202 4 1 1 Special Problems 206
Case Studies
Government Project Management 2 1 S Fal ls Engineering 2 1 6 White Manufacturing 2 1 9 Martig Construction Company 220 The Carlson Project 22 1
5 MANAGEM ENT FUNCTIONS 223
50 l nt rvduction 223 5 1 Control l ing 224 5 2 Directing 2 25 5 3 Authority t30 54 I nt erpersonal I nfluences 239 5 5 to Project Team Development l42
CONTENTS 1lt
5 6 Suggestions for t he Newly Formed Team 249 57 Team Bui lding as an Process 252 58 in a Project Environment 2 54 5 9 Organizational I mpact 255 5 1 0 Employee Manager Problems 2 57 5 1 1 Management Pitfal ls 26 1 5 1 2 Communications 265 5 1 3 Project Review Meetings 269 5 1 4 Management Bott lenecks 272 5 1 5 Communicat ion Traps 274 5 1 6 Proverbs 276 5 1 7 Management Policies and Procedures 277
Case Studies Webster I ndustrial Controls 29 1 Liberty Construction 294 Wynn Computer 303 The Trophy Project 305 Starr Air Force Base 307
6 TIM E MANAGEMENT 3 1 7
6 0 In t roduction 3 1 7 6 1 Time Management Survey 3 1 7 6 2 Effect ive Time Management 334 6 3 Management Pitfal ls 338 64 Project Communications 339 6 5 Project Management Bottenecks 34 l
Case Studies
The Reluctant Workers 3 4 1
7 CONFLICTS 343
middot o I ntroduction 343 7 1 343
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
x CONTENTS
1 ORGANIZATION STRUCTURES 9 1
3 0 I ntroduction 9 1 3 1 Organizat ional Work Flow 9 5 3 2 Tradi tional (Classica l ) Organization 96 3 3 Developing Work I ntegration Posi tions J OO 3 4 Line-Staff Organization I OS
Pure Product Organizat ion I 07 3 6 Matrix Organizat ional Form 1 09 3 7 Modification of Matr ix StructurPs 1 2 1 3 8 Matrix Layering 1 26 3 9 Select i ng the Organizational Form 1 27 3 1 0 Structu ring the Smal l Company 1 36
Case Studies
Jones and Shephard Accountants 1 44 Fargo Foods 1 47 Quasar Communications I SO
4 ORGANIZING AND STA FFING THE PROJECT OFFICE AND TEAM 1 54
4 0 I nt roduction I 54 4 1 The Staffing Environment I 5 5 4 2 Selecting t h e Project Manager An Executive Dec ision t 59 4 3 Sk i l l Requ irements for Program Managers 1 66 44 Spec ia l Cases i n Project Manager Selection 1 74 4 5 Selec t i ng the Wrong Project Manager 1 74 4 6 Dut ies and Job Descript ions 1 79 4 7 The Organ iza t ional Staffing Process 1 83 4 8 The Project Office 1 92 4 9 The Functiona l Team 200 4 1 0 The Project Organizational Chart 202 4 1 1 Special Problems 206
Case Studies
Government Project Management 2 1 S Fal ls Engineering 2 1 6 White Manufacturing 2 1 9 Martig Construction Company 220 The Carlson Project 22 1
5 MANAGEM ENT FUNCTIONS 223
50 l nt rvduction 223 5 1 Control l ing 224 5 2 Directing 2 25 5 3 Authority t30 54 I nt erpersonal I nfluences 239 5 5 to Project Team Development l42
CONTENTS 1lt
5 6 Suggestions for t he Newly Formed Team 249 57 Team Bui lding as an Process 252 58 in a Project Environment 2 54 5 9 Organizational I mpact 255 5 1 0 Employee Manager Problems 2 57 5 1 1 Management Pitfal ls 26 1 5 1 2 Communications 265 5 1 3 Project Review Meetings 269 5 1 4 Management Bott lenecks 272 5 1 5 Communicat ion Traps 274 5 1 6 Proverbs 276 5 1 7 Management Policies and Procedures 277
Case Studies Webster I ndustrial Controls 29 1 Liberty Construction 294 Wynn Computer 303 The Trophy Project 305 Starr Air Force Base 307
6 TIM E MANAGEMENT 3 1 7
6 0 In t roduction 3 1 7 6 1 Time Management Survey 3 1 7 6 2 Effect ive Time Management 334 6 3 Management Pitfal ls 338 64 Project Communications 339 6 5 Project Management Bottenecks 34 l
Case Studies
The Reluctant Workers 3 4 1
7 CONFLICTS 343
middot o I ntroduction 343 7 1 343
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
5 MANAGEM ENT FUNCTIONS 223
50 l nt rvduction 223 5 1 Control l ing 224 5 2 Directing 2 25 5 3 Authority t30 54 I nt erpersonal I nfluences 239 5 5 to Project Team Development l42
CONTENTS 1lt
5 6 Suggestions for t he Newly Formed Team 249 57 Team Bui lding as an Process 252 58 in a Project Environment 2 54 5 9 Organizational I mpact 255 5 1 0 Employee Manager Problems 2 57 5 1 1 Management Pitfal ls 26 1 5 1 2 Communications 265 5 1 3 Project Review Meetings 269 5 1 4 Management Bott lenecks 272 5 1 5 Communicat ion Traps 274 5 1 6 Proverbs 276 5 1 7 Management Policies and Procedures 277
Case Studies Webster I ndustrial Controls 29 1 Liberty Construction 294 Wynn Computer 303 The Trophy Project 305 Starr Air Force Base 307
6 TIM E MANAGEMENT 3 1 7
6 0 In t roduction 3 1 7 6 1 Time Management Survey 3 1 7 6 2 Effect ive Time Management 334 6 3 Management Pitfal ls 338 64 Project Communications 339 6 5 Project Management Bottenecks 34 l
Case Studies
The Reluctant Workers 3 4 1
7 CONFLICTS 343
middot o I ntroduction 343 7 1 343
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
xii CONTENTS
7 2 The Conflict Envirorment 346 1 3 Managing Conflicb 350 74 Conflict Resolution 36 7 7 5 Understanding Superior Subordinate ard Functional
Conflicts 368 76 The Management of Conflicts 37 1
Cast Studies
Mayer Manufacturing 375 Scheduling the Safety Lab 377 Telestar I nternational 378 The Problem with Priorities 379 Handling Conflict in Project Management 380
8 SPECIAL TOPICS 386
8 0 I ntroduction 386 8 1 Performance Measuremet on th Horizontal Line 386 8 2 Financial C)mpensation and Rewards 395 8 3 Effective Project Management in the Smal l Business
Organization 403 84 Mega Projects 406 8 5 Strategic Planning Using a Matrix 407 86 RampD Project Management 4 1 6 87 Code cf Ethics 430
Case Studies
Costa Pharmaceutical Labs 434 American Electronics International 440
9 THE VARIABLES FOR SUCCESS 443
90 I ntroduction 443 9 1 Predicting Project Success 443 9 2 Project Management Effectiveness 448 9 3 Expectations 449 9 4 Force Field Analysis 45 1
J O WORKING WITH EXECUTIVES 458
1 00 I ntroduction 458 1 0 1 The Project Sponsor 456 1 02 The In-house Representatives 46 1
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
1 0 3 Sel l i ng Execut i ves o n Project Managemen t 463 1 0 4 Execu t i ves Reassess Mfl t r i x Managemen t 474
Case Studies Blue Spider Project 497 G reyson Corpora t ion 509 M IS Project Management at Fiut Nat ional Bank 5 1 3 Corw in Corpora t ion 5 2 3
1 1 PLANNING 533
I 1 0 l n l l oduct ion 533 1 1 1 General Plann ing 536 1 1 2 Ident i fy i ng S t rategic Project variab l rs 5j9 1 1 3 Project P lann ing 543 1 1 4 The Statement of Work 545 1 1 5 Project Speci ficat ions 550 1 1 6 M i lestone Schedules 5 5 1 1 1 7 Work Breakdown Structure 5 5 1 1 1 8 Role of the Execut ive in Planning 5 6 1 1 1 9 The Planni ng Cycle 562 I 1 1 0 Work P lann ing Authoriation 564 1 1 1 1 Why do Plans Fa i l 64 I I 1 2 Stopping Projects 566 l I 1 3 Hand l i ng Project Phaseouts and T-ansfers 568 1 1 1 4 De ta i l ed Schedu les and Charts 570 1 1 1 5 Mser Production Schedul ing 5 74 1 1 1 6 Program Plan 576 1 1 1 7 Total Project Plann ing 582 1 1 18 Management Control 586
COITENTS xi i i
1 1 I 9 The Project Manager-line Manager I nterface 586
Case Studie The Two Boss Problem 598 Project OverrU i 599
1 2 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) 60 1
1 2 0 I nt roduction 60 1 1 2 l Network Fundarrenta ls 601 1 2 2 Slack Tin-e 609 1 2 3 Network Replanning 6 1 3
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
xiv CONTENTS
1 2 4 Estimating Activity Time 6 1 7 1 2 5 Estimating Total Program Time 6 I 8 1 2 6 Total PERT CPM Planning 620 1 2 7 Crash Times 62 1 1 2 8 PERT CPM Problem Areas 625 1 29 Alternative PERTCPM Models 628 1 2 1 0 Computerized Project Management 629
Case Studiei Crosby Manufacturing 636
1 3 PROJECT GRAPHICS 639
1 3 0 Introduction 639 1 3 l Customer Report ing 640 1 3 2 Bar (GANTI) Chart 64 1 1 3 3 Other Conventional Presentation Technicues 648 1 3 4 Logic DiagramsNetworks 653
1 4 PRICING AND ESTIMATING 655
1 40 r ntroduction 655 1 4 1 Global Pricing Strategies 655 1 42 Types of Estimates 657 1 4 3 Pricing Process 66 1 1 4 4 Organizationa l Input Requirements 653 1 4 5 Labor Distributions 664 1 46 Overhead Rates 668 1 47 MaterialsSupport Costs 672 1 4 8 Pricing out the Work 674 1 49 Smoothing out Department Manhours 676 1 4 1 0 The Pricing Review Procedure 678 1 4 1 1 Systems Pricing 680 1 4 1 2 Developing the SupportingBackup Costs 682 1 4 1 3 The low Bidder Dilemma 682 1 4 1 4 Special Problems 687 1 4 1 5 Estimating Pi tfa l ls 688
Case Studies Concrete Masonry Corporation 692 Gas Testing Lab in Iran 699 Polyproducts Incorporated 705 Percy Manufacturing 709 Capital Industries 7 1 2
I I
J
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
1 5 COST CONTROL 7 1 4
1 5 0 In troduction 7 1 4 1 5 1 Understand ing Control 7 1 8 1 5 2 The Operating Cycle 722 1 5 3 Cost Account Codes 723 1 5 4 Budgets 729 1 5 5 Variance and Earned Va lue 730 1 5 6 Status Reporting 745 1 5 7 Cost Control Problems 750
C11se Studies The Bathtub Period 7 57
CONTENTS KV
1 6 TRADEOFF ANALYSIS IN A PROJ ECT ENVIRONMENT 7 51
1 6 fi I ntroduction 759 1 6 1 Methodology for Tradeoff Analysis 763 1 6 2 Contracts Their Influence on Projets 7 8 1 6 3 I ndustry Tradeoff Preferences 78 1 6 4 Conclusion 788
17 PROJECT MANAGEMENT INFORMATION SYSTElS 7 81
1 7 0 I n troduction 789 1 7 1 Case Study Approach 790 1 7 2 MIS Requirements 799
Case Studies Margo Company 804
1 8 PROPOSALS 807
1 8 0 I ntroduction 807 1 8 1 Proposals and The Market ing Funct ion 808 1 8 2 Developing a Marketing Strategy 809 1 8 3 The Bid-No Bid Decision 8 1 2 1 8 4 The K ickoff Memo Meeting 8 1 5 1 8 5 Selecting the Proposa l Team 8 1 9 1 8 6 Proposal Schedu l ing 825 1 8 7 Prcposal Budget and Cost Control 8 32 1 8 8 Proposal Types 8 37 1 8 9 Standard Proposal Organization 838 1 8 1 0 The Single-Volume Proposa l 84 1 I 1lt 1 i The Technica l V0l ume 842
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
Get this eBook
Project Management-A SystemsApproach To Planning Scheduling And
Controlling
Publisher CBS Publications ISBN 9788123908670 Author Harold Kerzner
Type the URL httpwwwkopykitabcomproduct10378
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