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The AMA Handbook of Project Management, Second Edition

Name: The AMA Handbook of Project Management, Second Edition
ISBN: 9780814472712

by Paul C. Dinsmore - PMP, Jeannette Cabanis-Brewin

December 2005

Beginner to intermediate

496 pages

16h 46m

English

AMACOM

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Copyright
Foreword
Preface
Organization of the HandbookSection 1 The Project Management Body of Knowledge: Comprehension and PracticeSection Two The Profession of Project ManagementSection Three Organizational Issues in Project ManagementSection Four Issues and Ideas in Project Management PracticeSection Five Industry Applications of Project ManagementAbout the Contributors
Acknowledgments
About the Editors
Paul C. Dinsmore, PMPJeannette Cabanis-BrewinSupporting Editor
1. What Is Project Management? Project Management Concepts and Methodologies
Projects: The WorkSome Characteristics of ProjectsDevelopment Life CyclesProject Management: The DisciplineSome Characteristics of Project ManagementProject Management Process: The SuperstructureConclusionReferences
One. The Project Management Body of Knowledge: Comprehension and Practice
2. Bodies of Knowledge and Competency Standards in Project Management
Why a Body of Knowledge for Project Management?PMI’s PMBOK® GuideThe Association of Project Management Body of Knowledge (APMBoK®)European Bodies of KnowledgeJapan’s P2MTowards a Global Body of Knowledge?Competency StandardsAustralian National Competency Standards for Project Management (ANCSPM)Other Competency StandardsTowards Global Performance-Based Competency Standards?AcknowledgementReferences
3. Project Management Process Groups: Project Management Knowledge in Action
Project Management Process GroupsReferences
4. Initiation Strategies for Managing Major Projects
Project DefinitionObjectivesStrategyTechnology and DesignExternal Factors, Finance, and DurationPolitical, Environmental, and Economic FactorsFinanceDurationAttitudesImplementationOrganizationContract StrategyPeople IssuesPlanning and ControlStrategic Issues for Enterprises Working on ProjectsConclusionReferences

5. Comprehensive Planning for Complex Projects
Elements of a Project Management PlanIntroduction/OverviewMission and ObjectivesWork ScopePlanning BasisProject Deliverables/End ProductsRequirementsConstraintsApproaches/StrategiesKey AssumptionsSpecifically Excluded ScopeWork Breakdown StructureOrganization Development PlanOrganization StructureResponsibilitiesAuthoritiesInterfacesPersonnel DevelopmentResource PlanProcurement and Logistics PlanSubcontracting PlansProcurement PlansLogistics PlansLogic and SchedulesNetworks and LogicSummary SchedulesCost Estimates, Budgets, and Financial ManagementCost EstimatesBudgetsFinancial ManagementRisk Analysis and Contingency PlanRisk IdentificationRisk AnalysisRisk Minimization PlansContingency Plans and ReservesQuality and Productivity PlanTotal Quality Management PlanningQuality Management Systems PlanningQuality Assurance/Quality ControlTechnical Performance MeasurementProductivity ImprovementEnvironmental, Safety, and Health (ES&H) Protection PlanSafety and Health Protection PlanES&H Management/Information SystemsEmergency Preparedness PlanSecurity PlanPhysical SecurityProperty ProtectionInformation SecurityProject Planning, Control, and Administration PlanDetailed Work Package PlansProject ControlWork AuthorizationCost and Schedule Performance MeasurementProject AdministrationDocumentation and Configuration Management PlanConfiguration ManagementAppendixRecommended Reading
6. Controlling Costs and Schedule: Systems That Really Work
Developing a Project Cost Control SystemEstablishing a Project Cost Control BaselineCollecting Actual Cost DataDetermining Earned ValueReporting and Evaluating Cost Control InformationTaking Corrective ActionAchieving Project Success by Controlling CostsReferences
7. Project Management Integration In Practice
The Evolution of the Integration Knowledge AreaConclusionReferences
8. Project Scope Management In Practice
The Value of Scope Management OutputsScope Management PlanScope DefinitionWork Breakdown StructureScope ApprovalScope ControlScope VerificationIdentifying the Difference Between Product and Project ScopeHow to Develop a Sound Scope StatementA Well-Written Scope Statement: Some Positive OutcomesDoes your Scope Management Plan meet customer expectations?Questions for Reflection
9. Time Management in Practice[1]
Activity DefinitionActivity SequencingActivity Resource EstimatingActivity Duration EstimatingSchedule DevelopmentSchedule ControlReferences
10. Project Cost Management in Practice
Resource EstimatingCost EstimatingCost BudgetingCost ControlVariances and Indexes Used in Cost ManagementConclusionFurther Reading
10A. Studies in Cost Management: Earned Value—An Integrated Project Management Approach
Process OverviewCritical Data Elements of EVMPlanned ValueActual CostEarned ValueWhat’s in it for the User?Process DescriptionControl AccountAuthorized Work PackagePlanning Work PackageWork AuthorizationPlanning and SchedulingBudgetingCost AccumulationPerformance MeasurementVariance AnalysisReportingInternal Audit/Verification and ReviewReferences
11. Project Quality Management In Practice
Quality’s Tie to Project ManagementReferences
11A. Studies in Project Quality Management: Achieving Business Excellence Using Baldrige, Business Process Management, Six Sigma, and Project Management
Using Baldrige as a FrameworkCriteria for Performance ExcellenceThe Seven Baldrige CategoriesEvaluation Using the CriteriaBusiness Process Management as a FoundationValidate Customer RequirementsModel the ProcessesDevelop Process MeasuresMonitor the ProcessSix Sigma for ImprovementBPM, Six Sigma, and Project ManagementConclusionReferences
12. Human Resource Management In Practice
How Human Resource Management Processes Integrate with Other AreasProject Human Resource Management ProcessesHuman Resource PlanningAcquire TeamDevelop TeamManage TeamIssues not Emphasized in the Guide: Conflict ManagementReferences
12A. Studies in Project Human Resource Management: Interpersonal Skills
Benefits and Pitfalls of TeamingFive Classic Team-Building StagesStage 1: FormingStage 2: StormingStage 3: NormingStage 4: PerformingStage 5: AdjourningThe Ten Rules of Team BuildingPlanning for and Implementing TeamworkGet People InvolvedSet a Good ExampleCoach Team MembersTrain Team MembersSet Up a Formal Team-Building ProgramThe Key to Successful TeamworkListeningDealing with Interpersonal ConflictNegotiatingInfluencingReferencesFurther Reading
12B. Studies in Project Human Resource Management: Leadership
Motivational Forces in Project Team ManagementThe Power Spectrum in Project ManagementLeadership Style EffectivenessRecommendations for Effective Project Team ManagementA Final NoteReferences
13. Project Communications Management in Practice
The Value of Communication Management OutputsThe Communication Management PlanInformation Distribution: The Project Management Plan and Organizational Process AssetsPerformance ReportsManage Stakeholders: Resolve Issues, Update Management Plan, and Process AssetsIdentify Communication MethodsDemonstrate Communication MethodsInfluencing Factors That Have an Impact on How Communications are ReceivedHow to Organize and Conduct Productive MeetingsTips for Meeting OrganizationTechniques for Conducting Successful MeetingsWhat is the Project Manager’s Responsibility in Preparing the Project Meetings?Identify Common Communication IssuesWhy are Some Project Managers Not Effective in their Role as Communicators?How to Effectively Manage Communications Throughout the ProjectFurther Reading
13A. Studies in Communications Management: Achieving Project Success Through Team Building and Stakeholder Management
Who Determines Project Success?Project ChampionsProject ParticipantsCommunity ParticipantsParasitic ParticipantsSuccess ModelingEstablish Project Success GoalsIdentify the Success ProcessMap the Success CharacteristicsDevelop a Project Success ScenarioDefine the Project Team’s Modus OperandiFurther Reading
14. Risk Management in Practice
Definition of RiskProcess SummaryRisk Management PlanningRisk IdentificationQualitative Risk AnalysisQuantitative Risk AnalysisRisk Response PlanningRisk Monitoring and ControlOther IssuesReferencesFurther Reading
15. Project Procurement Management In Practice
Procurement Process and ProjectRoles/ResponsibilitiesSelection of the Procurement Project Management TeamProcurement Lessons Learned and Best PracticesIncreasing Opportunities for SuccessScenarios Based on “Class” of ProcurementScenario 1. Existing Items From Catalogs or Commercial-Off-the-ShelfScenario 2. Minimum Modifications to Existing Seller ItemsScenario 3. Major New DevelopmentConclusionReferences
15A. Studies in Procurement Management: Managing to Avoid Claims
The Phases of Project ContractingThe Preprofessional Service Contract PhaseThe Study and Design PhasesThe Bidding or Negotiating PhaseThe Construction PhaseThe Closeout PhaseClaims PreventionReacting to a Claim
16. Preparing for the Project Management Professional Certification Exam
The Certification Process: An OverviewInitiating ProcessPlanning ProcessExecuting ProcessMonitoring and Controlling ProcessClosing ProcessPreparing for the ExamWhat’s on the test?What’s Not on the ExamGetting startedStudy tipsTaking the ExamKeeping Certification CurrentAcknowledgementReferencesFurther Reading
Two. The Profession of Project Management
17. Project Management Ethics: Responsibility, Values, and Ethics in Project Environments
Terms and Concepts of Ethics and Ethical Decision MakingValues, Morals, and EthicsSystems of Ethical Decision MakingEthical Considerations in Project ManagementEthical hotspotsBenefits of Managing Ethics in Project EnvironmentsExisting Approaches to Managing Ethics in Project ManagementEthical Standards in Business and Project ManagementInternational Standards of Business EthicsProject Management Institute Standards of EthicsManaging Ethics in Project EnvironmentsEthical Considerations for the Project Life Cycle and OrganizationEthical “Hotspots” in the Project Management Processes and Knowledge AreasGuidelines for Managing Ethics in Project EnvironmentsSample ExercisesReferences
18. Professionalization of Project Management: What Does It Mean for Practice?
Definition of a ProfessionStatus of Project ManagementThe Path to ProfessionalizationFull-Time OccupationMonopoly Over Use of the NameControl Over the Body of KnowledgeEducationRole of the Professional AssociationsInternational Project Management Association (IPMA)Project Management InstituteRegional Project Management AssociationsGlobal EffortsCertification/Licensing and ControlAreas of Challenge or ConcernImplications for PractitionersBureaucratization of PracticeValue of CertificationBenefits and Costs of ProfessionalizationConclusionReferences
19. Competency and Careers In Project Management
What Does a Project Manager do?What makes a good project manager?Technical or Industry ExpertiseInterpersonal and General Management SkillsThe Fork in the RoadIdentifying and Assessing CompetencyDimensions of Individual CompetenceKnowledgeSkillsPersonal CharacteristicsExperienceModels for Project ManagementProject Manager CompetenciesThe Emergence of the Project Planner RoleWhat Makes a Good Project Planner?Project Team Members: Specialty Roles in Project ManagementCompetence-Building ActivitiesOrganizational IssuesProject Management Career PathsReferences
Three. Organizational Issues in Project Management
20. Project Management: A Strategic Asset?
What is Strategy?Background Information: A Look Back at StrategyBasic Premise: Competitive Convergence and Competitive AdvantageIndustry and Firm-Level Effects on Company PerformanceVrio FrameworkAnalysis: Project Management as Examined Through the VRIO LensAreas of Challenge: The Hidden Sources of Competitive Advantage in Project ManagementConclusionReferences
21. Enterprise Project Management: Elements and Deployment Issues
The Project Management Maturity ModelElements of EPMStorage of All Project Data in a Single LocationGrouping Data by Different CriteriaResolving Conflicts Such As Use of ResourcesPortfolio ManagementThe Ability for Project Team Members to InterrelateEPM SystemsSingle RepositoryPortfolio ManagementMulti-User AccessEnterprise CodingCollaborationWorkflowDeploying Your EPM SystemReferences
22. Project Portfolio Management: Principles and Best Practices
Three Roles—Governance, Management, and Project Portfolio ManagementChoosing the Right Project MixEnsuring the Correct Project ScopeExecuting Quickly: Project FlowEight Mandatory Steps for Effective PPMMonitoring Multi-Project ExecutionBest Multi-Project PracticesExemplary OrganizationsConclusionReferences
23. Measuring the Value of Project Management
PM Value Initiative: Phase OneStep 1: Measurement Readiness PlanningPM Value Initiative: Phase TwoStep 2: Initiative PlanningStep 3: Measures DevelopmentStep 4: Scorecard DevelopmentStep 5: Measurement Program Implementation PlanningPM Value Initiative: Phase ThreeStep 6: Measurement Program ImplementationLessons LearnedFurther Reading
24. The Project Office: Rationale and Implementation
Why Implement a Project Office?Ending Project FailureAdding Corporate BenefitsThe Challenges of Implementing a POAdvantages of the Enterprise-Level, or Strategic, Project OfficeThe Objective: Results, and FastPMO in Place? Don’t Relax YetReferences
25. A Process of Organizational Change: From Bureaucracy to Project Management Orientation
An Organizational Change ModelAn Organizational ExampleDeveloping the New Project Management CultureStep 1: Define New BehaviorStep 2: Teach New BehaviorUsing Simulation to Teach New BehaviorStep 3. Support New BehaviorStep 4. Model New BehaviorHow the Process WorkedLessons LearnedReferences
26. Managing Multiple Projects: Balancing Time, Resources, and Objectives
What is Multiple Project Management?Cultural, Political, and Organizational Elements Affecting the Management of Multiple ProjectsRoles and Responsibilities in a Multiple Project EnvironmentPlanning, Staffing, and Resource Allocation Considerations Among Multiple ProjectsProject Reporting and Managerial Decision Making in a Multiple Project EnvironmentAchieving Success in a Multiple Project EnvironmentReferencesFurther Reading
Four. Issues and Ideas in Project Management Practice
27. Dealing With Power and Politics in Project Management
Views of PoliticsAssessing the Political EnvironmentPolitical PlanStakeholder AnalysisPositioningDriving ChangeConflictAuthentic Leadership in ActionConclusionReferences
28. Multi-Project Constraint Management: The “Critical Chain” Approach
Organizations are Multi-Project SystemsProjects as the BusinessProjects Supporting the BusinessOrganizational Effectiveness is Resource EffectivenessMaximizing Throughput or Controlling CostsMulti-Tasking Multiplies Time to Complete ProjectsResource Efficiency is Not Organizational EffectivenessConstraint-Savvy Multi-Project and Resource ManagementConstraint = Capacity = ThroughputProtective CapacityImplications for Project Portfolio ManagementMulti-Project and Resource Management—Managing the Present and the FutureNext Month: “How Much Should We Take On?”—Gating Project LaunchesToday: “What Should I Be Working On?”—Clarity of Priority at the Task LevelNext Year: “How Much Can We Work On?”—Current and Strategic ConstraintsIt’s not How Much You Start, It’s How Much You FinishReferences
29. Communities of Practice and Project Management
Overview: Communities of PracticeKnowledge ManagementFirst Generation Knowledge Management—Micro ViewSecond-Generation Knowledge Management—Macro ViewPractical Uses of CoPs for Project Knowledge Management and TransferCoPs and Project ManagementProject Organizational DesignProject Life Cycle (Phases)Project ProcessesCoPs and PMOsSpecific CoP Design and Management ToolsBest PracticesSeed CoPsSmooth Transition to CoPsFree Flow of MembershipDirectory of CoPsTacit vs. Explicit KnowledgeReferences
30. A Project Management Strategy for Six Sigma Projects
Six Sigma Business Strategy and Project Management Basic ConceptsSix Sigma BasicsThe DMAIC ModelThe Project Management ProcessesDMAIC and PMBOK® Guide Joint Potential BenefitsSix Sigma and Project Management Dual and Collaborative ApproachesImproving Project Management Processes Through Six Sigma Business StrategyImproving Six Sigma Projects Results Through Project Management ProcessesProject Management Methodology for Six Sigma StrategyThe Phase Review Model ConceptThe Phase Review Methodology Framework for Six Sigma ProjectsCore Processes of the Methodology Framework for Six Sigma ProjectsFurther ConsiderationsBelts or Project Manager Professionals?The Six Sigma Project Management Office (PMO)Further Reading
31. Cultural Challenges in Managing International Projects
A Model of Intercultural Team BuildingSome Global ConsiderationsThe European ModelThe North American ModelThe Japanese ModelIntegrating Two CulturesThe Development of a Project CultureThe Project Culture Over the Life Cycle of the ProjectFurther Reading
Five. Industry Applications of Project Management Practice
32. Building Organizational Project Management Capability: Learning from Engineering and Construction
Good Practice in Building Project Management Capability—The Construction and Engineering ExampleOrganizational StructureRole DesignKnowledgeable SuperiorsValuesHuman Resource ManagementMethods and ProceduresIndividuals’ CharacteristicsConduct of the ProjectTransfer and AdoptionEmerging DevelopmentsReferences
33. New Product Development: Issues for Project Management
Starting the Product DevelopmentRequirementsProject ApproachesUnstructured ProjectsBuying OutsideIterative or WaterfallStages and ProgressCustomer InvolvementProduct JustificationManufacturing and Field SupportPreparing for SalesConclusionReferences
34. Why IT Matters: Project Management for Information Technology
Visibility of IT Project FailuresIT Project Management MattersFormal IT Project ManagementFormal IT Project Management RolesFormal IT Project Management MethodologyBest PracticesEstablish a Formal Project Life Cycle ModelLeveraging Project Sponsors and Business CommunityInternal ContractsIT Project Management OfficePower of Internet CollaborationChallenges for the IT Project ManagerStaying Abreast with TechnologyIncreased Emphasis on Security and PrivacyOutsourcingOutlook for the FutureReferences
35. Project Management for Software Engineering
Traditional Development PhasesThe Analysis PhasePreanalysisPartitioning AnalysisPostanalysisThe Design PhaseDesign of the Technical Architecture of the SystemExternal DesignInternal DesignThe Construction Phase (Coding)The Installation PhaseIterative DevelopmentMethodology ModificationThe Rush to CodeDoing Things RightManaging Changes to the Domain of Study and the System ScopeThe Difficulty of Managing by Phases AloneImplementation of Inch-PebblesThe Implications of ReplanningEstimatingEstimating in UncertaintyStatistics for Project ManagementNotes
36. R&D Project Management: Adapting to Technological Risk and Uncertainty
Application ConsiderationsTechnology-Based Earned Value
37. Applying Project Management Tools and Techniques in the Ecosystem Restoration Industry
The Nature of the Ecosystem Restoration IndustrySix Steps: The Adaptive Management Life CycleCase Study: Mitigating the Environmental Impacts of Reservoir ExpansionReferences
About the Contributors

Content preview from The AMA Handbook of Project Management, Second Edition

Chapter 6. Controlling Costs and Schedule: Systems That Really Work

RALPH D. ELLIS, JR., UNIVERSITY OF FLORIDA (RET.)

In the design and implementation of a project cost control system, the individual characteristics of the organization performing the project and of the project itself must be considered. However, the following criteria should be considered regardless of the specific situation:

• Validity. The information reported must accurately reflect actual versus estimated costs.

• Timeliness. The cost data must be reported soon enough so that managerial action can be taken if a problem arises.

• Cost-effectiveness. Collection and reporting of cost data must be done in a way that does not hinder project progress.^[1]

Cost control systems can work ...

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The AMA Handbook of Project Management, Second Edition

by Paul C. Dinsmore - PMP, Jeannette Cabanis-Brewin

Chapter 6. Controlling Costs and Schedule: Systems That Really Work

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