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1184431 - McGraw-Hill Higher Education (US) ©
60 60 Chapter Chapter 2 2 OrOrganization ganization
StrStrategy ategy and and Project Project SelectionSelection
CaseCase
Fund Fund Raising Raising Project Project Selection Selection
casecase
The The purpose purpose ofof this this “case “case
exercise”exercise” is is to to proprovide vide yyou ou with with
experience experience in in using using aa
prproject oject selection selection process process thathat t
ranks ranks proposed proposed prprojects ojects by by their
their contribcontribution ution to to anan
ororganizationganization’’s s mission mission and and
strategystrategy..
FUND FUND RAISING RAISING PROJECTPROJECT
Assume Assume yyou ou are are a a member member ofof a a
class class on on project project manamanagement. gement.
Each Each student student willwill
join join a a team team ofof 5–7 5–7 students students who
who will will be be responsibresponsible le for for crcreating,
eating, planning planning andand
exexecuting ecuting a a fund fund raising raising project project
ffor or a a designated designated charitycharity. . The The fund
fund raising raising prprojectoject
has has twtwo o goals: goals: (1) (1) raise raise money money
ffor or a a worthworthy y cause cause and and (2) (2)
proprovide vide an an opportunityopportunity
ffor or all all team team members members to to practice
practice prproject oject management management skills skills
and and techniquestechniques..
In In addition addition to to completing completing the the
prproject oject a a nnumber umber ofof deliv deliveraerables
bles are are requirrequired ed toto
complete complete this this assignment. assignment. These
These delivdeliveraerables bles include:include:
a) a) PrProject oject PrProposal oposal d) d) Status Status
RReporteport
b) b) Implementation Implementation Plan Plan e) e) Project
Project RRefeflections lections PresentaPresentationtion
c) c) Risk Risk Management Management Plan Plan f) f)
PrProject oject RRetretrospective/Aospective/Auditudit
ApprApprovoved ed projects projects wiwill ll rreceive eceive
$250 $250 seed seed money money to to be be rreimbursed
eimbursed upon upon comple-comple-
tion tion ofof the the project.project.
“MUST” “MUST” OBJECTIVESOBJECTIVES
Every Every prproject oject must must meet meet the the
“must”“must” objectives objectives as as determined
determined by by the the instructorinstructor..
There There arare e four four mmust ust objectives:objectives:
1. 1. All All projects projects mmust ust be be safesafe, , legal
legal and and comply comply with with uniuniversity versity
policiespolicies..
2. 2. All All projects projects mmust ust be be capacapable ble
ofof earning earning at at least least $500.$500.
PROJECT PROJECT PROPOSAL PROPOSAL 6: 6: KEIKO—
ONE KEIKO—ONE WHALE WHALE OF OF A A
STORYSTORY
The The story story ofof Keik Keikoo, , the the famous famous
killer killer whalewhale, , will will be be told told by by an an
imaimaginary ginary offspringoffspring
SeikSeiko, o, wwho ho in in the the distant distant future future
is is telling telling her her children children aabout bout their
their famous famous grandfa-grandfa-
therther. . The The big-budget big-budget film film will will
integraintegrate te actual actual footafootage ge ofof the the
wwhale hale within within a a realis-realis-
tic tic animaanimated ted envirenvironment onment using using
state-of-the-art state-of-the-art computer computer
imaimagerygery. . The The story story willwill
rereveal veal how how KKeikeiko o responded responded to to
his his treatreatment tment by by humanshumans..
Probability Probability 80% 80% 50% 50% 20%20%
ROI ROI 6% 6% 18% 18% 25%25%
PROJECT PROJECT PROPOSAL PROPOSAL 7: 7: GRAND
GRAND ISLANDISLAND
The The true true story story ofof a a group group ofof junior -
high junior-high biolobiology gy students students who who
discodiscover ver thathat t a a fertil-fertil-
izer izer plant plant is is dumping dumping toxic toxic wwastes
astes into into a a nearby nearby rivriverer. . The The moderate -
bmoderate-budget udget filmfilm
depicts depicts how how students students ororganize ganize a a
grassrgrassroots oots campaign campaign to to fight fight local
local bureaucracy bureaucracy andand
ultimaultimately tely fforce orce the the fertilizer fertilizer
plant plant to to restore restore the the local local
ecosystem.ecosystem.
Probability Probability 80% 80% 50% 50% 20%20%
ROI ROI 9% 9% 15% 15% 20%20%
1184431 - McGraw-Hill Higher Education (US) ©
Chapter Chapter 2 2 OrgOrganization anization Strategy
Strategy and and PrProject oject SelectionSelection 6161
3. 3. All All projects projects mmust ust be be aable ble to to be
be completed completed within within nine nine weeksweeks..
4. 4. All All prprojects ojects must must prproovide vide an an
opportunity opportunity for for eevery very member member
ofof the the project project teamteam
to to experience experience and and learn learn aabout bout
project project manamanagement.gement.
Among Among the the factors factors to to consider consider
ffor or the the last last objective objective wwould ould be be
the the extent extent there there isis
meaningful meaningful wwork ork ffor or every every member
member ofof the the team, team, the the degree degree ofof
coordina coordination tion re-re-
quired, quired, the the eextent xtent the the team team will will
hahave ve to to wwork ork with with external external
stakstakeholderseholders, , and and thethe
complexity complexity ofof the the prproject.oject.
“W“WANT” ANT” OBJECTIVESOBJECTIVES
In In addition addition to to the the mmust ust
objectivesobjectives, , there there are are “w“want”ant” objectiv
objectives es that that the the instructorinstructor
wwould ould like like toto achie achieveve. . The The
ffollowing ollowing is is a a list list ofof these these
objectives:objectives:
1. 1. Earn Earn more more than than $500 $500 ffor or a a
charitycharity
2. 2. Increase Increase public public aawareness wareness ofof
the the charitycharity
3. 3. ProProvide vide a a resume resume wworthorthy y
experience experience ffor or studentsstudents
4. 4. Be Be featurfeatured ed on on local local TV TV newsnews
5. 5. Be Be fun fun to to dodo
ASSIGNMENTASSIGNMENT
YYou ou arare e a a member member ofof the the class class
priority priority team team in in charcharge ge ofof ev
evaluating aluating and and aappropprov-v-
ing ing fund fund raising raising prprojectsojects. . Use Use the
the proprovided vided proposal proposal eevaluavaluation tion
ffororm m to to formallyformally
evevaluate aluate and and rank rank each each prproposal.
oposal. Be Be prepared prepared to to rreport eport your your
rrankings ankings and and justifyjustify
yyour our decision. decision. YYou ou should should assume
assume thathat t these these prprojects ojects would would be be
held held aat t yyour our uni-uni-
versity versity or or collegecollege..
FUND FUND RAISING RAISING PROPOSALSPROPOSALS
PROJECT PROJECT PROPOSAL PROPOSAL 1: 1: HOOPS
HOOPS FOR FOR HOPEHOPE
The The prproject oject is is a a three-on-three three-on-three
baskbasketball etball tournament tournament to to raise raise
money money ffor or thethe
DoDown wn Syndrome Syndrome AssociaAssociation. tion. The
The tournament tournament will will consist consist ofof three
three brbrackets:ackets:
Co-ed, Co-ed, MaleMale, , and and Female Female teamsteams.
. There There will will be be a a $40 $40 entry entry fee fee per
per team team and and addi-addi-
tional tional funds funds will will be be derivderived ed from
from the the sale sale ofof commemora commemorative tive TT-
shirts -shirts ($10). ($10). Win-Win-
ning ning teams teams will will receireceive ve gift gift
baskbaskets ets consisting consisting ofof donations donations
frfrom om local local businessesbusinesses
and and restaurantsrestaurants. . The The event event will will
be be held held aat t the the univuniversity ersity
recrearecreational tional centercenter..
PROJECT PROJECT PROPOSAL PROPOSAL 2: 2: SINGING
SINGING FOR FOR SMILESSMILES
The The prproject oject will will hold hold a a karaokkaraoke e
competition competition with with celebrity celebrity judges
judges aat t a a popularpopular
campus campus night night spot. spot. Funds Funds will will be
be raised raised by by $5 $5 admission admission aat t the the
door door and and a a rafraffflele
ffor or prizes prizes donated donated bby y local local
businessesbusinesses. . Funds Funds will will be be
donadonated ted to to Smile Smile TTrain, rain, anan
internainternational tional organizaorganization tion that that
perfperfororms ms cleft cleft lip lip surgery surgery aat t a a
cost cost ofof $250 $250 perper
child. child. The The evevent ent will will feature feature
picturpictures es ofof children children born born with with
cleft cleft lips lips and and with with eev-v-
ery ery $50 $50 earned earned a a piece piece ofof a a picture
picture puzzle puzzle will will be be added added until until the
the original original picturepicture
is is cocovered vered with with a a smiling smiling faceface..
PROJECT PROJECT PROPOSAL PROPOSAL 3: 3: HALO
HALO FOR FOR HEROESHEROES
The The prproject oject will will be be a a Halo Halo video
video game game competition competition to to be be held held
ovover er the the weekweekendend
utilizing utilizing the the College’College’s s big big screen
screen electrelectronic onic classroomsclassrooms. . TTeams
eams ofof 4 4 plaplayers yers willwill
plaplay y each each other other in in a a single single
elimination elimination tournament tournament with with the
the grgrand and prizprize e being being aa
SonSony y PlaPlay y Station Station 3 3 donadonated ted by by
a a local local video video game game storstoree. . Entry Entry
fee fee is is 24$ 24$ per per teamteam
1184431 - McGraw-Hill Higher Education (US) ©
62 62 Chapter Chapter 2 2 OrOrganization ganization
StrStrategy ategy and and Project Project SelectionSelection
and and individual individual plaplayers yers will will be be
aable ble to to plaplay y in in a a loser’loser’s s bracket bracket
ffor or 5$. 5$. All All proceedsproceeds
will will go go to to the the NaNational tional Military Military
FFamily amily AssociaAssociation.tion.
PROJECT PROJECT PROPOSAL PROPOSAL 4: 4: RAFFLE
RAFFLE FOR FOR LIFELIFE
OrOrganizganize e a a rafrafffle le contest. contest. RRaffle
affle ticktickets ets will will be be sold sold for for 3$ 3$ a a
piece piece with with the the winningwinning
tickticket et worth worth $300. $300. Each Each ofof the the
six six team team members members will will be be responsible
responsible ffor or selling selling 5050
rafraffle fle ticketstickets. . All All profits profits will will go
go to to the the American American Cancer Cancer
SocietySociety..
PROJECT PROJECT PROPOSAL PROPOSAL 5: 5: HOLD’EM
HOLD’EM FOR FOR HUNGERHUNGER
OrOrganizganize e a a TTexas exas Hold’em Hold’em pokpoker
er tournament tournament at at a a campus campus dining dining
facilityfacility. . It It will will costcost
20$ 20$ to to enter enter the the tournament tournament with
with a a $15 $15 buy-in buy-in in in feefee. . PrizPrizes es
include include $300, $300, $150, $150, andand
$50 $50 gift gift certificacertificates tes to to a a large large
department department storestore. . Gift Gift certificates
certificates purpurchased chased from from en-en-
try try feesfees. . All All plaplayers yers will will be be eligible
eligible to to win win twtwo o donated donated ticktickets ets to
to Men Men and and WWomenomen
baskbasketball etball gamesgames. . Funds Funds raised raised
will will go go to to local local county county ffood ood
sheltershelter..
PROJECT PROJECT PROPOSAL PROPOSAL 6: 6: BUILD
BUILD YOUR YOUR OWN OWN BOXBOX
The The purpose purpose ofof this this project project is is to
to raise raise aawareness wareness ofof plight plight ofof
homeless homeless. . StudentsStudents
will will donadonate te ten ten dollars dollars to to participate
participate in in bbuilding uilding and and living living in in a a
cardboarcardboard d city city onon
the the univuniversity ersity quad quad for for one one night.
night. Building Building mamaterials terials will will be be
proprovided vided by by local local rre-e-
cycling cycling centers centers and and harharddware ware
storesstores. . Hot Hot soup soup will will be be prprovided
ovided bby y the the team team atat
midnight midnight to to all all participantsparticipants. .
PrProceeds oceeds for for go go to to the the local local
homeless homeless sheltershelter..
PrProject oject PriorityPriority
Evaluation Evaluation FFormorm Must Must
objectivesobjectives
Be Be safesafe, , legal,legal,
& & comply comply with with UnivUniversityersi ty
PPoliciesolicies
Can Can be be completcompleted ed withinwithin
9 9 weeksweeks
Earn Earn at at least least $500$500
WantWant
objectivesobjectives
Single Single projectproject
impact impact definitionsdefinitions
Earning Earning potentialpotential
Relat iveRelat ive
Import anceImport ance
1–1001–100
9090
3030
4040
4040
0:0: 500–750 500–750
1:1: 750–1500 750–1500
2:2: >$1500 >$1500
3:3: >$2000 >$2000
0:0: None None
1:1: Some Some funfun
2:2: A A lot lot of of funfun
3030
0:0: No No potentialpotential
1:1: Low Low potentialpotential
2:2: High High potentialpotential
0:0: No No potentialpotential
1:1: Low Low potentialpotential
2:2: High High potentialpotential
0:0: No No potentialpotential
1:1: Low Low potentialpotential
2:2: High High potentialpotential
TTotal otal weighted weighted scorscoree
PPrr iorityiority
FuFunn
IncreaseIncrease
awarawarenesseness
of of charcharityity
Resume Resume worthyworthy
Be Be featurfeatured ed onon
local local TV TV newsnews
Y Y = = yesyes
N N = = nono
Y Y = = yesyes
N N = = nono
Y Y = = yesyes
N N = = nono
OpportunitOpportunit y y to to learnlearn
PProject roject ManagementManagement
Y Y = = yesyes
N N = = nono
Must Must meetmeet
if if impactsimpacts
1 2 3 4 5 6 71 2 3 4 5 6 7
1184431 - McGraw-Hill Higher Education (US) ©
Chapter Chapter 2 2 OrgOrganization anization Strategy
Strategy and and PrProject oject SelectionSelection 6363
Appendix Appendix 2.12.1
Request Request for for Proposal Proposal (RFP)(RFP)
Once Once an an ororganization ganization selects selects a a
prproject, oject, the the customer customer or or prproject oject
manager manager is is fre-fre-
quently quently rresponsible esponsible ffor or developing
developing a a rrequest equest ffor or proposal proposal (RFP)
(RFP) ffor or the the project project oror
sections sections ofof the the project.project.
The The responsible responsible prproject oject manager
manager will will rrequire equire input input dadata ta from
from all all stakstakeholderseholders
connected connected to to the the activities activities
cocoververed ed in in the the RFPRFP. . The The RFP RFP will
will be be announced announced toto
external external contractors/vcontractors/vendors endors with
with adequate adequate eexperience xperience to to implement
implement the the project.project.
FFor or exampleexample, , govgovernment ernment projects
projects frfrequently equently advadvertise ertise with with a a
“request “request ffor or prpro-o-
posal”posal” to to outside outside contractors contractors ffor
or roadsroads, , buildingsbuildings, , airportsairports, , military
military hardhardwareware,,
space space vehiclesvehicles. . SimilarlySimilarly, , bbusinesses
usinesses use use RFPs RFPs to to solicit solicit bids bids for
for bbuilding uilding a a cleanclean
rroom, oom, developing developing a a nenew w manufacturing
manufacturing prprocessocess, , delivering delivering
softwsoftware are ffor or insuranceinsurance
billing, billing, conducting conducting a a markmarket et
surveysurvey. . In In all all ofof these these
examplesexamples, , requirements requirements andand
feafeatures tures must must be be in in enough enough detail
detail thathat t contractors contractors hahave ve a a clear clear
description description ofof the the
final final delivdeliveraerable ble thathat t will will meet meet
the the customer’customer’s s needsneeds. . In In most most
cases cases the the RFP RFP alsoalso
specifies specifies an an expected expected fforormat mat ffor
or the the contractor’contractor’s s bid bid proposal proposal so
so the the rresponses esponses ofof
difdifferent ferent contractors contractors can can be be
fairlfairly y evaluaevaluated. ted. Although Although we we
typicalltypically y think think ofof RFPs RFPs
ffor or external external contractorscontractors, , in in some
some organizaorganizations tions RFPs RFPs are are used used
internally; internally; thathat t isis,,
the the ororganization ganization sends sends out out an an RFP
RFP to to difdifferent ferent divisions divisions or or
departmentsdepartments..
The The content content ofof the the RFP RFP is is
extremelextremely y important. important. In In
practicepractice, , the the most most commoncommon
errerror or is is to to offer offer an an RFP RFP thathat t lacks
lacks sufsufficient ficient detail. detail. This This lack lack ofof
detail detail typicallytypically
results results in in conflict conflict issuesissues, ,
misunderstandingsmisunderstandings, , often often legal legal
claims claims between between the the con-con-
tractor tractor and and oownerwner, , and, and, in in addition,
addition, an an unsatisfied unsatisfied customcustomerer. . All
All RFPs RFPs are are difdiffer-fer-
ent, ent, but but the the outline outline in in FigurFigure e A2.1
A2.1 is is a a good good starting starting point point ffor or the
the development development ofof
a a detailed detailed RFPRFP. . Each Each step step is is
briefbriefly ly described described nenext.xt.
1. 1. Summary Summary ofof needs needs and and rrequest
equest for for action.action. The The backgrbackground ound
and and a a simple simple de-de-
scription scription ofof the the final final project project
delideliveraverable ble are are gigiven ven first. first. FFor or
exampleexample, , through through sim-sim-
ulaulated ted war war gamesgames, , the the UU.S.S. . NaNavy
vy has has ffound ound their their giant giant warships warships
ofof the the past past are are tootoo
vulneravulnerable ble against against todatoday’y’s s
technology technology (an (an eexample xample is is the the
Silkworm Silkworm antiship antiship mis-mis-
siles). siles). In In addition, addition, the the NaNavy’vy’s s
mission mission has has shifted shifted to to supporting
supporting grground ound fforces orces andand
peacekpeacekeeping eeping missionsmissions, , which which
requirrequire e getting getting closer closer to to shoreshore. .
As As a a result, result, the the NaNavyvy
is is rerevamping vamping ships ships ffor or near-shore near-
shore dutyduty. . The The NaNavy vy will will select select
three three designs designs ffor or fur-fur-
ther ther refinement refinement frfrom om the the responses
responses to to its its RFPRFP. . In In general, general, it it is is
expected expected thathat t thethe
new new ship ship will will be be cacapapable ble ofof a at t
least least 55 55 knotsknots, , measure measure between
between 80 80 and and 250 250 feet feet inin
length, length, and and be be fitted fitted with with radar radar
aabsorbing bsorbing panels panels to to thwart thwart guided
guided missilesmissiles..
1. 1. Summary Summary of of needs needs and and request
request for for actionaction
2. 2. Statement Statement of of work work (SOW) (SOW)
detailing detailing the the scope scope and and major major
deliverablesdeliverables
3. 3. Deliverable Deliverable specifications/requirements,
specifications/requirements, features, features, and and
taskstasks
4. 4. Responsibilities—vendor Responsibilities—vendor and and
customercustomer
5. 5. Project Project scheduleschedule
6. 6. Costs Costs and and payment payment scheduleschedule
7. 7. TType ype of of contractcontract
8. 8. Experience Experience and and staffingstaffing
9. 9. Evaluation Evaluation criteriacriteria
FIGURE FIGURE A2.1A2.1
RRequest equest for for PrProposaloposal
1184431 - McGraw-Hill Higher Education (US) ©
64 64 Chapter Chapter 2 2 OrOrganization ganization
StrStrategy ategy and and Project Project SelectionSelection
2. 2. Statement Statement ofof work work (SO(SOW) W)
detailing detailing the the scope scope and and major major
delivdeliverables.erables. F For or ex-ex-
ampleample, , ifif the the prproject oject invinvolves olves a a
marmarket ket rresearch esearch surveysurvey, , the the major
major delivdeliveraerablesbles
could could be be design, design, dadata ta collection,
collection, data data analanalysisysis, , and and proproviding
viding recommendarecommendationstions
by by FFebruary ebruary 21, 21, 2014, 2014, ffor or a a cost
cost not not to to exexceed ceed $300,000.$300,000.
3. 3. DelivDeliverable erable
specifications/rspecifications/requirements, equirements,
featurfeatures, es, and and tasks.tasks. This This step step
shouldshould
be be very very comprcomprehensive ehensive soso bid bid
prproposals oposals frfrom om contractors contractors can can
be be validavalidated ted andand
lalater ter used used for for contrcontrol. ol. TTypical ypical
specifications specifications cocover ver phphysical ysical
features features such such as as sizesize,,
quantityquantity, , materialsmaterials, , speed, speed, and and
colorcolor. . FFor or exampleexample, , an an IT IT prproject
oject might might specifyspecify
requirrequirements ements for for harharddwareware, ,
softwarsoftwaree, , and and training training in in greagreat t
detail. detail. TTasks asks requiredrequired
to to complete complete delivdeliveraerables bles can can be be
included included ifif they they are are knoknown.wn.
4. 4. RResponsibilities—vendor esponsibilities—vendor and and
customercustomer.. F Failing ailing to to spell spell out out the
the responsibilitiesresponsibilities
ffor or both both parties parties is is notorious notorious ffor or
leading leading to to serious serious probproblems lems when
when the the contractorcontractor
implements implements the the prproject. oject. FFor or
exampleexample, , who who papays ys for for wwhat? hat?
(If(If the the contractor contractor is is toto
be be on on sitesite, , will will the the contractor contractor be
be required required to to papay y for for ofoffice fice space?)
space?) WhaWhat t are are thethe
limits limits and and exexclusions clusions ffor or the the
contractor? contractor? (F(For or exampleexample, , who who
will will supplsupply y test test equip-equip-
ment?) ment?) WWhat hat commcommunication unication plan
plan will will be be used used bby y the the contractor
contractor and and owner? owner? IfIf
escalaescalation tion ofof an an issue issue becomes becomes
necessarynecessary, , whawhat t process process will will be be
used? used? HoHow w willwill
prprogress ogress be be eevaluavaluated? ted? WWell-defined
ell-defined responsibilities responsibilities will will aavoid void
manmany y unforunforeseeneseen
prproblems oblems lalaterter..
5. 5. Project Project schedule.schedule. This This step step is is
concerned concerned with with getting getting a a “har“hard”d”
schedule schedule whichwhich
can can be be used used ffor or contrcontrol ol and and
evaluaevaluating ting prprogressogress. . Owners Owners are
are usually usually vvery ery demand-demand-
ing ing in in meeting meeting the the prproject oject
scheduleschedule. . In In todatoday’y’s s business business
enenvirvironment, onment, time-to-time-to-
markmarket et is is a a major major “hot “hot button”button”
that that influences influences markmarket et shareshare, ,
costscosts, , and and profitsprofits..
The The schedule schedule should should spell spell out out
whawhat, t, whowho, , and and when.when.
6. 6. Costs Costs and and payment payment schedule.schedule.
The The RFP RFP needs needs to to set set out out vvery ery
clearly clearly hohoww,,
when, when, and and the the prprocess ocess ffor or
deterdetermining mining costs costs and and conditions
conditions for for prprogressogress
papaymentsyments..
7. 7. Type Type ofof contr contract.act. Essentially Essentially
there there arare e two two types types ofof contracts—fixed-
price contracts—fixed-price
and and cost-pluscost-plus. . Fixed-price Fixed-price contracts
contracts aagree gree on on a a price price or or lump lump sum
sum in in advadvanceance,,
and and it it remains remains as as long long as as therthere e
are are no no changes changes to to the the scope scope
prprovisions ovisions ofof the the
agragreement. eement. This This type type is is preferred
preferred in in prprojects ojects that that are are wwell ell
defined defined with with predict-predict-
aable ble costs costs and and minimal minimal risksrisks. . The
The contractor contractor must must exexercise ercise care care
estimaestimating ting costcost
because because anany y underestimating underestimating ofof
costs costs will will cause cause the the contractor’contractor’s
s prprofit ofit to to bebe
reduced. reduced. In In cost-plus cost-plus contracts contracts
the the contrcontractor actor is is reimburreimbursed sed ffor or
all all or or some some ofof
the the expenses expenses incurrincurred ed during during
performance performance ofof the the contract. contract. This
This fee fee is is negoti-negoti-
aated ted in in advance advance and and usuallusually y
ininvolvvolves es a a percent percent ofof total total
costscosts. . “Time “Time and and mate-mate-
rials”rials” plus plus a a profit profit factor factor arare e
typical typical ofof cost-plus cost-plus contractscontracts. .
Both Both types types ofof
contracts contracts can can include include incentivincentive e
clauses clauses ffor or superior superior performance
performance in in time time andand
cost, cost, or or in in some some casescases, , penalties—for
penalties—for eexamplexample, , missing missing the the
opening opening date date ofof a a
new new sports sports stadium.stadium.
8. 8. Experience Experience and and staffing.staffing. The The
aability bility ofof the the contractor contractor to to
implement implement the the prproj-oj-
ect ect mamay y depend depend on on specific specific skills;
skills; this this necessary necessary experience experience
should should be be specified,specified,
along along with with assurance assurance such such stafstafff
will will be be aavailavailable ble ffor or this this
project.project.
9. 9. Evaluation Evaluation criteria.criteria. The The criteria
criteria ffor or evevaluating aluating and and aawarwarding
ding the the projectproject
contract contract should should be be specified. specified. FFor
or exampleexample, , selection selection criteria criteria
frequently frequently includeinclude
methodologymethodology, , priceprice, , scheduleschedule, ,
and and experience; experience; in in some some cases cases
these these criteria criteria areare
weighted. weighted. Use Use ofof the the outline outline in in
Figure Figure A2.1 A2.1 will will help help to to ensure ensure
kkey ey items items in in thethe
prproposal oposal are are not not omitted. omitted. A A well -
prwell-prepared epared RFP RFP will will prprovide ovide
contractors contractors withwith
sufsufficient ficient guidelines guidelines to to prepare prepare
a a prproposal oposal thathat t clearly clearly meets meets the
the prproject oject andand
customer’customer’s s needsneeds..
1184431 - McGraw-Hill Higher Education (US) ©
Chapter Chapter 2 2 OrgOrganization anization Strategy
Strategy and and PrProject oject SelectionSelection 6565
FIGURE FIGURE A2.2A2.2 Contractor Contractor Evaluation
Evaluation TTemplateemplate
Contractor Contractor Maximum Maximum Proposal Proposal
Proposal Proposal Proposal Proposal ProposalProposal
Evaluation Evaluation TTemplate emplate Weight Weight 1 1 2
2 3 3 44
Contractor Contractor qualifications qualifications Weight
Weight 10 1055
TTechnical echnical skills skills available available WWeight
eight 20 2055
Understanding Understanding of of contract contract Weight
Weight 5 555
and and conditionsconditions
Financial Financial strength strength to to Weight Weight 15
1555
implement implement projectproject
Understanding Understanding of of proposal proposal Weight
Weight 10 1055
specificationsspecifications
Innovativeness Innovativeness and and Weight Weight 5 555
originality originality of of proposalproposal
Reputation Reputation for for delivering delivering Weight
Weight 15 1555
on on time time and and budgetbudget
Price Price Weight Weight 55 20 20
TTotal otal 100100
SELECTION SELECTION OF OF CONTRACTOR
CONTRACTOR FROM FROM BID BID
PROPOSALSPROPOSALS
Interested Interested contractors contractors rrespond espond to
to project project RFPs RFPs with with a a written written bid
bid prpropoposal. osal. It It isis
liklikely ely thathat t severseveral al contractors contractors
will will submit submit bid bid proposals proposals to to the the
customercustomer..
The The final final step step in in the the RFP RFP prprocess
ocess is is to to select select the the contractor contractor wwho
ho best best meets meets thethe
requirrequirements ements requested requested in in the the
RFPRFP. . The The selection selection criteria criteria gigiven
ven in in the the RFP RFP areare
used used to to evevaluate aluate wwhich hich contractor
contractor is is aawarded warded the the contrcontract act to to
implement implement the the proj-proj-
ect. ect. Losing Losing contractors contractors should should be
be givgiven en an an explanaexplanation tion ofof the the kkey
ey factors factors that that ledled
to to the the selection selection ofof the the winning winning
contractor/vendor; contractor/vendor; aappreciappreciation tion
ffor or their their participa-participa-
tion tion and and efeffort fort should should be be
acknoacknowledged. wledged. See See Figure Figure A2.2,
A2.2, Contractor Contractor EvaluaEvaluationtion
TTemplateemplate, , adapted adapted frfrom om one one used
used in in practicepractice..
1184431 - McGraw-Hill Higher Education (US) ©
C H A P T E R C H A P T E R T H R E ET H R E E
Organization:Organization:
Structure Structure and and CultureCulture
6666
Organization: Organization: Structure Structure and and
CultureCulture
Project Project Management Management StructuresStructures
What What Is Is the the Right Right Project Project
Management Management Structure?Structure?
Organizational Organizational CultureCulture
Implications Implications of of Organizational Organizational
Culture Culture for for Organizing Organizing ProjectsProjects
SummarySummary
PProjectroject
netnetworksworks
66
ManagingManaging
riskrisk
77
MonitoringMonitoring
progrprogressess
1313
TTeamseams
1111
OutsourcingOutsourcing
1212
LeadershipLeadership
1010
StrategyStrategy
22
IntroductionIntroduction
11
OrgOrganizationanization
33
ScheduleSchedule
resourresources ces & & costscosts
88
Inte
rna
tion
al
Inte
rna
tion
al
pro
ject
s
pro
ject
s
1515
1818
OverOvers
ightsight
Agile
Agile PMPM
CarCareer eer pathspaths
1717
1616
PProjectroject
closureclosure
1414
EstimatEstimatee
55
ReducingReducing
durationduration
99
DefineDefine
projectproject
44
1184431 - McGraw-Hill Higher Education (US) ©
C H A P T E R C H A P T E R O N EO N E
Modern Modern Project Project ManagementManagement
22
PProjectroject
netnetworksworks
66
ManagingManaging
riskrisk
77
MonitoringMonitoring
progrprogressess
1313
TTeamseams
1111
OutsourcingOutsourcing
1212
LeadershipLeadership
1010
StrategyStrategy
22
IntroductionIntroduction
11
OrgOrganizationanization
33
ScheduleSchedule
resourresources ces & & costscosts
88
Inte
rna
tion
al
Inte
rna
tion
al
pro
ject
s
pro
ject
s
1515
1818
OverOvers
ightsight
Agile
Agile PMPM
CarCareer eer pathspaths
1717
1616
PProjectroject
closureclosure
1414
EstimatEstimatee
55
ReducingReducing
durationduration
99
DefineDefine
projectproject
44
Modern Modern Project Project ManagementManagemen t
What What Is Is a a Project?Project?
Current Current Drivers Drivers of of Project Project
ManagementManagement
Project Project GovernanceGovernance
Project Project Management Management TToday—A oday—A
Socio-TSocio-Technical echnical ApproachApproach
SummarySummary
TText ext OverviewOverview
1184431 - McGraw-Hill Higher Education (US) ©
All All ofof mankind’s mankind’s grgreatest eatest
accomplishments—from accomplishments—from building
building the the grgreat eat ppyryra-a-
mids mids to to discodiscovering vering a a curcure e for for
polio polio to to putting putting a a man man on on the the
moon—begmoon—beganan
as as a a prproject.oject.
This This is is a a good good time time to to be be reading
reading a a book book aabout bout project project
manamanagement. gement. BusinessBusiness
leaders leaders and and experts experts hahave ve prproclaimed
oclaimed thathat t project project manamanagement gement is is
critical critical to to sus-sus-
tainatainable ble economic economic grgroowth. wth. New New
jobs jobs and and competitive competitive adadvantavantage ge
are are achievachieved ed byby
constant constant innoinnovavation, tion, developing developing
nenew w products products and and servicesservices, , and and
imprimproving oving bothboth
prproductivity oductivity and and quality quality ofof wor
work. k. This This is is the the world world ofof pr project
oject management. management. PrProj-oj-
ect ect management management prprovides ovides people
people with with a a popowerful werful set set ofof tools tools
that that imprimprovoves es theirtheir
aability bility to to plan, plan, implement, implement, and and
manage manage actiactivities vities to to accomplish accomplish
specific specific organiza-organiza-
tional tional objectivobjectiveses. . But But prproject oject
management management is is more more than than just just a a
set set ofof tools; tools; it it is is aa
results-oriented results-oriented manamanagement gement style
style that that places places a a prpremium emium on on
building building collacollabora-bora-
tivtive e relationships relationships among among a a didiverse
verse cast cast ofof characters characters. . Exciting Exciting
opportunities opportunities aawaitwait
people people skilled skilled in in prproject oject
management.management.
The The prproject oject apprapproach oach has has long long
been been the the style style ofof doing doing bbusiness
usiness in in the the construc-construc-
tion tion industryindustry, , UU.S.S. . Department Department
ofof Defense Defense contractscontracts, , and and
HollywHollywood ood as as well well asas
big big consulting consulting firmsfirms. . Now Now prproject
oject management management has has spread spread to to all
all aavenvenues ues ofof w work.ork.
TTodayoday, , project project teams teams carry carry out out
eeverything verything frfrom om port port expansions
expansions to to hospital hospital re-re-
structuring structuring to to upgrading upgrading infinformation
ormation systemssystems. . They They are are creacreating ting
next next generageneration,tion,
fuel fuel efefficient ficient vehiclesvehicles, , devdeveloping
eloping sustainasustainable ble sources sources ofof energy
energy, , and and exploring exploring thethe
farthest farthest reaches reaches ofof outer outer spacespace. .
The The impact impact ofof project project manamanagement
gement is is most most prpro-o-
ffound ound in in the the electrelectronics onics
industryindustry, , wherwhere e the the new new ffolk olk
herheroes oes are are yyoung oung profession-profession-
als als whose whose HerHerculean culean effefforts orts lead
lead to to the the constant constant flow flow ofof new new
hardhardware ware andand
softwarsoftware e productsproducts..
PrProject oject management management is is not not limited
limited to to the the priprivavate te sectorsector. . Project
Project manamanagement gement isis
also also a a vehicle vehicle ffor or doing doing good good
deeds deeds and and solving solving social social
probproblemslems. . EndeaEndeavors vors suchsuch
as as prproviding oviding emeremergency gency aid aid to to
areas areas hit hit by by nanatural tural disastersdisasters, ,
devising devising a a strastrategy tegy forfor
reducing reducing crime crime and and drug drug aabuse buse
within within a a citycity, , or or ororganizing ganizing a a
community community efeffortfort
ound would would and and do do benefit benefit frfrom om the
the applicaapplication tion ofof
modern modern prproject oject management management skills
skills and and techniquestechniques..
PerhaPerhaps ps the the best best indicator indicator ofof
demand demand ffor or project project manamanagement
gement can can be be seenseen
in in the the rarapid pid expansion expansion ofof the the
PrProject oject Management Management Institute Institute
(PMI), (PMI), a a prprofes-ofes-
sional sional ororganization ganization ffor or project project
manamanagersgers. . PMI PMI membership membership has has
grogrownwn
frfrom om 93,000 93,000 in in 2002 2002 to to more more than
than 434,000 434,000 currentlcurrentlyy. . See See the the PMI
PMI SnapshotSnapshot
frfrom om PracticePractice, , ffor or infinforormation mation
rregarding egarding prprofessional ofessional certification
certification in in prprojectoject
management.management.
It’It’s s nearlnearly y impossible impossible to to pick pick up
up a a newspanewspaper per or or business business periodical
periodical and and notnot
find find something something aabout bout prprojectsojects. .
This This is is no no surprise! surprise!
ApprApproximaoximately tely $2.5 $2.5 trilliontrillion
(a(about bout 25 25 percent percent ofof the the UU.S.S. .
grgross oss national national prproduct) oduct) are are spent
spent on on prprojects ojects eacheach
year year in in the the United United StaStates tes alonealone..
Other Other countries countries are are incrincreasingly
easingly spending spending more more onon
prprojectsojects. . Millions Millions ofof people people
araround ound the the world world consider consider prproject
oject management management thethe
major major task task in in their their prprofession.ofession.
33
1184431 - McGraw-Hill Higher Education (US) ©
4 4 Chapter Chapter 1 1 Modern Modern PrProject oject
ManagementManagement
Most Most ofof the the people people who who exexcel cel aat
t managing managing prprojects ojects never never hahave ve
the the title title ofof proj- proj-
ect ect managermanager. . They They include include
accountantsaccountants, , lalawyerswyers, ,
administraadministratorstors, , scientistsscientists, , con-con-
tractorstractors, , public public health health ofofficialsficials, ,
teachersteachers, , and and community community
adadvocavocates tes whose whose successsuccess
depends depends upon upon being being aable ble to to lead
lead and and manamanage ge project project wwork. ork. FFor
or somesome, , the the veryvery
nanature ture ofof their their wwork ork is is prproject oject
drivdriven. en. Projects Projects mamay y be be cases cases for
for lalawyerswyers, , audits audits fforor
accountantsaccountants, , events events ffor or artistsartists, ,
and and renorenovavations tions for for contrcontractorsactors. .
FFor or othersothers, , proj-proj-
ects ects mamay y be be a a small, small, but but critical critical
part part ofof their their wwork. ork. FFor or exampleexample,
, a a high high schoolschool
teacher teacher who who teaches teaches ffour our classes
classes a a daday y is is responsible responsible ffor or
coaching coaching a a group group ofof stu- stu-
dents dents to to compete compete in in a a nanational tional
debadebate te competition. competition. A A store store
manager manager wwho ho ovoverseesersees
daily daily operoperations ations is is charcharged ged with
with developing developing an an emploemployee yee retention
retention prprogram. ogram. AA
sales sales account account exexecutive ecutive is is givgiven
en the the additional additional assignment assignment ofof
team team lead lead to to launchlaunch
daily daily deals deals into into a a nenew w citycity. . A A
public public health health ofofficial ficial who who manages
manages a a clinic clinic is is alsoalso
responsibresponsible le for for ororganizing ganizing a a
Homeless Homeless YYouth outh Connect Connect evevent. ent.
FFor or these these and and othersothers,,
prproject oject management management is is not not a a
titletitle, , but but a a critical critical job job requirrequirement.
ement. It It is is hard hard to to thinkthink
ofof a a profession profession or or a a carcareer eer path path
thathat t would would not not benefit benefit frfrom om being
being good good at at manamanag-g-
ing ing prprojectsojects..
Not Not only only is is prproject oject management management
critical critical to to most most careerscareers, , the the skill
skill set set is is transfer-transfer-
aable ble acracross oss most most businesses businesses and and
prprofessionsofessions. . At At its its corecore, , prproject oject
management management fun-fun-
damentals damentals are are uniuniversal. versal. The The same
same prproject oject management management
methodolomethodology gy that that is is usedused
to to devdevelop elop a a new new prproduct oduct can can be
be adapted adapted to to creacreate te new new servicesservices,
, organize organize eveventsents,,
refurbish refurbish aaging ging operaoperationstions, , and and
so so forth. forth. In In a a wworld orld wherwhere e it it is is
estimated estimated thathat t eacheach
person person is is liklikely ely to to experience experience
tthrhree ee to to ffour our career career changeschanges, ,
managing managing prprojects ojects is is aa
talent talent wworthorthy y ofof dev development.elopment.
The The Project Project Management Management Institute
Institute (PMI) (PMI) waswas
founded founded in in 1969 1969 as as an an international
international society society forfor
project project managers. managers. TToday oday PMI PMI has
has membersmembers
from from more more than than 180 180 countries countries and
and more more thanthan
424,600 424,600 members. members. PMI PMI professionals
professionals come come from from virtually virtually
everyevery
major major industryindustry, , including including aerospace,
aerospace, automotive, automotive, businessbusiness
management, management, construction, construction,
engineering, engineering, financial financial services,services,
information information technologytechnology, ,
pharmaceuticals, pharmaceuticals, health health care, care,
andand
telecommunications.telecommunications.
PMI PMI provides provides certification certification as as a a
Project Project Management Management Pro-Pro-
fessional fessional (PMP)(PMP)—someone —someone who who
has has documented documented sufficientsufficient
project project experience, experience, agreed agreed to to
follow follow the the PMI PMI code code of of profes-profes-
sional sional conduct, conduct, and and demonstrated
demonstrated mastery mastery of of the the field field of of
proj-proj-
ect ect management management by by passing passing a a
comprehensive comprehensive examination.examination.
The The number number of of people people earning earning
PMP PMP status status has has grown grown dramat-dramat-
ically ically in in recent recent years. years. In In 1996 1996
there there were were fewer fewer than than 3,000 3,000 cercer -
-
tified tified project project management management
professionals. professionals. By By June June of of 20132013
there there were were more more than than 537,400 537,400
Prof essional Prof essional credentialcredential
holders.holders.
S N A P S H O T S N A P S H O T F R O M F R O M P R A
C T I C EP R A C T I C E The The Project Project
Management Management Institute*Institute*
Just Just as as the the CPCPA A exam exam is is a a standard
standard f or f or accountants,accountants,
passing passing the the PMP PMP exam exam may may become
become the the standard standard for for projectproject
managers. managers. Some Some companies companies are are
requiring requiring that that all all their their proj-proj-
ect ect managers managers be be PMP PMP certified. certified.
MoreoverMoreover, , many many job job post-post-
ings ings are are restricted restricted to to PMPs. PMPs. Job Job
seekers, seekers, in in general, general, areare
f inding f inding that that being being PMP PMP certif ied certif
ied is is an an advantage advantage in in thethe
marketplace.marketplace.
PMI PMI added added a a certif ication certif ication as as a a
Certified Certified Associate Associate inin
Project Project Management Management (CAPM)(CAPM). .
CAPM CAPM is is designed designed for for projectproject
team team members members and and entry-level entry-level
project project managers, managers, as as well well asas
qualified qualified undergraduate undergraduate and and
graduate graduate students students who who want want aa
credential credential to to recognize recognize their their
mastery mastery of of the the project project manage-manage-
ment ment body body of of knowledge. knowledge. CAPM
CAPM does does not not require require the the exten-exten-
sive sive project project management management experience
experience associated associated with with thethe
PMPPMP. . For For more more details details on on PMP PMP
and and CAPM, CAPM, “Google” “Google” PMI PMI toto
f ind f ind the the current current WWeb eb site site f or f or the
the Project Project ManagementManagement
Institute.Institute.
**PMI PMI TToday, oday, June June 2013, 2013, p. p. 44
1184431 - McGraw-Hill Higher Education (US) ©
Chapter Chapter 1 1 Modern Modern Project Project
ManagementManagement 55
S N A P S H O T S N A P S H O T F R O M F R O M P R A
C T I C EP R A C T I C E
A A Dozen Dozen Examples Examples of of Projects Projects
GivenGiven
to to Recent Recent College College GraduatesGraduates
The The significance significance ofof pr project oject
management management can can also also be be seen seen in in
the the classrclassroom.oom.
TTwenty wenty years years aago go major major universities
universities ofoffered fered one one or or twtwo o classes
classes in in project project manamanage-ge-
ment, ment, primarily primarily ffor or engineersengineers. .
TTodaodayy, , most most univuniversities ersities offer offer
mmultiple ultiple sections sections ofof
prproject oject management management classesclasses, , with
with the the core core grgroup oup ofof engineers engineers
being being supplementedsupplemented
by by bbusiness usiness students students majoring majoring in
in markmarketing, eting, management management
infinforormation mation systemssystems
1.1. Business Business information: information: Join Join a a
project project teamteam
charged charged with with installing installing new new data
data securitysecurity
system.system.
2. 2. Physical Physical education: education: Design Design and
and de de velopvelop
a a new new fitness fitness program program for for senior
senior citizens citizens that that com-com-
bines bines principles principles of of yoga yoga and and
aerobics.aerobics.
3. 3. Marketing: Marketing: Execute Execute a a sales sales
program program for for new new home home airair
purifierpurifier..
4. 4. Industrial Industrial engineering: engineering: Manage
Manage a a team team to to create create aa
value value chain chain report report for for every every aspect
aspect of of key key productproduct
from from design design to to customer customer
deliverydelivery..
5. 5. Chemistry: Chemistry: Develop Develop a a quality quality
control control program program for for orga-orga-
nization’nization’s s drug drug production production
facilities.facilities.
6. 6. ManagementManagement : : Implement Implement a a new
new store store layout layout design.design.
7. 7. Pre-med Pre-med neurology neurology student: student:
Join Join project project team team linkinglinking
mind mind mapping mapping to to an an imbedded imbedded
prosthetic prosthetic that that willwill
allow allow blind blind people people to to function function
near near normally.normally.
8. 8. Sports Sports communication: communication: Join Join
Olympic Olympic project project team team thatthat
will will promote promote women’women’s s sport sport
products products for for the the 2016 2016 GamesGames
in in Reo Reo de de Janeiro, Janeiro, Brazil.Brazil.
9. 9. Systems Systems engineer: engineer: Become Become a a
project project team team member member ofof
a a project project to to develop develop data data mining
mining of of medical medical paperspapers
and and studies studies related related to to drug drug
efficacyefficacy..
10. 10. Accounting: Accounting: Work Work on on an an audit
audit of of a a major major client.client.
11. 11. Public Public health: health: Research Research and and
design design a a medical medical mari-mari-
juana juana educational educational program.program.
12. 12. English: English: Create Create a a web-based web-
based user user manual manual for for newnew
electronics electronics product.product.
© © TTroels roels Graugaard/EGraugaard/E /Getty /Getty
ImagesImages11
1184431 - McGraw-Hill Higher Education (US) ©
6 6 Chapter Chapter 1 1 Modern Modern PrProject oject
ManagementManagement
The The Project Project ManaManagement gement Institute
Institute prprovides ovides the the ffollowing ollowing
definition definition ofof a a
prproject:oject:
A A prprojectoject is is a a temporary temporary
endeaendeavor vor undertakundertaken en to to create create a a
unique unique prproduct, oduct, service, service, or or
rresult.esult.
LikLike e most most organizaorganizational tional efeffort, fort,
the the major major goal goal ofof a a prproject oject is is to to
satisfy satisfy a a customer’customer’ss
need. need. BeyBeyond ond this this fundamental fundamental
similaritysimilarity, , the the characteristics characteristics ofof
a a prproject oject helphelp
(MIS), (MIS), and and financefinance, , as as well well as as
students students frfrom om other other disciplines disciplines
such such as as oceanooceanographgraphyy,,
health health sciencessciences, , computer computer
sciencessciences, , and and liberal liberal artsarts. . These These
students students are are finding finding thathatt
their their exposurexposure e to to project project
manamanagement gement is is prproviding oviding them them
with with distinct distinct adadvantavantagesges
when when it it comes comes time time to to look look ffor or
jobsjobs. . More More and and more more emploemployers yers
are are looking looking fforor
graduagraduates tes with with project project manamanagement
gement skillsskills. . See See the the nearby nearby
SnaSnapshot pshot from from PrPracticeactice
ffor or examples examples ofof projects projects gigiven ven
to to recent recent college college graduagraduatestes. . The The
logical logical startingstarting
point point ffor or developing developing these these skills
skills is is understanding understanding the the uniqueness
uniqueness ofof a a prproject oject andand
ofof project project manamanagersgers..
What What Is Is a a Project?Project?
WWhat hat do do the the ffollowing ollowing headlines
headlines hahave ve in in common?common?
Millions Millions wawatch tch Olympic Olympic Opening
Opening CeremonCeremonyy
Citywide Citywide WiFi WiFi system system set set to to go go
liliveve
Hospitals Hospitals respond respond to to nenew w Health
Health Care Care RReformseforms
Apple’Apple’s s new new iPhone iPhone hits hits the the
markmarketet
City City receireceives ves stimulus stimulus funds funds to to
eexpand xpand light light rail rail systemsystem
All All ofof these these events events reprrepresent esent
projectsprojects..
© © Lars Lars Baron/Getty Baron/Getty ImagesImages
1184431 - McGraw-Hill Higher Education (US) ©
Chapter Chapter 1 1 Modern Modern Project Project
ManagementManagement 77
difdifferentiaferentiate te it it from from other other
endeaendeavors vors ofof the the ororganization. ganization.
The The major major characteristicscharacteristics
ofof a a project project arare e as as follofollows:ws:
1. 1. An An estaestablished blished objectiveobjective..
2. 2. A A defined defined life life span span with with a a
beginning beginning and and an an end.end.
3. 3. UsuallyUsually, , the the ininvolvvolvement ement ofof
sev several eral departments departments and and
professionalsprofessionals..
4. 4. TTypicallyypically, , doing doing something something
thathat t has has never never been been done done
befbeforeore..
5. 5. Specific Specific timetime, , cost, cost, and and
perfperforormance mance requirementsrequirements..
First, First, projects projects hahave ve a a defdefined ined
objectiobjective—whether ve—whether it it is is constructing
constructing aa
12- -
y JJananuary uary 1 1 or or releasing releasing version version
2.0 2.0 ofof a a specificspecific
softwarsoftware e package package as as quicklquickly y as as
possiblepossible. . This This singular singular purpose purpose
is is often often lackinglacking
in in daily daily ororganizational ganizational life life in in
wwhich hich worworkers kers perfperfororm m
repetitivrepetitive e operationsoperations
Second, Second, because because there there is is a a specified
specified objectiobjectiveve, , prprojects ojects hahave ve a a
defined defined endpoint,endpoint,
which which is is contrcontrary ary to to the the ongoing
ongoing duties duties and and responsibilities responsibilities
ofof traditional traditional jobsjobs. . InIn
manmany y casescases, , individuals individuals momove ve
frfrom om one one prproject oject to to the the next next as as
opposed opposed to to stastayingying
in in one one jobjob. . After After helping helping to to install
install a a security security system, system, an an IT IT engineer
engineer may may bebe
assigned assigned to to develop develop a a dadatatabase base
ffor or a a differdifferent ent client.client.
Third, Third, unlikunlike e much much ororganizational
ganizational wwork ork that that is is segmented segmented
accoraccording ding to to func-func-
tional tional specialtyspecialty, , prprojects ojects typically
typically requirrequire e the the combined combined effefforts
orts ofof a a variety variety ofof spe- spe-
cialistscialists. . Instead Instead ofof w working orking in in
separaseparate te ofoffices fices under under separate separate
manamanagersgers, , prprojectoject
participantsparticipants, , whether whether they they be be
engineersengineers, , financial financial analystsanalysts, ,
markmarketing eting profession-profession-
alsals, , or or quality quality control control
specialistsspecialists, , wwork ork closely closely totogether
gether under under the the guidance guidance ofof a a
prproject oject manager manager to to complete complete a a
prproject.oject.
The The ffourth ourth characteristic characteristic ofof a a
prproject oject is is that that it it is is nonrnonroutine outine and
and has has somesome
u u nique nique elementselements. . This This is is not not an an
either/or either/or issue issue but but a a mamatter tter ofof
degree degree. . ObviouslyObviously,,
accomplishing accomplishing something something thathat t has
has never never been been done done befbeforeore, , such such
as as building building aa
electric electric automobile automobile or or landing landing
twtwo o mechanical mechanical rorovers vers on on MarsMars, ,
requirrequireses
solving solving prepreviously viously unsolvunsolved ed
probproblems lems and and breakthrbreakthrough ough
technologytechnology. . On On thethe
other other hand, hand, eveven en basic basic construction
construction projects projects thathat t ininvolvvolve e
estaestablished blished sets sets ofof
rroutines outines and and procedurprocedures es require require
some some degrdegree ee ofof customization customization
thathat t makesmakes
them them uniqueunique..
FinallFinallyy, , specific specific timetime, , cost, cost, and and
perfperforormance mance requirements requirements bind bind
prprojectsojects. . Proj-Proj-
ects ects are are eevaluavaluated ted according according to to
accomplishment, accomplishment, cost, cost, and and time time
spent. spent. These These tripletriple
constraints constraints impose impose a a higher higher degree
degree ofof accounta accountability bility than than yyou ou
typically typically find find inin
most most jobsjobs. . These These three three also also
highlight highlight one one ofof the the primary primary
functions functions ofof pr project oject man-man-
agement, agement, wwhich hich is is balancing balancing the
the trade-oftrade-offs fs between between timetime, , cost, cost,
and and performanceperformance
while while ultimaultimately tely ssaatisfying tisfying the the
customercustomer..
What What a a PrProject oject Is Is NotNot PrProjects ojects
should should not not be be confused confused with with
everyeverydaday y worwork. k. AA
prproject oject is is not not routineroutine, , repetitive repetitive
wwork! ork! Ordinary Ordinary daildaily y worwork k typically
typically requirrequires es do-do-
ing ing the the same same or or similar similar wwork ork oover
ver and and ooverver, , while while a a prproject oject is is done
done only only once; once; aa
new new prproduct oduct or or service service exists exists
when when the the prproject oject is is completed. completed.
Examine Examine the the list list inin
TTabable le 1.1 1.1 that that comparcompares es routineroutine,
, repetitirepetitive ve wwork ork and and prprojectsojects. .
RRecognizing ecognizing thethe
difdifference ference is is important important because because
too too often often resources resources can can be be used used
up up on on daildaily y oper-oper-
aations tions which which mamay y not not contribute
contribute to to longer longer rrange ange organizaorganization
tion strastrategies tegies thatthat
require require innoinnovavative tive new new
prproductsoducts..
ProProgrgram am versus versus PrProjectoject In In practice
practice the the terms terms project project and and prprogram
ogram cause cause confu-confu-
sion. sion. They They are are often often used used
synonsynonymouslyymously. . AA progrprogramam is is a a
group group ofof r related elated projectsprojects
1184431 - McGraw-Hill Higher Education (US) ©
8 8 Chapter Chapter 1 1 Modern Modern PrProject oject
ManagementManagement
designed designed to to accomplish accomplish a a common
common ggoal oal oover ver an an extended extended period
period ofof time time.. Each Each prprojectoject
within within a a prprogram ogram has has a a prproject oject
managermanager. . The The major major difdifferences ferences
lie lie in in scale scale andand
time time span.span.
ProProgram gram management management is is the the
prprocess ocess ofof a a grgroup oup ofof ongoing, ongoing,
inter-inter-managingmanaging
dependent, dependent, relarelated ted prprojectsojects in in a a
coordinated coordinated wwaay y to to achieve achieve
strastrategic tegic objectivesobjectives..
FFor or exampleexample, , a a pharpharmaceutical maceutical
organizaorganization tion could could hahave ve a a
prprogrogram am for for curingcuring
cancercancer. . The The cancer cancer prprogram ogram
includes includes and and coordinacoordinates tes cancer
cancer projects projects thathattallall
contincontinue ue ovover er an an extended extended time time
horizon horizon (Gra(Grayy, , 2011). 2011).
CoordinaCoordinating ting all all cancercancer
prprojects ojects under under the the ovoversight ersight ofof a
a cancer cancer team team prprovides ovides benefits benefits
not not aavailavailable ble frfromom
managing managing them them indiindividuallyvidually. . This
This cancer cancer team team also also ooversees versees the
the selection selection andand
prioritizing prioritizing ofof cancer cancer prprojects ojects
that that arare e included included in in their their special
special “Cancer”“Cancer” portfolioportfolio..
Although Although each each prproject oject retains retains its
its oown wn goals goals and and scopescope, , the the project
project manamanager ger andand
team team are are also also motimotivavated ted by by the the
higher higher prprogram ogram goal. goal. PrProgram ogram
goals goals are are closelcloselyy
relarelated ted to to brbroad oad strategic strategic
ororganizaganization tion goalsgoals..
The The ProProject ject Life Life CycleCycle
Another Another waway y ofof illustra illustrating ting the the
unique unique naturnature e ofof pr project oject worwork k is
is in in terterms ms ofof the the
prproject oject life life cycycle.cle. Some Some project project
manamanagers gers find find it it useful useful to to use use the
the project project life life cycyclecle
as as the the cornerstone cornerstone ffor or managing
managing prprojectsojects. . The The life life cycle cycle
recorecognizes gnizes that that prprojectsojects
hahave ve a a limited limited life life span span and and that
that therthere e are are predictapredictable ble changes changes
in in levlevel el ofof ef effort fort andand
ffocus ocus oover ver the the life life ofof the the prproject.
oject. There There are are a a nnumber umber ofof dif different
ferent life-cycle life-cycle modelsmodels
in in prproject oject management management
literaliteratureture. . ManMany y are are unique unique to to a a
specific specific industry industry or or typetype
ofof project. project. FFor or exampleexample, , a a new new
softwarsoftware e development development prproject oject may
may consist consist ofof fiv fivee
phases: phases: definition, definition, design, design, codecode,
, integration/test, integration/test, and and
maintenancemaintenance. . A A generic generic cyclecycle
is is depicted depicted in in Figure Figure 1.1.1.1.
The The project project life life cycycle cle typically typically
passes passes sequentiallsequentially y through through ffour
our stages: stages: defining,defining,
planning, planning, exexecuting, ecuting, and and delivering.
delivering. The The starting starting point point begins begins
the the moment moment thethe
prproject oject is is given given the the go-ahead. go-ahead.
PrProject oject effeffort ort starts starts slowlslowlyy, , builds
builds to to a a peak, peak, andand
then then declines declines to to delivdelivery ery ofof the the
prproject oject to to the the customercustomer..
1. 1. Defining Defining stage:stage: Specifications
Specifications ofof the the prproject oject are are defined;
defined; prproject oject objectives objectives areare
estaestablished; blished; teams teams are are fforormed; med;
major major responsibilities responsibilities are are
assigned.assigned.
2. 2. Planning Planning stage:stage: The The level level ofof
ef effort fort incrincreaseseases, , and and plans plans are are
devdeveloped eloped toto
determine determine whawhat t the the prproject oject will will
entail, entail, when when it it will will be be scheduled,
scheduled, whom whom itit
will will benefit, benefit, whawhat t quality quality level level
should should be be maintained, maintained, and and wwhat hat
the the bbudgetudget
will will bebe..
TTABLE ABLE 1.11.1
Comparison Comparison ofof
RRoutine outine WWork ork withwith
PrProjectsojects
Routine, Routine, Repetitive Repetitive Work Work
ProjectsProjects
TTaking aking class class notes notes Writing Writing a a term
term paperpaper
Daily Daily entering entering sales sales receipts receipts into
into the the Setting Setting up up a a sales sales kiosk kiosk for
for a a professionalprofessional
accounting accounting ledger ledger accounting accounting
meetingmeeting
Responding Responding to to a a supply-chain supply-chain
request request Developing Developing a a supply-chain supply-
chain information information systemsystem
Practicing Practicing scales scales on on the the piano piano
Writing Writing a a new new piano piano piecepiece
Routine Routine manufacture manufacture of of an an Apple
Apple iPod iPod Designing Designing an an iPod iPod that that
is is approximatelyapproximately
nches, nches, interfaces interfaces with with PC, PC, andand
stores stores 10,000 10,000 songssongs
Attaching Attaching tags tags on on a a manufactured
manufactured product product Wire-tag Wire-tag projects
projects for for GE GE and and WWal-Martal-Mart
1184431 - McGraw-Hill Higher Education (US) ©
Chapter Chapter 1 1 Modern Modern Project Project
ManagementManagement 99
3. 3. ExExecuting ecuting stage:stage: A A major major
portion portion ofof the the prproject oject worwork k takes
takes place—bothplace—both
phphysical ysical and and mental. mental. The The phphysical
ysical prproduct oduct is is produced produced (a (a
bridgebridge, , a a report, report, aa
softwarsoftware e proprogram). gram). TimeTime, , cost, cost,
and and specification specification measures measures arare e
used used fforor
contrcontrol. ol. Is Is the the project project on on
scheduleschedule, , on on budget, budget, and and meeting
meeting specificaspecifications?tions?
WWhat hat arare e the the forforecasts ecasts ofof each each
ofof these these measures? measures? WWhat hat
rerevisions/changesvisions/changes
are are necessary?necessary?
4. 4. Closing Closing stage:stage: Closing Closing includes
includes three three activities: activities: delivdelivering ering
the the project project prproductoduct
to to the the customercustomer, , redeploredeploying ying
project project rresourcesesources, , and and post-prpost-project
oject reviewreview..
DeliDelivery very ofof the the prproject oject might might
include include customer customer training training and and
transferringtransferring
documentsdocuments. . RRedeployment edeployment
usuallusually y ininvolvvolves es releasing releasing prproject
oject equipment/equipment/
mamaterials terials to to other other projects projects and and
finding finding nenew w assignments assignments ffor or team
team membersmembers..
PPost-prost-project oject reviereviews ws include include not
not only only assessing assessing perfperforormance mance but
lessons lessons learned.learned.
In In practicepractice, , the the prproject oject life life cycle
cycle is is used used by by some some prproject oject grgroups
oups to to depict depict thethe
timing timing ofof major major tasks tasks ovover er the the
life life ofof the the prproject. oject. FFor or exampleexample,
, the the design design teamteam
might might plan plan a a major major commitment commitment
ofof resources resources in in the the defining defining
stastagege, , while while thethe
quality quality team team wwould ould expect expect their their
major major efeffort fort to to incrincrease ease in in the the
latter latter stastages ges ofof
the the prproject oject life life cyclecycle. . Because Because
most most organizaorganizations tions hahave ve a a
portfportfolio olio ofof pr projectsojects
going going on on concurrentlconcurrentlyy, , each each at at a
a difdifferent ferent stastage ge ofof each each
prproject’oject’s s life life cyclecycle, , care-care-
ful ful planning planning and and management management aat t
the the organizaorganization tion and and project project
lelevels vels areare
imperaimperativetive..
The The Project Project ManagerManager
At At first first glance glance prproject oject managers
managers perfperfororm m the the same same functions
functions as as other other managersmanagers..
ThaThat t isis, , they they plan, plan, schedulesched ule, ,
motivamotivatete, , and and control. control. HoHoweweverver,
, whawhat t makmakes es themthem
FIGURE FIGURE 1.11.1
PrProject oject Life Life CycleCycle
L
e
v
L
e
v
e
l
e
l
o
f
o
f
e
ff
e
ff
o
r
o
rtt
11.. Goals Goals
2.2. Specifications Specifications
3. 3. TTasksasks
4.4. Responsibilities Responsibilities
11.. Schedules Schedules
2.2. Budgets Budgets
3.3. Resour Resourcesces
4.4. Risks Risks
5.5. Sta Staffingffing
11.. Status Status reportsreports
2.2. Changes Changes
3.3. Quality Quality
4.4. For Forecastsecasts
11.. Train Train customercustomer
2. 2. TTransfer ransfer documentsdocuments
3.3. Release Release rresourcesesources
4.4. Evaluation Evaluation
5.5. Lessons Lessons learnedlearned
DefinDefininging
DefiningDefining
StartStart TimeTime EndEnd
PlanningPlanning
PlanningPlanning
ExecutingExecuting
ExecutingExecuting
ClosingClosing
ClosingClosing
1184431 - McGraw-Hill Higher Education (US) ©
10 10 Chapter Chapter 1 1 Modern Modern PrProject oject
ManagementManagement
unique unique is is thathat t they they manage manage
temporarytemporary, , nonrepetitinonrepetitive ve
activitiesactivities, , to to complete complete a a fixedfixed
life life prproject. oject. Unlike Unlike functional functional
manamanagersgers, , who who taktake e ovover er existing
existing operaoperationstions, , prprojectoject
managers managers crcreate eate a a prproject oject team team
and and organizaorganization tion wherwhere e none none
existed existed befbeforeore. . TheyThey
must must decide decide wwhahat t and and how how things
things should should be be done done instead instead ofof
simply simply manamanaging ging setset
prprocessesocesses. . They They must must meet meet the the
challenges challenges ofof each each phase phase ofof the the
prproject oject life life cyclecycle,,
and and eveven en ovoversee ersee the the dissolution
dissolution ofof their their operaoperation tion when when the
the prproject oject isis
completed.completed.
Project Project manamanagers gers must must wwork ork with
with a a divdiverse erse troupe troupe ofof characters
characters to to completecomplete
prprojectsojects. . They They are are typically typically the the
dirdirect ect link link to to the the customer customer and and
must must manamanagege
the the tension tension between between customer customer
eexpectations xpectations and and wwhat hat is is feasibfeasible
le and and reasonareasonableble..
PrProject oject managers managers prproovide vide direction,
direction, coordinacoordination, tion, and and integraintegration
tion to to the the proj-proj-
ect ect team, team, which which is is often often made made up
up ofof part-time part-time participants participants loloyal yal
to to their their func-func-
tional tional departmentsdepartments. . They They often often
must must wwork ork with with a a cadre cadre ofof
outsiders—vendors outsiders—vendors,,
supplierssuppliers, , subcontractors —who subcontractors—who
do do not not necessarilnecessarily y share share their their
prprojectoject
allegienceallegience..
PrProject oject managers managers are are ultimaultimately tely
rresponsible esponsible ffor or perfperforormance mance
(frequently (frequently withwith
too too little little authority). authority). They They must must
ensurensure e that that aapprppropriate opriate trade-oftrade-
offs fs are are mademade
between between the the timetime, , cost, cost, and and
perfperforormance mance requirements requirements ofof the
the prproject. oject. At At the the samesame
timetime, , unlike unlike their their functional functional
counterpartscounterparts, , prproject oject managers managers
generallgenerally y possess possess onlyonly
rudimentary rudimentary technical technical knoknowledge
wledge to to make make such such decisionsdecisions. . Instead,
Instead, they they must must or-or-
chestrachestrate te the the completion completion ofof the the
prproject oject by by inducing inducing the the right right
peoplepeople, , at at the the rightright
timetime, , to to address address the the right right issues issues
and and makmake e the the right right decisionsdecisions..
WWhile hile project project manamanagement gement is is not
not ffor or the the timid, timid, worworking king on on projects
projects can can be be anan
extrextremely emely rerewarding warding eexperiencexperience.
. Life Life on on prprojects ojects isis rarely rarely boring;
boring; each each daday y is is dif-dif-
ferent ferent frfrom om the the last. last. Since Since most most
prprojects ojects are are directed directed aat t solving solving
some some tangibletangible
prproblem oblem or or pursuing pursuing some some useful
useful opportunityopportunity, , prproject oject managers
managers find find their their wworkork
personally personally meaningful meaningful and and
sasatisfying. tisfying. They They enjoy enjoy the the act act
ofof crea creating ting somethingsomething
new new and and innoinnovavativetive. . PrProject oject
managers managers and and team team members members can
can feel feel immense immense pridepride
in in their their accomplishment, accomplishment, whether
whether it it is is a a nenew w bridgebridge, , a a new new
prproduct, oduct, or or neededneeded
serviceservice. . Project Project manamanagers gers are are
often often stars stars in in their their ororganization ganization
and and wwellell
compensacompensated.ted.
Good Good project project manamanagers gers are are
alwalwaays ys in in demand. demand. Every Every industry
industry is is looking looking fforor
efeffective fective people people wwho ho can can get get the
the right right things things done done on on timetime. .
ClearlyClearly, , project project man-man-
agement agement is is a a challenging challenging and and
eexciting xciting prprofession. ofession. This This text text is is
intended intended to to prproovidevide
the the necessary necessary knoknowledgewledge, ,
perspectiveperspective, , and and tools tools to to enaenable ble
students students to to accept accept thethe
challengechallenge..
Being Being Part Part of of a a Project Project TTeameam
Most Most people’people’s s first first exposure exposure to to
prproject oject management management occurs occurs wwhile
hile wworking orking as as partpart
ofof a a team team assigned assigned to to complete complete a
a specific specific project. project. Sometimes Sometimes this
this wwork ork is is full-timefull-time,,
but but in in most most casescases, , people people work work
part-time part-time on on one one or or mormore e
prprojectsojects. . They They must must learnlearn
hohow w to to juggle juggle their their day-to-daday-to-day y
commitments commitments with with additional additional
prproject oject responsibili-responsibili-
tiesties. . They They mamay y join join a a team team with with
a a long long history history ofof w working orking
togethertogether, , in in which which casecase
rroles oles and and nornorms ms are are firmly firmly
estaestablished. blished. AlternatiAlternativelyvely, , their their
team team mamay y consist consist ofof
strangers strangers frfrom om differdifferent ent departments
departments and and organizaorganizationstions. . As As such,
such, they they endure endure thethe
grgrowing owing pains pains ofof a a grgroup oup evolving
evolving into into a a team. team. They They need need to to be
be a a positipositive ve fforce orce inin
helping helping the the team team coalesce coalesce into into an
an efeffective fective prproject oject team.team.
Not Not only only arare e there there people people
issuesissues, , but but prproject oject members members are are
also also expected expected to to useuse
prproject oject management management tools tools and and
conceptsconcepts. . They They develop develop or or are are
gigiven ven a a prproject oject chartercharter
1184431 - McGraw-Hill Higher Education (US) ©
Chapter Chapter 1 1 Modern Modern Project Project
ManagementManagement 1111
or or scope scope stastatement tement that that defines defines
the the objectiobjectives ves and and parameters parameters
ofof the the project.project. They They
wwork ork with with others others to to creacreate te a a
prproject oject schedule schedule and and budget budget thathat
t will will guide guide project project eexe-xe-
cution. cution. They They need need to to understand
understand prproject oject priorities priorities so so they they
can can make make independentindependent
decisionsdecisions. . They They must must knoknow w how how
to to monitor monitor and and rreport eport project project
prprogressogress. . AlthoughAlthough
much much ofof this this book book is is written written
frfrom om the the perspective perspective ofof a a prproject
oject managermanager, , the the toolstools,,
conceptsconcepts, , and and methods methods are are critical
critical to to everyeveryone one worworking king on on a a
project. project. PrProject oject mem-mem-
bers bers need need to to knoknow w how how to to aavoid void
the the dangers dangers ofof scope scope creepcreep, , manage
manage the the criticalcritical
papath, th, engage engage in in timeltimely y risk risk
management, management, negotianegotiatete, , and and
utilizutilize e virtual virtual tools tools toto
communicacommunicatete..
Current Current Drivers Drivers of of Project Project
ManagementManagement
PrProject oject management management is is no no longer
longer a a special-need special-need manamanagement. gement.
It It is is rapidlrapidly y becom-becom-
ing ing a a standard standard wwaay y ofof doing doing
businessbusiness. . See See Snapshot Snapshot frfrom om
Practice: Practice: PrProject oject Man-Man-
agement agement in in Action: Action: 2013. 2013. An An
incrincreasing easing percentage percentage ofof the the
typical typical firm’firm’s s effeffort ort isis
being being devdevoted oted to to prprojectsojects. . The The
future future prpromises omises an an increase increase in in the
the importance importance andand
the the rrole ole ofof pr projects ojects in in contributing
contributing to to the the strastrategic tegic direction direction
ofof organiza organizationstions. . Sev-Sev-
eral eral reasons reasons wwhhy y this this is is the the case
case are are briefly briefly discussed discussed belobeloww..
Compression Compression ofof the the Product Product Life
Life CyCyclecle
One One ofof the the most most significant significant driving
driving fforces orces behind behind the the demand demand ffor
or prproject oject manage-manage-
ment ment is is the the shortening shortening ofof the the
product product life life cycyclecle. . FFor or exampleexample,
, todatoday y in in high-techhigh-tech
industries industries the the product product life life cycycle cle
is is aaveraveraging ging 6 6 months months to to 3 3
yearsyears. . Only Only 30 30 yearsyears
agoago, , life life cycles cycles ofof 10 10 to to 15 15 years
years were were not not uncommon. uncommon. Time Time to
to marmarketket f for or newnew
prproducts oducts with with short short life life cycles cycles
has has become become increasinglincreasingly y important.
important. A A common common rulerule
ofof thumb thumb in in the the world world ofof high-tech
high-tech prproduct oduct development development is is
thathat t a a six-month six-month prproj-oj-
ect ect deladelay y can can result result in in a a 33 33 percent
percent loss loss in in prproduct oduct revenrevenue ue
shareshare. . Speed, Speed, therefthereforeore,,
becomes becomes a a competitivcompetitive e
advantaadvantage; ge; more more and and mormore e
organizaorganizations tions are are relrelying ying onon
crcross-functional oss-functional project project teams teams to
to get get nenew w products products and and services services
to to the the marmarket ket asas
quickly quickly as as possibpossiblele..
KnowledgKnowledge e ExplosionExplosion
The The grgrowth owth in in nenew w knowledge knowledge
has has increased increased the the complecomplexity xity ofof
pr projects ojects becausebecause
prprojects ojects encompass encompass the the latest latest
adadvancesvances. . FFor or exampleexample, , building
building a a rroad oad 30 30 years years agoago
waswas a a somesomewhawhat t simple simple prprocessocess.
. TTodaodayy, , each each area area has has increased increased
in in complecomplexityxity, , in-in-
cluding cluding mamaterialsterials, ,
specificationsspecifications, , codescodes, , aestheticsaesthetics,
, equipment, equipment, and and required required spe-spe-
cialistscialists. . SimilarlySimilarly, , in in todatoday’y’s s
digital, digital, electronic electronic aage ge it it is is becoming
becoming hard hard to to find find aa
new new prproduct oduct that that does does not not contain
contain aat t least least one one microchipmicrochip. .
PrProduct oduct complexity complexity hashas
increased increased the the need need to to integraintegrate te
diverdivergent gent technologiestechnologies. . Project Project
manamanagement gement hashas
emeremerged ged as as an an important important discipline
discipline for for achieachieving ving this this task.task.
TTriple riple Bottom Bottom Line Line (planet, (planet, people,
people, prprofit)ofit)
The The threathreat t ofof global global wwararming ming has
has brought brought sustainasustainable ble bbusiness usiness
practices practices to to thethe
fforefrorefront. ont. Businesses Businesses can can no no longer
longer simply simply ffocus ocus on on maximizing maximizing
profit profit to to thethe
detriment detriment ofof the the envirenvironment onment and
and societysociety. . EfEfforts forts to to rreduce educe carbon
carbon imprint imprint andand
utilize utilize renewrenewaable ble resources resources arare e
realized realized through through efeffective fective prproject
oject management.management.
The The impact impact ofof this this movmovement ement
towtowards ards sustainasustainability bility can can be be seen
seen in in changes changes inin
1184431 - McGraw-Hill Higher Education (US) ©
12 12 Chapter Chapter 1 1 Modern Modern PrProject oject
ManagementManagement
the the objectivobjectives es and and techniques techniques
used used to to complete complete projectsprojects. . See See
Snapshot Snapshot frfromom
Practice: Practice: Dell Dell ChildrenChildren’’s s Becomes
Becomes WWorld’orld’s s First First “Green”“Green” Hospital.
Hospital.
CorporCorporate ate DownsizingDownsizing
The The last last decade decade has has seen seen a a
dramadramatic tic restructuring restructuring ofof organiza
organizational tional lifelife. . DoDownsizwnsiz--
ing ing (or (or rightsizing rightsizing ifif you you arare e still
still employemployed) ed) and and sticking sticking to to core
core competenciescompetencies
Businesses Businesses thrive thrive and and survive survive
basedbased on on their their ability ability to to managemanage
projects projects that that produce produce products products
and and services services that that meet meet marketmarket
needs. needs. Below Below is is a a small small sample sample
of of projects projects that that are are importantimportant
to to their their company’company’s s future.future.
ORGANIZAORGANIZATION: TION: PROCTER PROCTER
AND AND GAMBLEGAMBLE
Project: Project: Global Global Ordering, Ordering, Shipping,
Shipping, and and Billing Billing ProjectProject
The The project project goal goal is is to to improve improve
customer customer service, service, processes,processes,
and and organization organization structure. structure. The The
global global team team relied relied on on virtualvirtual
communication, communication, while while closely closely
managing managing risk risk and and milestonemilestone
dates. dates. The The new new system system is is designed
designed to to allow allow P&G P&G to to makemake
real-time real-time decdecisions, isions, enabling enabling the
the company company to to collect collect andand
respond respond to to consumer/retailer consumer/retailer
feedback feedback to to create create more more comcom--
pelling pelling promotions promotions to to increase increase
sales. sales. The The system system shouldshould also also
improve improve efficiencies efficiencies in in supply suppl y
chains chains byby, , for for example, example,
identifyidentify--
ing ing the the best best warehouses warehouses to to ship ship
products products to.to.
——PMI PMI TToday,oday, 2012 2012 PMI PMI Project
Project of of the the YYear ear Finalists, Finalists,
DecemberDecember
2012, 2012, p. p. 77
S N A P S H O T S N A P S H O T F R O M F R O M P R A
C T I C EP R A C T I C E Project Project Management
Management in in Action: Action: 20132013
© © Frederic Frederic J. J. Brown/AFP/Getty Brown/AFP/Getty
ImagesImages
1184431 - McGraw-Hill Higher Education (US) ©
Chapter Chapter 1 1 Modern Modern Project Project
ManagementManagement 1313
ORGANIZAORGANIZATION: TION: CHINA CHINA
SUNERGY SUNERGY CO., CO., LLTDTD
Project: Project: Sanliurfa Sanliurfa Solar Solar Park, Park,
TTurkeyurkey
The The Chinese Chinese companycompany, , Sunergy,
Sunergy, has has entered entered into into a a jointjoint
agreement agreement with with Seul Seul EnergyEnergy, , a a
leading leading solar solar developerdeveloper, , to to de-de-
velop velop a a 500kw 500kw solar solar park park in in
Sanliurfa, Sanliurfa, TTurkey. urkey. The The plants plants
willwill
incorporate incorporate state state of of the the art art
technology technology and and new new types types of of
solarsolar
cells. cells. The The project project is is the the beginning
beginning of of an an ambitious ambitious programprogram
designed designed to to meet meet the the expected expected
growth growth in in demand demand for for energyenergy
in in Central Central Asia.Asia.
—www—www.prnewswire.com/news-releases/china,
.prnewswire.com/news-releases/china, accessedaccessed
1/5/131/5/13
ORGANIZAORGANIZATION: TION: THE THE WALWALT T
DISNEY DISNEY COMPCOMPANYANY
Project: Project: Star Star Wars Wars Episode Episode 77
Disney Disney spent spent over over $4 $4 billion billion to to
purchase purchase Lucasfilm, Lucasfilm, which which in-in-
cluded cluded exclusive exclusive past past and and future
future rights rights to to the the popular popular StarStar
WWars ars franchise. franchise. Preproduction Preproduction
work work on on the the newest newest Star Star WarsWars
feature feature is is scheduled scheduled to to begin begin in in
2013 2013 with with a a projected projected releaserelease
date date in in 2015. 2015. The The Star Star WWars ars
investment investment is is seen seen by by industry industry
ex-ex-
perts perts as as an an effort effort by by Disney Disney to to
broaden broaden its its pop pop culture culture reachreach
and and re-establish re-establish Disney Disney films films in in
the the sci-fi/fantasy sci-fi/fantasy genre genre afterafter
the the failure failure of of space space epic epic and and
..John John CarterCarter Mars Mars Needs Needs MomsMoms
—— 11/11/12 11/11/12businessweek.com,businessweek.com,
ORGANIZAORGANIZATION: TION: DISH DISH
NETWORKNETWORK
Project: Project: HopperHopper
Dish Dish Network Network made made a a splash splash at at
the the 2013 2013 Consumer Consumer ElectronicsElectronics
Show Show by by showing showing off off the the latest latest
generation generation of of HopperHopper, , a a whole-whole-
home home HD HD DVR DVR system. system. Hopper Hopper
includes includes commercial commercial skippingskipping
technology technology and and the the ability ability to to move
move programs programs onto onto iPads iPads andand
other other mobile mobile devices. devices. The The
announcement announcement cemented cemented Dish’Dish’s s
po-po-
sition sition as as one one of of the the leaders leaders in in the
the “TV “TV Everywhere” Everywhere” movementmovement
in in which which favorite favorite shows shows and and movies
movies can can be be accessed accessed from from anyany
device device at at any any location. location. Dish Dish is is
counting counting on on Hopper Hopper and and relatedrelated
products products to to compete compete against against
DirecDirecTV TV and and deep-pocketeddeep-pocketed
cable cable and and telecom telecom providers.providers.
—Ces.cnet.com,—Ces.cnet.com, 1/8/13 1/8/13
ORGANIZAORGANIZATION: TION: BILL BILL & &
MELINDA MELINDA GAGATESTES
FOUNDAFOUNDATIONTION
Project: Project: Drought-TDrought-Tolerant olerant Maize
Maize for for AfricaAfrica
The The goal goal of of the the project project is is to to help
help farmers farmers in in Sub-SaharanSub-Saharan
Af rica Af rica living living in in drought-susceptible drought-
susceptible areas areas increase increase theirtheir
maize maize (corn) (corn) productivityproductivity. . Getting
Getting the the improved improved maize maize
varietiesvarieties
into into the the hands hands of of African African farmers
farmers is is the the product product of of over over twotwo
decades decades of of research research and and involves
involves a a broad broad coalition coalition ofof
partners, partners, from from governments governments and and
NGOs NGOs to to seed seed dealers dealers andand
farmers. farmers. More More than than 2 2 million million
smallholder smallholder farmers farmers in in AfricaAfrica
are are already already realizing realizing the the benefits
benefits of of higher higher yields. yields. By By 2016,2016,
the the drought-tolerant drought-tolerant maize maize project
project is is expected expected to to boostboost
maize maize yields yields by by as as much much as as 30%,
30%, benefiting benefiting up up to to 40 40 millionmillion
people people in in Africa.Africa.
—— accessed accessed
1/9/131/9/13gatesfoundation.org,gatesfoundation.org,
ORGANIZAORGANIZATION: TION: FIAFIATT, ,
ITITALALYY
Project: Project: 2013 2013 Fiat Fiat 500 500 EVEV
Available Available Spring Spring 2013, 2013, the the EV EV is
is a a totally totally electric electric version version of of thethe
popular popular Fiat Fiat 500 500 line. line. The The EV EV
sports sports a a 100-hp 100-hp electric electric motormotor
powered powered by by lithium lithium batteries batteries with
with 87 87 miles miles of of electric electric range.range.
Fiat Fiat needs needs to to prove prove that that it it is is a a
forward forward looking looking company company andand
provide provide another another reason reason to to buy buy the
the 500 500 other other than than styling styling or or thethe
sales sales curve curve will will plunge plunge once once the
the cuteness cuteness fails. fails. Success Success willwill
depend depend upon upon overcoming overcoming customer
customer range range anxiety anxiety and and the the riskrisk
that that governments governments will will stop stop
supporting supporting electric electric vehicles vehicles
withwith
attractive attractive subsidies.subsidies.
——caranddrivercaranddriver.com,.com, accessed accessed
1/20/131/20/13
ORGANIZAORGANIZATION: TION: SONYSONY, ,
JAPJAPANAN
Project: Project: Sony Sony PlayStation PlayStation 4 4
(PS4)(PS4)
It’It’s s been been seven seven years years since since Sony
Sony released released the the highly highly success-success-
ful ful PlayStation PlayStation 3, 3, and and the the Internet
Internet is is buzzing buzzing with with rumors rumors of of aa
fourth-generation fourth-generation PlayStation. PlayStation.
The The PS4 PS4 reportedly reportedly will will featurefeature
a a tablet-style tablet-style controller controller and and state
state of of the the art art graphics. graphics. At At stakestake
is is Sony’Sony’s s position position in in the the $10 $10
billion-plus billion-plus gaming gaming industry.industry.
—— accessed accessed
1/11/131/11/13sonyps4.com,sonyps4.com,
hahave ve become become necessary necessary ffor or survival
survival ffor or manmany y firfirmsms. . Middle Middle
management management is is a a mermeree
skskeleton eleton ofof the the past. past. In In todatoday’y’s s
fflalatter tter and and leaner leaner organizaorganizationstions, ,
wherwhere e change change is is aa
constant, constant, prproject oject management management is
is replacing replacing midmiddle dle management management
as as a a wway ay ofof ensur- ensur-
ing ing thathat t things things get get donedone. .
CorporaCorporate te downsizing downsizing has has also also
led led to to a a change change in in the the wwayay
ororganizations ganizations aapproach pproach prprojectsojects.
. Companies Companies outsource outsource significant
significant segments segments ofof
prproject oject worwork, k, and and project project
manamanagers gers hahave ve to to manage manage not not
onlonly y their their own own people people bbutut
also also their their counterparts counterparts in in difdifferent
ferent organizaorganizationstions..
1184431 - McGraw-Hill Higher Education (US) ©
14 14 Chapter Chapter 1 1 Modern Modern PrProject oject
ManagementManagement
Increased Increased Customer Customer FFocusocus
Increased Increased competition competition has has placed
placed a a prpremium emium on on customer customer
satisfaction. satisfaction. CustomersCustomers
no no longer longer simply simply settle settle ffor or generic
generic prproducts oducts and and servicesservices. . They They
want want customizedcustomized
prproducts oducts and and services services that that cacater ter
to to their their specific specific needsneeds. . This This
mandate mandate rrequires equires a a muchmuch
closer closer wworking orking relarelationship tionship between
between the the prproovider vider and and the the
receivreceiverer. . Account Account exexecu-ecu-
tivtives es and and sales sales representarepresentatives tives
arare e assuming assuming more more ofof a a prproject oject
manager’manager’s s role role as as theythey
wwork ork with with their their ororganization ganization to to
sasatisfy tisfy the the unique unique needs needs and and
requests requests ofof clients clients..
Increased Increased customer customer aattention ttention has
has also also prompted prompted the the dedevelopment
velopment ofof custom- custom-
ized ized products products and and servicesservices. . FFor or
exampleexample, , 15 15 years years ago ago bbuying uying a a
set set ofof golf golf clubs clubs
was was a a rrelatielatively vely simple simple prprocess: ocess:
YYou ou pickpicked ed out out a a set set based based on on
price price and and feel.feel.
TTodayoday, , there there are are golfgolf clubs clubs ffor or
tall tall playplayers ers and and short short playplayersers, ,
clubs clubs ffor or playplayers ers whowho
tend tend to to slice slice the the ball ball and and clubs clubs
ffor or those those who who hook hook the the ball, ball, high-
tech high-tech clubs clubs withwith
the the lalatest test metallurgic metallurgic discodiscovery very
guaranteed guaranteed to to adadd d distancedistance, , and and
so so forth. forth. PrProjectoject
management management is is critical critical both both to to
dedevelopment velopment ofof customiz customized ed
prproducts oducts and and servicesservices
and and to to sustaining sustaining lucralucrative tive
rrelationships elationships with with customerscustomers..
Dateline Dateline 1/7/2009, 1/7/2009, Austin Austin TTexas:
exas: Dell Dell Children’Children’ss
Medical Medical Center Center becomes becomes the the first
first hospital hospital inin
the the world world to to receive receive platinum platinum
LEED LEED (Leader(Leader--
ship ship in in Energy Energy & & Environmental
Environmental Design) Design) certi-certi-
fication. fication. Platinum Platinum certification certification
is is the the highest highest award award granted granted byby
the the U.S. U.S. Green Green Building Building
Council.Council.
Dell Dell Children’Children’s s occupies occupies nearly nearly
one-half one-half million million square square feetfeet
on on 332 2 acres acres that that were were once once part part
of of Austin’Austin’s s old old Mueller Mueller Airport.Airport.
Its Its environmentally environmentally sensitive sensitive
design design not not only only conserves conserves waterwater
and and electricityelectricity, , but but positively positively
impacts impacts the the hospital’hospital’s s clinical clinical en-
en-
vironment vironment by by improving improving air air
qualityquality, , making making natural natural sunlightsunlight
readily readily available, available, and and reducing reducing a
a wide wide range range of of pollutants.pollutants.
In In order order to to receive receive LEED LEED
certification, certification, buildings buildings are are rated
rated in in fivefive
key key areas: areas: sustainable sustainable site site
development, development, water water savings, savings,
energyenergy
efficiencyefficiency, , materials materials selection, selection,
and and environmental environmental quality. quality.
ListedListed
below below are are some some of of the the accomplishments
accomplishments in in each each LEED LEED
category:category:
Sustainable Sustainable SiteSite
• • 47,000 47,000 tons tons of of Mueller Mueller Airport
Airport runway runway material material was was reusedreused
on on site.site.
• • About About 40 40 percent percent fly fly ash ash instead
instead of of Portland Portland cement cement in in con-con-
crete crete yields yields a a drop drop in in carbon carbon
dioxide dioxide emissions emissions equivalentequivalent
to to taking taking 450 450 cars cars off off the the road.road.
• • 925 925 tons tons of of construction construction waste
waste was was recycled recycled on on site.site.
WWater ater Efficiency Efficiency and and Water Water
ConservationConservation
• • Reclaimed Reclaimed water water is is used used for for
irrigation; irrigation; xeriscaped xeriscaped land-land-
scaping scaping uses uses native native plants, plants, which
which require require less less waterwater..
• • Low-flow Low-flow plumbing plumbing fixtures.fixtures.
S N A P S H O T S N A P S H O T F R O M F R O M P R A
C T I C EP R A C T I C E
Dell Dell Children’Children’s s Becomes Becomes
World’World’ss
First First “Green” “Green” Hospital*Hospital*
Energy Energy Efficiency Efficiency and and Energy Energy
ConservationConservation
• • An An on-site on-site natural natural gas gas turbine turbine
supplies supplies all all electricityelectricity,,
which which is is 75 75 percent percent more more efficient
efficient than than coal-fired coal-fired plants.plants.
• • Converted Converted steam steam energy energy from from a
a heating/cooling heating/cooling plant plant sup-sup-
plies plies all all chilled chilled water water needs.needs.
Indoor Indoor Environment Environment Quality Quality and
and LightingLighting
• • Most Most interior interior spaces spaces are are within
within 32 32 feet feet of of a a windowwindow..
• • Motion Motion and and natural natural light light sensors
sensors shut shut off off unneeded unneeded lights.lights.
Conservation Conservation of of Materials Materials and and
ResourcesResources
• • Use Use of of local local and and regional regional materials
materials saves saves fuel fuel for for shipping.shipping.
• • Special Special paints paints and and flooring flooring emit
emit low low levels levels of of volatile volatile oror--
ganic ganic compounds compounds (VOCs).(VOCs).
“Even “Even before before the the first first plans plans were
were drawn drawn up, up, we we set set our our sightsight
on on creating creating a a world-class world-class
children’children’s s hospital, hospital, and and
becomingbecoming
the the first first LEED LEED Platinum Platinum hospital
hospital in in the the world world was was definitely definitely
partpart
of of that,” that,” said said Robert Robert BonarBonar, ,
president president and and CEO, CEO, Dell Dell
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1184431 - McGraw-Hill Higher Education (US) ©60 60 Chapter
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1184431 - McGraw-Hill Higher Education (US) ©60 60 Chapter

  • 1. 1184431 - McGraw-Hill Higher Education (US) © 60 60 Chapter Chapter 2 2 OrOrganization ganization StrStrategy ategy and and Project Project SelectionSelection CaseCase Fund Fund Raising Raising Project Project Selection Selection casecase The The purpose purpose ofof this this “case “case exercise”exercise” is is to to proprovide vide yyou ou with with experience experience in in using using aa prproject oject selection selection process process thathat t ranks ranks proposed proposed prprojects ojects by by their their contribcontribution ution to to anan ororganizationganization’’s s mission mission and and strategystrategy.. FUND FUND RAISING RAISING PROJECTPROJECT Assume Assume yyou ou are are a a member member ofof a a class class on on project project manamanagement. gement. Each Each student student willwill join join a a team team ofof 5–7 5–7 students students who who will will be be responsibresponsible le for for crcreating, eating, planning planning andand exexecuting ecuting a a fund fund raising raising project project ffor or a a designated designated charitycharity. . The The fund fund raising raising prprojectoject has has twtwo o goals: goals: (1) (1) raise raise money money ffor or a a worthworthy y cause cause and and (2) (2) proprovide vide an an opportunityopportunity ffor or all all team team members members to to practice
  • 2. practice prproject oject management management skills skills and and techniquestechniques.. In In addition addition to to completing completing the the prproject oject a a nnumber umber ofof deliv deliveraerables bles are are requirrequired ed toto complete complete this this assignment. assignment. These These delivdeliveraerables bles include:include: a) a) PrProject oject PrProposal oposal d) d) Status Status RReporteport b) b) Implementation Implementation Plan Plan e) e) Project Project RRefeflections lections PresentaPresentationtion c) c) Risk Risk Management Management Plan Plan f) f) PrProject oject RRetretrospective/Aospective/Auditudit ApprApprovoved ed projects projects wiwill ll rreceive eceive $250 $250 seed seed money money to to be be rreimbursed eimbursed upon upon comple-comple- tion tion ofof the the project.project. “MUST” “MUST” OBJECTIVESOBJECTIVES Every Every prproject oject must must meet meet the the “must”“must” objectives objectives as as determined determined by by the the instructorinstructor.. There There arare e four four mmust ust objectives:objectives: 1. 1. All All projects projects mmust ust be be safesafe, , legal legal and and comply comply with with uniuniversity versity policiespolicies.. 2. 2. All All projects projects mmust ust be be capacapable ble ofof earning earning at at least least $500.$500. PROJECT PROJECT PROPOSAL PROPOSAL 6: 6: KEIKO— ONE KEIKO—ONE WHALE WHALE OF OF A A STORYSTORY
  • 3. The The story story ofof Keik Keikoo, , the the famous famous killer killer whalewhale, , will will be be told told by by an an imaimaginary ginary offspringoffspring SeikSeiko, o, wwho ho in in the the distant distant future future is is telling telling her her children children aabout bout their their famous famous grandfa-grandfa- therther. . The The big-budget big-budget film film will will integraintegrate te actual actual footafootage ge ofof the the wwhale hale within within a a realis-realis- tic tic animaanimated ted envirenvironment onment using using state-of-the-art state-of-the-art computer computer imaimagerygery. . The The story story willwill rereveal veal how how KKeikeiko o responded responded to to his his treatreatment tment by by humanshumans.. Probability Probability 80% 80% 50% 50% 20%20% ROI ROI 6% 6% 18% 18% 25%25% PROJECT PROJECT PROPOSAL PROPOSAL 7: 7: GRAND GRAND ISLANDISLAND The The true true story story ofof a a group group ofof junior - high junior-high biolobiology gy students students who who discodiscover ver thathat t a a fertil-fertil- izer izer plant plant is is dumping dumping toxic toxic wwastes astes into into a a nearby nearby rivriverer. . The The moderate - bmoderate-budget udget filmfilm depicts depicts how how students students ororganize ganize a a grassrgrassroots oots campaign campaign to to fight fight local local bureaucracy bureaucracy andand ultimaultimately tely fforce orce the the fertilizer fertilizer plant plant to to restore restore the the local local ecosystem.ecosystem. Probability Probability 80% 80% 50% 50% 20%20% ROI ROI 9% 9% 15% 15% 20%20%
  • 4. 1184431 - McGraw-Hill Higher Education (US) © Chapter Chapter 2 2 OrgOrganization anization Strategy Strategy and and PrProject oject SelectionSelection 6161 3. 3. All All projects projects mmust ust be be aable ble to to be be completed completed within within nine nine weeksweeks.. 4. 4. All All prprojects ojects must must prproovide vide an an opportunity opportunity for for eevery very member member ofof the the project project teamteam to to experience experience and and learn learn aabout bout project project manamanagement.gement. Among Among the the factors factors to to consider consider ffor or the the last last objective objective wwould ould be be the the extent extent there there isis meaningful meaningful wwork ork ffor or every every member member ofof the the team, team, the the degree degree ofof coordina coordination tion re-re- quired, quired, the the eextent xtent the the team team will will hahave ve to to wwork ork with with external external stakstakeholderseholders, , and and thethe complexity complexity ofof the the prproject.oject. “W“WANT” ANT” OBJECTIVESOBJECTIVES In In addition addition to to the the mmust ust objectivesobjectives, , there there are are “w“want”ant” objectiv objectives es that that the the instructorinstructor wwould ould like like toto achie achieveve. . The The ffollowing ollowing is is a a list list ofof these these objectives:objectives:
  • 5. 1. 1. Earn Earn more more than than $500 $500 ffor or a a charitycharity 2. 2. Increase Increase public public aawareness wareness ofof the the charitycharity 3. 3. ProProvide vide a a resume resume wworthorthy y experience experience ffor or studentsstudents 4. 4. Be Be featurfeatured ed on on local local TV TV newsnews 5. 5. Be Be fun fun to to dodo ASSIGNMENTASSIGNMENT YYou ou arare e a a member member ofof the the class class priority priority team team in in charcharge ge ofof ev evaluating aluating and and aappropprov-v- ing ing fund fund raising raising prprojectsojects. . Use Use the the proprovided vided proposal proposal eevaluavaluation tion ffororm m to to formallyformally evevaluate aluate and and rank rank each each prproposal. oposal. Be Be prepared prepared to to rreport eport your your rrankings ankings and and justifyjustify yyour our decision. decision. YYou ou should should assume assume thathat t these these prprojects ojects would would be be held held aat t yyour our uni-uni- versity versity or or collegecollege.. FUND FUND RAISING RAISING PROPOSALSPROPOSALS PROJECT PROJECT PROPOSAL PROPOSAL 1: 1: HOOPS HOOPS FOR FOR HOPEHOPE The The prproject oject is is a a three-on-three three-on-three baskbasketball etball tournament tournament to to raise raise money money ffor or thethe DoDown wn Syndrome Syndrome AssociaAssociation. tion. The The tournament tournament will will consist consist ofof three three brbrackets:ackets: Co-ed, Co-ed, MaleMale, , and and Female Female teamsteams. . There There will will be be a a $40 $40 entry entry fee fee per per team team and and addi-addi-
  • 6. tional tional funds funds will will be be derivderived ed from from the the sale sale ofof commemora commemorative tive TT- shirts -shirts ($10). ($10). Win-Win- ning ning teams teams will will receireceive ve gift gift baskbaskets ets consisting consisting ofof donations donations frfrom om local local businessesbusinesses and and restaurantsrestaurants. . The The event event will will be be held held aat t the the univuniversity ersity recrearecreational tional centercenter.. PROJECT PROJECT PROPOSAL PROPOSAL 2: 2: SINGING SINGING FOR FOR SMILESSMILES The The prproject oject will will hold hold a a karaokkaraoke e competition competition with with celebrity celebrity judges judges aat t a a popularpopular campus campus night night spot. spot. Funds Funds will will be be raised raised by by $5 $5 admission admission aat t the the door door and and a a rafraffflele ffor or prizes prizes donated donated bby y local local businessesbusinesses. . Funds Funds will will be be donadonated ted to to Smile Smile TTrain, rain, anan internainternational tional organizaorganization tion that that perfperfororms ms cleft cleft lip lip surgery surgery aat t a a cost cost ofof $250 $250 perper child. child. The The evevent ent will will feature feature picturpictures es ofof children children born born with with cleft cleft lips lips and and with with eev-v- ery ery $50 $50 earned earned a a piece piece ofof a a picture picture puzzle puzzle will will be be added added until until the the original original picturepicture is is cocovered vered with with a a smiling smiling faceface.. PROJECT PROJECT PROPOSAL PROPOSAL 3: 3: HALO HALO FOR FOR HEROESHEROES The The prproject oject will will be be a a Halo Halo video video game game competition competition to to be be held held
  • 7. ovover er the the weekweekendend utilizing utilizing the the College’College’s s big big screen screen electrelectronic onic classroomsclassrooms. . TTeams eams ofof 4 4 plaplayers yers willwill plaplay y each each other other in in a a single single elimination elimination tournament tournament with with the the grgrand and prizprize e being being aa SonSony y PlaPlay y Station Station 3 3 donadonated ted by by a a local local video video game game storstoree. . Entry Entry fee fee is is 24$ 24$ per per teamteam 1184431 - McGraw-Hill Higher Education (US) © 62 62 Chapter Chapter 2 2 OrOrganization ganization StrStrategy ategy and and Project Project SelectionSelection and and individual individual plaplayers yers will will be be aable ble to to plaplay y in in a a loser’loser’s s bracket bracket ffor or 5$. 5$. All All proceedsproceeds will will go go to to the the NaNational tional Military Military FFamily amily AssociaAssociation.tion. PROJECT PROJECT PROPOSAL PROPOSAL 4: 4: RAFFLE RAFFLE FOR FOR LIFELIFE OrOrganizganize e a a rafrafffle le contest. contest. RRaffle affle ticktickets ets will will be be sold sold for for 3$ 3$ a a piece piece with with the the winningwinning tickticket et worth worth $300. $300. Each Each ofof the the six six team team members members will will be be responsible responsible ffor or selling selling 5050 rafraffle fle ticketstickets. . All All profits profits will will go go to to the the American American Cancer Cancer SocietySociety..
  • 8. PROJECT PROJECT PROPOSAL PROPOSAL 5: 5: HOLD’EM HOLD’EM FOR FOR HUNGERHUNGER OrOrganizganize e a a TTexas exas Hold’em Hold’em pokpoker er tournament tournament at at a a campus campus dining dining facilityfacility. . It It will will costcost 20$ 20$ to to enter enter the the tournament tournament with with a a $15 $15 buy-in buy-in in in feefee. . PrizPrizes es include include $300, $300, $150, $150, andand $50 $50 gift gift certificacertificates tes to to a a large large department department storestore. . Gift Gift certificates certificates purpurchased chased from from en-en- try try feesfees. . All All plaplayers yers will will be be eligible eligible to to win win twtwo o donated donated ticktickets ets to to Men Men and and WWomenomen baskbasketball etball gamesgames. . Funds Funds raised raised will will go go to to local local county county ffood ood sheltershelter.. PROJECT PROJECT PROPOSAL PROPOSAL 6: 6: BUILD BUILD YOUR YOUR OWN OWN BOXBOX The The purpose purpose ofof this this project project is is to to raise raise aawareness wareness ofof plight plight ofof homeless homeless. . StudentsStudents will will donadonate te ten ten dollars dollars to to participate participate in in bbuilding uilding and and living living in in a a cardboarcardboard d city city onon the the univuniversity ersity quad quad for for one one night. night. Building Building mamaterials terials will will be be proprovided vided by by local local rre-e- cycling cycling centers centers and and harharddware ware storesstores. . Hot Hot soup soup will will be be prprovided ovided bby y the the team team atat midnight midnight to to all all participantsparticipants. . PrProceeds oceeds for for go go to to the the local local homeless homeless sheltershelter..
  • 9. PrProject oject PriorityPriority Evaluation Evaluation FFormorm Must Must objectivesobjectives Be Be safesafe, , legal,legal, & & comply comply with with UnivUniversityersi ty PPoliciesolicies Can Can be be completcompleted ed withinwithin 9 9 weeksweeks Earn Earn at at least least $500$500 WantWant objectivesobjectives Single Single projectproject impact impact definitionsdefinitions Earning Earning potentialpotential Relat iveRelat ive Import anceImport ance 1–1001–100 9090 3030 4040 4040
  • 10. 0:0: 500–750 500–750 1:1: 750–1500 750–1500 2:2: >$1500 >$1500 3:3: >$2000 >$2000 0:0: None None 1:1: Some Some funfun 2:2: A A lot lot of of funfun 3030 0:0: No No potentialpotential 1:1: Low Low potentialpotential 2:2: High High potentialpotential 0:0: No No potentialpotential 1:1: Low Low potentialpotential 2:2: High High potentialpotential 0:0: No No potentialpotential 1:1: Low Low potentialpotential 2:2: High High potentialpotential TTotal otal weighted weighted scorscoree PPrr iorityiority FuFunn IncreaseIncrease awarawarenesseness of of charcharityity Resume Resume worthyworthy Be Be featurfeatured ed onon
  • 11. local local TV TV newsnews Y Y = = yesyes N N = = nono Y Y = = yesyes N N = = nono Y Y = = yesyes N N = = nono OpportunitOpportunit y y to to learnlearn PProject roject ManagementManagement Y Y = = yesyes N N = = nono Must Must meetmeet if if impactsimpacts 1 2 3 4 5 6 71 2 3 4 5 6 7 1184431 - McGraw-Hill Higher Education (US) © Chapter Chapter 2 2 OrgOrganization anization Strategy Strategy and and PrProject oject SelectionSelection 6363 Appendix Appendix 2.12.1 Request Request for for Proposal Proposal (RFP)(RFP) Once Once an an ororganization ganization selects selects a a prproject, oject, the the customer customer or or prproject oject manager manager is is fre-fre- quently quently rresponsible esponsible ffor or developing
  • 12. developing a a rrequest equest ffor or proposal proposal (RFP) (RFP) ffor or the the project project oror sections sections ofof the the project.project. The The responsible responsible prproject oject manager manager will will rrequire equire input input dadata ta from from all all stakstakeholderseholders connected connected to to the the activities activities cocoververed ed in in the the RFPRFP. . The The RFP RFP will will be be announced announced toto external external contractors/vcontractors/vendors endors with with adequate adequate eexperience xperience to to implement implement the the project.project. FFor or exampleexample, , govgovernment ernment projects projects frfrequently equently advadvertise ertise with with a a “request “request ffor or prpro-o- posal”posal” to to outside outside contractors contractors ffor or roadsroads, , buildingsbuildings, , airportsairports, , military military hardhardwareware,, space space vehiclesvehicles. . SimilarlySimilarly, , bbusinesses usinesses use use RFPs RFPs to to solicit solicit bids bids for for bbuilding uilding a a cleanclean rroom, oom, developing developing a a nenew w manufacturing manufacturing prprocessocess, , delivering delivering softwsoftware are ffor or insuranceinsurance billing, billing, conducting conducting a a markmarket et surveysurvey. . In In all all ofof these these examplesexamples, , requirements requirements andand feafeatures tures must must be be in in enough enough detail detail thathat t contractors contractors hahave ve a a clear clear description description ofof the the final final delivdeliveraerable ble thathat t will will meet meet the the customer’customer’s s needsneeds. . In In most most cases cases the the RFP RFP alsoalso specifies specifies an an expected expected fforormat mat ffor or the the contractor’contractor’s s bid bid proposal proposal so
  • 13. so the the rresponses esponses ofof difdifferent ferent contractors contractors can can be be fairlfairly y evaluaevaluated. ted. Although Although we we typicalltypically y think think ofof RFPs RFPs ffor or external external contractorscontractors, , in in some some organizaorganizations tions RFPs RFPs are are used used internally; internally; thathat t isis,, the the ororganization ganization sends sends out out an an RFP RFP to to difdifferent ferent divisions divisions or or departmentsdepartments.. The The content content ofof the the RFP RFP is is extremelextremely y important. important. In In practicepractice, , the the most most commoncommon errerror or is is to to offer offer an an RFP RFP thathat t lacks lacks sufsufficient ficient detail. detail. This This lack lack ofof detail detail typicallytypically results results in in conflict conflict issuesissues, , misunderstandingsmisunderstandings, , often often legal legal claims claims between between the the con-con- tractor tractor and and oownerwner, , and, and, in in addition, addition, an an unsatisfied unsatisfied customcustomerer. . All All RFPs RFPs are are difdiffer-fer- ent, ent, but but the the outline outline in in FigurFigure e A2.1 A2.1 is is a a good good starting starting point point ffor or the the development development ofof a a detailed detailed RFPRFP. . Each Each step step is is briefbriefly ly described described nenext.xt. 1. 1. Summary Summary ofof needs needs and and rrequest equest for for action.action. The The backgrbackground ound and and a a simple simple de-de- scription scription ofof the the final final project project delideliveraverable ble are are gigiven ven first. first. FFor or exampleexample, , through through sim-sim- ulaulated ted war war gamesgames, , the the UU.S.S. . NaNavy
  • 14. vy has has ffound ound their their giant giant warships warships ofof the the past past are are tootoo vulneravulnerable ble against against todatoday’y’s s technology technology (an (an eexample xample is is the the Silkworm Silkworm antiship antiship mis-mis- siles). siles). In In addition, addition, the the NaNavy’vy’s s mission mission has has shifted shifted to to supporting supporting grground ound fforces orces andand peacekpeacekeeping eeping missionsmissions, , which which requirrequire e getting getting closer closer to to shoreshore. . As As a a result, result, the the NaNavyvy is is rerevamping vamping ships ships ffor or near-shore near- shore dutyduty. . The The NaNavy vy will will select select three three designs designs ffor or fur-fur- ther ther refinement refinement frfrom om the the responses responses to to its its RFPRFP. . In In general, general, it it is is expected expected thathat t thethe new new ship ship will will be be cacapapable ble ofof a at t least least 55 55 knotsknots, , measure measure between between 80 80 and and 250 250 feet feet inin length, length, and and be be fitted fitted with with radar radar aabsorbing bsorbing panels panels to to thwart thwart guided guided missilesmissiles.. 1. 1. Summary Summary of of needs needs and and request request for for actionaction 2. 2. Statement Statement of of work work (SOW) (SOW) detailing detailing the the scope scope and and major major deliverablesdeliverables 3. 3. Deliverable Deliverable specifications/requirements, specifications/requirements, features, features, and and taskstasks 4. 4. Responsibilities—vendor Responsibilities—vendor and and customercustomer 5. 5. Project Project scheduleschedule 6. 6. Costs Costs and and payment payment scheduleschedule
  • 15. 7. 7. TType ype of of contractcontract 8. 8. Experience Experience and and staffingstaffing 9. 9. Evaluation Evaluation criteriacriteria FIGURE FIGURE A2.1A2.1 RRequest equest for for PrProposaloposal 1184431 - McGraw-Hill Higher Education (US) © 64 64 Chapter Chapter 2 2 OrOrganization ganization StrStrategy ategy and and Project Project SelectionSelection 2. 2. Statement Statement ofof work work (SO(SOW) W) detailing detailing the the scope scope and and major major delivdeliverables.erables. F For or ex-ex- ampleample, , ifif the the prproject oject invinvolves olves a a marmarket ket rresearch esearch surveysurvey, , the the major major delivdeliveraerablesbles could could be be design, design, dadata ta collection, collection, data data analanalysisysis, , and and proproviding viding recommendarecommendationstions by by FFebruary ebruary 21, 21, 2014, 2014, ffor or a a cost cost not not to to exexceed ceed $300,000.$300,000. 3. 3. DelivDeliverable erable specifications/rspecifications/requirements, equirements, featurfeatures, es, and and tasks.tasks. This This step step shouldshould be be very very comprcomprehensive ehensive soso bid bid prproposals oposals frfrom om contractors contractors can can be be validavalidated ted andand lalater ter used used for for contrcontrol. ol. TTypical ypical specifications specifications cocover ver phphysical ysical features features such such as as sizesize,,
  • 16. quantityquantity, , materialsmaterials, , speed, speed, and and colorcolor. . FFor or exampleexample, , an an IT IT prproject oject might might specifyspecify requirrequirements ements for for harharddwareware, , softwarsoftwaree, , and and training training in in greagreat t detail. detail. TTasks asks requiredrequired to to complete complete delivdeliveraerables bles can can be be included included ifif they they are are knoknown.wn. 4. 4. RResponsibilities—vendor esponsibilities—vendor and and customercustomer.. F Failing ailing to to spell spell out out the the responsibilitiesresponsibilities ffor or both both parties parties is is notorious notorious ffor or leading leading to to serious serious probproblems lems when when the the contractorcontractor implements implements the the prproject. oject. FFor or exampleexample, , who who papays ys for for wwhat? hat? (If(If the the contractor contractor is is toto be be on on sitesite, , will will the the contractor contractor be be required required to to papay y for for ofoffice fice space?) space?) WhaWhat t are are thethe limits limits and and exexclusions clusions ffor or the the contractor? contractor? (F(For or exampleexample, , who who will will supplsupply y test test equip-equip- ment?) ment?) WWhat hat commcommunication unication plan plan will will be be used used bby y the the contractor contractor and and owner? owner? IfIf escalaescalation tion ofof an an issue issue becomes becomes necessarynecessary, , whawhat t process process will will be be used? used? HoHow w willwill prprogress ogress be be eevaluavaluated? ted? WWell-defined ell-defined responsibilities responsibilities will will aavoid void manmany y unforunforeseeneseen prproblems oblems lalaterter.. 5. 5. Project Project schedule.schedule. This This step step is is
  • 17. concerned concerned with with getting getting a a “har“hard”d” schedule schedule whichwhich can can be be used used ffor or contrcontrol ol and and evaluaevaluating ting prprogressogress. . Owners Owners are are usually usually vvery ery demand-demand- ing ing in in meeting meeting the the prproject oject scheduleschedule. . In In todatoday’y’s s business business enenvirvironment, onment, time-to-time-to- markmarket et is is a a major major “hot “hot button”button” that that influences influences markmarket et shareshare, , costscosts, , and and profitsprofits.. The The schedule schedule should should spell spell out out whawhat, t, whowho, , and and when.when. 6. 6. Costs Costs and and payment payment schedule.schedule. The The RFP RFP needs needs to to set set out out vvery ery clearly clearly hohoww,, when, when, and and the the prprocess ocess ffor or deterdetermining mining costs costs and and conditions conditions for for prprogressogress papaymentsyments.. 7. 7. Type Type ofof contr contract.act. Essentially Essentially there there arare e two two types types ofof contracts—fixed- price contracts—fixed-price and and cost-pluscost-plus. . Fixed-price Fixed-price contracts contracts aagree gree on on a a price price or or lump lump sum sum in in advadvanceance,, and and it it remains remains as as long long as as therthere e are are no no changes changes to to the the scope scope prprovisions ovisions ofof the the agragreement. eement. This This type type is is preferred preferred in in prprojects ojects that that are are wwell ell defined defined with with predict-predict- aable ble costs costs and and minimal minimal risksrisks. . The The contractor contractor must must exexercise ercise care care
  • 18. estimaestimating ting costcost because because anany y underestimating underestimating ofof costs costs will will cause cause the the contractor’contractor’s s prprofit ofit to to bebe reduced. reduced. In In cost-plus cost-plus contracts contracts the the contrcontractor actor is is reimburreimbursed sed ffor or all all or or some some ofof the the expenses expenses incurrincurred ed during during performance performance ofof the the contract. contract. This This fee fee is is negoti-negoti- aated ted in in advance advance and and usuallusually y ininvolvvolves es a a percent percent ofof total total costscosts. . “Time “Time and and mate-mate- rials”rials” plus plus a a profit profit factor factor arare e typical typical ofof cost-plus cost-plus contractscontracts. . Both Both types types ofof contracts contracts can can include include incentivincentive e clauses clauses ffor or superior superior performance performance in in time time andand cost, cost, or or in in some some casescases, , penalties—for penalties—for eexamplexample, , missing missing the the opening opening date date ofof a a new new sports sports stadium.stadium. 8. 8. Experience Experience and and staffing.staffing. The The aability bility ofof the the contractor contractor to to implement implement the the prproj-oj- ect ect mamay y depend depend on on specific specific skills; skills; this this necessary necessary experience experience should should be be specified,specified, along along with with assurance assurance such such stafstafff will will be be aavailavailable ble ffor or this this project.project. 9. 9. Evaluation Evaluation criteria.criteria. The The criteria
  • 19. criteria ffor or evevaluating aluating and and aawarwarding ding the the projectproject contract contract should should be be specified. specified. FFor or exampleexample, , selection selection criteria criteria frequently frequently includeinclude methodologymethodology, , priceprice, , scheduleschedule, , and and experience; experience; in in some some cases cases these these criteria criteria areare weighted. weighted. Use Use ofof the the outline outline in in Figure Figure A2.1 A2.1 will will help help to to ensure ensure kkey ey items items in in thethe prproposal oposal are are not not omitted. omitted. A A well - prwell-prepared epared RFP RFP will will prprovide ovide contractors contractors withwith sufsufficient ficient guidelines guidelines to to prepare prepare a a prproposal oposal thathat t clearly clearly meets meets the the prproject oject andand customer’customer’s s needsneeds.. 1184431 - McGraw-Hill Higher Education (US) © Chapter Chapter 2 2 OrgOrganization anization Strategy Strategy and and PrProject oject SelectionSelection 6565 FIGURE FIGURE A2.2A2.2 Contractor Contractor Evaluation Evaluation TTemplateemplate Contractor Contractor Maximum Maximum Proposal Proposal Proposal Proposal Proposal Proposal ProposalProposal Evaluation Evaluation TTemplate emplate Weight Weight 1 1 2 2 3 3 44 Contractor Contractor qualifications qualifications Weight Weight 10 1055
  • 20. TTechnical echnical skills skills available available WWeight eight 20 2055 Understanding Understanding of of contract contract Weight Weight 5 555 and and conditionsconditions Financial Financial strength strength to to Weight Weight 15 1555 implement implement projectproject Understanding Understanding of of proposal proposal Weight Weight 10 1055 specificationsspecifications Innovativeness Innovativeness and and Weight Weight 5 555 originality originality of of proposalproposal Reputation Reputation for for delivering delivering Weight Weight 15 1555 on on time time and and budgetbudget Price Price Weight Weight 55 20 20 TTotal otal 100100 SELECTION SELECTION OF OF CONTRACTOR CONTRACTOR FROM FROM BID BID PROPOSALSPROPOSALS Interested Interested contractors contractors rrespond espond to to project project RFPs RFPs with with a a written written bid bid prpropoposal. osal. It It isis liklikely ely thathat t severseveral al contractors contractors will will submit submit bid bid proposals proposals to to the the customercustomer..
  • 21. The The final final step step in in the the RFP RFP prprocess ocess is is to to select select the the contractor contractor wwho ho best best meets meets thethe requirrequirements ements requested requested in in the the RFPRFP. . The The selection selection criteria criteria gigiven ven in in the the RFP RFP areare used used to to evevaluate aluate wwhich hich contractor contractor is is aawarded warded the the contrcontract act to to implement implement the the proj-proj- ect. ect. Losing Losing contractors contractors should should be be givgiven en an an explanaexplanation tion ofof the the kkey ey factors factors that that ledled to to the the selection selection ofof the the winning winning contractor/vendor; contractor/vendor; aappreciappreciation tion ffor or their their participa-participa- tion tion and and efeffort fort should should be be acknoacknowledged. wledged. See See Figure Figure A2.2, A2.2, Contractor Contractor EvaluaEvaluationtion TTemplateemplate, , adapted adapted frfrom om one one used used in in practicepractice.. 1184431 - McGraw-Hill Higher Education (US) © C H A P T E R C H A P T E R T H R E ET H R E E Organization:Organization: Structure Structure and and CultureCulture 6666 Organization: Organization: Structure Structure and and CultureCulture Project Project Management Management StructuresStructures
  • 22. What What Is Is the the Right Right Project Project Management Management Structure?Structure? Organizational Organizational CultureCulture Implications Implications of of Organizational Organizational Culture Culture for for Organizing Organizing ProjectsProjects SummarySummary PProjectroject netnetworksworks 66 ManagingManaging riskrisk 77 MonitoringMonitoring progrprogressess 1313 TTeamseams 1111 OutsourcingOutsourcing 1212 LeadershipLeadership 1010 StrategyStrategy 22
  • 23. IntroductionIntroduction 11 OrgOrganizationanization 33 ScheduleSchedule resourresources ces & & costscosts 88 Inte rna tion al Inte rna tion al pro ject s pro ject s 1515 1818
  • 24. OverOvers ightsight Agile Agile PMPM CarCareer eer pathspaths 1717 1616 PProjectroject closureclosure 1414 EstimatEstimatee 55 ReducingReducing durationduration 99 DefineDefine projectproject 44 1184431 - McGraw-Hill Higher Education (US) © C H A P T E R C H A P T E R O N EO N E
  • 25. Modern Modern Project Project ManagementManagement 22 PProjectroject netnetworksworks 66 ManagingManaging riskrisk 77 MonitoringMonitoring progrprogressess 1313 TTeamseams 1111 OutsourcingOutsourcing 1212 LeadershipLeadership 1010 StrategyStrategy 22 IntroductionIntroduction 11 OrgOrganizationanization 33
  • 26. ScheduleSchedule resourresources ces & & costscosts 88 Inte rna tion al Inte rna tion al pro ject s pro ject s 1515 1818 OverOvers ightsight Agile Agile PMPM
  • 27. CarCareer eer pathspaths 1717 1616 PProjectroject closureclosure 1414 EstimatEstimatee 55 ReducingReducing durationduration 99 DefineDefine projectproject 44 Modern Modern Project Project ManagementManagemen t What What Is Is a a Project?Project? Current Current Drivers Drivers of of Project Project ManagementManagement Project Project GovernanceGovernance Project Project Management Management TToday—A oday—A Socio-TSocio-Technical echnical ApproachApproach SummarySummary
  • 28. TText ext OverviewOverview 1184431 - McGraw-Hill Higher Education (US) © All All ofof mankind’s mankind’s grgreatest eatest accomplishments—from accomplishments—from building building the the grgreat eat ppyryra-a- mids mids to to discodiscovering vering a a curcure e for for polio polio to to putting putting a a man man on on the the moon—begmoon—beganan as as a a prproject.oject. This This is is a a good good time time to to be be reading reading a a book book aabout bout project project manamanagement. gement. BusinessBusiness leaders leaders and and experts experts hahave ve prproclaimed oclaimed thathat t project project manamanagement gement is is critical critical to to sus-sus- tainatainable ble economic economic grgroowth. wth. New New jobs jobs and and competitive competitive adadvantavantage ge are are achievachieved ed byby constant constant innoinnovavation, tion, developing developing nenew w products products and and servicesservices, , and and imprimproving oving bothboth prproductivity oductivity and and quality quality ofof wor work. k. This This is is the the world world ofof pr project oject management. management. PrProj-oj- ect ect management management prprovides ovides people people with with a a popowerful werful set set ofof tools tools that that imprimprovoves es theirtheir aability bility to to plan, plan, implement, implement, and and manage manage actiactivities vities to to accomplish accomplish specific specific organiza-organiza-
  • 29. tional tional objectivobjectiveses. . But But prproject oject management management is is more more than than just just a a set set ofof tools; tools; it it is is aa results-oriented results-oriented manamanagement gement style style that that places places a a prpremium emium on on building building collacollabora-bora- tivtive e relationships relationships among among a a didiverse verse cast cast ofof characters characters. . Exciting Exciting opportunities opportunities aawaitwait people people skilled skilled in in prproject oject management.management. The The prproject oject apprapproach oach has has long long been been the the style style ofof doing doing bbusiness usiness in in the the construc-construc- tion tion industryindustry, , UU.S.S. . Department Department ofof Defense Defense contractscontracts, , and and HollywHollywood ood as as well well asas big big consulting consulting firmsfirms. . Now Now prproject oject management management has has spread spread to to all all aavenvenues ues ofof w work.ork. TTodayoday, , project project teams teams carry carry out out eeverything verything frfrom om port port expansions expansions to to hospital hospital re-re- structuring structuring to to upgrading upgrading infinformation ormation systemssystems. . They They are are creacreating ting next next generageneration,tion, fuel fuel efefficient ficient vehiclesvehicles, , devdeveloping eloping sustainasustainable ble sources sources ofof energy energy, , and and exploring exploring thethe farthest farthest reaches reaches ofof outer outer spacespace. . The The impact impact ofof project project manamanagement gement is is most most prpro-o- ffound ound in in the the electrelectronics onics industryindustry, , wherwhere e the the new new ffolk olk herheroes oes are are yyoung oung profession-profession-
  • 30. als als whose whose HerHerculean culean effefforts orts lead lead to to the the constant constant flow flow ofof new new hardhardware ware andand softwarsoftware e productsproducts.. PrProject oject management management is is not not limited limited to to the the priprivavate te sectorsector. . Project Project manamanagement gement isis also also a a vehicle vehicle ffor or doing doing good good deeds deeds and and solving solving social social probproblemslems. . EndeaEndeavors vors suchsuch as as prproviding oviding emeremergency gency aid aid to to areas areas hit hit by by nanatural tural disastersdisasters, , devising devising a a strastrategy tegy forfor reducing reducing crime crime and and drug drug aabuse buse within within a a citycity, , or or ororganizing ganizing a a community community efeffortfort ound would would and and do do benefit benefit frfrom om the the applicaapplication tion ofof modern modern prproject oject management management skills skills and and techniquestechniques.. PerhaPerhaps ps the the best best indicator indicator ofof demand demand ffor or project project manamanagement gement can can be be seenseen in in the the rarapid pid expansion expansion ofof the the PrProject oject Management Management Institute Institute (PMI), (PMI), a a prprofes-ofes- sional sional ororganization ganization ffor or project project manamanagersgers. . PMI PMI membership membership has has grogrownwn frfrom om 93,000 93,000 in in 2002 2002 to to more more than than 434,000 434,000 currentlcurrentlyy. . See See the the PMI PMI SnapshotSnapshot frfrom om PracticePractice, , ffor or infinforormation mation
  • 31. rregarding egarding prprofessional ofessional certification certification in in prprojectoject management.management. It’It’s s nearlnearly y impossible impossible to to pick pick up up a a newspanewspaper per or or business business periodical periodical and and notnot find find something something aabout bout prprojectsojects. . This This is is no no surprise! surprise! ApprApproximaoximately tely $2.5 $2.5 trilliontrillion (a(about bout 25 25 percent percent ofof the the UU.S.S. . grgross oss national national prproduct) oduct) are are spent spent on on prprojects ojects eacheach year year in in the the United United StaStates tes alonealone.. Other Other countries countries are are incrincreasingly easingly spending spending more more onon prprojectsojects. . Millions Millions ofof people people araround ound the the world world consider consider prproject oject management management thethe major major task task in in their their prprofession.ofession. 33 1184431 - McGraw-Hill Higher Education (US) © 4 4 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement Most Most ofof the the people people who who exexcel cel aat t managing managing prprojects ojects never never hahave ve the the title title ofof proj- proj- ect ect managermanager. . They They include include accountantsaccountants, , lalawyerswyers, , administraadministratorstors, , scientistsscientists, , con-con-
  • 32. tractorstractors, , public public health health ofofficialsficials, , teachersteachers, , and and community community adadvocavocates tes whose whose successsuccess depends depends upon upon being being aable ble to to lead lead and and manamanage ge project project wwork. ork. FFor or somesome, , the the veryvery nanature ture ofof their their wwork ork is is prproject oject drivdriven. en. Projects Projects mamay y be be cases cases for for lalawyerswyers, , audits audits fforor accountantsaccountants, , events events ffor or artistsartists, , and and renorenovavations tions for for contrcontractorsactors. . FFor or othersothers, , proj-proj- ects ects mamay y be be a a small, small, but but critical critical part part ofof their their wwork. ork. FFor or exampleexample, , a a high high schoolschool teacher teacher who who teaches teaches ffour our classes classes a a daday y is is responsible responsible ffor or coaching coaching a a group group ofof stu- stu- dents dents to to compete compete in in a a nanational tional debadebate te competition. competition. A A store store manager manager wwho ho ovoverseesersees daily daily operoperations ations is is charcharged ged with with developing developing an an emploemployee yee retention retention prprogram. ogram. AA sales sales account account exexecutive ecutive is is givgiven en the the additional additional assignment assignment ofof team team lead lead to to launchlaunch daily daily deals deals into into a a nenew w citycity. . A A public public health health ofofficial ficial who who manages manages a a clinic clinic is is alsoalso responsibresponsible le for for ororganizing ganizing a a Homeless Homeless YYouth outh Connect Connect evevent. ent. FFor or these these and and othersothers,, prproject oject management management is is not not a a titletitle, , but but a a critical critical job job requirrequirement. ement. It It is is hard hard to to thinkthink
  • 33. ofof a a profession profession or or a a carcareer eer path path thathat t would would not not benefit benefit frfrom om being being good good at at manamanag-g- ing ing prprojectsojects.. Not Not only only is is prproject oject management management critical critical to to most most careerscareers, , the the skill skill set set is is transfer-transfer- aable ble acracross oss most most businesses businesses and and prprofessionsofessions. . At At its its corecore, , prproject oject management management fun-fun- damentals damentals are are uniuniversal. versal. The The same same prproject oject management management methodolomethodology gy that that is is usedused to to devdevelop elop a a new new prproduct oduct can can be be adapted adapted to to creacreate te new new servicesservices, , organize organize eveventsents,, refurbish refurbish aaging ging operaoperationstions, , and and so so forth. forth. In In a a wworld orld wherwhere e it it is is estimated estimated thathat t eacheach person person is is liklikely ely to to experience experience tthrhree ee to to ffour our career career changeschanges, , managing managing prprojects ojects is is aa talent talent wworthorthy y ofof dev development.elopment. The The Project Project Management Management Institute Institute (PMI) (PMI) waswas founded founded in in 1969 1969 as as an an international international society society forfor project project managers. managers. TToday oday PMI PMI has has membersmembers from from more more than than 180 180 countries countries and and more more thanthan 424,600 424,600 members. members. PMI PMI professionals professionals come come from from virtually virtually
  • 34. everyevery major major industryindustry, , including including aerospace, aerospace, automotive, automotive, businessbusiness management, management, construction, construction, engineering, engineering, financial financial services,services, information information technologytechnology, , pharmaceuticals, pharmaceuticals, health health care, care, andand telecommunications.telecommunications. PMI PMI provides provides certification certification as as a a Project Project Management Management Pro-Pro- fessional fessional (PMP)(PMP)—someone —someone who who has has documented documented sufficientsufficient project project experience, experience, agreed agreed to to follow follow the the PMI PMI code code of of profes-profes- sional sional conduct, conduct, and and demonstrated demonstrated mastery mastery of of the the field field of of proj-proj- ect ect management management by by passing passing a a comprehensive comprehensive examination.examination. The The number number of of people people earning earning PMP PMP status status has has grown grown dramat-dramat- ically ically in in recent recent years. years. In In 1996 1996 there there were were fewer fewer than than 3,000 3,000 cercer - - tified tified project project management management professionals. professionals. By By June June of of 20132013 there there were were more more than than 537,400 537,400 Prof essional Prof essional credentialcredential holders.holders. S N A P S H O T S N A P S H O T F R O M F R O M P R A C T I C EP R A C T I C E The The Project Project Management Management Institute*Institute*
  • 35. Just Just as as the the CPCPA A exam exam is is a a standard standard f or f or accountants,accountants, passing passing the the PMP PMP exam exam may may become become the the standard standard for for projectproject managers. managers. Some Some companies companies are are requiring requiring that that all all their their proj-proj- ect ect managers managers be be PMP PMP certified. certified. MoreoverMoreover, , many many job job post-post- ings ings are are restricted restricted to to PMPs. PMPs. Job Job seekers, seekers, in in general, general, areare f inding f inding that that being being PMP PMP certif ied certif ied is is an an advantage advantage in in thethe marketplace.marketplace. PMI PMI added added a a certif ication certif ication as as a a Certified Certified Associate Associate inin Project Project Management Management (CAPM)(CAPM). . CAPM CAPM is is designed designed for for projectproject team team members members and and entry-level entry-level project project managers, managers, as as well well asas qualified qualified undergraduate undergraduate and and graduate graduate students students who who want want aa credential credential to to recognize recognize their their mastery mastery of of the the project project manage-manage- ment ment body body of of knowledge. knowledge. CAPM CAPM does does not not require require the the exten-exten- sive sive project project management management experience experience associated associated with with thethe PMPPMP. . For For more more details details on on PMP PMP and and CAPM, CAPM, “Google” “Google” PMI PMI toto f ind f ind the the current current WWeb eb site site f or f or the the Project Project ManagementManagement Institute.Institute. **PMI PMI TToday, oday, June June 2013, 2013, p. p. 44
  • 36. 1184431 - McGraw-Hill Higher Education (US) © Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 55 S N A P S H O T S N A P S H O T F R O M F R O M P R A C T I C EP R A C T I C E A A Dozen Dozen Examples Examples of of Projects Projects GivenGiven to to Recent Recent College College GraduatesGraduates The The significance significance ofof pr project oject management management can can also also be be seen seen in in the the classrclassroom.oom. TTwenty wenty years years aago go major major universities universities ofoffered fered one one or or twtwo o classes classes in in project project manamanage-ge- ment, ment, primarily primarily ffor or engineersengineers. . TTodaodayy, , most most univuniversities ersities offer offer mmultiple ultiple sections sections ofof prproject oject management management classesclasses, , with with the the core core grgroup oup ofof engineers engineers being being supplementedsupplemented by by bbusiness usiness students students majoring majoring in in markmarketing, eting, management management infinforormation mation systemssystems 1.1. Business Business information: information: Join Join a a project project teamteam charged charged with with installing installing new new data data securitysecurity system.system. 2. 2. Physical Physical education: education: Design Design and
  • 37. and de de velopvelop a a new new fitness fitness program program for for senior senior citizens citizens that that com-com- bines bines principles principles of of yoga yoga and and aerobics.aerobics. 3. 3. Marketing: Marketing: Execute Execute a a sales sales program program for for new new home home airair purifierpurifier.. 4. 4. Industrial Industrial engineering: engineering: Manage Manage a a team team to to create create aa value value chain chain report report for for every every aspect aspect of of key key productproduct from from design design to to customer customer deliverydelivery.. 5. 5. Chemistry: Chemistry: Develop Develop a a quality quality control control program program for for orga-orga- nization’nization’s s drug drug production production facilities.facilities. 6. 6. ManagementManagement : : Implement Implement a a new new store store layout layout design.design. 7. 7. Pre-med Pre-med neurology neurology student: student: Join Join project project team team linkinglinking mind mind mapping mapping to to an an imbedded imbedded prosthetic prosthetic that that willwill allow allow blind blind people people to to function function near near normally.normally. 8. 8. Sports Sports communication: communication: Join Join Olympic Olympic project project team team thatthat will will promote promote women’women’s s sport sport
  • 38. products products for for the the 2016 2016 GamesGames in in Reo Reo de de Janeiro, Janeiro, Brazil.Brazil. 9. 9. Systems Systems engineer: engineer: Become Become a a project project team team member member ofof a a project project to to develop develop data data mining mining of of medical medical paperspapers and and studies studies related related to to drug drug efficacyefficacy.. 10. 10. Accounting: Accounting: Work Work on on an an audit audit of of a a major major client.client. 11. 11. Public Public health: health: Research Research and and design design a a medical medical mari-mari- juana juana educational educational program.program. 12. 12. English: English: Create Create a a web-based web- based user user manual manual for for newnew electronics electronics product.product. © © TTroels roels Graugaard/EGraugaard/E /Getty /Getty ImagesImages11 1184431 - McGraw-Hill Higher Education (US) © 6 6 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement The The Project Project ManaManagement gement Institute Institute prprovides ovides the the ffollowing ollowing definition definition ofof a a prproject:oject:
  • 39. A A prprojectoject is is a a temporary temporary endeaendeavor vor undertakundertaken en to to create create a a unique unique prproduct, oduct, service, service, or or rresult.esult. LikLike e most most organizaorganizational tional efeffort, fort, the the major major goal goal ofof a a prproject oject is is to to satisfy satisfy a a customer’customer’ss need. need. BeyBeyond ond this this fundamental fundamental similaritysimilarity, , the the characteristics characteristics ofof a a prproject oject helphelp (MIS), (MIS), and and financefinance, , as as well well as as students students frfrom om other other disciplines disciplines such such as as oceanooceanographgraphyy,, health health sciencessciences, , computer computer sciencessciences, , and and liberal liberal artsarts. . These These students students are are finding finding thathatt their their exposurexposure e to to project project manamanagement gement is is prproviding oviding them them with with distinct distinct adadvantavantagesges when when it it comes comes time time to to look look ffor or jobsjobs. . More More and and more more emploemployers yers are are looking looking fforor graduagraduates tes with with project project manamanagement gement skillsskills. . See See the the nearby nearby SnaSnapshot pshot from from PrPracticeactice ffor or examples examples ofof projects projects gigiven ven to to recent recent college college graduagraduatestes. . The The logical logical startingstarting point point ffor or developing developing these these skills skills is is understanding understanding the the uniqueness uniqueness ofof a a prproject oject andand ofof project project manamanagersgers.. What What Is Is a a Project?Project?
  • 40. WWhat hat do do the the ffollowing ollowing headlines headlines hahave ve in in common?common? Millions Millions wawatch tch Olympic Olympic Opening Opening CeremonCeremonyy Citywide Citywide WiFi WiFi system system set set to to go go liliveve Hospitals Hospitals respond respond to to nenew w Health Health Care Care RReformseforms Apple’Apple’s s new new iPhone iPhone hits hits the the markmarketet City City receireceives ves stimulus stimulus funds funds to to eexpand xpand light light rail rail systemsystem All All ofof these these events events reprrepresent esent projectsprojects.. © © Lars Lars Baron/Getty Baron/Getty ImagesImages 1184431 - McGraw-Hill Higher Education (US) © Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 77 difdifferentiaferentiate te it it from from other other endeaendeavors vors ofof the the ororganization. ganization. The The major major characteristicscharacteristics ofof a a project project arare e as as follofollows:ws: 1. 1. An An estaestablished blished objectiveobjective.. 2. 2. A A defined defined life life span span with with a a beginning beginning and and an an end.end. 3. 3. UsuallyUsually, , the the ininvolvvolvement ement ofof sev several eral departments departments and and
  • 41. professionalsprofessionals.. 4. 4. TTypicallyypically, , doing doing something something thathat t has has never never been been done done befbeforeore.. 5. 5. Specific Specific timetime, , cost, cost, and and perfperforormance mance requirementsrequirements.. First, First, projects projects hahave ve a a defdefined ined objectiobjective—whether ve—whether it it is is constructing constructing aa 12- - y JJananuary uary 1 1 or or releasing releasing version version 2.0 2.0 ofof a a specificspecific softwarsoftware e package package as as quicklquickly y as as possiblepossible. . This This singular singular purpose purpose is is often often lackinglacking in in daily daily ororganizational ganizational life life in in wwhich hich worworkers kers perfperfororm m repetitivrepetitive e operationsoperations Second, Second, because because there there is is a a specified specified objectiobjectiveve, , prprojects ojects hahave ve a a defined defined endpoint,endpoint, which which is is contrcontrary ary to to the the ongoing ongoing duties duties and and responsibilities responsibilities ofof traditional traditional jobsjobs. . InIn manmany y casescases, , individuals individuals momove ve frfrom om one one prproject oject to to the the next next as as opposed opposed to to stastayingying in in one one jobjob. . After After helping helping to to install install a a security security system, system, an an IT IT engineer engineer may may bebe assigned assigned to to develop develop a a dadatatabase base ffor or a a differdifferent ent client.client.
  • 42. Third, Third, unlikunlike e much much ororganizational ganizational wwork ork that that is is segmented segmented accoraccording ding to to func-func- tional tional specialtyspecialty, , prprojects ojects typically typically requirrequire e the the combined combined effefforts orts ofof a a variety variety ofof spe- spe- cialistscialists. . Instead Instead ofof w working orking in in separaseparate te ofoffices fices under under separate separate manamanagersgers, , prprojectoject participantsparticipants, , whether whether they they be be engineersengineers, , financial financial analystsanalysts, , markmarketing eting profession-profession- alsals, , or or quality quality control control specialistsspecialists, , wwork ork closely closely totogether gether under under the the guidance guidance ofof a a prproject oject manager manager to to complete complete a a prproject.oject. The The ffourth ourth characteristic characteristic ofof a a prproject oject is is that that it it is is nonrnonroutine outine and and has has somesome u u nique nique elementselements. . This This is is not not an an either/or either/or issue issue but but a a mamatter tter ofof degree degree. . ObviouslyObviously,, accomplishing accomplishing something something thathat t has has never never been been done done befbeforeore, , such such as as building building aa electric electric automobile automobile or or landing landing twtwo o mechanical mechanical rorovers vers on on MarsMars, , requirrequireses solving solving prepreviously viously unsolvunsolved ed probproblems lems and and breakthrbreakthrough ough technologytechnology. . On On thethe other other hand, hand, eveven en basic basic construction
  • 43. construction projects projects thathat t ininvolvvolve e estaestablished blished sets sets ofof rroutines outines and and procedurprocedures es require require some some degrdegree ee ofof customization customization thathat t makesmakes them them uniqueunique.. FinallFinallyy, , specific specific timetime, , cost, cost, and and perfperforormance mance requirements requirements bind bind prprojectsojects. . Proj-Proj- ects ects are are eevaluavaluated ted according according to to accomplishment, accomplishment, cost, cost, and and time time spent. spent. These These tripletriple constraints constraints impose impose a a higher higher degree degree ofof accounta accountability bility than than yyou ou typically typically find find inin most most jobsjobs. . These These three three also also highlight highlight one one ofof the the primary primary functions functions ofof pr project oject man-man- agement, agement, wwhich hich is is balancing balancing the the trade-oftrade-offs fs between between timetime, , cost, cost, and and performanceperformance while while ultimaultimately tely ssaatisfying tisfying the the customercustomer.. What What a a PrProject oject Is Is NotNot PrProjects ojects should should not not be be confused confused with with everyeverydaday y worwork. k. AA prproject oject is is not not routineroutine, , repetitive repetitive wwork! ork! Ordinary Ordinary daildaily y worwork k typically typically requirrequires es do-do- ing ing the the same same or or similar similar wwork ork oover ver and and ooverver, , while while a a prproject oject is is done done only only once; once; aa new new prproduct oduct or or service service exists exists when when the the prproject oject is is completed. completed.
  • 44. Examine Examine the the list list inin TTabable le 1.1 1.1 that that comparcompares es routineroutine, , repetitirepetitive ve wwork ork and and prprojectsojects. . RRecognizing ecognizing thethe difdifference ference is is important important because because too too often often resources resources can can be be used used up up on on daildaily y oper-oper- aations tions which which mamay y not not contribute contribute to to longer longer rrange ange organizaorganization tion strastrategies tegies thatthat require require innoinnovavative tive new new prproductsoducts.. ProProgrgram am versus versus PrProjectoject In In practice practice the the terms terms project project and and prprogram ogram cause cause confu-confu- sion. sion. They They are are often often used used synonsynonymouslyymously. . AA progrprogramam is is a a group group ofof r related elated projectsprojects 1184431 - McGraw-Hill Higher Education (US) © 8 8 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement designed designed to to accomplish accomplish a a common common ggoal oal oover ver an an extended extended period period ofof time time.. Each Each prprojectoject within within a a prprogram ogram has has a a prproject oject managermanager. . The The major major difdifferences ferences lie lie in in scale scale andand time time span.span.
  • 45. ProProgram gram management management is is the the prprocess ocess ofof a a grgroup oup ofof ongoing, ongoing, inter-inter-managingmanaging dependent, dependent, relarelated ted prprojectsojects in in a a coordinated coordinated wwaay y to to achieve achieve strastrategic tegic objectivesobjectives.. FFor or exampleexample, , a a pharpharmaceutical maceutical organizaorganization tion could could hahave ve a a prprogrogram am for for curingcuring cancercancer. . The The cancer cancer prprogram ogram includes includes and and coordinacoordinates tes cancer cancer projects projects thathattallall contincontinue ue ovover er an an extended extended time time horizon horizon (Gra(Grayy, , 2011). 2011). CoordinaCoordinating ting all all cancercancer prprojects ojects under under the the ovoversight ersight ofof a a cancer cancer team team prprovides ovides benefits benefits not not aavailavailable ble frfromom managing managing them them indiindividuallyvidually. . This This cancer cancer team team also also ooversees versees the the selection selection andand prioritizing prioritizing ofof cancer cancer prprojects ojects that that arare e included included in in their their special special “Cancer”“Cancer” portfolioportfolio.. Although Although each each prproject oject retains retains its its oown wn goals goals and and scopescope, , the the project project manamanager ger andand team team are are also also motimotivavated ted by by the the higher higher prprogram ogram goal. goal. PrProgram ogram goals goals are are closelcloselyy relarelated ted to to brbroad oad strategic strategic ororganizaganization tion goalsgoals.. The The ProProject ject Life Life CycleCycle Another Another waway y ofof illustra illustrating ting the the
  • 46. unique unique naturnature e ofof pr project oject worwork k is is in in terterms ms ofof the the prproject oject life life cycycle.cle. Some Some project project manamanagers gers find find it it useful useful to to use use the the project project life life cycyclecle as as the the cornerstone cornerstone ffor or managing managing prprojectsojects. . The The life life cycle cycle recorecognizes gnizes that that prprojectsojects hahave ve a a limited limited life life span span and and that that therthere e are are predictapredictable ble changes changes in in levlevel el ofof ef effort fort andand ffocus ocus oover ver the the life life ofof the the prproject. oject. There There are are a a nnumber umber ofof dif different ferent life-cycle life-cycle modelsmodels in in prproject oject management management literaliteratureture. . ManMany y are are unique unique to to a a specific specific industry industry or or typetype ofof project. project. FFor or exampleexample, , a a new new softwarsoftware e development development prproject oject may may consist consist ofof fiv fivee phases: phases: definition, definition, design, design, codecode, , integration/test, integration/test, and and maintenancemaintenance. . A A generic generic cyclecycle is is depicted depicted in in Figure Figure 1.1.1.1. The The project project life life cycycle cle typically typically passes passes sequentiallsequentially y through through ffour our stages: stages: defining,defining, planning, planning, exexecuting, ecuting, and and delivering. delivering. The The starting starting point point begins begins the the moment moment thethe prproject oject is is given given the the go-ahead. go-ahead. PrProject oject effeffort ort starts starts slowlslowlyy, , builds builds to to a a peak, peak, andand then then declines declines to to delivdelivery ery ofof the the prproject oject to to the the customercustomer..
  • 47. 1. 1. Defining Defining stage:stage: Specifications Specifications ofof the the prproject oject are are defined; defined; prproject oject objectives objectives areare estaestablished; blished; teams teams are are fforormed; med; major major responsibilities responsibilities are are assigned.assigned. 2. 2. Planning Planning stage:stage: The The level level ofof ef effort fort incrincreaseseases, , and and plans plans are are devdeveloped eloped toto determine determine whawhat t the the prproject oject will will entail, entail, when when it it will will be be scheduled, scheduled, whom whom itit will will benefit, benefit, whawhat t quality quality level level should should be be maintained, maintained, and and wwhat hat the the bbudgetudget will will bebe.. TTABLE ABLE 1.11.1 Comparison Comparison ofof RRoutine outine WWork ork withwith PrProjectsojects Routine, Routine, Repetitive Repetitive Work Work ProjectsProjects TTaking aking class class notes notes Writing Writing a a term term paperpaper Daily Daily entering entering sales sales receipts receipts into into the the Setting Setting up up a a sales sales kiosk kiosk for for a a professionalprofessional accounting accounting ledger ledger accounting accounting meetingmeeting Responding Responding to to a a supply-chain supply-chain request request Developing Developing a a supply-chain supply-
  • 48. chain information information systemsystem Practicing Practicing scales scales on on the the piano piano Writing Writing a a new new piano piano piecepiece Routine Routine manufacture manufacture of of an an Apple Apple iPod iPod Designing Designing an an iPod iPod that that is is approximatelyapproximately nches, nches, interfaces interfaces with with PC, PC, andand stores stores 10,000 10,000 songssongs Attaching Attaching tags tags on on a a manufactured manufactured product product Wire-tag Wire-tag projects projects for for GE GE and and WWal-Martal-Mart 1184431 - McGraw-Hill Higher Education (US) © Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 99 3. 3. ExExecuting ecuting stage:stage: A A major major portion portion ofof the the prproject oject worwork k takes takes place—bothplace—both phphysical ysical and and mental. mental. The The phphysical ysical prproduct oduct is is produced produced (a (a bridgebridge, , a a report, report, aa softwarsoftware e proprogram). gram). TimeTime, , cost, cost, and and specification specification measures measures arare e used used fforor contrcontrol. ol. Is Is the the project project on on scheduleschedule, , on on budget, budget, and and meeting meeting specificaspecifications?tions? WWhat hat arare e the the forforecasts ecasts ofof each each ofof these these measures? measures? WWhat hat
  • 49. rerevisions/changesvisions/changes are are necessary?necessary? 4. 4. Closing Closing stage:stage: Closing Closing includes includes three three activities: activities: delivdelivering ering the the project project prproductoduct to to the the customercustomer, , redeploredeploying ying project project rresourcesesources, , and and post-prpost-project oject reviewreview.. DeliDelivery very ofof the the prproject oject might might include include customer customer training training and and transferringtransferring documentsdocuments. . RRedeployment edeployment usuallusually y ininvolvvolves es releasing releasing prproject oject equipment/equipment/ mamaterials terials to to other other projects projects and and finding finding nenew w assignments assignments ffor or team team membersmembers.. PPost-prost-project oject reviereviews ws include include not not only only assessing assessing perfperforormance mance but lessons lessons learned.learned. In In practicepractice, , the the prproject oject life life cycle cycle is is used used by by some some prproject oject grgroups oups to to depict depict thethe timing timing ofof major major tasks tasks ovover er the the life life ofof the the prproject. oject. FFor or exampleexample, , the the design design teamteam might might plan plan a a major major commitment commitment ofof resources resources in in the the defining defining stastagege, , while while thethe quality quality team team wwould ould expect expect their their major major efeffort fort to to incrincrease ease in in the the latter latter stastages ges ofof
  • 50. the the prproject oject life life cyclecycle. . Because Because most most organizaorganizations tions hahave ve a a portfportfolio olio ofof pr projectsojects going going on on concurrentlconcurrentlyy, , each each at at a a difdifferent ferent stastage ge ofof each each prproject’oject’s s life life cyclecycle, , care-care- ful ful planning planning and and management management aat t the the organizaorganization tion and and project project lelevels vels areare imperaimperativetive.. The The Project Project ManagerManager At At first first glance glance prproject oject managers managers perfperfororm m the the same same functions functions as as other other managersmanagers.. ThaThat t isis, , they they plan, plan, schedulesched ule, , motivamotivatete, , and and control. control. HoHoweweverver, , whawhat t makmakes es themthem FIGURE FIGURE 1.11.1 PrProject oject Life Life CycleCycle L e v L e v e l e l
  • 51. o f o f e ff e ff o r o rtt 11.. Goals Goals 2.2. Specifications Specifications 3. 3. TTasksasks 4.4. Responsibilities Responsibilities 11.. Schedules Schedules 2.2. Budgets Budgets 3.3. Resour Resourcesces 4.4. Risks Risks 5.5. Sta Staffingffing
  • 52. 11.. Status Status reportsreports 2.2. Changes Changes 3.3. Quality Quality 4.4. For Forecastsecasts 11.. Train Train customercustomer 2. 2. TTransfer ransfer documentsdocuments 3.3. Release Release rresourcesesources 4.4. Evaluation Evaluation 5.5. Lessons Lessons learnedlearned DefinDefininging DefiningDefining StartStart TimeTime EndEnd PlanningPlanning PlanningPlanning ExecutingExecuting ExecutingExecuting ClosingClosing ClosingClosing
  • 53. 1184431 - McGraw-Hill Higher Education (US) © 10 10 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement unique unique is is thathat t they they manage manage temporarytemporary, , nonrepetitinonrepetitive ve activitiesactivities, , to to complete complete a a fixedfixed life life prproject. oject. Unlike Unlike functional functional manamanagersgers, , who who taktake e ovover er existing existing operaoperationstions, , prprojectoject managers managers crcreate eate a a prproject oject team team and and organizaorganization tion wherwhere e none none existed existed befbeforeore. . TheyThey must must decide decide wwhahat t and and how how things things should should be be done done instead instead ofof simply simply manamanaging ging setset prprocessesocesses. . They They must must meet meet the the challenges challenges ofof each each phase phase ofof the the prproject oject life life cyclecycle,, and and eveven en ovoversee ersee the the dissolution dissolution ofof their their operaoperation tion when when the the prproject oject isis completed.completed. Project Project manamanagers gers must must wwork ork with with a a divdiverse erse troupe troupe ofof characters characters to to completecomplete prprojectsojects. . They They are are typically typically the the dirdirect ect link link to to the the customer customer and and must must manamanagege the the tension tension between between customer customer eexpectations xpectations and and wwhat hat is is feasibfeasible
  • 54. le and and reasonareasonableble.. PrProject oject managers managers prproovide vide direction, direction, coordinacoordination, tion, and and integraintegration tion to to the the proj-proj- ect ect team, team, which which is is often often made made up up ofof part-time part-time participants participants loloyal yal to to their their func-func- tional tional departmentsdepartments. . They They often often must must wwork ork with with a a cadre cadre ofof outsiders—vendors outsiders—vendors,, supplierssuppliers, , subcontractors —who subcontractors—who do do not not necessarilnecessarily y share share their their prprojectoject allegienceallegience.. PrProject oject managers managers are are ultimaultimately tely rresponsible esponsible ffor or perfperforormance mance (frequently (frequently withwith too too little little authority). authority). They They must must ensurensure e that that aapprppropriate opriate trade-oftrade- offs fs are are mademade between between the the timetime, , cost, cost, and and perfperforormance mance requirements requirements ofof the the prproject. oject. At At the the samesame timetime, , unlike unlike their their functional functional counterpartscounterparts, , prproject oject managers managers generallgenerally y possess possess onlyonly rudimentary rudimentary technical technical knoknowledge wledge to to make make such such decisionsdecisions. . Instead, Instead, they they must must or-or- chestrachestrate te the the completion completion ofof the the prproject oject by by inducing inducing the the right right peoplepeople, , at at the the rightright timetime, , to to address address the the right right issues issues
  • 55. and and makmake e the the right right decisionsdecisions.. WWhile hile project project manamanagement gement is is not not ffor or the the timid, timid, worworking king on on projects projects can can be be anan extrextremely emely rerewarding warding eexperiencexperience. . Life Life on on prprojects ojects isis rarely rarely boring; boring; each each daday y is is dif-dif- ferent ferent frfrom om the the last. last. Since Since most most prprojects ojects are are directed directed aat t solving solving some some tangibletangible prproblem oblem or or pursuing pursuing some some useful useful opportunityopportunity, , prproject oject managers managers find find their their wworkork personally personally meaningful meaningful and and sasatisfying. tisfying. They They enjoy enjoy the the act act ofof crea creating ting somethingsomething new new and and innoinnovavativetive. . PrProject oject managers managers and and team team members members can can feel feel immense immense pridepride in in their their accomplishment, accomplishment, whether whether it it is is a a nenew w bridgebridge, , a a new new prproduct, oduct, or or neededneeded serviceservice. . Project Project manamanagers gers are are often often stars stars in in their their ororganization ganization and and wwellell compensacompensated.ted. Good Good project project manamanagers gers are are alwalwaays ys in in demand. demand. Every Every industry industry is is looking looking fforor efeffective fective people people wwho ho can can get get the the right right things things done done on on timetime. . ClearlyClearly, , project project man-man- agement agement is is a a challenging challenging and and eexciting xciting prprofession. ofession. This This text text is is
  • 56. intended intended to to prproovidevide the the necessary necessary knoknowledgewledge, , perspectiveperspective, , and and tools tools to to enaenable ble students students to to accept accept thethe challengechallenge.. Being Being Part Part of of a a Project Project TTeameam Most Most people’people’s s first first exposure exposure to to prproject oject management management occurs occurs wwhile hile wworking orking as as partpart ofof a a team team assigned assigned to to complete complete a a specific specific project. project. Sometimes Sometimes this this wwork ork is is full-timefull-time,, but but in in most most casescases, , people people work work part-time part-time on on one one or or mormore e prprojectsojects. . They They must must learnlearn hohow w to to juggle juggle their their day-to-daday-to-day y commitments commitments with with additional additional prproject oject responsibili-responsibili- tiesties. . They They mamay y join join a a team team with with a a long long history history ofof w working orking togethertogether, , in in which which casecase rroles oles and and nornorms ms are are firmly firmly estaestablished. blished. AlternatiAlternativelyvely, , their their team team mamay y consist consist ofof strangers strangers frfrom om differdifferent ent departments departments and and organizaorganizationstions. . As As such, such, they they endure endure thethe grgrowing owing pains pains ofof a a grgroup oup evolving evolving into into a a team. team. They They need need to to be be a a positipositive ve fforce orce inin helping helping the the team team coalesce coalesce into into an an efeffective fective prproject oject team.team. Not Not only only arare e there there people people issuesissues, , but but prproject oject members members are are
  • 57. also also expected expected to to useuse prproject oject management management tools tools and and conceptsconcepts. . They They develop develop or or are are gigiven ven a a prproject oject chartercharter 1184431 - McGraw-Hill Higher Education (US) © Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 1111 or or scope scope stastatement tement that that defines defines the the objectiobjectives ves and and parameters parameters ofof the the project.project. They They wwork ork with with others others to to creacreate te a a prproject oject schedule schedule and and budget budget thathat t will will guide guide project project eexe-xe- cution. cution. They They need need to to understand understand prproject oject priorities priorities so so they they can can make make independentindependent decisionsdecisions. . They They must must knoknow w how how to to monitor monitor and and rreport eport project project prprogressogress. . AlthoughAlthough much much ofof this this book book is is written written frfrom om the the perspective perspective ofof a a prproject oject managermanager, , the the toolstools,, conceptsconcepts, , and and methods methods are are critical critical to to everyeveryone one worworking king on on a a project. project. PrProject oject mem-mem- bers bers need need to to knoknow w how how to to aavoid void the the dangers dangers ofof scope scope creepcreep, , manage manage the the criticalcritical papath, th, engage engage in in timeltimely y risk risk management, management, negotianegotiatete, , and and utilizutilize e virtual virtual tools tools toto
  • 58. communicacommunicatete.. Current Current Drivers Drivers of of Project Project ManagementManagement PrProject oject management management is is no no longer longer a a special-need special-need manamanagement. gement. It It is is rapidlrapidly y becom-becom- ing ing a a standard standard wwaay y ofof doing doing businessbusiness. . See See Snapshot Snapshot frfrom om Practice: Practice: PrProject oject Man-Man- agement agement in in Action: Action: 2013. 2013. An An incrincreasing easing percentage percentage ofof the the typical typical firm’firm’s s effeffort ort isis being being devdevoted oted to to prprojectsojects. . The The future future prpromises omises an an increase increase in in the the importance importance andand the the rrole ole ofof pr projects ojects in in contributing contributing to to the the strastrategic tegic direction direction ofof organiza organizationstions. . Sev-Sev- eral eral reasons reasons wwhhy y this this is is the the case case are are briefly briefly discussed discussed belobeloww.. Compression Compression ofof the the Product Product Life Life CyCyclecle One One ofof the the most most significant significant driving driving fforces orces behind behind the the demand demand ffor or prproject oject manage-manage- ment ment is is the the shortening shortening ofof the the product product life life cycyclecle. . FFor or exampleexample, , todatoday y in in high-techhigh-tech industries industries the the product product life life cycycle cle is is aaveraveraging ging 6 6 months months to to 3 3 yearsyears. . Only Only 30 30 yearsyears agoago, , life life cycles cycles ofof 10 10 to to 15 15 years years were were not not uncommon. uncommon. Time Time to
  • 59. to marmarketket f for or newnew prproducts oducts with with short short life life cycles cycles has has become become increasinglincreasingly y important. important. A A common common rulerule ofof thumb thumb in in the the world world ofof high-tech high-tech prproduct oduct development development is is thathat t a a six-month six-month prproj-oj- ect ect deladelay y can can result result in in a a 33 33 percent percent loss loss in in prproduct oduct revenrevenue ue shareshare. . Speed, Speed, therefthereforeore,, becomes becomes a a competitivcompetitive e advantaadvantage; ge; more more and and mormore e organizaorganizations tions are are relrelying ying onon crcross-functional oss-functional project project teams teams to to get get nenew w products products and and services services to to the the marmarket ket asas quickly quickly as as possibpossiblele.. KnowledgKnowledge e ExplosionExplosion The The grgrowth owth in in nenew w knowledge knowledge has has increased increased the the complecomplexity xity ofof pr projects ojects becausebecause prprojects ojects encompass encompass the the latest latest adadvancesvances. . FFor or exampleexample, , building building a a rroad oad 30 30 years years agoago waswas a a somesomewhawhat t simple simple prprocessocess. . TTodaodayy, , each each area area has has increased increased in in complecomplexityxity, , in-in- cluding cluding mamaterialsterials, , specificationsspecifications, , codescodes, , aestheticsaesthetics, , equipment, equipment, and and required required spe-spe- cialistscialists. . SimilarlySimilarly, , in in todatoday’y’s s digital, digital, electronic electronic aage ge it it is is becoming becoming hard hard to to find find aa new new prproduct oduct that that does does not not contain contain aat t least least one one microchipmicrochip. .
  • 60. PrProduct oduct complexity complexity hashas increased increased the the need need to to integraintegrate te diverdivergent gent technologiestechnologies. . Project Project manamanagement gement hashas emeremerged ged as as an an important important discipline discipline for for achieachieving ving this this task.task. TTriple riple Bottom Bottom Line Line (planet, (planet, people, people, prprofit)ofit) The The threathreat t ofof global global wwararming ming has has brought brought sustainasustainable ble bbusiness usiness practices practices to to thethe fforefrorefront. ont. Businesses Businesses can can no no longer longer simply simply ffocus ocus on on maximizing maximizing profit profit to to thethe detriment detriment ofof the the envirenvironment onment and and societysociety. . EfEfforts forts to to rreduce educe carbon carbon imprint imprint andand utilize utilize renewrenewaable ble resources resources arare e realized realized through through efeffective fective prproject oject management.management. The The impact impact ofof this this movmovement ement towtowards ards sustainasustainability bility can can be be seen seen in in changes changes inin 1184431 - McGraw-Hill Higher Education (US) © 12 12 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement the the objectivobjectives es and and techniques techniques used used to to complete complete projectsprojects. . See See Snapshot Snapshot frfromom Practice: Practice: Dell Dell ChildrenChildren’’s s Becomes
  • 61. Becomes WWorld’orld’s s First First “Green”“Green” Hospital. Hospital. CorporCorporate ate DownsizingDownsizing The The last last decade decade has has seen seen a a dramadramatic tic restructuring restructuring ofof organiza organizational tional lifelife. . DoDownsizwnsiz-- ing ing (or (or rightsizing rightsizing ifif you you arare e still still employemployed) ed) and and sticking sticking to to core core competenciescompetencies Businesses Businesses thrive thrive and and survive survive basedbased on on their their ability ability to to managemanage projects projects that that produce produce products products and and services services that that meet meet marketmarket needs. needs. Below Below is is a a small small sample sample of of projects projects that that are are importantimportant to to their their company’company’s s future.future. ORGANIZAORGANIZATION: TION: PROCTER PROCTER AND AND GAMBLEGAMBLE Project: Project: Global Global Ordering, Ordering, Shipping, Shipping, and and Billing Billing ProjectProject The The project project goal goal is is to to improve improve customer customer service, service, processes,processes, and and organization organization structure. structure. The The global global team team relied relied on on virtualvirtual communication, communication, while while closely closely managing managing risk risk and and milestonemilestone dates. dates. The The new new system system is is designed designed to to allow allow P&G P&G to to makemake real-time real-time decdecisions, isions, enabling enabling the the company company to to collect collect andand respond respond to to consumer/retailer consumer/retailer feedback feedback to to create create more more comcom--
  • 62. pelling pelling promotions promotions to to increase increase sales. sales. The The system system shouldshould also also improve improve efficiencies efficiencies in in supply suppl y chains chains byby, , for for example, example, identifyidentify-- ing ing the the best best warehouses warehouses to to ship ship products products to.to. ——PMI PMI TToday,oday, 2012 2012 PMI PMI Project Project of of the the YYear ear Finalists, Finalists, DecemberDecember 2012, 2012, p. p. 77 S N A P S H O T S N A P S H O T F R O M F R O M P R A C T I C EP R A C T I C E Project Project Management Management in in Action: Action: 20132013 © © Frederic Frederic J. J. Brown/AFP/Getty Brown/AFP/Getty ImagesImages 1184431 - McGraw-Hill Higher Education (US) © Chapter Chapter 1 1 Modern Modern Project Project ManagementManagement 1313 ORGANIZAORGANIZATION: TION: CHINA CHINA SUNERGY SUNERGY CO., CO., LLTDTD Project: Project: Sanliurfa Sanliurfa Solar Solar Park, Park, TTurkeyurkey The The Chinese Chinese companycompany, , Sunergy, Sunergy, has has entered entered into into a a jointjoint agreement agreement with with Seul Seul EnergyEnergy, , a a leading leading solar solar developerdeveloper, , to to de-de- velop velop a a 500kw 500kw solar solar park park in in
  • 63. Sanliurfa, Sanliurfa, TTurkey. urkey. The The plants plants willwill incorporate incorporate state state of of the the art art technology technology and and new new types types of of solarsolar cells. cells. The The project project is is the the beginning beginning of of an an ambitious ambitious programprogram designed designed to to meet meet the the expected expected growth growth in in demand demand for for energyenergy in in Central Central Asia.Asia. —www—www.prnewswire.com/news-releases/china, .prnewswire.com/news-releases/china, accessedaccessed 1/5/131/5/13 ORGANIZAORGANIZATION: TION: THE THE WALWALT T DISNEY DISNEY COMPCOMPANYANY Project: Project: Star Star Wars Wars Episode Episode 77 Disney Disney spent spent over over $4 $4 billion billion to to purchase purchase Lucasfilm, Lucasfilm, which which in-in- cluded cluded exclusive exclusive past past and and future future rights rights to to the the popular popular StarStar WWars ars franchise. franchise. Preproduction Preproduction work work on on the the newest newest Star Star WarsWars feature feature is is scheduled scheduled to to begin begin in in 2013 2013 with with a a projected projected releaserelease date date in in 2015. 2015. The The Star Star WWars ars investment investment is is seen seen by by industry industry ex-ex- perts perts as as an an effort effort by by Disney Disney to to broaden broaden its its pop pop culture culture reachreach and and re-establish re-establish Disney Disney films films in in the the sci-fi/fantasy sci-fi/fantasy genre genre afterafter the the failure failure of of space space epic epic and and ..John John CarterCarter Mars Mars Needs Needs MomsMoms
  • 64. —— 11/11/12 11/11/12businessweek.com,businessweek.com, ORGANIZAORGANIZATION: TION: DISH DISH NETWORKNETWORK Project: Project: HopperHopper Dish Dish Network Network made made a a splash splash at at the the 2013 2013 Consumer Consumer ElectronicsElectronics Show Show by by showing showing off off the the latest latest generation generation of of HopperHopper, , a a whole-whole- home home HD HD DVR DVR system. system. Hopper Hopper includes includes commercial commercial skippingskipping technology technology and and the the ability ability to to move move programs programs onto onto iPads iPads andand other other mobile mobile devices. devices. The The announcement announcement cemented cemented Dish’Dish’s s po-po- sition sition as as one one of of the the leaders leaders in in the the “TV “TV Everywhere” Everywhere” movementmovement in in which which favorite favorite shows shows and and movies movies can can be be accessed accessed from from anyany device device at at any any location. location. Dish Dish is is counting counting on on Hopper Hopper and and relatedrelated products products to to compete compete against against DirecDirecTV TV and and deep-pocketeddeep-pocketed cable cable and and telecom telecom providers.providers. —Ces.cnet.com,—Ces.cnet.com, 1/8/13 1/8/13 ORGANIZAORGANIZATION: TION: BILL BILL & & MELINDA MELINDA GAGATESTES FOUNDAFOUNDATIONTION Project: Project: Drought-TDrought-Tolerant olerant Maize Maize for for AfricaAfrica The The goal goal of of the the project project is is to to help help farmers farmers in in Sub-SaharanSub-Saharan
  • 65. Af rica Af rica living living in in drought-susceptible drought- susceptible areas areas increase increase theirtheir maize maize (corn) (corn) productivityproductivity. . Getting Getting the the improved improved maize maize varietiesvarieties into into the the hands hands of of African African farmers farmers is is the the product product of of over over twotwo decades decades of of research research and and involves involves a a broad broad coalition coalition ofof partners, partners, from from governments governments and and NGOs NGOs to to seed seed dealers dealers andand farmers. farmers. More More than than 2 2 million million smallholder smallholder farmers farmers in in AfricaAfrica are are already already realizing realizing the the benefits benefits of of higher higher yields. yields. By By 2016,2016, the the drought-tolerant drought-tolerant maize maize project project is is expected expected to to boostboost maize maize yields yields by by as as much much as as 30%, 30%, benefiting benefiting up up to to 40 40 millionmillion people people in in Africa.Africa. —— accessed accessed 1/9/131/9/13gatesfoundation.org,gatesfoundation.org, ORGANIZAORGANIZATION: TION: FIAFIATT, , ITITALALYY Project: Project: 2013 2013 Fiat Fiat 500 500 EVEV Available Available Spring Spring 2013, 2013, the the EV EV is is a a totally totally electric electric version version of of thethe popular popular Fiat Fiat 500 500 line. line. The The EV EV sports sports a a 100-hp 100-hp electric electric motormotor powered powered by by lithium lithium batteries batteries with with 87 87 miles miles of of electric electric range.range. Fiat Fiat needs needs to to prove prove that that it it is is a a forward forward looking looking company company andand
  • 66. provide provide another another reason reason to to buy buy the the 500 500 other other than than styling styling or or thethe sales sales curve curve will will plunge plunge once once the the cuteness cuteness fails. fails. Success Success willwill depend depend upon upon overcoming overcoming customer customer range range anxiety anxiety and and the the riskrisk that that governments governments will will stop stop supporting supporting electric electric vehicles vehicles withwith attractive attractive subsidies.subsidies. ——caranddrivercaranddriver.com,.com, accessed accessed 1/20/131/20/13 ORGANIZAORGANIZATION: TION: SONYSONY, , JAPJAPANAN Project: Project: Sony Sony PlayStation PlayStation 4 4 (PS4)(PS4) It’It’s s been been seven seven years years since since Sony Sony released released the the highly highly success-success- ful ful PlayStation PlayStation 3, 3, and and the the Internet Internet is is buzzing buzzing with with rumors rumors of of aa fourth-generation fourth-generation PlayStation. PlayStation. The The PS4 PS4 reportedly reportedly will will featurefeature a a tablet-style tablet-style controller controller and and state state of of the the art art graphics. graphics. At At stakestake is is Sony’Sony’s s position position in in the the $10 $10 billion-plus billion-plus gaming gaming industry.industry. —— accessed accessed 1/11/131/11/13sonyps4.com,sonyps4.com, hahave ve become become necessary necessary ffor or survival survival ffor or manmany y firfirmsms. . Middle Middle management management is is a a mermeree skskeleton eleton ofof the the past. past. In In todatoday’y’s s
  • 67. fflalatter tter and and leaner leaner organizaorganizationstions, , wherwhere e change change is is aa constant, constant, prproject oject management management is is replacing replacing midmiddle dle management management as as a a wway ay ofof ensur- ensur- ing ing thathat t things things get get donedone. . CorporaCorporate te downsizing downsizing has has also also led led to to a a change change in in the the wwayay ororganizations ganizations aapproach pproach prprojectsojects. . Companies Companies outsource outsource significant significant segments segments ofof prproject oject worwork, k, and and project project manamanagers gers hahave ve to to manage manage not not onlonly y their their own own people people bbutut also also their their counterparts counterparts in in difdifferent ferent organizaorganizationstions.. 1184431 - McGraw-Hill Higher Education (US) © 14 14 Chapter Chapter 1 1 Modern Modern PrProject oject ManagementManagement Increased Increased Customer Customer FFocusocus Increased Increased competition competition has has placed placed a a prpremium emium on on customer customer satisfaction. satisfaction. CustomersCustomers no no longer longer simply simply settle settle ffor or generic generic prproducts oducts and and servicesservices. . They They want want customizedcustomized prproducts oducts and and services services that that cacater ter to to their their specific specific needsneeds. . This This mandate mandate rrequires equires a a muchmuch closer closer wworking orking relarelationship tionship between between the the prproovider vider and and the the
  • 68. receivreceiverer. . Account Account exexecu-ecu- tivtives es and and sales sales representarepresentatives tives arare e assuming assuming more more ofof a a prproject oject manager’manager’s s role role as as theythey wwork ork with with their their ororganization ganization to to sasatisfy tisfy the the unique unique needs needs and and requests requests ofof clients clients.. Increased Increased customer customer aattention ttention has has also also prompted prompted the the dedevelopment velopment ofof custom- custom- ized ized products products and and servicesservices. . FFor or exampleexample, , 15 15 years years ago ago bbuying uying a a set set ofof golf golf clubs clubs was was a a rrelatielatively vely simple simple prprocess: ocess: YYou ou pickpicked ed out out a a set set based based on on price price and and feel.feel. TTodayoday, , there there are are golfgolf clubs clubs ffor or tall tall playplayers ers and and short short playplayersers, , clubs clubs ffor or playplayers ers whowho tend tend to to slice slice the the ball ball and and clubs clubs ffor or those those who who hook hook the the ball, ball, high- tech high-tech clubs clubs withwith the the lalatest test metallurgic metallurgic discodiscovery very guaranteed guaranteed to to adadd d distancedistance, , and and so so forth. forth. PrProjectoject management management is is critical critical both both to to dedevelopment velopment ofof customiz customized ed prproducts oducts and and servicesservices and and to to sustaining sustaining lucralucrative tive rrelationships elationships with with customerscustomers.. Dateline Dateline 1/7/2009, 1/7/2009, Austin Austin TTexas: exas: Dell Dell Children’Children’ss Medical Medical Center Center becomes becomes the the first first hospital hospital inin
  • 69. the the world world to to receive receive platinum platinum LEED LEED (Leader(Leader-- ship ship in in Energy Energy & & Environmental Environmental Design) Design) certi-certi- fication. fication. Platinum Platinum certification certification is is the the highest highest award award granted granted byby the the U.S. U.S. Green Green Building Building Council.Council. Dell Dell Children’Children’s s occupies occupies nearly nearly one-half one-half million million square square feetfeet on on 332 2 acres acres that that were were once once part part of of Austin’Austin’s s old old Mueller Mueller Airport.Airport. Its Its environmentally environmentally sensitive sensitive design design not not only only conserves conserves waterwater and and electricityelectricity, , but but positively positively impacts impacts the the hospital’hospital’s s clinical clinical en- en- vironment vironment by by improving improving air air qualityquality, , making making natural natural sunlightsunlight readily readily available, available, and and reducing reducing a a wide wide range range of of pollutants.pollutants. In In order order to to receive receive LEED LEED certification, certification, buildings buildings are are rated rated in in fivefive key key areas: areas: sustainable sustainable site site development, development, water water savings, savings, energyenergy efficiencyefficiency, , materials materials selection, selection, and and environmental environmental quality. quality. ListedListed below below are are some some of of the the accomplishments accomplishments in in each each LEED LEED category:category:
  • 70. Sustainable Sustainable SiteSite • • 47,000 47,000 tons tons of of Mueller Mueller Airport Airport runway runway material material was was reusedreused on on site.site. • • About About 40 40 percent percent fly fly ash ash instead instead of of Portland Portland cement cement in in con-con- crete crete yields yields a a drop drop in in carbon carbon dioxide dioxide emissions emissions equivalentequivalent to to taking taking 450 450 cars cars off off the the road.road. • • 925 925 tons tons of of construction construction waste waste was was recycled recycled on on site.site. WWater ater Efficiency Efficiency and and Water Water ConservationConservation • • Reclaimed Reclaimed water water is is used used for for irrigation; irrigation; xeriscaped xeriscaped land-land- scaping scaping uses uses native native plants, plants, which which require require less less waterwater.. • • Low-flow Low-flow plumbing plumbing fixtures.fixtures. S N A P S H O T S N A P S H O T F R O M F R O M P R A C T I C EP R A C T I C E Dell Dell Children’Children’s s Becomes Becomes World’World’ss First First “Green” “Green” Hospital*Hospital* Energy Energy Efficiency Efficiency and and Energy Energy ConservationConservation • • An An on-site on-site natural natural gas gas turbine turbine
  • 71. supplies supplies all all electricityelectricity,, which which is is 75 75 percent percent more more efficient efficient than than coal-fired coal-fired plants.plants. • • Converted Converted steam steam energy energy from from a a heating/cooling heating/cooling plant plant sup-sup- plies plies all all chilled chilled water water needs.needs. Indoor Indoor Environment Environment Quality Quality and and LightingLighting • • Most Most interior interior spaces spaces are are within within 32 32 feet feet of of a a windowwindow.. • • Motion Motion and and natural natural light light sensors sensors shut shut off off unneeded unneeded lights.lights. Conservation Conservation of of Materials Materials and and ResourcesResources • • Use Use of of local local and and regional regional materials materials saves saves fuel fuel for for shipping.shipping. • • Special Special paints paints and and flooring flooring emit emit low low levels levels of of volatile volatile oror-- ganic ganic compounds compounds (VOCs).(VOCs). “Even “Even before before the the first first plans plans were were drawn drawn up, up, we we set set our our sightsight on on creating creating a a world-class world-class children’children’s s hospital, hospital, and and becomingbecoming the the first first LEED LEED Platinum Platinum hospital hospital in in the the world world was was definitely definitely partpart of of that,” that,” said said Robert Robert BonarBonar, , president president and and CEO, CEO, Dell Dell