The document provides a list of case studies organized by chapter that can be used for project management training and education. It includes over 50 case studies spanning 14 chapters and covering topics such as project selection, leadership, scope management, team building, and more. The cases range from development projects in Nigeria to rescuing Chilean miners to California's high-speed rail project.

1. List of Cases by Chapter
Chapter 1
Development Projects in Lagos, Nigeria 2
“Throwing Good Money after Bad”: the BBC’s
Digital Media Initiative 10
MegaTech, Inc. 29
The IT Department at Hamelin Hospital 30
Disney’s Expedition Everest 31
Rescue of Chilean Miners 32
Chapter 2
Tesla’s $5 Billion Gamble 37
Electronic Arts and the Power of Strong Culture
in Design Teams 64
Rolls-Royce Corporation 67
Classic Case: Paradise Lost—The Xerox Alto 68
Project Task Estimation and the Culture of “Gotcha!” 69
Widgets ’R Us 70
Chapter 3
Project Selection Procedures: A Cross-Industry
Sampler 77
Project Selection and Screening at GE: The Tollgate
Process 97
Keflavik Paper Company 111

2. Project Selection at Nova Western, Inc. 112
Chapter 4
Leading by Example for the London Olympics—
Sir John Armitt 116
Dr. Elattuvalapil Sreedharan, India’s Project
Management Guru 126
The Challenge of Managing Internationally 133
In Search of Effective Project Managers 137
Finding the Emotional Intelligence to Be a Real Leader 137
Problems with John 138
Chapter 5
“We look like fools.”—Oregon’s Failed Rollout
of Its ObamacareWeb Site 145
Statements of Work: Then and Now 151
Defining a Project Work Package 163
Boeing’s Virtual Fence 172
California’s High-Speed Rail Project 173
Project Management at Dotcom.com 175
The Expeditionary Fighting Vehicle 176
Chapter 6
Engineers Without Borders: Project Teams Impacting
Lives 187
Tele-Immersion Technology Eases the Use of Virtual
Teams 203
Columbus Instruments 215
The Bean Counter and the Cowboy 216
Johnson & Rogers Software Engineering, Inc. 217

3. Chapter 7
The Building that Melted Cars 224
Bank of America Completely Misjudges Its Customers 230
Collapse of Shanghai Apartment Building 239
Classic Case: de Havilland’s Falling Comet 245
The Spanish Navy Pays Nearly $3 Billion for a Submarine
That Will Sink Like a Stone 248
Classic Case: Tacoma Narrows Suspension Bridge 249
Chapter 8
Sochi Olympics—What’s the Cost of National
Prestige? 257
The Hidden Costs of Infrastructure Projects—The Case
of Building Dams 286
Boston’s Central Artery/Tunnel Project 288
Chapter 9
After 20 Years and More Than $50 Billion, Oil is No Closer
to the Surface: The Caspian Kashagan Project 297
Chapter 10
Enlarging the Panama Canal 331
Project Scheduling at Blanque Cheque Construction (A) 360
Project Scheduling at Blanque Cheque Construction (B) 360
Chapter 11
Developing Projects Through Kickstarter—Do Delivery
Dates Mean Anything? 367
Eli Lilly Pharmaceuticals and Its Commitment to Critical
Chain Project Management 385

4. It’s an Agile World 396
Ramstein Products, Inc. 397
Chapter 12
Hong Kong Connects to the World’s Longest Natural
Gas Pipeline 401
The Problems of Multitasking 427
Chapter 13
New York City’s CityTime Project 432
Earned Value at Northrop Grumman 451
The IT Department at Kimble College 463
The Superconducting Supercollider 464
Boeing’s 787 Dreamliner: Failure to Launch 465
Chapter 14
Duke Energy and Its Cancelled Levy County Nuclear
Power Plant 478
Aftermath of a “Feeding Frenzy”: Dubai and Cancelled
Construction Projects 490
New Jersey Kills Hudson River Tunnel Project 497
The Project That Wouldn’t Die 499
The Navy Scraps Development of Its Showpiece
Warship—Until the Next Bad Idea 500
Project ManageMent
achieving coMPetitive advantage
Jeffrey K. Pinto
Pennsylvania State University

5. Boston Columbus Indianapolis New York San Francisco
Hoboken Amsterdam
Cape Town Dubai London Madrid Milan Munich Paris Montreal
Toronto Delhi
Mexico City São Paulo Sydney Hong Kong Seoul Singapore
Taipei Tokyo
F o u r t h E d i t i o n
To Mary Beth, my wife, with the most profound thanks and love
for her unwavering
support. And, to our children, Emily, AJ, and Joseph—three
“projects” that are definitely
over budget but that are performing far better than I could have
hoped!
VP, Product Management: Donna Battista
Editor-in-Chief: Stephanie Wall
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Field Marketing Manager: Lenny Raper
Strategic Marketing Manager: Erin Gardner
Project Manager Team Lead: Judy Leale
Project Manager: Nicole Suddeth
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Library of Congress Cataloging-in-Publication Data
Pinto, Jeffrey K.

8. Project management : achieving competitive advantage/Jeffrey
K. Pinto.—Fourth edition.
pages cm
Includes index.
ISBN 978-0-13-379807-4 (alk. paper)—ISBN 0-13-379807-0
(alk. paper) 1. Project management. I. Title.
HD69.P75P5498 2016
658.4'04—dc23
2014036595
10 9 8 7 6 5 4 3 2 1
ISBN 10: 0-13-379807-0
ISBN 13: 978-0-13-379807-4
http://www.pearsoned.com/permissions/
iii
BrIEF COnTEnTS
Preface xiii
Chapter 1 Introduction: Why Project Management? 1
Chapter 2 The Organizational Context: Strategy, Structure, and
Culture 36
Chapter 3 Project Selection and Portfolio Management 76
Chapter 4 Leadership and the Project Manager 115
Chapter 5 Scope Management 144
Chapter 6 Project Team Building, Conflict, and Negotiation

9. 186
Chapter 7 Risk Management 223
Chapter 8 Cost Estimation and Budgeting 256
Chapter 9 Project Scheduling: Networks, Duration Estimation,
and Critical Path 296
Chapter 10 Project Scheduling: Lagging, Crashing, and
Activity Networks 330
Chapter 11 Advanced Topics in Planning and Scheduling: Agile
and Critical Chain 366
Chapter 12 Resource Management 400
Chapter 13 Project Evaluation and Control 431
Chapter 14 Project Closeout and Termination 477
Appendix A The Cumulative Standard Normal Distribution 509
Appendix B Tutorial for MS Project 2013 510
Appendix C Project Plan Template 520
Glossary 524
Company Index 534
Name Index 535
Subject Index 538

10. iv
COnTEnTS
Preface xiii
Chapter 1 IntroduCtIon: Why ProjeCt ManageMent? 1
Project Profile: Development Projects in Lagos, Nigeria 2
Introduction 4
1.1 What Is a Project? 5
General Project Characteristics 6
1.2 Why Are Projects Important? 9
Project Profile: “Throwing Good Money after Bad”: the BBC’s
Digital
Media Initiative 10
1.3 Project Life Cycles 13
◾ Box 1.1: Project Managers in Practice 15
1.4 Determinants of Project Success 16
◾ Box 1.2: Project Management Research in Brief 19
1.5 Developing Project Management Maturity 19
1.6 Project Elements and Text Organization 23
Summary 27 • Key Terms 29 • Discussion
Questions 29
• Case Study 1.1 MegaTech, Inc. 29 • Case Study 1.2
The IT
Department at Hamelin Hospital 30 • Case Study
1.3 Disney’s Expedition

11. Everest 31 • Case Study 1.4 Rescue of Chilean
Miners 32 • Internet
Exercises 33 • PMP Certification Sample Questions
34 • Notes 34
Chapter 2 the organIzatIonal Context: Strategy, StruCture,
and Culture 36
Project Profile: Tesla’s $5 Billion Gamble 37
Introduction 38
2.1 Projects and Organizational Strategy 39
2.2 Stakeholder Management 41
Identifying Project Stakeholders 42
Managing Stakeholders 45
2.3 Organizational Structure 47
2.4 Forms of Organizational Structure 48
Functional Organizations 48
Project Organizations 50
Matrix Organizations 53
Moving to Heavyweight Project Organizations 55
◾ Box 2.1: Project Management Research in Brief 56
2.5 Project Management Offices 57
2.6 Organizational Culture 59
How Do Cultures Form? 61
Organizational Culture and Project Management 63
Project Profile: Electronic Arts and the Power of Strong Culture
in Design Teams 64

12. Summary 65 • Key Terms 67 • Discussion
Questions 67 • Case
Study 2.1 Rolls-Royce Corporation 67 • Case Study 2.2
Classic Case:
Paradise Lost—The Xerox Alto 68 • Case Study 2.3
Project Task Estimation
and the Culture of “Gotcha!” 69 • Case Study 2.4
Widgets ’R Us 70
• Internet Exercises 70 • PMP Certification
Sample Questions 70
• Integrated Project—Building Your Project Plan 72
• Notes 74
Contents v
Chapter 3 ProjeCt SeleCtIon and PortfolIo ManageMent 76
Project Profile: Project Selection Procedures: A Cross-Industry
Sampler 77
Introduction 78
3.1 Project Selection 78
3.2 Approaches to Project Screening and Selection 80
Method One: Checklist Model 80
Method Two: Simplified Scoring Models 82
Limitations of Scoring Models 84
Method Three: The Analytical Hierarchy Process 84
Method Four: Profile Models 88
3.3 Financial Models 90
Payback Period 90
Net Present Value 92
Discounted Payback 94

13. Internal Rate of Return 94
Choosing a Project Selection Approach 96
Project Profile: Project Selection and Screening at GE: The
Tollgate Process 97
3.4 Project Portfolio Management 98
Objectives and Initiatives 99
Developing a Proactive Portfolio 100
Keys to Successful Project Portfolio Management 103
Problems in Implementing Portfolio Management 104
Summary 105 • Key Terms 106 • Solved
Problems 107
• Discussion Questions 108 • Problems 108 •
Case Study 3.1
Keflavik Paper Company 111 • Case Study 3.2 Project
Selection at Nova
Western, Inc. 112 • Internet Exercises 113 •
Notes 113
Chapter 4 leaderShIP and the ProjeCt Manager 115
Project Profile: Leading by Example for the London Olympics—
Sir John Armitt 116
Introduction 117
4.1 Leaders Versus Managers 118
4.2 How the Project Manager Leads 119
Acquiring Project Resources 119
Motivating and Building Teams 120
Having a Vision and Fighting Fires 121
Communicating 121
◾ Box 4.1: Project Management Research in Brief 124

14. 4.3 Traits of Effective Project Leaders 125
Conclusions about Project Leaders 126
Project Profile: Dr. Elattuvalapil Sreedharan, India’s Project
Management Guru 126
4.4 Project Champions 127
Champions—Who Are They? 128
What Do Champions Do? 129
How to Make a Champion 130
4.5 The New Project Leadership 131
◾ Box 4.2: Project Managers in Practice 132
Project Profile: The Challenge of Managing Internationally 133
4.6 Project Management Professionalism 134
vi Contents
Summary 135 • Key Terms 136 • Discussion
Questions 136
• Case Study 4.1 In Search of Effective Project Managers 137
• Case Study 4.2 Finding the Emotional Intelligence to Be a
Real Leader 137
• Case Study 4.3 Problems with John 138 • Internet
Exercises 141
• PMP Certification Sample Questions 141 • Notes
142
Chapter 5 SCoPe ManageMent 144
Project Profile: “We look like fools.”—Oregon’s Failed Rollout
of Its Obamacare
Web Site 145

15. Introduction 146
5.1 Conceptual Development 148
The Statement of Work 150
The Project Charter 151
Project Profile: Statements of Work: Then and Now 151
5.2 The Scope Statement 153
The Work Breakdown Structure 153
Purposes of the Work Breakdown Structure 154
The Organization Breakdown Structure 159
The Responsibility Assignment Matrix 160
5.3 Work Authorization 161
Project Profile: Defining a Project Work Package 163
5.4 Scope Reporting 164
◾ Box 5.1: Project Management Research in Brief 165
5.5 Control Systems 167
Configuration Management 167
5.6 Project Closeout 169
Summary 170 • Key Terms 171 • Discussion
Questions 171
• Problems 172 • Case Study 5.1 Boeing’s Virtual
Fence 172
• Case Study 5.2 California’s High-Speed Rail Project
173 • Case
Study 5.3 Project Management at Dotcom.com 175 •
Case Study 5.4
The Expeditionary Fighting Vehicle 176 • Internet
Exercises 178
• PMP Certification Sample Questions 178 • MS
Project Exercises 179

16. • Appendix 5.1: Sample Project Charter 180 •
Integrated Project—
Developing the Work Breakdown Structure 182 •
Notes 184
Chapter 6 ProjeCt teaM BuIldIng, ConflICt, and negotIatIon
186
Project Profile: Engineers Without Borders: Project Teams
Impacting Lives 187
Introduction 188
6.1 Building the Project Team 189
Identify Necessary Skill Sets 189
Identify People Who Match the Skills 189
Talk to Potential Team Members and Negotiate with Functional
Heads 189
Build in Fallback Positions 191
Assemble the Team 191
6.2 Characteristics of Effective Project Teams 192
A Clear Sense of Mission 192
A Productive Interdependency 192
Cohesiveness 193
Trust 193
Enthusiasm 193
Results Orientation 194
Contents vii
6.3 Reasons Why Teams Fail 194
Poorly Developed or Unclear Goals 194
Poorly Defined Project Team Roles and Interdependencies 194
Lack of Project Team Motivation 195

17. Poor Communication 195
Poor Leadership 195
Turnover Among Project Team Members 196
Dysfunctional Behavior 196
6.4 Stages in Group Development 196
Stage One: Forming 197
Stage Two: Storming 197
Stage Three: Norming 198
Stage Four: Performing 198
Stage Five: Adjourning 198
Punctuated Equilibrium 198
6.5 Achieving Cross-Functional Cooperation 199
Superordinate Goals 199
Rules and Procedures 200
Physical Proximity 201
Accessibility 201
Outcomes of Cooperation: Task and Psychosocial Results 201
6.6 Virtual Project Teams 202
Project Profile: Tele-Immersion Technology Eases the Use
of Virtual Teams 203
6.7 Conflict Management 204
What Is Conflict? 205
Sources of Conflict 206
Methods for Resolving Conflict 208
6.8 Negotiation 209
Questions to Ask Prior to the Negotiation 209
Principled Negotiation 210
Invent Options for Mutual Gain 212
Insist on Using Objective Criteria 213

18. Summary 214 • Key Terms 214 • Discussion
Questions 215 • Case
Study 6.1 Columbus Instruments 215 • Case Study 6.2
The Bean Counter
and the Cowboy 216 • Case Study 6.3 Johnson &
Rogers Software
Engineering, Inc. 217 • Exercise in Negotiation
219 • Internet
Exercises 220 • PMP Certification Sample Questions
220 • Notes 221
Chapter 7 rISk ManageMent 223
Project Profile: The Building that Melted Cars 224
Introduction 225
◾ Box 7.1: Project Managers in Practice 227
7.1 Risk Management: A Four-Stage Process 228
Risk Identification 228
Project Profile: Bank of America Completely Misjudges Its
Customers 230
Risk Breakdown Structures 231
Analysis of Probability and Consequences 231
Risk Mitigation Strategies 234
viii Contents
Use of Contingency Reserves 236
Other Mitigation Strategies 237
Control and Documentation 237
Project Profile: Collapse of Shanghai Apartment Building 239
7.2 Project Risk Management: An Integrated Approach 241

19. Summary 243 • Key Terms 244 • Solved
Problem 244 • Discussion
Questions 244 • Problems 244 • Case Study 7.1
Classic Case: de
Havilland’s Falling Comet 245 • Case Study 7.2 The
Spanish Navy Pays
Nearly $3 Billion for a Submarine That Will Sink
Like a Stone 248 • Case
Study 7.3 Classic Case: Tacoma Narrows Suspension
Bridge 249 • Internet
Exercises 251 • PMP Certification Sample Questions
251 • Integrated
Project—Project Risk Assessment 253 • Notes 255
Chapter 8 CoSt eStIMatIon and BudgetIng 256
Project Profile: Sochi Olympics—What’s the Cost of National
Prestige? 257
8.1 Cost Management 259
Direct Versus Indirect Costs 260
Recurring Versus Nonrecurring Costs 261
Fixed Versus Variable Costs 261
Normal Versus Expedited Costs 262
8.2 Cost Estimation 262
Learning Curves in Cost Estimation 266
◾ Box 8.1: Project Management Research in Brief 270
Problems with Cost Estimation 272
◾ Box 8.2: Project Management Research in Brief 274
8.3 Creating a Project Budget 275
Top-Down Budgeting 275
Bottom-Up Budgeting 276
Activity-Based Costing 276

20. 8.4 Developing Budget Contingencies 278
Summary 280 • Key Terms 281 • Solved
Problems 282
• Discussion Questions 283 • Problems 284 •
Case Study 8.1 The
Hidden Costs of Infrastructure Projects—The Case of Building
Dams 286
• Case Study 8.2 Boston’s Central Artery/Tunnel Project
288 • Internet
Exercises 290 • PMP Certification Sample Questions
290 • Integrated
Project—Developing the Cost Estimates and Budget
292 • Notes 294
Chapter 9 ProjeCt SChedulIng: netWorkS, duratIon
eStIMatIon,
and CrItICal Path 296
Project Profile: After 20 Years and More Than $50 Billion, Oil
is No Closer to the Surface:
The Caspian Kashagan Project 297
Introduction 298
9.1 Project Scheduling 299
9.2 Key Scheduling Terminology 300
9.3 Developing a Network 302
Labeling Nodes 303
Serial Activities 303
Concurrent Activities 303
Merge Activities 304
Burst Activities 305

21. 9.4 Duration Estimation 307
Contents ix
9.5 Constructing the Critical Path 311
Calculating the Network 311
The Forward Pass 312
The Backward Pass 314
Probability of Project Completion 316
Laddering Activities 318
Hammock Activities 319
Options for Reducing the Critical Path 320
◾ Box 9.1: Project Management Research in Brief 321
Summary 322 • Key Terms 323 • Solved
Problems 323 •
Discussion Questions 325 • Problems 325 •
Internet
Exercises 327 • MS Project Exercises 328 •
PMP Certification
Sample Questions 328 • Notes 329
Chapter 10 ProjeCt SChedulIng: laggIng, CraShIng, and
aCtIvIty
netWorkS 330
Project Profile: Enlarging the Panama Canal 331
Introduction 333
10.1 Lags in Precedence Relationships 333
Finish to Start 333
Finish to Finish 334
Start to Start 334

22. Start to Finish 335
10.2 Gantt Charts 335
Adding Resources to Gantt Charts 337
Incorporating Lags in Gantt Charts 338
◾ Box 10.1: Project Managers in Practice 338
10.3 Crashing Projects 340
Options for Accelerating Projects 340
Crashing the Project: Budget Effects 346
10.4 Activity-on-Arrow Networks 348
How Are They Different? 348
Dummy Activities 351
Forward and Backward Passes with AOA Networks 352
AOA Versus AON 353
10.5 Controversies in the Use of Networks 354
Conclusions 356
Summary 356 • Key Terms 357 • Solved
Problems 357 • Discussion
Questions 358 • Problems 358 • Case Study 10.1
Project Scheduling
at Blanque Cheque Construction (A) 360 • Case
Study 10.2 Project
Scheduling at Blanque Cheque Construction (B) 360
• MS Project
Exercises 361 • PMP Certification Sample Questions
361 • Integrated
Project—Developing the Project Schedule 363 •
Notes 365
Chapter 11 advanCed toPICS In PlannIng and SChedulIng:
agIle
and CrItICal ChaIn 366

23. Project Profile: Developing Projects Through Kickstarter—Do
Delivery Dates Mean
Anything? 367
Introduction 368
11.1 Agile Project Management 369
What Is Unique About Agile PM? 370
x Contents
Tasks Versus Stories 371
Key Terms in Agile PM 372
Steps in Agile 373
Sprint Planning 374
Daily Scrums 374
The Development Work 374
Sprint Reviews 375
Sprint Retrospective 376
Problems with Agile 376
◾ Box 11.1: Project Management Research in Brief 376
11.2 Extreme Programming (XP) 377
11.3 The Theory of Constraints and Critical Chain Project
Scheduling 377
Theory of Constraints 378
11.4 The Critical Chain

24. Solution
to Project Scheduling 379
Developing the Critical Chain Activity Network 381
Critical Chain