The Project Management Question and Answer Book
240
The Project Management Question and Answer Book
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Overview
What is a project charter? How about a work breakdown structure? Do you know the basic steps behind risk quantification? And why is it important to be acquainted with Goldratt's critical chain theory? The Project Management Question and Answer Book is a one-stop reference that both beginning and experienced project managers will use in countless on-the-job situations. Providing the answers to critical questions, from the simplest to the most advanced, the book is arranged to get you the information you need the moment you need it. You'll find helpful explanations of crucial project management issues, including: * Why PM is useful to you and your organization * How to interact with project stakeholders to maximize productivity * How to establish realistic cost, schedule, and scope baselines * What management techniques can be used to motivate teams * What methods you can use for evaluating project team performance Packed with case studies and examples, The Project Management Question and Answer Book is an indispensable guide covering everything from estimates, quality control, and communications, to time-, risk-, and human resource management. It is a practical, constantly usable resource for understanding fundamental project management issues and implementing workable solutions.
Product Details
| ISBN-13: | 9780814429273 |
|---|---|
| Publisher: | AMACOM |
| Publication date: | 12/10/2003 |
| Sold by: | HarperCollins Publishing |
| Format: | eBook |
| Pages: | 240 |
| File size: | 14 MB |
| Note: | This product may take a few minutes to download. |
About the Author
Marina N. Grashina is manager of PSM Consulting, Moscow. She has extensive experience in managing international projects.
Read an Excerpt
THE Project Management Question and Answer Book
By Michael W. Newell Marina N. Grashina
AMACOM
Copyright © 2004 Michael W. Newell and Marina N. GrashinaAll right reserved.
ISBN: 978-0-8144-2927-3
Chapter One
Introduction
What is a project?
"A project is a temporary endeavor undertaken to provide a unique product or service." This is the definition from the 2000 edition of The Guide to the Project Management Body of Knowledge (PMBOK®) published by the Project Management Institute (PMI®).
Projects are different from production work because all projects have a beginning and an end. Production work is generally ongoing for long periods of time and does not have a definite starting and stopping point; many production operations take place during the course of producing goods or services. Since projects provide at least a somewhat unique product or service, they must have a beginning and an end. Production work and project work both consume resources and produce products or services. They both cost money and require planning to be done successfully.
Projects can be literally any size. A project can be designed to do something quite small, such as painting the front door on a house. Projects can also be quite large and involve thousands of people and millions of dollars. Projects can take place at any and all levels of an organization and may take place completely within a small part of the organization or include nearly all of a very large organization. The amount of time can vary from a few hours or days to several years.
Tell me more ...
One of the reasons for the popularity of project management is the great flexibility of projects. Projects and project management can be applied to any size project, in any industry, for any product or service. This is because the methodology for managing projects is flexible and adaptable to nearly anything we might want to do. All projects will have some kind of initiating phase, planning phase, execution phase, and closeout phase. In very large or complicated projects it will take quite a bit more time to go through these phases. The phases are the same for small projects, but they will be done much more easily and quickly.
We could describe something as simple as going to the store to buy a newspaper. We begin by making the decision that we want to buy a newspaper. The decision will be based on some cost-benefit evaluation such as the answer to the question, "Will the pleasure that I get from having this newspaper be worth the cost and effort of getting it?" If the answer to this question is yes, then we have started the project and gone through the initiation phase.
Next we must do the planning of the project. To get the newspaper, we will have to decide whether we will walk to the newspaper stand or drive our car. We will have to get some money to pay for the newspaper. Will we borrow the money from one of our children's piggy banks or get it from our wallet? If we are taking the car, we will have to determine if it has gasoline in the tank and so on.
During the execution phase, we will follow the plan, going to our daughter's bedroom and getting a dollar from her piggy bank, driving the car to the newsstand, buying the newspaper, and returning home. We even have a control system. As we pass landmarks on the way to and from the newsstand, we observe where we are and take corrective actions.
Closeout of the project occurs when we put the change from the dollar we took from our daughter's piggy bank into the piggy bank and tell our spouse that we have returned with the newspaper.
We said that projects were temporary endeavors to provide a unique product or service. We should probably look into this statement a little more closely.
Temporary. All projects are going to have a beginning and an end. The end of the project is when the project's objectives have been reached or it has become clear that the project will never reach its objectives in a practical way or that the need for the project no longer exists. We once worked on a project to computerize a chain of fast-food stores. At the time there were no personal computers and all of the computers available were magnetic core memory and worked with about one or two thousand bits of memory. This was a pretty long time ago. The project ended suddenly when Digital Equipment Corporation produced the PDP6, a breadbox-size minicomputer that was hundreds of times better, cheaper, and faster than anything else on the market. Suddenly our project was completely obsolete and immediately terminated. The fact that all projects are temporary does not mean that the products and services they produce are temporary. There are quite a large number of bridges and buildings that have been built by projects that have been around long after the project teams have been disbanded. In fact, the concept of "life cycle cost"—a concern for costs that occur long after the project is completed and delivered to the stakeholders—is becoming important lately. "Temporary" should not imply that projects are short. Projects can go on for many years to reach their objectives. Large civil engineering projects such as the tunnel under the English Channel or the Apollo program to put an astronaut on the moon took many years to complete. Unique. Projects involve doing something that is unique or at least somewhat unique. If we were doing the same thing over and over again, most of the things done to complete a project would not need to be done. It would not be necessary to justify or conceptualize the nonunique endeavor, and we would not have to plan it. We could simply do what we had done in the past. You might say that we should always be trying to improve what we did in the past and that would make it unique. You would be correct. That would make it unique and require justification and planning, and that part of it might be a project. We also might say that all projects are not completely unique from one another and this is true as well. Companies are in certain kinds of businesses because they are good at what they do. Companies that build bridges are good at building bridges, or they would not last long in the bridge-building business. Other companies are good at selling food, building computers, and so on. They all do projects that are similar to the other projects they do. Although the projects they do are similar, they are each unique from one another. Bridges have different spans and different load-carrying capacities, are built on different soils, and use modern materials—yet all suspension bridges use cables and piers.
Why do organizations do projects?
This seems to be a simple question. You might say, "My organization does projects because it is in the business of doing projects." This is to an extent correct. A "temporary endeavor undertaken to provide a unique product or service" is a good definition of what is a normal business unit for many organizations that are working, for instance, in informational technology or construction. This way of organizing a company's business allows us to manage resources reasonably and, which is more important, to keep constant focus on the client for the product, which largely increases the ability for a company to be successful.
Tell me more ...
It is true that many organizations are either using or moving toward using a managed-by-project approach to managing company business. But even those companies whose major field of activity is manufacturing and production will face a strong need for project-oriented activities from time to time. These times occur mainly during times of change in a company. This might include a wide variety of cases, from introducing a product line to installing a new internal personnel training program. Companies need projects to be able to develop, to be flexible in answering the market, to carry out organizational structure change, to grow in size, and to conquer new markets.
All of this has given project management a new and more strategically oriented perspective. Indeed, both making a strategic decision and implementing it can be described in the framework of project management. This is a major reason why project management is becoming more widely recognized and used throughout the world.
This also has two other major consequences. The first is that many of the practices of general management, especially those related to human resources management and communications, are becoming more and more important in project management. The second is that what had initially developed as a unification of rather technically or mathematically oriented tools and techniques focused on budget and schedule control is now gaining more and more "humanitarian" features. The use of project management, first in governmental projects and then as a tool for a company's internal change, has caused the development of new approaches and tools of more qualitative character. It is hard to develop profit forecasts for implementing new management training in a company or, worse, carrying out a major program of civil service reform. We can use figures here, but to a great extent that will mean falsification of data. Instead, project management starts by using many qualitative approaches and evaluations such as project success criteria.
We will spend some time later in this book discussing the actual process of strategic change and the application of project management tools and techniques to such projects. For now, it is important to point out that project management is slowly getting outside of the scope of a technical discipline that was developed to help choose between cost, time, and quality of a project. Project management is becoming more important strategically for the company as well as for general social and economic development.
What is the project life cycle?
Once again we turn to the Project Management Institute's Guide to the Project Management Body of Knowledge for a definition of project management. It defines project management as "the application of knowledge, skills, tools, and techniques to project activities to meet project requirements." In the project management triangle we are concerned with the management of the project's time, cost, and scope. These concerns lead us to manage the project's quality, risk, communications, integration, schedule, performance, stakeholder needs, desires, requirements, and expectations.
It is interesting to note that when PMI changed the PMBOK to its latest version, it changed this definition from "... meet or exceed project requirements" to "... meet requirements." This is a bit of a departure from the approach of giving the customer a little something extra. In the past it was considered good practice to give the customer a little more than was asked for. The customer was thought to be pleased at getting something for nothing. Today we realize that these little extras frequently come with a price. The little extra software routine we added may have maintenance problems that the customer will have to pay for later. This is not to say that improvements and cost savings should not be brought up to the customer and discussed. It does mean, however, that we should not give customers anything extra without discussing it with them.
Any project will be managed by the five project management processes of initiating, planning, executing, controlling, and closing. These processes will be used in every phase of the project. In the beginning phases of the project we may be closing out a phase while in the next phase of the project we may just be beginning the initiation process of that phase.
Tell me more ...
As projects grow in size, it becomes more important that they be considered in phases where each phase of the project will have a certain number of deliverables that will be a result of completing that phase. Deliverables are tangible, verifiable products of the project. These deliverables will be passed on to one of the stakeholders. A stakeholder is anyone who has something to gain or lose as a result of the completion of this project or phase. The end of a phase of a project may have a review where a decision to continue or not continue with the project is made.
The project life cycle, illustrated in Figure 1-1, begins with the project charter and ends when all of the deliverables of the project have been delivered. This includes closeout and cleanup of the project because these too are deliverables. Referring to the figure, it can be seen that projects will generally start out with a relatively small cost per day and a relatively small staff. As the project progresses, the rate of spending increases and the number of persons involved with the project increases until some peak point in spending occurs. After this peak point, the project spending decreases as more work is completed on the project and fewer people are needed. Eventually the project comes to an end, spending stops, and all of the deliverables have been delivered. As the project progresses from the beginning to the end, the total risk associated with the project decreases.
The project life cycle comprises the stages of a project from beginning to end. There are five phases that can overlap somewhat but generally take place in chronological order. They are, in order, initiating, planning, executing, controlling, and closeout. The project life cycle begins when the project first comes into existence. This usually occurs with the creation and approval of the project charter. The project ends when all of the deliverables of the project have been delivered or disposed of and all of the final paperwork, including the lessons learned document, has been completed.
In general these are the different phases in the project life cycle. Since we all live in a world of freedom, companies may choose to give these phases different names. If we were to consider the life cycle for the defense industry, we might have phases like concept and technology development, system development and demonstration, production, development, and support. In the construction industry we might see life cycles such as feasibility, planning and design, construction, turnover, and start-up. It is important to recognize that the life cycle for a project can be described many different ways, but we should recognize that whatever the phases are called by a particular company or industry, they will be chronological in order and the expenditures that take place in the early and late phases will be relatively less than in the middle of the project. For our discussions we will use a generic description of the phases of the life cycle: initiation, planning, execution, control, and closeout.
The probability that the project will not be completed is highest at the beginning. This means that there are many possible problems that could occur that would keep the project from being completed. As time goes by, it becomes impossible for many of these problems to occur, so the overall level of risk will decrease as the project goes on and eventually become very small toward the end of the project.
The project life cycle should not be confused with the project management processes. There are many different project phases for different projects, and the names and terms that are used in one industry can be different from those used in other industries. The project management processes—initiation, planning, execution, control, and closeout—take place in each of the project phases, and the phases of the project must use all of the project management processes. For example, in a project done in the aerospace industry we night have a project phase called "deployment." In the deployment phase of the project we would have to initiate the phase, plan it, execute it, control it, and close it out.
Some care must be used in managing the conclusion of projects. One of the outcomes of a successful project is that a strong relationship is formed between the stakeholders and the project team. Once the project is complete and the team is disbanded, it is difficult for the stakeholders to give up this relationship. If problems occur after project delivery, the stakeholder will of course contact the same person who gave such good service during the project even though he or she is now working on another project. It is important that some sort of hand-off of the stakeholders to a maintenance team be established, or project team members will become more and more involved in maintaining completed projects that they have worked on.
(Continues...)
Excerpted from THE Project Management Question and Answer Book by Michael W. Newell Marina N. Grashina Copyright © 2004 by Michael W. Newell and Marina N. Grashina. Excerpted by permission of AMACOM. All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
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Table of Contents
Contents
Chapter 1: Introduction....................1Chapter 2: Scope....................14
Chapter 3: Project Estimating....................42
Chapter 4: Cost Management....................60
Chapter 5: Time Management....................83
Chapter 6: Human Resources Management....................128
Chapter 7: Building Projects in Organizations....................154
Chapter 8: Risk Management....................174
Chapter 9: Quality....................203
Chapter 10: Earned Value Reporting....................218
Chapter 11: Communications....................236
Index....................251
About the Authors....................261