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Advanced Project Management International MBA. Instructor: L. Drew Rosen, Ph.D., JONAH. *Information derived or quoted from various sources: PMI; PMP Study Guide , by J. Phillips; PMI Mile High Chapter; Project Management in Practice by S. Mantel, J. Meredith, S. Shafer,

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advanced project management international mba

Advanced Project ManagementInternational MBA

Instructor: L. Drew Rosen, Ph.D., JONAH

*Information derived or quoted from various sources: PMI;

PMP Study Guide , by J. Phillips; PMI Mile High Chapter; Project

Management in Practice by S. Mantel, J. Meredith, S. Shafer,

M. Sutton; Project Management by C. Gray and E. Larson;

PMP Exam Study Guide by K. Heldman; PMP Exam Prep, by R. Mulcahy

factors leading to the increased use of project management
Factors Leading to the Increased Use of Project Management:
  • Compression of the product life cycle
  • Global competition
  • Knowledge explosion
  • Corporate downsizing
  • Increased customer focus
  • Small projects that represent

big problems

  • Project
    • a series of jobs usually directed toward some major output and requiring a significant period of time to perform




pmi definition
PMI Definition

“A temporary endeavor undertaken to create a unique product or service”

Project Management Institute, 2005

why the emphasis on project management
Why the emphasis on project management?
  • Many tasks do not fit neatly into business-as-usual.
  • Need to assign responsibility and authority for achievement of organizational goals.
  • Need to succeed and prosper!
characteristics of projects
Characteristics of Projects
  • Unique
  • Specific Deliverable
  • Specific Due Date
other common characteristics of projects
Other Common Characteristics of Projects
  • Multidisciplinary
  • Conflict
  • Complex
  • Part of Programs
programs versus projects
Programs versus Projects
  • Program Defined
    • A series of coordinated, related, multiple projects that continue over an extended time and are intended to achieve a goal.
    • A higher-level group of projects targeted at a common goal.
    • Example:
      • Project: completion of a required course in project management.
      • Program: completion of all courses required for a business major.
comparison of routine work with projects
Comparison of Routine Work with Projects

Routine, Repetitive Work

Taking class notes

Daily entering sales receipts into the accounting ledger

Responding to a supply-chain request

Practicing scales on the piano

Routine manufacture of an Apple iPod

Attaching tags on a manufactured product


Writing a term paper

Setting up a sales kiosk for a professional accounting meeting

Developing a supply-chain information system

Writing a new piano piece

Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs

Wire-tag projects for GE and Wal-Mart



Why Some Projects Fail………

Five Reasons for Failure

1. Lack of Project Manager Authority

“I must be a mushroom. They keep me in the dark, feed me manure, and then they can me.”

2. Lack of team participation

“If workers were smart, they’d be managers. Why ask them anything? After all, I’m the boss.”

3.Bad reporting

“Reports are just useless paperwork and an irrelevant management requirement. I fill out the form and then forget the form.”


Why Some Projects Fail………


4. Lack of people skills

“I don’t thank people just for doing a good job. Doing a good job is what they get paid for.”

5. Unrealistic goals and schedules

“Your mission, should you decide to accept it…if caught or killed, the Secretary will disavow any knowledge…”


…..and Others Succeed

Three Reasons for Success

1. Committed teamwork

“If anything goes bad, I did it. If anything goes semi-good, then we did it. If anything goes real good, then you did it. That’s all it takes to get people to win football games.”

– Paul “Bear” Bryant

2. SMART Goals With Real Consensus

“Specific, Measurable, Agreed-Upon, Realistic, and Time-Specific.”

3. Use of project management tools as a means, not an end.

“We have 562 pages of charts and graphs and still don’t have a clue!”


Business Failures

The construction industry is the largest single employer of the country’s work force, it makes a major contribution to the gross national product, and yet suffers one of the highest annual business failure rates in the country. Studies have shown that the number of failures in the construction industry is much higher than it should be. The reason for the high failure rate is not because owners of companies do not have the technical skills required for construction but because owners have not developed adequate business management skills or techniques.--- in particular; communication skills!


Most business failures occur within the first three years of operation with the major reason being a lack of planning. Some of the other reasons which lead to business failure are:

  • Insufficient working capital
  • Failure to qualify for loans
  • Loss of owner or key person
  • Excessive growth
  • Borrowing money from relatives and friends
  • Company officers taking a too large of a salary
  • Purchase or lease of expensive vehicles as status symbols
  • Not keeping adequate accounting records
  • Poor project estimating as a result of:
  • a. not knowing the cost of material
  • b. under estimating labor costs
  • c. not understanding overhead or general conditions
  • d. inadequate profit margins
  • Too many projects starting at the same time
the iron triangle
The Iron Triangle




to put a man on the moon
To Put A Man On The Moon
  • The year 1962
  • “We commit this nation to put a man on the moon and return him safely to this earth by the end of this decade, and to do the other things, not because they are easy but because they are hard.”
  • The triple constraint project has begun.
the three constraints are
The Three Constraints Are
  • Time constraint: How long do you have?
  • Budget constraint: How much can you spend?
  • Performance criteria: What results must your project achieve to meet its purpose?
  • Project: Put a man on the moon
  • Time: constraint: By the end of the decade.
  • Performance: Safe return to Earth
  • Budget: Unknown
old joke
Old Joke
  • You can have it fast.
  • You can have it cheap.
  • You can have it good.
  • Pick any two!

Ranking the Triple Constraint

Try identifying and then ranking the Triple Constraints for the following project.

Project: The Smithsonian National Air and Space Museum, the world’s most popular museum, was a Federal government project accomplished ahead of schedule and under budget.

The goal of the project was to build a world-class aviation and space museum for a budget of $30 million and open it on July 4, 1976.

1. Identify the Triple Constraints.


Performance criteria:

Budget constraint:


Ranking the Triple Constraint

  • Rank the Triple Constraints.
  • Driver:
  • Middle constraint:
  • Weak constraint:
important life cycle questions
Important Life Cycle Questions
  • What work will be completed in each phase of the project?
  • What resources, people, equipment and facilities will be needed within each phase?
  • What are the expected deliverables of each phase?
  • What is the expected cost to complete a project phase?
  • Which phases contain the highest amount of risk?
the pm s roles





Risk Manager


pm s first job
PM’s First Job
  • Understand the expectations that the organization has for the project.
  • Identify who among senior managers has a major interest in the project.
  • Determine if anything about the project is atypical.
  • Mystery Stakeholders
    • ?
  • Key Project Stakeholders

-Project Manager

-Project Customer

-Performing organization

-Project Team

-Project Management Team

-Project Sponsor


-The Project Management Office

stakeholders influence on the project
Stakeholders Influence on the Project
  • Political capital leverage
    • To change the project deliverable
  • Change requests
    • To alter the project deliverable
  • Scope addendums
    • To add to the project deliverable
  • Sabotage
skill requirements for effective project management
Skill Requirements for Effective Project Management
  • Conflict Resolution
  • Creativity and Flexibility
  • Ability to Adjust to Change
  • Good Planning
  • Negotiation
    • win-win versus win-lose
key criteria for selecting a project manager
Key Criteria for Selecting a Project Manager
  • Credibility - The PM is believable
    • technical credibility
    • administrative credibility
  • Sensitivity - Politically Astute and Aware of Interpersonal Conflict
  • Leadership, Style, Ethics - Ability to Direct Project in Ethical Manner
three overriding responsibilities
Three Overriding Responsibilities
  • Acquiring Resources
    • getting necessary quantity and quality can be key challenge
    • “irrational optimism”
  • Fighting Fires and Obstacles
  • Leadership and Making Trade-Offs
negotiation conflict resolution and persuasion
Negotiation, Conflict Resolution, and Persuasion
  • Necessary to meet three overriding responsibilities

Communication Paths Between a Project’s Parties-At-Interest

  • Manager-As-Supervisor Versus Manager-As-Facilitator
  • Systems Approach Versus Analytical Approach
    • suboptimization
  • Must ensure project team members have appropriate knowledge and resources
  • Micromanagement


The Key To Productivity

in the Workplace




(Webster’s 11th Collegiate Dictionary)




facilitators are process managers

The Facilitator is like an orchestra leader. She or he must keep everyone on thesame sheet of musicplaying the same note, in the samebeat, all at the same time.


good facilitators are neutral servants of the team







“Put your energies into guiding rather then ruling. The more unobtrusive you lead, the more people will grow and learn to use their powers wisely. Make your aim as a leader to be unnoticed and eventually unneeded!”

--from My Tao, by R.W. Russell

common meeting problems the facilitator s role
Common Meeting Problems & The Facilitator’s Role


(Facilitator, Leader, and Member)



Traffic Cop


Can you be Captain, Coach, Quarterback, Referee, and Cheerleader all at the same time?!Which Role(s) would you give up; keep?

the facilitator is the the meeting chauffer


He/She is the Neutral

Servant of the group.

With the basic decision making process and the specific “road maps,” proper facilitation will help you avoid potholes and detours, and get you where you want to go in an efficient, effective manner.

key facilitative behaviors active behaviors


  • Things You Can Do To Intervene
  • and Get Things Back on Track
  • When They Start To Go Wrong
  • Check for agreement
  • Recycle to last level of agreement
  • Play dumb
  • Say what is going on
  • Maintain/regain focus
  • Use team memory
  • Avoid process battles
  • *
  • *
  • *
  • Enforce process agreements
  • Constantly encourage
  • Accept/legitimize/deal or defer
  • Be non-defensive
  • Use body language
  • Don’t talk too much
  • Boomerang
  • *
  • *
  • *
Facilitating CommentsRemember to do the little “Sesame Street” commercials to constantly educate the team/group on process.
  • There’s no one right way to solve problems; we can try lots of

different tools. Which do you want to try first?

  • You can only do one thing at a time.
  • It’s OK to disagree.
  • People don’t stick to agendas they haven’t agreed upon.
  • Having timeframes can keep up on track.
  • People don’t feel understood unless they get a response.
  • You can’t solve two problems at once; which do you want to work on?
  • If you can’t agree on the problem, you won’t agree on the solution.
continuation of facilitating comments
…Continuation of Facilitating Comments
  • It’s your team/group/meeting.
  • Terrific! You’re all terrific!
  • Gee, you all look tired/sad/unhappy….
  • I’m feeling frustrated – what about you…?
  • Let’s review the Team Memory and see if we can get back on track.
  • Are you discussing what to do, or how to do it?
  • Could we slow down; I don’t think everyone is clear on what the problem is.
  • It’s not the role of the facilitator to solve your problems.
  • Let’s freeze and look at our process.
  • It’s good to share information, not evaluates right/wrong
  • We need to remember where we are in the P-S process.
copy cut and carry


Maintain/Regain focus

Play dumb

Say what’s going on

(say the unsayable)

Check for agreement

Avoid process battles

Enforce process agreements

Accept/Legitimize/Deal or Defer

Be non-defensive

Use body language

Use the Team Memory

Try to stay neutral

Not contribute my ideas

Manage process (be meeting


Focus team energy on the


Defend you from personal attack

Make process suggestions

Need your help to keep in


It’s your meeting






two extremes
Two Extremes
  • “Ready, Fire, Aim”
  • “Paralysis by Analysis”




Much planning

project integration management1
Project Integration Management
  • Project Integration Management is the heart of project management and is made up of the day-to-day processes the project manager relies on to ensure that all of the parts of the project work together.
project management process groups
Project Management Process Groups
  • Initiating
  • Planning
  • Executing
  • Monitoring and controlling
  • Closing
stage phase gates
Stage/Phase Gates

Phase 2

Project Life Cycle

Phase 1

Phase 3

Phase 4

Stage Gates

project integration involves
Project Integration Involves
  • Developing the project charter
  • Developing the preliminary project scope statement
  • Developing the project plan
  • Directing and managing the project execution
  • Monitoring and controlling the project
  • Managing integrated change control
  • Closing the project
elements of the project charter authorizing the project and the project manager
Elements of the Project Charter(authorizing the project and the project manager)
  • Project requirements for satisfaction
  • The big picture
  • Project purpose
  • Milestone schedule
  • Stakeholder influences
  • Functional organizations
  • Assumptions
  • Constraints
preliminary project scope statement
Preliminary Project Scope Statement
  • Defines what the project will accomplish, create, and deliver.
  • Defines the purpose of the project, in detail, so that all stakeholders may share a common understanding of the project.
preliminary project scope statement1
Preliminary Project Scope Statement
  • Project objectives
  • Project deliverable characteristics
  • Acceptance criteria
  • Project boundaries of what’s in the project and what will be excluded
  • Constraints and assumptions
  • Initial project risks
  • Milestones
  • The initial work breakdown structure
  • A rough order of magnitude cost estimate
  • A configuration of management requirements
  • Approval requirements
project plans
Project Plans
  • Project Scope Management Plan
  • The Schedule Management Plan
  • The Cost Management Plan
  • The Quality Management Plan
  • The Process Improvement Plan
  • The Staffing Management Plan
  • The Communications Management Plan
project plans cont
Project Plans, Cont.
  • The Risk Management Plan
  • The Procurement Management Plan
  • The Milestone List
  • The Resource Calendar
  • Project Baselines
  • The Risk Register
failure mode and effect analysis fmea
Failure Mode and Effect Analysis (FMEA)
  • List ways project might fail
  • Evaluate severity (S) of each failure
  • Estimate likelihood (L) of each failure occurring
  • Estimate ability to detect each failure (D)
  • Calculate Risk Priority Number (RPN)
  • Sort potential failures by their RPNs
elements of project master plan
Elements of Project Master Plan
  • Overview
    • brief description of project
    • deliverables
    • Milestones or significant events
    • expected profitability and competitive impact
    • intended for senior management
  • Objectives
    • detailed description of project’s deliverables
    • project mission statement
elements of project master plan continued
Elements of Project Master Plan continued
  • General Approach
    • technical and managerial approaches
    • relationship to other projects
    • deviations from standard practices
  • Contractual Aspects
    • agreements with clients and third parties
    • reporting requirements
    • technical specifications
    • project review dates
elements of project master plan continued1
Elements of Project Master Plan continued
  • Schedules
    • outline of all schedules and milestones
  • Resource Requirements
    • estimated project expenses
    • overhead and fixed charges
  • Personnel
    • special skill requirements
    • necessary training
    • legal requirements
elements of project master plan concluded
Elements of Project Master Plan concluded
  • Evaluation Methods
    • evaluation procedures and standards
    • procedures for monitoring, collecting, and storing data on project performance
  • Potential Problems & Required Project History
    • list of likely potential problems
sorting out the project
Sorting Out the Project
  • Hierarchical Planning Process
    • begin with project’s objectives
    • list major activities needed to achieve objectives (Level 1 Activities)
    • delegate level 1 activities to individuals or functional areas to develop list of Level 2 activities …
    • degree of detail should be same within a given level
the project action plan
The Project Action Plan
  • Project activities identified and arranged in successively finer detail (by levels).
  • Type and quantity of each required resource identified for each activity.
  • Predecessors and durations estimated for each activity.
  • Milestones identified.
  • Individual or group assigned to perform the work identified for all activities.
using the project action plan
Using the Project Action Plan
  • Project Master Schedule created by combining milestones, durations, and predecessors
    • used to compare actual and planned performance
  • Use of Templates
closing the project
Closing the Project
  • Contract documentation
  • Enterprise environmental factors
  • Organizational process assets
  • Work performance information
  • Deliverables
administrative closure
Administrative Closure
  • Collecting and assembling all project records
  • Analyzing the project’s success or failure
  • Gathering lessons learned documentation
  • Archiving project information for future references
defining the project
Defining the Project

Select a dream.

Use your dream to set a goal.

Create a plan.

Consider resources.

Enhance skills and abilities.

Spend time wisely.

Start! Get organized and go.

… it is one of those acro-whatevers. Said Pooh.

R.E. Allen and S. D. Allen, Winnie-the-Pooh on Success, 1997, p.10

lateral thinking
Lateral Thinking

Question: Eight chocolates are arranged in an antique candy dish. Eight people each take one chocolate. There is one chocolate remaining in the dish. How can that be?

Question: How could your pet Yorkie fall from the window of an 18-story building and live?

project scope management
Project Scope Management

Definition: the processes to ensure that the project includes

all work required, and only the work required, to complete

the project successfully

  • It defines what work is needed to complete the project objectives
  • It determines what is included in the project.
  • It serves as a guide to determine what work is not needed to complete the project objectives.
  • It serves as a point of reference for what is not included in the project.
project scope vs product scope
Project Scope vs. Product Scope
  • A project scope deals with the required work to create the project deliverables.
  • Product scope is the attributes and characteristics of the deliverables the project is creating.
defining the project1
Defining the Project

Step 1: Defining the Project Scope

Step 2: Establishing Project Priorities

Step 3: Creating the Work Breakdown Structure

Step 4: Integrating the WBS with the Organization

Step 5: Coding the WBS for the Information System

step 1 defining the project scope
Step 1: Defining the Project Scope
  • Project Scope
    • A definition of the end result or mission of the project—a product or service for the client/customer—in specific, tangible, and measurable terms.
  • Purpose of the Scope Statement
    • To clearly define the deliverable(s) for the end user.
    • To focus the project on successful completion of its goals.
    • To be used by the project owner and participants as a planning tool and for measuring project success.
project scope checklist
Project Scope Checklist
  • Project objective
  • Deliverables
  • Milestones
  • Technical requirements
  • Limits and exclusions
  • Reviews with customer
project scope terms and definitions
Project Scope: Terms and Definitions
  • Scope Statements
    • Also called statements of work (SOW)
  • Project Charter
    • Can contain an expanded version of scope statement
    • A document authorizing the project manager to initiate and lead the project.
  • Scope Creep
    • The tendency for the project scope to expand over time due to changing requirements, specifications, and priorities.
step 2 establishing project priorities
Step 2: Establishing Project Priorities
  • Causes of Project Trade-offs
    • Shifts in the relative importance of criterions related to cost, time, and performance parameters
      • Budget–Cost
      • Schedule–Time
      • Performance–Scope
  • Managing the Priorities of Project Trade-offs
    • Constrain: a parameter is a fixed requirement.
    • Enhance: optimizing a parameter over others.
    • Accept: reducing (or not meeting) a parameter requirement.
step 3 creating the work breakdown structure
Step 3: Creating the Work Breakdown Structure
  • Work Breakdown Structure (WBS)
    • An hierarchical outline (map) that identifies the products and work elements involved in a project
    • Defines the relationship of the final deliverable (the project) to its subdeliverables, and in turn, their relationships to work packages
    • Best suited for design and build projects that have tangible outcomes rather than process-oriented projects
how wbs helps the project manager
How WBS Helps the Project Manager
  • WBS
    • Facilitates evaluation of cost, time, and technical performance of the organization on a project
    • Provides management with information appropriate to each organizational level
    • Helps in the development of the organization breakdown structure (OBS), which assigns project responsibilities to organizational units and individuals
    • Helps manage plan, schedule, and budget
    • Defines communication channels and assists in coordinating the various project elements
work packages
Work Packages
  • A Work Package Is the Lowest Level of the WBS.
    • It is output-oriented in that it:
      • Defines work (what)
      • Identifies time to complete a work package (how long)
      • Identifies a time-phased budget to complete a work package (cost)
      • Identifies resources needed to complete a work package (how much)
      • Identifies a single person responsible for units of work (who)
step 4 integrating the wbs with the organization
Step 4: Integrating the WBS with the Organization
  • Organizational Breakdown Structure (OBS)
    • Depicts how the firm is organized to discharge its work responsibility for a project
      • Provides a framework to summarize organization work unit performance
      • Identifies organization units responsible for work packages
      • Ties the organizational units to cost control accounts
step 5 coding the wbs for the information system
Step 5: Coding the WBS for the Information System
  • WBS Coding System
    • Defines:
      • Levels and elements of the WBS
      • Organization elements
      • Work packages
      • Budget and cost information
    • Allows reports to beconsolidated at any level in the organization structure
process breakdown structure
Process Breakdown Structure
  • Process-Oriented Projects
    • Are driven by performance requirements in which the final outcome is the product of a series of steps of phases in which one phase affects the next phase
  • Process Breakdown Structure (PBS)
    • Defines deliverables as outputs required to move to the next phase
    • Checklists for managing PBS:
      • Deliverables needed to exit one phase and begin the next
      • Quality checkpoints for complete and accurate deliverables
      • Sign-offs by responsible stakeholders to monitor progress
simple approach for creating the wbs
Simple Approach for Creating the WBS
  • Gather Project Team
  • Provide Team Members with Pad of Sticky-Notes
  • Team Members Write Down all Tasks They can Think of.
  • Sticky-Notes Placed and Arranged on Wall
the resource problem
The Resource Problem
  • Resources and Priorities
    • Project network times are not a schedule until resources have been assigned.
      • The implicit assumption is that resources will be available in the required amounts when needed.
      • Adding new projects requires making realistic judgments of resource availability and project durations.
  • Resource-Constrained Scheduling
    • Resource leveling (or smoothing) involves attempting to even out demands on resources by using slack (delaying noncritical activities) to manage resource utilization.
types of project constraints
Types of Project Constraints
  • Technical or Logic Constraints
    • Constraints related to the networked sequence in which project activities must occur
  • Resource Constraints
    • The absence, shortage, or unique interrelationship and interaction characteristics of resources that require a particular sequencing of project activities
kinds of resource constraints
Kinds of Resource Constraints
  • People
  • Materials
  • Equipment
  • Working Capital
classification of a scheduling problem
Classification of a Scheduling Problem
  • Classification of Problem
    • Using a priority matrix will help determine if the project is time or resource constrained
  • Time Constrained Project
    • A project that must be completed by an imposed date
      • Time is fixed, resources are flexible: additional resources are required to ensure project meets schedule.
  • Resource Constrained Project
    • A project in which the level of resources available cannot be exceeded
      • Resources are fixed, time is flexible: inadequate resources will delay the project.
resource allocation methods
Resource Allocation Methods
  • Limiting Assumptions
    • Splitting activities is not allowed—once an activity is start, it is carried to completion.
    • Level of resource used for an activity cannot be changed.
    • Activities with the most slack pose the least risk.
    • Reduction of flexibility does not increase risk.
    • The nature of an activity (easy, complex) doesn’t increase risk.
resource allocation methods cont d
Resource Allocation Methods (cont’d)
  • Time-Constrained Projects
    • Projects that must be completed by an imposed date
    • Require the use of leveling techniques that focus on balancing or smoothing resource demands by using positive slack (delaying noncritical activities) to manage resource utilization over the duration of the project
      • Peak resource demands are reduced.
      • Resources over the life of the project are reduced.
      • Fluctuation in resource demand is minimized.
assigning project work
Assigning Project Work
  • Factors to Consider in Assigning Work:
    • Don’t always pick the same people for the toughest assignments.
    • Choose people with an eye to fostering their development through participation on the project.
    • Pick people with compatible work habits and personalities but who complement each other.
    • Team-up veterans with new hires to share experience and socialize newcomers into the organization.
    • Select people who may need to learn work together on later stages of the project or other projects.
multiproject resource schedules
Multiproject Resource Schedules
  • Multiproject Scheduling Problems
    • Overall project slippage
      • Delay on one project creates delays for other projects.
    • Inefficient resource application
      • The peaks and valleys of resource demands create scheduling problems and delays for projects.
    • Resource bottlenecks
      • Shortages of critical resources required for multiple projects cause delays and schedule extensions.
multiproject resource schedules1
Multiproject Resource Schedules
  • Managing Multiproject Scheduling
    • Create project offices or departments to oversee the scheduling of resources across projects.
    • Use a project priority queuing system: first come, first served for resources.
    • Centralize project management: treat all projects as a part of a “megaproject.”
    • Outsource projects to reduce the number of projects handled internally.
estimating activity duration
Estimating Activity Duration
  • Expert judgment
  • Analogous estimating
  • Parametric estimating
  • Three-point estimates
  • Reserve analysis
creating a three point time estimate
Creating a Three-Point Time Estimate


Most likely



factoring in reserve time
Factoring in Reserve Time
  • Hidden Time
  • Procrastination
  • Demands
  • On Schedule
pert and cpm networks

“I keep six honest serving-men (they taught me all I knew);

their names are What and Why and How and Where and Who.”

Rudyard Kipling

  • Late 1950s
    • Program Evaluation and Review Technique (PERT)
      • U.S. Navy, Booz-Allen Hamilton, and Lockeheed Aircraft
      • Probabilistic activity durations
    • Critical Path Method (CPM)
      • Dupont De Nemours Inc.
      • Deterministic activity durations
constructing a project network





Constructing a Project Network
  • Terminology
    • Activity: an element of theproject that requires time.
    • Merge activity: an activity that has two or more preceding activities on which it depends.
    • Parallel (concurrent) activities: Activities that can occur independently and, if desired, not at the same time.
constructing a project network cont d




Constructing a Project Network (cont’d)
  • Terminology
    • Path: a sequence of connected, dependent activities.
    • Critical path: the longest time pathway through the activity network that allows for the completion of all project-related activities; the shortest expected time in which the entire project can be completed. (Delays on the critical path will delay completion of the entire project).


constructing a project network cont d1





Constructing a Project Network (cont’d)
  • Terminology
    • Event: a point in time when an activity is started or completed. It does not consume time.
    • Burst activity: an activity that has more than one activity immediately following it (more than one dependency arrow flowing from it).
  • Two Approaches
    • Activity-on-Node (AON)
      • Uses a node to depict an activity
    • Activity-on-Arrow (AOA)
      • Uses an arrow to depict an activity
basic rules to follow in developing project networks
Basic Rules to Follow in Developing Project Networks
  • Networks typically flow from left to right.
  • An activity cannot begin until all of its activities are complete.
  • Arrows indicate precedence and flow and can cross over each other.
  • Identify each activity with a unique number; this number must be greater than its predecessors.
  • Looping is not allowed.
  • Conditional statements are not allowed.
  • Use common start and stop nodes.
network computation process
Network Computation Process
  • Forward Pass—Earliest Times
    • How soon can the activity start? (early start—ES)
    • How soon can the activity finish? (early finish—EF)
    • How soon can the project finish? (expected time—ET)
  • Backward Pass—Latest Times
    • How late can the activity start? (late start—LS)
    • How late can the activity finish? (late finish—LF)
    • Which activities represent the critical path?
    • How long can it be delayed? (slack or float—SL)
forward pass computation
Forward Pass Computation
  • Add activity times along each path in the network (ES + Duration = EF).
  • Carry the early finish (EF) to the next activity where it becomes its early start (ES) unless…
  • The next succeeding activity is a merge activity, in which case the largest EF of all preceding activities is selected.
backward pass computation
Backward Pass Computation
  • Subtract activity times along each path in the network (LF - Duration = LS).
  • Carry the late start (LS) to the next activity where it becomes its late finish (LF) unless...
  • The next succeeding activity is a burst activity, in which case the smallest LF of all preceding activities is selected.
determining slack or float
Determining Slack (or Float)
  • Free Slack (or Float)
    • The amount of time an activity can be delayed without delaying connected successor activities
  • Total Slack
    • The amount of time an activity can be delayed without delaying the entire project
  • The critical path is the network path(s) that has (have) the least slack in common.
sensitivity of a network
Sensitivity of a Network
  • The likelihood the original critical path(s) will change once the project is initiated.
    • Function of:
      • The number of critical paths
      • The amount of slack across near critical activities
extended network techniques to come close to reality
Extended Network Techniques to Come Close to Reality
  • Laddering
    • Activities are broken into segments so the following activity can begin sooner and not delay the work.
  • Lags
    • The minimum amount of time a dependent activity must be delayed to begin or end
      • Lengthy activities are broken down to reduce the delay in the start of successor activities.
      • Lags can be used to constrain finish-to-start, start-to-start, finish-to-finish, start-to-finish, or combination relationships.
use of lags cont d
Use of Lags (cont’d)

Use of Lags to Reduce Detail

calculating probabilistic activity times
Calculating Probabilistic Activity Times
  • Three Time Estimates
    • pessimistic (a)
    • most likely (m)
    • optimistic (b)
creating a three point time estimate1
Creating a Three-Point Time Estimate


Most likely



a gantt chart of sample project showing critical path path connections slack est lst eft and lft
A Gantt Chart of Sample Project Showing Critical Path, Path Connections, Slack, EST, LST, EFT, and LFT
A Gantt Chart of a Day Care Project Showing Expected Durations, Critical Path, Milestone, and Resource Requirements
gantt chart don t manage your project without it
Gantt Chart – Don’t Manage Your Project Without It
  • Because the Gantt Chart is such a traditional tool and appears so simple on the surface, it doesn’t always get the respect it deserves as a project management tool. Here are some of the uses of a Gantt Chart.

Management reports. The simplicity and visual strength of a Gantt Chart makes it the ideal tool to use when you’re reporting to someone who doesn’t know project management.

Testing the Time constraint. When you’re doing preliminary project planning and have numerous parallel tasks, you often don’t know how long the project will take in calendar time. The Gantt Chart will show you.

Allocating resources. The Gantt Chart helps you to allocate and track resources and identify conflicts.

gantt chart don t manage your project without it1
Gantt Chart – Don’t Manage Your Project Without It

What-If analysis. You can explore many options visually and determine which one(s) are best for your project.

Resource management. The “Resource Gantt Chart” works both in controlling resources on a single project and in managing resources across projects in a multiple project environment.

Tracking progress. The “Tracking Gantt Chart,” which allows you to compare actual project performance to plan, shows you the consequence of tasks not finishing on their assigned times, and gives you a tool to explore options.

gantt chart on line help
Gantt Chart On-Line Help
  • Planning
  • Planning
project human resource management
Project Human Resource Management

“It’s all about the people!”

project management structures
Project Management Structures
  • Challenges to Organizing Projects
    • The uniqueness and short duration of projects relative to ongoing longer-term organizational activities
    • The multidisciplinary and cross-functional nature of projects creates authority and responsibility dilemmas.
  • Choosing an Appropriate Project Management Structure
    • The best system balances the needs of the project with the needs of the organization.
choosing the appropriate project management structure
Choosing the Appropriate Project Management Structure
  • Organization (Form) Considerations
    • How important is the project to the firm’s success?
    • What percentage of core work involves projects?
    • What level of resources (human and physical) are available?
choosing the appropriate project management structure cont d
Choosing the Appropriate Project Management Structure (cont’d)
  • Project Considerations
    • Size of project
    • Strategic importance
    • Novelty and need for innovation
    • Need for integration (number of departments involved)
    • Environmental complexity (number of external interfaces)
    • Budget and time constraints
    • Stability of resource requirements
project organization continuum
Project Organization Continuum











Functional Mgrs. have

most if not all authority

Project Mgrs. have

most if not all authority

project management structures1
Project Management Structures
  • Organizing Projects: Functional organization
    • Different segments of the project are delegated to respective functional units.
    • Coordination is maintained through normal management channels.
    • Used when the interest of one functional area dominates the project or one functional area has a dominant interest in the project’s success.
functional organization of projects

Lack of Focus

Poor Integration


Lack of Ownership

Lines of communication outside functional dept. slow

Projects rarely given high priority

Functional Organization of Projects
  • Advantages
    • No Structural Change
    • Flexibility
    • In-Depth Expertise
    • Easy Post-Project Transition
    • Technological depth
    • Fractional resource issue minimized
project management structures cont d
Project Management Structures (cont’d)
  • Organizing Projects: Dedicated Teams
    • Teams operate as separate units under the leadership of a full-time project manager.
    • In a projectized organization where projects are the dominant form of business, functional departments are responsible for providing support for its teams.
project organization dedicated team


Internal Strife

Limited Technological Expertise

Difficult Post-Project Transition





Cross-Functional Integration

Project Organization: Dedicated Team
project management structures cont d1
Project Management Structures (cont’d)
  • Organizing Projects: Matrix Structure
    • Hybrid organizational structure (matrix) is overlaid on the normal functional structure.
      • Two chains of command (functional and project)
      • Project participants report simultaneously to both functional and project managers.
    • Matrix structure optimizes the use of resources.
      • Allows for participation on multiple projects while performing normal functional duties
      • Achieves a greater integration of expertise and project requirements
different matrix forms
Different Matrix Forms
  • Functional (also Weak or Lightweight) Form
    • Matrices in which the authority of the functional manager predominates and the project manager has indirect authority
  • Balance (or Middleweight) Form
    • The traditional matrix form in which the project manager sets the overall plan and the functional manager determines how work to be done
  • Strong (Heavyweight) Form
    • Resembles a project team in which the project manager has broader control and functional departments act as subcontractors to the project
project organization matrix form

Dysfunctional Conflict






Strong Project Focus

Easier Post-Project Transition


Project Organization: Matrix Form
division of project manager and functional manager responsibilities in a matrix structure
Division of Project Manager and Functional Manager Responsibilities in a Matrix Structure

Project Manager Negotiated Issues Functional Manager

What has to be done? Who will do the task? How will it be done?

When should the task be done? Where will the task be done?

How much money is available to Why will the task be done? How will the project involvementdo the task? impact normal functional activities?

How well has the total project Is the task satisfactorily How well has the functional been done? completed? input been integrated?

organizational structures
Organizational Structures


Strong matrix

Functional Manager

Project Manager

Balanced matrix

Weak matrix


rated effectiveness of different project structures by type of project
Rated Effectiveness of Different Project Structures by Type of Project


Source: Larson, E. W., and Gobeli, D. H., “Matrix Management: Contradictions and Insights,” California Management Review, vol. 29, no. 4 (Summer 1987), p. 137.

characteristics of effective project team members
Characteristics of Effective Project Team Members
  • Technically Competent
  • Politically Sensitive
  • Problem Orientation
  • Goal Orientation
  • High Self-Esteem
organizational culture
Organizational Culture
  • Organizational Culture Defined
    • A system of shared norms, beliefs, values, and assumptions which bind people together, thereby creating shared meanings
    • The “personality” of the organization that sets it apart from other organizations.
      • Provides a sense of identify to its members
      • Helps legitimize the management system of the organization
      • Clarifies and reinforces standards of behavior
identifying cultural characteristics
Identifying Cultural Characteristics
  • Study the physical characteristics of an organization.
  • Read about the organization.
  • Observe how people interact within the organization.
  • Interpret stories and folklore surrounding the organization.
organizational culture diagnosis
Organizational Culture Diagnosis

I. Physical Characteristics

(Architecture, office layout, décor, attire)

II. Public Documents

(Annual reports, internal newsletters, vision statements)

III. Behavior

(Pace, language, meetings, issues discussed, decision-making style, communication patterns, rituals)

IV. Folklore

(Stories, anecdotes, heroines, heroes, villains)

implications of organizational culture for organizing projects
Implications of Organizational Culture for Organizing Projects
  • Navigating Organizational Cultures:Working Upstream or Downstream?
    • Interacting with the culture and subcultures of the parent organization
    • Interacting with the project’s clients or customer organizations
    • Interacting with other organizations connected to the project
herzberg s theory of motivation
Herzberg’s Theory of Motivation




Level of Performance





mcgregor s theory of x and y
McGregor’s Theory of X and Y
  • Theory X – Based on this picture take a guess as to what theory X is.
  • Theory Y – Based on the picture, take a guess as to what theory Y is.

(These people are self –led, motivated, and can

Accomplish new tasks proactively)



(Need to be watched, they avoid work, responsibility

They have no ability to achieve, lazy etc.)



Ouchi’s Theory Z – based on the participative management style of the Japanese. Workers are motivated by a sense of commitment, and “lifetime employment”

Expectancy Theory - people will behave based on what they expect as a result of their behavior, i.e., they will work in relation to the expected reward of the work

reasons for team conflict
Reasons For Team Conflict

Most Common

Least Common

conflict resolution
Conflict Resolution
  • Confronting
  • (Problem Solving)
  • Forcing




Confronts the Problem

Power forces a Solution





conflict resolution cont
Conflict Resolution Cont.
  • Compromising
  • Smoothing

Shared Solution

Solution 1

Solution 2





conflict resolution cont1
Conflict Resolution Cont.
  • Withdrawal





managing conflict within the project team
Managing Conflict within the Project Team
  • Encouraging Functional Conflict
    • Encourage dissent by asking tough questions.
    • Bring in people with different points of view.
    • Designate someone to be a devil’s advocate.
    • Ask the team to consider an unthinkable alternative.
  • Managing Dysfunctional Conflict
    • Mediate the conflict.
    • Arbitrate the conflict.
    • Control the conflict.
    • Accept the conflict.
    • Eliminate the conflict.
rejuvenating the project team
Rejuvenating the Project Team
  • Informal Techniques
    • Institute new rituals.
    • Take an off-site break as a team from the project.
    • View an inspirational message or movie.
    • Have the project sponsor give a pep talk.
  • Formal Techniques
    • Hold a team building session facilitated by an outsider to clarify ownership issues affecting performance.
    • Engage in an outside activity that provides an intense common experience to promote social development of the team.
project communications management
Project Communications Management

Balancing Multidisciplinary Teams

effective communication
Effective Communication
  • Nonverbal
  • Paralingual
  • Feedback
effective listening
Effective Listening
  • Feedback
  • Active Listening
  • Paralingual

Message received

and decoded


Message Sent




Active listening



the art of negotiating
The Art of Negotiating
  • Project Management Is NOT a Contest.
    • Everyone is on the same side—OURS.
    • Everyone is bound by the success of the project.
    • Everyone has to continue to work together.
  • Principled Negotiations
    • Separate the people from the problem.
    • Focus on interests, not positions.
    • Invent options for mutual gain.
    • When possible, use objective criteria.
the art of negotiating cont d
The Art of Negotiating (cont’d)
  • Dealing with Unreasonable People
    • If pushed, don’t push back.
    • Ask questions instead of making statements.
    • Use silence as a response to unreasonable demands.
    • Ask for advice and encourage others to criticize your ideas and positions.
    • Work toward a win/win scenario.
key elements of negotiations
Key Elements of Negotiations
  • Each party in the negotiation must believe they have achieved. In other words, both must feel they are or were successful.
  • Do not forget the other party is a human being and needs to feel the other side cares.
  • Fairness is essential to success. Both you and your opponent must perceive that you were treated fairly. (You will know whether you were fair in your treatment of the other person.)
  • A deal is a deal! You need to honor your side of the agreement and the other side must honor theirs.
  • The essence of negotiations is to do business again. Both parties must win.
universal truths
Universal Truths
  • The sum and substance or so-called “Universal Truths of Negotiations” are as follows:
  • Everything is negotiable,
  • We negotiate continually,
  • The process is predictable,
  • Information is crucial to success, and
  • Time constraints affect the outcome.
rules for negotiating teams
Rules For Negotiating Teams
  • When you are negotiating with two people;

Sit where you can watch both.

  • When you have two people on your team;

Sit apart so you “speak with two voices.”

  • When you have a large group opposing their small group;

Keep your group together for the appearance of power.

  • When they have a large group opposing your small group;

Intermingle to diffuse their power.

managing customer relations
Managing Customer Relations
  • Customer Satisfaction
    • The negative effect of dissatisfied customers on a firm’s reputation is far greater than the positive effect of satisfied customers.
    • Every customer has a unique set of performance expectations and met-performance perceptions.
    • Satisfaction is a perceptual relationship:

Perceived performance Expected performance

    • Project managers must be skilled at managing both customer expectations and perceptions.
managing customer relations cont d
Managing Customer Relations (cont’d)
  • Managing Customer Expectations
    • Don’t oversell the project; better to undersell.
    • Develop a well-defined project scope statement.
    • Share significant problems and risks.
    • Keep everyone informed about the project’s progress.
    • Involve customers early on decisions about project development changes.
    • Handle customer relationships and problems in an expeditious, competent, and professional manner.
    • Speak with one voice.
    • Speak the language of the customer.
rules for meetings
Rules for Meetings
  • Set a time limit and keep to it.
  • Schedule recurring meetings in advance.
  • Meet with the team regularly, but not too often.
  • Have a purpose for each meeting.
  • Create an agenda with team input.
  • Distribute the agenda beforehand.
  • Stick to the agenda
  • Let people know their responsibilities in advance.
  • Bring the right people together.
  • Chair and lead the meeting with a set of rules.
  • Assign deliverables and time limits for all work that results from meetings.
  • Document and publish meeting minutes.
team disagreement exercise
Team Disagreement Exercise
  • Consider the comments shown, write the initials of the key person
  • responsible to solve each of the problems.
  • Limit you choices to the following as most confusion of roles is limited
  • to them.
  • T – Team members
  • PM – Project manager
  • SP – Sponsor
  • FM – Functional manager
  • Hint: Since most projects are managed in matrix forms of organizations
  • Keep matrix organizations in mind when considering these situations.
responsibility matrices
Responsibility Matrices
  • Responsibility Matrix (RM)
    • Also called a linear responsibility chart
    • Summarizes the tasks to be accomplished and who is responsible for what on the project
      • Lists project activities and participants
      • Clarifies critical interfaces between units and individuals that need coordination
      • Provide an means for all participants to view their responsibilities and agree on their assignments
      • Clarifies the extent or type of authority that can be exercised by each participant
project communication plan
Project Communication Plan
  • What information needs to be collected?
  • Who will receive information?
  • What information methods will be used?
  • What are the access restrictions?
  • When will information be communicated?
  • How will information be communicated?
performance reporting
Performance Reporting
  • Status report
  • Progress report
  • Trend report
  • Forecasting report
  • Variance report
  • Earned value
  • Lessons learned
quality definitions
Quality Definitions
  • Quality: conformance to requirements and fitness of use
  • Quality Management: The processes required to ensure that the project will satisfy the needs for which it was undertaken.
  • Philosophy: Gold plating is bad; prevention over inspection is good
quality characteristics
Quality Characteristics
  • Grade vs. Quality
    • Grade: meets spec requirements
    • Quality: behaves as expected
  • Prevention vs. Inspection
  • Management Responsibility
  • Processes
  • Customer Satisfaction
    • Keep customer informed
    • Stick to Requirements
quality processes
Quality Processes
  • Quality Planning
    • Quality standards and methods to meet them
    • Planning
  • Quality Assurance
    • Improvements, audits, measurement comparisons, considering standards appropriateness
    • Executing
  • Quality Control
    • Measuring/testing errors, measuring schedule performance, comparing results to standard
    • Controlling
quality planning tools
Quality Planning Tools
  • Standards
  • Benchmarking (past analysis)
  • Benefit/Cost Analysis (BCA)
  • Flowchart (future analysis)
  • Design of Experiments (what if?)
  • Cost of Quality (costs of conformance & non-conformance)
  • Fishbone Diagram (also used in QC)
quality assurance tools
Quality Assurance Tools
  • Evaluation against standards on regular basis
  • Re-evaluation of standards, methods, and procedures
  • Quality Audit: structured review of quality activities that identifies lessons learned
quality control tools
Quality Control Tools
  • Inspection
  • Pareto Diagram
  • Fishbone Diagram
  • Checklists
  • Statistical Sampling
  • Control Charts
  • Flow charting (also used in Quality Planning)
  • Trend Analysis
quality techniques
Quality Techniques
  • Continuous Improvement (Kaizen)
  • Just in Time (JIT)
  • Total Quality Management (TQM)
optimal quality and responsibility
Optimal Quality and Responsibility
  • Marginal Analysis
    • Optimal quality is reached at point where incremental value from improvement = incremental cost to secure it.
  • Responsibility for Quality
    • Senior management is responsible for organizational quality
    • PM has ultimate responsibility for quality of product of project
    • Each team member is responsible for self inspection
standard deviation
Standard Deviation
  • Distance from Mean in a Normal Curve
  • 1 standard deviation = 1 sigma
  • (P – O) / 6
    • PERT formula for standard deviation where P is pessimistic estimate and O is optimistic estimate
statistical sampling quality control chart
Statistical SamplingQuality Control Chart
  • Graphic display of results, over time, of a process… used to determine if the process is “in control.”
  • To create a control chart:
    • Samples are taken
    • Variables are measured
    • Attributes are found and plotted on chart
monitoring project results
Monitoring Project Results
  • Variable
    • Anything measured
  • Attribute
    • Binary value, either right or wrong
  • Probability
    • Likelihood event will occur, usually expressed as %
control chart features
Control Chart Features
  • Control Limits
    • Acceptable range of variation of a process often shown as 2 dashed lines on chart
    • Upper and Lower Control Limits are determined by organization’s sigma quality standard
  • Specification Limits
    • Contractual requirements for performance and quality
    • Not calculated based on control chart
    • Outside chart control limits if project can meet
    • Inside chart control limits if project cannot meet
out of control
Out of Control
  • Out of Control
    • Lack of consistency or predictability in process.
    • When data point falls outside upper or lower control limit
    • When non-random data points are still within upper and lower control limits, such as Rule of Seven
rule of seven
Rule of Seven
  • Heuristic referring to non-random data points grouped together in a series that total 7 on one side of mean.
  • Assignable Cause is a data point or Rule of Seven that requires investigation to determine cause of variation.
impact of poor quality
Impact of Poor Quality
  • Increased costs
  • Low morale
  • Low customer satisfaction
  • Increased risk
  • Rework
  • Schedule delays
changing views of quality
Changing Views of Quality


Quality is the responsibility of blue-collar Quality is everyone’s responsibility, workers and the direct labor employees including white-collar workers,

working on the floor. indirect labor force, and the overhead staff

Quality defects should be hidden from the Defects should be high-lighted and Customers (and possibly management) brought to the surface for corrective action

Quality problems lead to blame, faulty Quality problems lead to cooperative justification, and excuses solutions


Changing Views of Quality


Corrections-to-quality problems should be Documentation is accomplished with minimum documentation essential for “lessons learned”

so that mistakes are not repeated

Increased quality will increase project costs Improved quality saves money and increases business

Quality is internally focused Quality is customer focused

Quality will not occur without close People want to produce quality supervision of people products

Quality occurs during project execution Quality occurs at project initiation and must be planned for within the project

how to create a miracle on demand
“How to Create a “Miracle on Demand”
  • Experienced project managers sometimes look like miracle workers. They bring in a project that seems impossible, and solve problems that others can’t. They have learned to think like project managers—and to use the tools of project management effectively. As you read and practice the tools provided, you’ll learn some of the secrets for looking like a miracle worker yourself.

Your projects are full of hidden resources and opportunities.

Every project has hidden resources that can solve many of your problems. Proper planning will help you uncover those resources and use them properly. These resources go by strange names—resource slack, weak constraint flexibility, control point identification. You’ll learn how to uncover and use them as you read this.

Resources are scarce—so don’t waste the ones you have.

Remember: You waste a resource if you don’t know it’s there in the first place.


How to Create a “Miracle on Demand”

When you need one great idea, start with several ideas.

The tools of brainstorming are an important resource for project managers. Don’t go it alone; get input and fresh ideas from other sources. When you’re overstressed and over-anxious, racing your brain for insights and solutions, you don’t think at top capacity. Allow your project team to carry some of the creative load; it helps you –and it improves their moral at the same time.

Take the time to plan and to set goals.

Thousands of projects fail each year because their managers didn’t do the preliminary steps in the right order, especially defining and planning. Make sure you know what the goal of the project is; make sure you understand the work; make sure you have a plan. Then start the work. You wouldn’t go to the target practice and shout, “Ready! Fire! Aim!” Don’t take that attitude with your projects.

ten golden rules of project management
Don’t bite off more then you can manage

Get your ducks in a row

Plan for Murphy

Don’t put off until tomorrow

Delegate, delegate, delegate

CYA (Document)

Keep your team in the loop

Measure success

Have a flexible strategy

Learn from your mistakes

Ten Golden Rules of Project Management