Problems

15-1 Do cost overruns just happen, or are they caused 15-2 Cemeteries are filled with projects that went out of control. Below are several causes that can easily develop into out-of-control conditions. In which phase of a project should each of these conditions be detected and, if possible, remedied a. Customer's requirements not understood b. Project team formed after bid was prepared c. Accepting unusual terms and conditions d. Permitting a grace period for changing specifications e. Lack of...

Project Authority

Project management structures create a web of relationships that can cause chaos in the delegation of authority and the internal authority structure. Four questions must be considered in describing project authority What is power, and how is it achieved How much project authority should be granted to the project manager Who settles project authority interface problems One form of the project manager's authority can be defined as the legal or rightful power to command, act, or direct the...

Organizations

On the micro level, virtually all organizations are either marketing-, engineering-, or manufacturing-driven. But on the macro level, organizations are either project- or non-project-driven. In a project-driven organization, such as construction or aerospace, all work is characterized through projects, with each project as a separate cost center having its own profit-and-loss statement. The total profit to the corporation is simply the summation of the profits on all projects. In a...

Organizational Skills The program manager must be a social architect that is he must un

Derstand how the organization works and how to work with the organization. Organizational skills are particularly important during project formation and startup when the program manager is integrating people from many different disciplines into an effective work team. It requires defining the reporting relationships, responsibilities, lines of control, and information needs. A good program plan and a task matrix are useful organizational tools. In addition, the organizational effort is...

Nonprojectdriven

Organizational hierarchy. less money than the line manager will usually create conflict. The ultimate reporting location of the project manager (and perhaps his salary) is heavily dependent on whether the organization is project- or non-project-driven, and whether the project manager is responsible for profit or loss. Project managers can end up reporting both high and low in an organization during the life cycle of the project. During the planning phase of the project, the project...

Matrix Layering

Matrix layering can be defined as the creation of one matrix within a second matrix. For example, a company can have a total company matrix, and each division or department (i.e., project engineering) can have its own internalized matrix. In the situation of a matrix within a matrix, all matrices are formal operations. Matrix layering can also be a mix of formal and informal organizations. The formal matrix exists for work flow, but there can also exist an informal matrix for information flow....

Info

Project management skills. FIGURE 4-3. Project management skills. As projects become larger, the complexities of integration management become more pronounced. Figure 4-4 illustrates the importance of integration management. In 1985, project managers spent most of their time planning and replanning with their team. This was necessary because the project manager was the technical expert. Today, line managers are the technical experts and perform the majority of the planning and...

Implementing Six Sigma

Six Sigma is a business initiative first espoused by Motorola in the early 1990s. Recent Six Sigma success stories, primarily from the likes of General Electric, Sony, AlliedSignal, and Motorola, have captured the attention of Wall Street and have propagated the use of this business strategy. The Six Sigma strategy involves the use of statistical tools within a structured methodology for gaining the knowledge needed to create products and services better, faster, and less expensively than the...

Human Skills

JUNIOR SENIOR SUPERVISOR MIDDLE MANAGER SENIOR PRESIDENT CLERK CLERK MANAGER OFFICER FIGURE 3-9. Philosophy of management. arrangement works best (and is cost-effective) for short-duration projects that cross a minimum number of functional units. Finally, we must discuss the characteristics of a project engineer. In Figure 3-9, most people would place the project manager to the right of center with stronger human skills than technical skills, and the project engineer to the left of center with...

External Partnerships

Outsourcing has become a major trend because it allows companies to bring their products to market faster and at a competitive price, and because it provides benefits to both the customer and the supplier. The relationship between the customer and the supplier is referred to as partnering. Joki and Russett identify three categories of partnering3 An approved supplier is the least advanced form of partnering and requires minimal investment in the relationship. The benefits are usually limited,...

Documentation

Good procedural documentation will accelerate the project management maturity process, foster support at all levels of management, and greatly improve project communications. The type of procedural documentation selected is heavily biased on whether we wish to manage formally or informally, but it should show how to conduct project-oriented activities and how to communicate in such a multidimensional environment. The project management policies, procedures, forms, and guidelines can provide...

Understanding Project Management Software

Efficient project management requires more than good planning, it requires that relevant information be obtained, analyzed, and reviewed in a timely manner. This can provide early warning of pending problems and impact assessments on other activities, which can lead to alternate plans and management actions. Today, project managers have a large array of software available to help in the difficult task of tracking and controlling projects. While it is clear that even the most sophisticated...

The Downside Of Project Management

Project management is often recognized only as a high-salaried, highly challenging position whereby the project manager receives excellent training in general management. For projects that are done for external sources, the project manager is first viewed as starting out with a pot of gold and then as having to manage the project so that sufficient profits will be made for the stockholders. If the project manager performs well, the project will be successful. But the personal cost may be high...

Table Project Management Compared To Project Engineering

Project Management Total project planning Cost control Schedule control System specifications Logistics support Report preparation and distribution Procurement Identification of reliability and maintainability requirements Staffing Priority scheduling Management information systems Fabrication, testing, and production technical leadership support engineer have similar functions above the line but different ones below the line.20 The main reason for separating project management from project...

Table Methods And Techniques For Developing Project Managers

Working with experienced professional leader Assigning a variety of project management responsibilities, consecutively Job rotation Formal on-the-job training Supporting multifunctional activities Customer liaison activities II. Conceptual training schooling Courses, seminars, workshops Simulations, games, cases Group exercises Hands-on exercises in using project management techniques Professional meetings Conventions, symposia Readings, books, trade journals, professional magazines III....

Project Management Methodologies

The ultimate purpose of any project management system is to increase the likelihood that your organization will have a continuous stream of successfully managed projects. The best way to achieve this goal is with good project management methodologies that are based upon guidelines and forms rather than policies and procedures. Methodologies must have enough flexibility that they can be adapted easily to each and every project. Methodologies should be designed to support the corporate culture,...

Project Management

By the 1990s, companies had begun to realize that implementing project management was a necessity, not a choice. The question was not how to implement project management, but how fast could it be done Table 2-1 shows the typical life-cycle phases that an organization goes through to implement project management. In the first phase, the Embryonic Phase, the organization recognizes the apparent need for project management. This recognition normally takes place at the lower and middle levels of...

Organizing And Staffing The Project Office And Team Table Project Management Positions And Responsibilities

Project Administrator Project Coordinator Technical Assistant Coordinating and integrating of subsystem tasks. Assisting in determining technical and manpower requirements, schedules, and budgets. Measuring and analyzing project performance regarding technical progress, schedules, and budgets. Task Manager Same as above, but stronger role in Project Engineer establishing and maintaining Assistant Project project requirements. Conducting Manager trade-offs. Directing the technical implementation...

Next Generation Project Managers

The skills needed to be an effective, twenty-first century project manager have changed from those needed during the 1980s. Historically, only engineers were given the opportunity to become project managers. The belief was that the project manager had to have a command of technology in order to make all of the technical decisions. As projects became larger and more complex, it became obvious that project managers might need simply an understanding rather than a command of technology. The true...

Location Of The Project Manager

The success of project management could easily depend on the location of the project manager within the organization. Two questions must be answered What salary should the project manager earn To whom should the project manager report Figure 1-8 shows a typical organizational hierarchy (the numbers represent pay grades). Ideally, the project manager should be at the same pay grade as the individuals with whom he must negotiate on a daily basis. Using this criterion, and assuming that the...

Center For Project Management Expertise

In project-driven companies, the creation of a project management division is readily accepted as a necessity to conduct business. Organizational restructuring can quite often occur based on environmental changes and customer needs. In non-project-driven organizations, employees are less tolerant of organizational change. Power, authority, and turf become important. The implementation of a separate division for project management is extremely difficult. Resistance can become so strong that the...

Maturity And Excellence A Definition

Some people contend that maturity and excellence in project management are the same. Unfortunately, this is not the case. Consider the following definition Maturity in project management is the implementation of a standard methodology and accompanying processes such that there exists a high likelihood of repeated successes. This definition is supported by the life-cycle phases shown in Table 2-1. Maturity implies that the proper foundation of tools, techniques, processes, and even culture,...

Pure Product Projectized Organization

The pure product organization, as shown in Figure 3-5, develops as a division within a division. As long as there exists a continuous flow of projects, work is stable and conflicts are at a minimum. The major advantage of this organizational flow is that one individual, the program manager, maintains complete line authority over the entire project. Not only does he assign work, but he also conducts merit reviews. Because each individual reports FIGURE 3-5. Pure product or projectized structure....

Pricing Out The Work

Using logical pricing techniques will help in obtaining detailed estimates. The following thirteen steps provide a logical sequence to help a company control its limited resources. These steps may vary from company to company. Step 1 Provide a complete definition of the work requirements. Step 2 Establish a logic network with checkpoints. Step 3 Develop the work breakdown structure. Step 4 Price out the work breakdown structure. Step 5 Review WBS costs with each functional manager. Step 6...

The Project Management Maturity

All companies desire excellence in project management. Unfortunately, not all companies recognize that the time frame can be shortened by performing strategic planning for project management. The simple use of project management, even for an extended period of time, does not lead to excellence. Instead, it can result in repetitive mistakes and, what's worse, learning from your own mistakes rather than from the mistakes of others. Companies such as Motorola, Nortel, Ericsson, and Compaq perform...

Dr Kerzners Points to Project Management Maturity

Adopt a project management methodology and use it consistently. 2. Implement a philosophy that drives the company toward project management maturity and communicate it to everyone. 3. Commit to developing effective plans at the beginning of each project. 4. Minimize scope changes by committing to realistic objectives. 5. Recognize that cost and schedule management are inseparable. 6. Select the right person as the project manager. 7. Provide executives with project sponsor information, not...

Case Study

By 1970, Jones and Shephard Accountants, Inc. (J& S) was ranked eighteenth in size by the American Association of Accountants. In order to compete with the larger firms, J& S formed an Information Services Division designed primarily for studies and analyses. By 1975, the Information Services Division (ISD) had fifteen employees. In 1977, the ISD purchased three minicomputers. With this increased capacity, J& S expanded its services to help satisfy...

Weekly Manpower Plot

The network you have just created is a departmental PERT chart. Construct a weekly manpower plot assuming that all activities begin as early as possible. (Note Overtime cannot be used to shorten the activity time.) c. The department manager wishes to assign eight people full-time for the duration of the project. However, if an employee is no longer needed on the project, he can be assigned elsewhere. Using the base of eight people, identify the standby (or idle) time and the overtime...

Quality Management Concepts

The project manager has the ultimate responsibility for quality management on the project. Quality management has equal priority with cost and schedule management. However, the direct measurement of quality may be the responsibility of the quality assurance department or the assistant project manager for quality. For a labor-intensive project, management support (i.e., the project office) is typically 12-15 percent of the total labor dollars of the project. Approximately 3-5 percent can be...

Case Studies

Lucent Technologies 855 Elbit Systems Ltd. 857 Seagate Technology 860 Appendix A. Solutions to the Project Management Conflict Exercise 863 Appendix B. Solution to Leadership Exercise 869 As we enter the first decade of the twenty-first century, our perception of project management has changed. Project management, once considered nice to have, is now recognized as a necessity. Organizations that were opponents of project management are now advocates. Management educators of the past, who...

Understanding Project Management

In order to understand project management, one must begin with the definition of a project. A project can be considered to be any series of activities and tasks that Have a specific objective to be completed within certain specifications Have defined start and end dates Have funding limits (if applicable) Consume human and nonhuman resources (i.e., money, people, equipment) Are multifunctional (i.e., cut across several functional lines) Project management, on the other hand, involves project...

Special Problems

There are always special problems that influence the organizational staffing process. For example, the department shown in Figure 4-12 has a departmental matrix. All activities stay within the department. Project X and project Y are managed by line employees who have been temporarily assigned to the projects, whereas project Z is headed by supervisor B. The department's activities involve high-technology engineering as well as R& D. The biggest problem facing the department managers is that...

Performance Measurement

A good project manager will make it immediately clear to all new functional employees that if they perform well in the project, then he (the project manager) will inform the functional manager of their progress and achievements. This assumes that the functional manager is not providing close supervision over the functional employees and is, instead, passing on some of the responsibility to the project manager a common situation in project management organization structures. Many good projects...

Skill Requirements For Program Managers

Managing complex programs represents a challenge requiring skills in team building, leadership, conflict resolution, technical expertise, planning, organization, entrepreneurship, administration, management support, and the allocation of resources. This section examines these skills relative to program management effectiveness. A key factor to good program performance is the program manager's ability to integrate personnel from many disciplines into an effective work team. To get results, the...

Working With Executives

Success in project management is like a three-legged stool. The first leg is the project manager, the second leg is the line manager, and the third leg is senior management. If any of the three legs fail, then even delicate balancing may not prevent the stool from toppling. The critical node in project management is the project manager-line manager interface. At this interface, the project and line managers must view each other as equals and be willing to share authority, responsibility, and...

Estimating Total Program Time

In order to calculate the probability of completing the project on time, the standard deviations of each activity must be known. This can be found from the expression 7. It is assumed that the functional manager performs all of the estimating. The reader should be aware that there are exceptions where the program or project office would do their own estimating. 8. See F. S. Hillier and G. J. Lieberman, Introduction to Operations Research (San Francisco Holden-Day, 1967), p. 229. MOST OPTIMISTIC...

Should A Functional Manager Assign His Best People To You On A Long-term Project

Apple (When Two Bosses Are Better Than One, Machine Design, January 1975, pp. 84-87) People trained in single-line-of-command organizations find it hard to serve more than one boss. People may give lip service to teamwork, but not really know how to develop and maintain a good working team. Project and functional managers sometimes tend to compete rather than cooperate with each other. Individuals must learn to do more managing of themselves. The authors...

Defining The Functional Employees Role

Once the line managers commit to the deliverables, it is the responsibility of the assigned functional employees to achieve the functional deliverables. For years the functional employees were called subordinates. Although this term still exists in textbooks, industry prefers to regard the assigned employees as associates rather than subordinates. The reason for this is that in project management the associates can be a higher pay grade than the project manager. The associates can even be a...

Special Cases In Project Manager Selection

Thus far we have assumed that the project is large enough for a full-time project manager to be appointed. This is not always the case. There are four major problem areas in staffing projects Part-time versus full-time assignments Several projects assigned to one project manager Projects assigned to functional managers The project manager role retained by the general manager The first problem is generally related to the size of the project. If the project is small (in time duration or cost), a...

Work Breakdown Structure

The successful accomplishment of both contract and corporate objectives requires a plan that defines all effort to be expended, assigns responsibility to a specially identified organizational element, and establishes schedules and budgets for the accomplishment of the work. The preparation of this plan is the responsibility of the program manager, who is assisted by the program team assigned in accordance with program management system directives. The detailed planning is also established in...

Project Manager Defines Problem Shares Decisionmaking Responsibility With Subordinates

The Project Your company has just won a contract for an outside customer. The con tract is for one year, broken down as follows R& D six months prototype testing one month manufacturing five months. In addition to the risks involved in the R& D stage, both your management and the customer have stated that there will be absolutely no trade-offs on time, cost, or performance. When you prepared the proposal six months ago, you planned and budgeted for a full-time staff of five people, in...

1

There are several psychological approaches that the project manager can use during the recruitment and staffing process. Consider the following Line managers often receive no visibility or credit for a job well done. Be willing to introduce line managers to the customer. Be sure to show people how they can benefit by working for you or on your project. Any promises made during recruitment should be documented. The functional organization will remember them long after your project terminates. As...

Task I System Overview

Work breakdown structure. 11-46 When to bring the project manager on board has always been a problem. For each of the following situations, identify the advantages and disadvantages. a. The project manager is brought on board at the beginning of the conceptual phase but acts only as an observer. The project manager neither answers questions nor provides his ideas until the brainstorming session is completed. b. When brainstorming is completed during the conceptual phase, senior...

Handling Disagreements With The Sponsor

For years, we believed that the project sponsor had the final say on all decisions affecting the project. The sponsor usually had a vested interest in the project and was responsible for obtaining funding for the project. But what if the project manager believes that the sponsor has made the wrong decision Should the project manager have a path for recourse action in such a situation There are several reasons why disagreements between the project manager and project sponsor will occur. First,...

Project Management Methodologies A Definition

Achieving project management excellence, or maturity, is more likely with a repetitive process that can be used on each and every project. This repetitive process is referred to as the project management methodology. If possible, companies should maintain and support a single methodology for project management. Good methodologies integrate other processes into the project management methodology, as shown in Figure 2-24. Companies such as Nortel, Ericsson, and Johnson Controls Automotive have...

Handling Conflict In Project Management

The next several pages contain a six-part case study in conflict management. Read the instructions carefully on how to keep score and use the boxes in the table on page 301 as the worksheet for recording your choice and the group's choice after the case study has been completed, your instructor will provide you with the proper grading system for recording your scores. Part 1 Facing the Conflict As part of his first official duties, the new department manager informs you by memo that he has...

Project Management Usl Vs

Looking at Figure 20-31, CP is the relative spread of the process width within the specification width. Unfortunately, the spread of the process capability, even for very good values, could be poorly positioned within the specification width. The process width could easily be hugging either the USL or LSL. Today, process capability is measured by both CP and CPk, where CPk is the capability index with correction (k) for noncentrality. According to Dr. Frank Anbari, the formula for CPk can be...

Hugging Of The Center Line

Control chart interpretation. FIGURE 20-24. Control chart interpretation. corrections, rather than letting the natural range of variability stabilize. The following paragraphs describe some of the ways the underlying distribution patterns can behave or misbehave. Runs. When several successive points line up on one side of the central line, this pattern is called a run. The number of points in that run is called the length of the run. As a rule of thumb, if the run has a length of...

Matrix Organizational Form

The matrix organizational form is an attempt to combine the advantages of the pure functional structure and the product organizational structure. This form is ideally suited for companies, such as construction, that are project-driven. Figure 3-6 shows a typical matrix structure. Each project manager reports directly to the vice president and general manager. Since each project represents a potential profit center, the power and authority used by the project manager come directly from the...

The Project Managerline Manager Interface

We have stated that the project manager must control company resources within time, cost, and performance. Most companies have six resources Actually, the project manager does not control any of these resources directly, except perhaps money (i.e., the project budget).1 Resources are controlled by the line managers, functional managers, or, as they are often called, resources managers. Project managers must, therefore, negotiate with line managers for all project resources. When we say that...

Selecting The Wrong Project Manager

Even though executives know the personal characteristics and traits that project managers should possess, and even though job descriptions are often clearly defined, management may still select the wrong person because they base their decision on the following criteria. Maturity Some executives consider gray hair to be a sure indication of maturity, but this is not the type of maturity needed for project management. Maturity in project management generally comes from exposure to several types...

Project Management Growth Concepts and Definitions

Project Mgmt Concepts

Related Case Studies (from Kerzner Project Management Case Studies) Related Workbook Exercises and Case Studies (from Kerzner Project Management Workbook to Accompany Project Management, 8th Edition) PMBOK Reference Section for the PMP Certification Exam MIS Project Management 1 at First National Bank Haller Specialty Manufacturing Blue Diamond of Northeast 1 Ohio

Differing Views Of Project Management

Many companies, especially those with project-driven organizations, have differing views of project management. Some people view project management as an excellent means to achieving objectives, while others view it as a threat. In project-driven organizations, there are three career paths that lead to executive management Through project engineering In project-driven organizations, the fast-track position is in project management, whereas in a non-project-driven organization, it would be line...

Modification Of Matrix Structures

The matrix can take many forms, but there are basically three common varieties. Each type represents a different degree of authority attributed to the program manager and indirectly identifies the relative size of the company. As an example, in the matrix of Figure 3-6, all program managers report directly to the general manager. This type of arrangement works best for small companies that have few projects and assumes that the general manager has sufficient time to coordinate activities...

Project Management Growth Concepts And Definitions Ss

2.1 General Systems Management 34 2.2 Project Management 1945-1960 34 2.3 Project Management 1960-1985 35 2.4 Project Management 1985-2003 47 2.6 Systems, Programs, and Projects A Definition 55 2.7 Product versus Project Management A Definition 58 2.8 Maturity and Excellence A Definition 59 2.9 Informal Project Management A Definition 60 2.10 The Many Faces of Success 61 2.11 The Many Faces of Failure 64 2.14 Project Management Methodologies A Definition 75 2.15 Change Management and Corporate...

Grinnell And Apple The Matrix Structure

3-1 Much has been written about how to identify and interpret signs that indicate that a new organizational form is needed. Grinnell and Apple have identified five signs in addition to those previously described in Section 3.630 Management is satisfied with its technical skills, but projects are not meeting time, cost, and other project requirements. There is a high commitment to getting project work done, but great fluctuation in how well performance specifications are met. Highly talented...