The Statement of Work

The statement of work (SOW) is a narrative description of the work required for the project. The complexity of the SOW is determined by the desires of top management, the customer, and or the user groups. For projects internal to the company, the SOW is prepared by the project office with input from the user groups. The reason for this is that user groups tend to write in such scientific terms that only the user groups understand their meaning. Since the project office is usually composed of...

Problems

12-1 Should a PERT CPM network become a means of understanding reports and schedules, or should it be vice versa 12-2 Before PERT diagrams are prepared, should the person performing the work have a clear definition of the requirements and objectives, both prime and supporting Is it an absolute necessity 12-3 Who prepares the PERT diagrams Who is responsible for their integration 12-4 Should PERT networks follow the work breakdown structure 12-5 How can a PERT network be used to increase...

Strategic Business Unit SBU Project management

During the past ten years, large companies have restructured into strategic business units (SBUs). An grouping of functional units that have the responsibility for profit (or loss) of part of the organization' businesses. Figure 3-18 shows how one of the automotive suppliers restructured into three SBUs one Ford, Chrysler, and General Motors. Each strategic business unit is large enough to maintain its own program managers. The executive in charge of the strategic business unit may act as 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,...

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...

Case Studies

Tim Aston had changed employers three months ago. His new position was project manager. At first he had stars in his eyes about becoming the best project manager that his company had ever seen. Now, he wasn't sure if project management was worth the effort. He made an appointment to see Phil Davies, director of project management. Tim Aston Phil, I'm a little unhappy about the way things are going. I just can't seem to motivate my people. Every day, at 4 30 p.m., all of my people clean off...

Life Cycle Phases

Project planning takes place at two levels. The first level is the corporate cultural approach the second method is the individual's approach. The corporate cultural approach breaks the project down into life-cycle phases, such as those shown in Table 2-5. The life-cycle phase approach is not an attempt to put handcuffs on the project manager but to provide a methodology for uniformity in project planning. Many companies, including government agencies, prepare checklists of activities that...

Slack Time

Since there exists only one path through the network that is the longest, the other paths must be either equal in length to or shorter than that path. Therefore, there must exist events and activities that can be completed before the time when they are actually needed. The time differential between the scheduled completion date and the required date to meet critical path is referred to as the slack time. In Figure 12-4, event 4 is not on the crucial path. To go from event 2 to event 5 on the...

The Downside Risk of Project Management

Project management is much too 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 (see Figure 1-6) and then as having to manage the project so that sufficient profits will be made for the stockholders (see Figure 1-7). If the project manager performs well, then the expected result...

Job Classifications and Job Descriptions

Every effort should be made to fit the new classifications for project personnel into the existing standard classification that has already been established for the organization. The first step is to define job titles for various project personnel and their corresponding responsibilities. Titles are very noteworthy. They imply certain re- Job Description Lead Project Engineer of Processor Development Responsible for directing the technical development of the new Central Processor including...

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...

Network Replanning

Once constructed, the PERT CPM charts provide the framework from which detailed planning can be initiated and costs can be controlled and tracked. Many iterations, however, are normally made during the planning phase before the PERT CPM chart is finished. Figure 12-11 shows this iteration process. The slack times form the basis from which additional iterations, or network replanning, can be performed. Network replanning is performed either at the conception of the program in order to reduce the...

The Disaster of Applying the Percent Solution to Project Estimates

Economic crunches can and do create chaos in all organizations. For the project manager, the worst situation is when senior management arbitrarily employs the 10 percent solution, which is a budgetary reduction of 10 percent for each and every project, especially those that have already begun. The 10 percent solution is used to create funds for additional activities for which budgets are nonexistent. The 10 percent solution very rarely succeeds. For the most part, the result is simply havoc on...

Role of the Executive in Planning

Many project managers view the first critical step in planning as obtaining the support of top management because once it becomes obvious to the functional managers that top management is expressing an interest in the project, they (the functional managers) are more likely to respond favorably to the project team's request for support, partly to protect themselves. Executives are also responsible for selecting the project manager, and the person chosen should have planning expertise. Not all...

Selecting the Project Manager An Executive Decision

Probably the most difficult decision facing upper-level management is the selection of project managers. Some managers work best on long-duration projects where decision making can be slow others may thrive on short-duration projects that can result in a constant-pressure environment. Upper-level management must know the capabilities and shortcomings of their project managers. A director was asked whom he would choose for a key project manager position an individual who had been a project...

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...

The Project Organizational Chart

One of the first requirements of the project startup phase is to develop the organizational chart for the project and determine its relationship to the parent organizational structure. Figure 4-12 shows, in abbreviated form, the six major programs at Dalton Corporation. Our concern is with the Midas Program. Although the Midas Program may have the lowest priority of the six programs, it is placed at the top, and in boldface, to give the impression that it is the top priority. This type of...

The Project Office

The project team is a combination of the project office and functional employees as shown in Figure 4-10. Although the figure identifies the project office personnel as assistant project managers, some employees may not have any such title. The advantage of such a title is that it entitles the employee to speak directly to the customer. For example, the project engineer might also be called the assistant project manager for engineering. The title is important because when the assistant project...

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 to only one person, strong communication channels...

Jones and Shephard Accountants

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 the needs of outside customers. By...

Time Robbers

Project managers are not merely managers, but are doers as well. As a result, they suffer from the time robbers of both the managers and the doers. If the project manager is not careful, and overemphasizes his role as a doer rather than a manager, the impact of time robbers may become monumental. The most challenging problem facing the project manager is his inability to say no. Consider the situation in which an employee comes into your office with a problem. The employee may be sincere when...

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 1-17 shows a typical organizational hierarchy (the numbers represent pay grades). Ideally, the project manager should be at the same pay grade as the Figure 1-17. Organizational hierarchy. individuals with whom he must negotiate on a daily basis. Using this...

Pricing out the Work

Logical pricing techniques are available in order to obtain detailed estimates. The following thirteen s provide a logical sequence in order to better control the company's limited resources. These steps may vary from company to company. Step 1 Provide a complete definition of the work 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 Decide...

Structuring the Small Company

Small and medium-sized companies generally prefer to have the project manager report fairly high up in the chain of command, even though the project manager may be working on a relatively low-priority project. Project managers are usually viewed as less of a threat in small organizations than in the larger ones, thus creating less of a problem if they report high up. Organizing the small company for projects involves two major questions Where should the project manager be placed within the...

W mmw m il ww TTYW

Effective project management limited travel. Figure l-l3. Effective project management limited travel. 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 project-driven organization, everything centers around the projects. In the non-project-driven organization, such as low-technology...

Barriers to Project Team Development

Most people within project-driven and non-project-driven organizations have differing views of proji management. Table 5-1 compares the project and functional viewpoints of project management. The differing views can create severe barriers to successful project management operations. Perhaps the most common barriers occur as a result of the need to delegate. The following results, identified by MacKenzie, apply to project management 7 Demand that everyone know all the details I can do it better...

Understanding Superior Subordinate and Functional Conflicts

In order for the project manager to be effective, an understanding of how to work with the various employees who must interface with the project is necessary. These various employees include upper-level management, subordinate project 21 The majority of this section, including the figures, was adapted from Seminar in Project Management Workbook, 1977 by Hans J. Thamhain. Reproduced by permission of Dr. Hans J. Thamhain. SOURCES CONFLICTS OCCURRED MOSTLY WITH HIGH - RELATIVE CONFLICT INTENSITY...

The Staffing Environment

For a full understanding of the problems that occur during staffing, we must first investigate the characteristics of project management, including the project environment, the project management process, and the project manager. Two major kinds of problems are related to the project environment personnel performance problems and personnel policy problems. Personnel performance is difficult for many individuals in the project environment because it represents a change in the way of doing...

Contents

1.1 Understanding Project Management 2 1.2 Defining Project Success 5 1.3 The Project Manager-Line Manager Interface 6 1.4 Defining the Project Manager's Role 9 1.5 Defining the Functional Manager's Role 12 1.6 Defining the Functional Employee's Role 15 1.7 Defining the Executive's Role 16 1.8 Working with Executives 16 1.9 The Project Manager As the Planning Agent 17 1.11 The Downside Risk of Project Management 20 1.12 Project-Driven Versus Non-Project-Driven Organizations 24 1.13 Marketing in...

Rationale and Point Awards

In the answers that follow, your recommendations may differ from those of the author because of the type of industry or the nature of the project. You will be given the opportunity to defend your answers at a later time. a. If you selected the correct priority according to the table on pages 375-376, then the following system should be employed for awarding points b. If you selected the correct accomplishment mode according to the table on pages 375-376, then the following system should be...

Selecting the Organizational Form

Project management has matured as an outgrowth of the need to develop and produce complex and or large projects in the shortest possible time, within anticipated cost, with required reliability and performance, and (when applicable) to realize a profit. Granted that modern organizations have become so complex that traditional organizational structures and relationships no longer allow for effective management, how can executives determine which organizational form is best, especially since some...

Force Field Analysis

Project managers must live in a dynamic environment in which constant and rapid change becomes a way of life. To operate effectively under these circumstances, the project manager must be able to diagnose the situation, design alternatives that will remedy it, provide the necessary leadership so that these changes can be implemented, and develop an atmosphere that helps the employees to adapt readily to these changes. One of the early pioneers in developing theories for managing change was Kurt...

Project Management Bottlenecks

Poor communications can easily produce communications bottlenecks. These bottlenecks can occur in both the parent and client organizations. The most com- mon bottleneck occurs when all communications between the customer and the parent organization must flow through the project office. There are two major disadvantages to this type of arrangement. First, requiring that all information pass through the project office may be a necessity but develops slow reaction times. Second, regardless of the...

Selling Executives on Project Management

Executives of the 1990s are much more inquisitive about matrix implementation than their predecessors were, even though the advantages and disadvantages of matrix structures have been published extensively in the literature. This section deals with questions asked of the author by executives. Usually the executives questioned the author in a closed session, as quite often executives do not wish functional employees to hear either such questions or their answers. In each of these cases, the...

Procedural Documentation

Often communications get filtered and somewhat distorted. For many reasons, agreements in a project environment must be in writing. Project management believes in the philosophy that only what is on paper is really important. Another important facet of any project management system is to provide the people in the organization with procedural guidelines for how to conduct project-oriented activities and how to communicate in such a multidimensional environment....

Pine Lake Amusement Park

After six years of debate, the board of directors of Pine Lake Amusement Park finally came to an agreement on the park's new aquarium. The aquarium would be built, at an estimated cost of 30 million and, between fundraising and bank loans, financing was possible. After the drawings were completed and approved the project was estimated as a two-year construction effort. Because of the project's complexity, a decision was made to have the project manager brought on board from the beginning of the...

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 project management began to grow and as projects became larger and more complex, it became obvious that project managers might need simply an understanding rather...

Introduction to Stress and Burnout

Everyone who works knows that on-the-job pressure is one of the major sources of stress in daily life. Project managers are subject to stress due to several different facets of their jobs. This can manifest itself in a variety of ways, such as 3 The remaining sections are adapted from Mary Khosh and Harold Kerzner, Stress and Burnout in Project Management, presented at the Annual Seminar Symposium on Project Management, sponsored by the Project Management Institute, Philadelphia, October 8-1G,...

The Ill Fated Project

Jeff Pankoff, the chief engineer for National, flew to Southern California to one of National's (tool) plants. Ben Ehlke, manager of the Southern California plant, wanted to purchase a computer numerical controlled (CNC) machining center for 250,000. When the request came to Jeff for approval, he had many questions and wanted some face-to-face communication. The Southern California plant supplied the aircraft industry, and one airplane company provided 90 percent of the Southern California...

Evaluating Functional Employee On Project

8-1 Beta Company has decided to modify its wage and salary administration program whereby line managers are evaluated for promotion and merit increases based on how well they have lived up to the commitments that they made to the project managers. What are the advantages and disadvantages of this approach 8-2 How should a project manager handle a situation in which the functional employee (or functional manager) appears to have more loyalty to his profession, discipline, or expertise than to...

Marketing in the Project Driven Organization

To the realistic manager, winning new concepts is the lifeblood of any project-oriented business. The practices of the project-oriented company are, however, substantially different from traditional product businesses and require highly specialized and disciplined team efforts among marketing, technical, and operating personnel, plus significant customer involvement. Projects are different from products in many respects, especially marketing. Marketing projects require the Figure 1-15....

The Project Sponsor

For more than two decades, the traditional role of senior management, as far as projects were concerned, has been to function as project sponsors. The project sponsor usually comes from the executive levels and has the primary responsibility of maintaining executive-client contact. The sponsor ensures that the correct information from the contractor's organization is reaching executives in the customer's organization, that there is no filtering of information from the contractor to the...

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 a minimum number of projects and assumes that the general manager has sufficient time to coordinate...

Interpersonal Influences

There exist a variety of relationships (although they are not always clearly definable) between power and authority. These relationships are usually measured by relative decision power as a function of the authority structure, and are strongly dependent on the project organizational form. Consider the following statements made by project managers I've had good working relations with department X. They like me and I like them. I can usually push through anything ahead of schedule. I know it's...

Product Versus Project Management A Definition

For all practical purposes, there is no basic difference between program management and project management. But what about product management Project management and product management are similar, with one major exception The project manager focuses on the end date of his project, whereas the product manager is not willing to admit that his product line will ever end. The product manager wants his product to be as long-lived and profitable as possible. Even when the demand for the product...

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. TABLE 2-1. LIFE-CYCLE PHASES FOR PROJECT MANAGEMENT MATURITY Executive...

Effective Project Management in the Small Business Organization

The acceptance of project management in large companies has been relatively easy because of the abundance of published literature identifying its potential pitfalls and problems. The definition of a small project could be Total duration is usually three to twelve months. Total dollar value is 5,000 to 1.5 million (upper limit is usually capital equipment projects). There is continuous communication between team members, and no more than three or four cost centers are involved. Manual rather...

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...

Suggestions for Handling the Newly Formed Team

A major problem faced by many project leaders is managing the anxiety that usually develops when a new team is formed. The anxiety experienced by team members is normal and predictable. It is a barrier, however, to getting the team quickly focused on the task. In other words, if team members are suffering from anxiety, their attention will be consciously or subconsciously focused on resolution of their own anxieties rather than the needs of the project. This anxiety may come from several...

Entrance via project Entrance via driven divisions such marketing as MIS and RDengineering and RD

From hybrid to project-driven. has come to the realization that they can most effectively run their organization on a management by project basis, and thereby achieve the benefits of both a project management organization and a traditional organization. The rapid growth and acceptance of project management during the last ten years has taken place in the non-project-driven hybrid sectors. Now, project management is being promoted by marketing, engineering, and production, rather...

Concurrent Engineering A Project Management Approach

In the past decade, organizations have become more aware of the fact that America's most formidable weapon is its manufacturing ability, and yet more and more work seems to be departing for Southeast Asia and the Far East. If America as well as other countries are to remain competitive, then survival into the twenty-first century may depend entirely on the manufacturing of a quality product together with a rapid introduction into the marketplace. Today, companies are under tremendous pressure...

Understanding Time Management

For most people, time is a resource that, when lost or misplaced, is gone forever. For a project manager, however, time is more of a constraint, and effective time management principles must be employed to make it a resource. 1 Sections 6.1, 6.2, and 6.3 are adapted from David Cleland and Harold Kerzner, Engineering Team Management (Melbourne, Florida Krieger, 1986), Chapter 8. Figure 6-2. Effective time management Figure 6-2. Effective time management Figure 6-3. Effective time management...

Why Martig Construction Decline In 1988

A major government agency is organized to monitor government subcontractors as shown in Exhibit 4-1. Below are the vital characteristics of certain project office team members Project manager Directs all project activities and acts as the information focal point for the subcontractor. Assistant project manager Acts as chairman of the steering committee and interfaces with both in-house functional groups and contractor. Department managers Act as members of the steering committee for any...

Is It Possible For The Wbs To Be Designed So That Resource Allocation Is Easier

11-1 Under what conditions would each of the following either not be available or not be necessary for initial planning 11-2 What planning steps should precede total program scheduling What steps are necessary 11-3 How does a project manager determine how complex to make a program plan or how many schedules to include 11-4 Can objectives always be identified and scheduled 11-5 Can a WBS always be established for attaining an objective 11-6 Who determines the work necessary to accomplish an...

Matrix Organizational Form

Humor Een Project

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...

Total Quality Management Tqm A Project Management Approach

During the past decade, the concept of total quality management (TQM) has revolutionized the operations and manufacturing functions of companies. Previously, we stated that non-project-driven companies (such as those that are primarily manufacturing-oriented) were slow to accept and mature in project management. But today, companies have shown that project management can be used effectively both to support and administer TQM programs. As an example, the Automotive Division of a multinational...

Informal Project Management A Definition

Companies today are managing projects more on an informal basis than on a formal one. Informal project management does have some degree of formality but emphasizes managing the project with a minimum amount of paperwork. A reasonable amount of formality still exists. Furthermore, informal project management is based upon guidelines rather than the policies and procedures that are the basis for formal project management. This was shown previously to be a characteristic of a good project...

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 toward 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...

Selecting the Project Management Implementation Team

The implementation of project management within an organization requires strong executive support and an implementation team that is dedicated to making project management work. Selecting the wrong team players can either lengthen the implementation process or reduce employee morale to a point where the organization will no longer support project management. Some employees may play destructive roles on a project team. These roles, which undermine project management implementation, are shown in...

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) Be multifunctional (i.e., cut across several functional lines) Project management, on the other hand, involves project...

The Communications Breakdown

During the week following the design review meeting Gary planned to make the first verification mix in order to establish final specifications for selection of the raw materials. Unfortunately, the manufacturing plans were a week behind schedule, primarily because of Gary, since he had decided to reduce costs by accepting the responsibility for developing the bill of materials himself. A meeting was called by Gary to consider rescheduling of the mix. Gary Anderson As you know we're about a week...

Administrai ron

Scheduling conflicts often occur with other support departments over which the project manager may have limited authority and control. Scheduling problems and conflicts also often involve disagreements and differing perceptions of organizational departmental priorities. For example, an issue urgent to the project manager may receive a low-priority treatment from support groups and or staff personnel because of a different priority structure in the support organization. Conflicts...

Managing Conflict

Temporary management situations produce conflicts. This is a natural occurrence resulting from the differences in the organizational behavior of individuals, the differences in the way that functional and project managers view the work required, and the lack of time necessary for project managers and functional personnel to establish ideal working relationships. Regardless of how well planning is developed, project managers must be willing to operate in an environment that is characterized by...