Initial Project Coordination

These plans are then reviewed by the group and combined into a composite project plan. The composite plan, still not completely firm, is approved by each participating group, by the project manager, and then by senior organizational management. Each subsequent approval hardens the plan somewhat, and when senior management has endorsed it, any further changes must be made by processing a formal change order. However, if the project is not large or complex, informal written memoranda can...

The Project As Part Of The Functional Organization

As one alternative for giving the project a home, we can make it a part of one of the functional divisions of the firm. Figure 4-1 is the organizational chart for the University of Cincinnati, a functionally organized institution, if U.C. undertook the development of a Master of Science program in Project Management (or perhaps an MPM), the project would probably be placed under the general supervision of the senior vice president and provost, under the specific supervision of the dean of the...

Zero Base Budgeting ZBB

ZBB came into favor in the 1970s as a reaction to the automatic budget increases given year after year to government agencies. As a form of program budgeting, the J' goal of ZBB was to link the level of funding directly to the achievements associated ' with specific programs. As opposed to making incremental changes in programs and their accompanying budget allocations, the philosophy of ZBB is that the fundamental desirability of every program should be reviewed and justified each year before...

I A Ding

IipSJ VHXiV AM) T CTICS iJFCTiWLEMBRri TION Successful project implementation is complex and difficult. Project managers must pay attention simultaneously to a wide variety of human, financial, and tech nical factors and they are often made responsible. for project outcome without being given sufficient authority, money, or manpower. Project-based work tends to be very different from other organizational activities. Projects usually have a specific goal or goals, a defined beginning and end,...

Class Discussion Questions

Explain why goal programming is classified as a scoring model. What is the real difference between profitability and scoring models Describe a model that could fit both categories. Network A group of items connected by some common mechanism. Portfolio A group or set of projects with varying characteristics. Pro Forma Projected or anticipated, usually applied to financial data such as balance sheets and income statements. Programming An algorithmic methodology for solving a particular type of...

Azm

I Job placement and follow-up ,.7 counseling j. Figure 1 Flow chart for skill training and job placement program. put of this model will be that set of individuals which can contribute to the goals of the program. Further, we can include information relating to the degree of contribution of a skill to a task, for example, or information which estimates the degree to which an individual possesses a given skill. To include such information will allow us to find those individuals who will best...

Three Perceptions of Cost

To understand the three perceptions of cost commitments, expenses, and cash flow consider the purchase of a major project component. Assume that a 120,000 compressor with delivery quoted at six months was purchased. Figure 1 depicts the order execution cycle. At time 0 an order is placed. Six months later the vendor makes two shipments, a large box containing the compressor and a small envelope containing an invoice. The received invoice is processed immediately, but payment is usually delayed...

Dept

Plied by a third party and was not only inferior, but incompatible with the rest of the system.) The AGVS includes 16 identical carts, 53 basically identical pallets, about 100 fixtures of either vertical or horizontal design, and about 150 subplates of various designs. Each cart carries a pallet with the work on it to a machine and transfers the pallet onto the machine's shuttle. (The shuttle rotates 180 degrees and can hold two pallets at a time one that is being worked on and the other being...

Summary

This chapter initiated our discussion of the project management process by describing procedures for evaluating and selecting projects. We first outlined some criteria for project selection models and then discussed the general nature of these models. From this basic overview, the chapter then described the types of models in use and their advantages and disadvantages. Considering the degree of uncertainty associated with many projects, a section was devoted to selection models concerned with...

Characteristics of Problem Solving

Let us now consider more specific features of Confrontation, the most effective method of resolving interpersonal conflict. Insights from the present investigation and the writings of others (e.g., Blake, Shepard and Mouton, 1964 Maier. 1963 Maier and Hoffman, 1965) becomes relevant. The following then are characteristics of Confrontation as a method of managing conflict (1) Both people have a vested interest in the outcome. (Examples I, 2, 3, and 4). (2) There is a belief on the part of the...

Mixed Organizational Systems

P pj < f Mllfrt ementiii Practice * firjsler's gjgtfqrm Tepnuio e Cut eveiopment In a bold move, Chrysler has permanently changed the way it will develop cars in the future. Instead of the slow, functional, sequential approach, platform teams representing all functions are directly involved in the design of a new automobile up front. In authorizing the LH-body project, top management's goal was to meet all design objectives performance, weight, fuel economy, quality, cost up front and cut a...

Optimizing Methods

The methods to find an optimal solution to the constrained resource scheduljn problem fall into two categories mathematical programming (linear programme for the most part) and enumeration. In the 1960s, the power of LP improved from being able to handle three resources and 15 activities to four resources and 55 activities. But even with this capacity, LP is usually not feasible for reasonably large projects where there may be a dozen resources and thousands of activities. (See 118 and 41 for...

Improving The Process Of Cost Estimation

At times, clients have been known to give favored bidders a last look at supposedly sealed bids so that the favored bidder can submit a winning bid, often with an unwritten agreement to allow some cost escalation at a later date. There is considerable opportunity for unethical behavior during cost estimation and bidding. Further, estimation and bidding practices vary widely from industry to industry. Finally, there is plain bad luck. Delays occur for reasons that cannot be predicted. Machinery...

Categories of Conflict

All stages of the project life cycle appear to be typified by conflict. In Chapter 4, we discussed some of the human factors that require the PM to be skilled at reducing interpersonal tensions. In that chapter we also introduced the work of Thamhain and Wilemon 29, 30 on conflict in the project. These conflicts center on such matters as schedules, priorities, staff and labor requirements, technical factors, administrative procedures, cost estimates, and, of course, personality conflicts....

Special Demands On The Project Manager

At the inception of the project, the fires tend to be associated with resources. The technical plans to accomplish the project have been translated into a budget and schedule and forwarded up the managerial hierarchy or sent to the client for approval. In an earlier section we noted that some of the budget and schedule is pared away at each successive step up the hierarchy. Each time this happens, the budget and schedule cuts must be translated into changes in the technical plans. Test...

Partnering

Generally, relations between the organization carrying out a project and a subcontractor working on the project are best characterized as adversarial. The parent organization's objectives are to get the deliverable at the lowest possible cost, as soon as possible. The subcontractor's objectives are to produce the deliverable at the highest possible profit with the least effort. These conflicting interests tend to lead both parties to work in an atmosphere of mutual suspicion and antagonism....

Some Requirements And Principles Of Negotiation

However, rejected the recommendations of the prior evaluation and chose to use a more democratic consensus approach between all involved agencies rather than a central authority approach. Doing so avoided the need for arbitration procedures as well. In addition, a matrix structure was put in place to guarantee a veto right to each of the ten governmental departments involved in the process. It was believed that this consensus approach would lead to a solution acceptable to all, while protecting...

Inability to Resolve Conflict

These descriptions of ineffective resolution of conflict indicate that an impressive number of respondents included termination or change of employment of one member in the situation (19 of 53, 26 ). These cases tended to be of two types. The first is represented by Example 8. Here an employee decides to quit because he felt the problem was not resolved in a satisfactory manner. Forcing is likely to be associated with instances of voluntary termination. The second centered around an inability...

Jrgject Mimageinent in Practice

Planning for Public Project Management MJhtauI& e's Siiwirage Kcnoy a lion expansion ln 1977, by judicial and regulatory order, Milwaukee was ordered to renovate and expand their inadequate and outdated sewerage system. To do so would cost over 2 billion, mvolve 27 separate municipalities, and take aPproximately 20 years, all without disrupting existing sewerage services. To date, it has involved 306 construction and procurement Source H. F. Padgham, The Milwaukee Water Pollution Abatement...

Heuristic Methods

Heuristic approaches to constrained resource scheduling problems are in wide, general use for a number of reasons. First, they are the only feasible methods of attacking the large, nonlinear, complex problems that tend to occur in the real world of project management. Second, while the schedules heuristics generate may not be Schedule Name Producing a Video Tape Responsible Project Manager As-ofDate 19-)an-94 8 00am End Date 17-Mar-94 5 00pm

Conflict

More than most managers, the project manager lives in a world characterized by conflict. Projects compete with functional departments for resources and personnel. More serious, with the growing proliferation of projects, is the project versus project conflict for resources within multiproject organizations. The members of the project team are in almost constant conflict for the project's resources and for leadership roles in solving project problems. The four parties-at-interest or...

Critical Path Method

In Chapter 8 we mentioned that CPM is similar to PERT. In the original versions of CPM and PERT there was one important difference CPM included a way of relating the project schedule to the level of physical resources allocated to the project. This allowed the PM to trade time for cost, or vice versa. In CPM, two activity times and two costs are specified, if appropriate, for each activity. The first time cost combination is called normal and the second set is referred to as crash. Normal times...

IiiGEKffcfpiTIj Products Corp

Singer Hospital Products Corp. has done sufficient new product development at the research and development level to estimate a high likelihood of technical success for a product of assured commercial success A long-term antiseptic. Management has instructed Singer's Antiseptic Division to make a market entry at the earliest possible time they have requested a complete plan up to the startup of production. Marketing and other plans following startup of production are to be prepared...

Numeric Models Scoring

In an attempt to overcome some of the disadvantages of profitability models, particularly their focus on a single decision criterion, a number of evaluation selection models that use multiple criteria to evaluate a project have been developed. Such models vary widely in their complexity and information requirements. The examples discussed illustrate some of the different types. Unweighted 0-1 Factor Model A set of relevant factors is selected by management. These are usually listed in a...

Pure Project Organization

Because authority is centralized, the ability to make swift decisions is greatly enhanced. The entire project organization can react more rapidly to the requirements of the client and the needs of senior management. 7. Unity of command exists. While it is easy to overestimate the value of this particular organizational principle, there is little doubt that the quality of life for subordinates is enhanced when each subordinate has one, and only one, boss. 8. Pure project organizations are...

Some Comments On Project Management And The Project Manager

The Functional Manager versus the Project Manager The best way to explain the unique role of the PM is to contrast it with that of a functional manager in charge of one of a firm's functional departments such as marketing, engineering, or finance (see Figure 3-1). Such department heads are usually specialists in the areas they manage. Being specialists, they are analytically oriented and they know something of the details of each operation for which they are responsible. When a technically...

Bibliography

D. Martin. Managing by Project Management. Dayton, OH Universal Technology, 1979. 2. Archibald, R. D. Managing High Technology Programs and Projects. New York Wiley, 1976. 3. Avots, I. Why Does Project Management Fail California Management Review, Fall 1969. 4. Awani. A. O. Project Management Techniques. Princeton, NJ Petrocelli, 1983. 5. Baumgartner, . Project Management. Homewood, IL Irwin, 1963. 6. Benningson, L. 'The Strategy of Running Temporary Projects....

Incidents For Discussion Preferred Widget Company

Larry Cole has been appointed project manager of the Preferred Widget Company's new widget manufacturing process project. Widgets are extremely price-sensitive and Preferred has done a great deal of quantitative work so it can accurately forecast changes in sales volume relative to changes in pricing. The company president, I. R. Widget, has considerable faith in the firm's sensitivity model and insists that all projects that, affect the manufacturing cost of widgets be run against the...

Background

A schedule is the conversion of a project action plan into an operating timetable A j such, it serves as a fundamental basis for monitoring and controlling project activity, and. taken together with the plan and budget, is probably the major tool for tfj . management of projects. In a project environment, the scheduling function is mo important than it would be in an ongoing operation because projects lack the cont& f nuity of day-to-day operations and often present much more complex...

Info

Meeting (unrealistic) deadlines created when deadlines and schedules are unrealistic may be minimized through a project manager's problem finding ability and experience in getting things back on track. What was found underscores the claim that the primary problems of project managers are not technical, but human. Improving project managers' technological capabilities will be helpful only to the extent that this improves their ability to communicate, be organized, build teams, provide...

Human Factors And The Project Team

Such works, however, rarely mention a precondition that greatly eases the process of team formation, mutual dependence required and recognized, though this concept is, perhaps, implied by Katzenbach and Smith's emphasis on the fact that teams (rather than working groups) hold themselves mutually accountable for reaching the team's performance goals 32, p. 112 , Bringing people together, even when they belong to the same organization and contribute their efforts to the same...

Comments On Project Management And The Project Manager

Figure 3-2 Project management organization showing typical responsibilities of a project manager. Figure 3-2 Project management organization showing typical responsibilities of a project manager. find as impossible to know the parts without knowing the whole, as to know the whole without specifically knowing the parts. Adoption of the systems approach is crucial for the project manager. One cannot understand and, thus, cannot manage a project without understanding the organizational program of...

Why Project Management

The basic purpose for initiating a project is to accomplish some goals. The reason for organizing the task as a project is to focus the responsibility and authority for the attainment of the goals on an individual or small group. In spite of the fact that the project manager often lacks authority at a level consistent with his or her responsibility, the manager is expected to coordinate and integrate all activities needed to reach the project's goals. In particular, the project form of...

Incidents For Discussion

George Ertle is the director of engineering for the Bryce Power Tool Company. A decision was made recently to modernize Bryce's entire tool line. The president of Bryce has indicated that he expects the modernization program to result in a significant improvement in design technology. Ertle is concerned with the possibility that his department will not have adequate resources to support the modernization program. Ertle believes he has enough staff to handle the aggregate engineering...

BottomUp Budgeting

In this method, elemental tasks, their schedules, and their individual budgets are constructed, again following the WBS. The people doing the work are consulted regarding times and budgets for the tasks to ensure the best level of accuracy. Initially, estimates are made in terms of resources, such as labor hours and materials. These are later converted to dollar equivalents. Standard analytic tools such as learning curve analysis (discussed in the next section) and work sampling are employed...

Incidents For Discussion Yankee Chair Company

The Yankee Chair Company was anxious to get a new model rocking chair onto the market. Past efforts to introduce new models had resulted in frustrating failures. Jim Ricks, president of Yankee Chair, was determined that it would not happen again with the newest model. He had no confidence in his current management team, so he hired an Dymore, a local consultant, to organize and manage this project. He assigned a Yankee Chair manager, Tom Gort, to work with Dymore to start developing some talent...

Partnering Chartering And Change

Prefects provide ample opportunity for the project manager (PM) to utilize her his skills at negotiation. There are, however, three situations commonly arising during projects that call for the highest level of negotiating skill the PM can muster the use of subcontractors, the development of the project's mission statement, and the management of changes ordered in the project's deliverables and or priorities after, the project is underway. The former probably accounts for more litigation than...

Project Team Continuing Exercise

The project team now is to address the problem of 'dentifying and allocating resources for the project. Flrst, determine what the resource loads are for each activity and what the resource availabilities are. Also determine whether activities can be speeded up by the allocation of additional resources that is, the 51. Sunace, T. A Method of the Optimal Scheduling for a Project with Resource Restrictions. journal of the Operations Research Society of japan. March 1970. 52. Talbot, F. B. Project...

Numeric Models Profit Profitability

As noted earlier, a large majority of all firms using project evaluation and selection models use profit profitability as the sole measure of acceptability. We will consider these models first, and then discuss models that go well beyond the profit test for acceptance. Payback Period The payback period for a project is the initial fixed investment in the project divided by the estimated annual cash inflows from the project. The ratio of these quantities is the number of years required for the...

Chapter Multicultural Environmental and Unsolved Issues

Problems of Cultural Differences Impact of Institutional Environments Multicultural Communications and Managerial Behavior Three Critical, Unsolved Problems Project Management in Practice - A Project Emergency Due to International Politics Project Management in Practice - Energo-project Holding Integrates Two Diverse Cultures to Achieve Project Success Project Management in Practice - Project Management in Brazil During Unstable Political and Monetary Environments

Y Network Techniques Pert And Cpm

With the exception of Gantt charts, to be discussed below, the most common approach to project scheduling is the use of network techniques such as PERT an CPM. The Program Evaluation and Review Technique was developed by the U Navy in cooperation with Booz-Allen Hamilton and the Lockheed Corporation o' the Polaris missile submarine project in 1958. The Critical Path Method was deve-oped by DuPont, Inc., during the same time period. In application, PERT has primarily been used for R & D...

Comments On The Information Base For Selection

Our bias in favor of weighted scoring models is quite clear, but irrespective of which model is chosen for project selection, an annual or computerized data base must be created and maintained to furnish input data for the model. Directions for the ac tual construction of the data base go beyond the scope of this book, but some comments about the task are in order. The use of either scoring models or profit profitability models assume that the decision-making procedure takes place in a...

Incidents For Discussion Tts Candle Company

Candle Company, has just completed a two-day seminar on project management and is anxious to use the new techniques on a recurring problem faced by her company. About 60 percent of T.T.S.'s gross revenues result from the pre-Christmas sale of the firm's major product, XMAS-PAK. XMAS-PAK consists of twelve candles, all of one color and size. There are six different colors available In three different lengths. XMAS-PAK was introduced eight years ago, and sales have...

Material Review Questions

Name and briefly describe the societal forces that have contributed to the need for project management. 2. Why is the project manager often called a super-manager 3. Describe the life cycle of a project in terms of the degree of project completion in terms of required effort. 4. Describe the limitations of project management. 5. List the five main characteristics of a project and briefly describe the important features of each. Risk The chance that outcomes will not turn out as planned....

Subgrantee Termination Action Plan

Objective To complete Measures of Performance Now note that activity f must follow both c and d, but any given activity must fiav S its source in one, and only one node. Therefore, it is clear that c and d, both of whichj must precede f, must conclude in the same node from which f originates. We can now redraw the network, collapsing nodes 4 and 5 (and renumbering them) as irujs. Figure 8-7. f. The action plan does not indicate any further activity is required to complete the task, so we have...

Nonnumeric Models

The Sacred Cow The project is suggested by a senior and powerful official in the organization. Often the project is initiated with a simple comment such as, If you have the chance, why don't you look into . . . , and there follows an undeveloped idea for a new product, for the development of a new market, for the installation of a new decision support system, for the adoption of Material Requirements Planning, or for some other project requiring an investment of the firm's resources. The...

Constrained Resource Scheduling

Shortest Task First Tasks are ordered in terms of duration, with the shortest first. In general, this rule will maximize the number of tasks that can be completed by a system during some time period. Most Resources First Activities are ordered by use of a specific resource, with the largest user heading the list. The assumption behind this rule is that more important tasks usually place a higher demand on scarce resources. Minimum Slack First This heuristic orders activities by the amount of...

Project Selection

Project selection is the process of evaluating individual projects or groups of projects, and then choosing to implement some set of them so that the objectives of the parent organization will be achieved. This same systematic process can be applied to any area of the organization's business in which choices must be made between competing alternatives. For example, a manufacturing firm can use evaluation selection techniques to choose which machine to adopt in a part-fabrication process a TV...

Ineffective Conflict Resolution

Examples 5, 6, and 7 illustrate Forcing methods of conflict resolution. A win-lose situation is set up, and usually the superior wins. The individual with the greater power triumphs (a personalized disagreement) rather than the one whose position is supported by the most factual evidence. 5. In a previous job, 1 worked for a major management consulting group as a consultant. One assignment, lasting four months, was to use a simulation technique to evaluate the most preferable vestment decision...

Other Methods

Two straightforward methods for project scheduling that do not use networks or Gantt charts are employed by some agencies of the U.S. government. The Goddard Space Flight Center develops its project schedules in three phases. Phase I is advanced schedule planning, where the basic project schedule is developed directly from the work breakdown structure. Phase I lists all major elements of the project. This is used for presenting the proposed project to NASA and to the Congress and its many...

Projects in Contemporary Organizations

The past several decades have been marked by a rapid growth in the use of project management as a means by which organizations achieve their objectives. Project management provides an organization with powerful tools that improve its ability to plan, implement, and control its activities as well as the ways in which it utilizes its people and resources. It is popular to ask, Why can't they run government the way 1 run my business In the case of project management, however, business and other...

Estimating Project Budgets

In order to develop a budget, we must forecast what resources the project will require, the required quantity of each, when they will be needed, and how much they will cost including the effects of potential price inflation. Uncertainty is involved in any forecast, though some forecasts have less uncertainty than others. An experienced cost estimator can forecast the number of bricks that will be used to con- struct a brick wall of known dimensions within 1 to 2 percent. (The estimator knows...

Work Breakdown Structure And Tasks

Work Breakdown Structure Chart

Recruit Project Team Establish Organizational Procedures Establish CAO Support Levels and Budget Issue Reports to VP-Tech and Board of Directors Develop S S Goals and Objectives Assemble and Issue Post-S S Report Develop S S Theme Strategize Tracks and SIGs Recruit Technical Program Team Develop Selection Process Committee on Workshops Plan and Issue Call for Papers Panel Discussions Discussions Recruit Moderators Develop and Issue Master Schedule for Presentations Select Printer and...

Project Organization

A firm, if successful, usually tends to grow, adding resources and people, developing an organizational structure. Commonly, the focus of the structure is specialization of the human elements of the group. As long as its organizational structure is sufficient to the tasks imposed on it, the structure tends to persist. When the structure begins to inhibit the work of the firm, pressures arise to reorganize along some other line. The underlying principle will still be specialization, but the...

Criteria For Project Selection Models

We live in the midst of what has been called the knowledge explosion. We frequently hear such comments as 90 percent of all we know about physics has been discovered since Albert Einstein published his original work on special relativity and 80 percent of what we know about the human body has been discovered in the past 50 years. In addition, evidence is cited to show that knowledge is growing exponentially. Such statements emphasize the importance of the management of change. To survive, firms...

Multiproject Scheduling And Resource Allocation

Weist's heuristic (SPAR-1, Scheduling Program for Allocation of Resources) allocates resources to activities in order of their early start times. In the first period, we would list all available tasks and order them by their slack, from least to most. (Calculation of slack is based on the assumption that activities will be supported at normal resource levels.) Activities are selected for support and scheduling one by one, in order. As activities at the top of the list are supported, the...

Y Incidents For Discussion Pritchard Soap Co

Samantha (Sam) Calderon is manager of a project that will completely alter the method of adding perfume to Pritchard Soap's Queen Elizabeth gift soap line. The new process will greatly extend the number of available scents and should result in a significant increase in sales. The project had been proceeding reasonably well, but fell several weeks behind when the perfume supplier, the Stephen Marcus Parfumissary, was unable to meet its delivery deadline because of a wildcat strike. Under normal...

Completing the Limerickuclear Facility under Budget

On lanuary 8, 1990, the Limerick nuclear power generating facility in Pennsylvania began commercial operation, thereby setting a construction record for nuclear facilities. In an era when it is common to hear of nuclear plants that massively overrun their budgets and completion schedules, Limerick was completed eight months ahead of its 49-month schedule and came in 400 million under its 3.2 billion budget. Limerick has truly set a standard for the industry. It was no accident that Limerick was...

Compressing the Critical Path

Every potential opportunity should be considered in the schedule revision process to get the maximum benefit at minimum incremental cost, while incurring minimum additional risk. Evaluate each task to determine its potential for duration reduction and consider altering each precedence relationship then select the most promising, cost effective, combination. Reducing Task Duration The most common and most frequently misunderstood task reduction technique uses additional resources to shorten the...

Mathematical Programming

Mathematical programming 116, 18, 41, 551 can be used to obtain optimal solutions to certain types of multiproject scheduling problems. These procedures determine when an activity should be scheduled, given resource constraints. In the following discussion, it is important to remember that each of the techniques can be appli to the activities in a single project, or to the projects in a partially or wholly interde pendent set of projects. Most models are based on integer programming that...

Building in Contingency

The uncertainty of an activity duration estimate must also be considered in the scheduling process. After all, a schedule is only a plan or model of what is to transpire during project execution, and the quality of the model is only as good as the available information and the experience of the people who prepare the plan. Time estimates are by no means perfect tasks are not always well defined or fully understood and things can go wrong during execution, thus creating a degree of uncertainty...

The Nature Of Project Selection Models

Cost Data-gathering and modeling costs should be low relative to the cost of the project and must surely be less than the potential benefits of the project. All costs should be considered, including the costs of data management and of running the model. 6. Easy Computerization It must be easy and convenient to gather and store the information in a computer data base, and to manipulate data in the model through use of a widely available, standard computer package such as Lotus 1-2-3 . Quattro...

Systems Integration

Evaluation Met iods Every project should be evaluated against standards and by methods established at the project's inception. This section contains a brief description of the procedure to be followed in monitoring, collecting, storing, and evaluating the history of the project. Potential Problems Sometimes it is difficult to convince planners to make a serious attempt to anticipate potential difficulties. One or more such possible disasters such as subcontractor default, technical failure,...

Conflict And The Project Life Cycle

In this section, following a brief discussion of the project life cycle, we will categorize the types of conflicts that frequently occur in the project environment, and then amplify the nature of these conflicts. Finally, we will link the project life cycle with the fundamental conflict categories and discover that certain patterns of conflict are associated with the different periods in the life of a project. With this knowledge, the PM can do a faster and more accurate job of diagnosing the...

Executive Action Required

Because of the great diversity of projects, useful specific rules for project management are virtually impossible to formulate. From the experience of a number of industries, however, it is possible to distill some general guidelines. Guideline 1 Define the Objective Performing unfamiliar activities at a rapid pace, those involved in the project can easily get off track, with the result that many steps of the project may have to be retraced. To minimize this risk, management must clarify the...

Project Phaseout

As in the main program stage, schedule is the major source of conflict during project phaseout. If schedule slippage has occurred in the main program stage and it most certainly will have , the consequences will surely be felt in this final stage. During phaseout, projects with firm deadlines develop an environment best described as hectic. The PM, project team, and functional groups often band together to do what is necessary to complete the project on time and to specification. Cost overruns,...

Y Glossary

Decision Support System A computer package and data base to aid managers in making decisions. It may Include simulation programs, mathematical programming routines, and decision rules. Delphi A formalized method of group decision making that facilitates drawing on the knowledge of experts in the group described in Appendix B of this book . Deterministic Predetermined, with no possibility of an alternate outcome. Compare with stochastic. Expert System A computer package that captures the...

Planning Ajmd Budge

The rapid increase of governmental interest in accountability from its agencies and from organizations using governmental funds has put considerable pressure on such agencies and organizations to develop and execute programs which meet the governmental requirements for accountability. As a response to these pressures, human services organizations have moved toward the adoption of such practices as Management by Objectives. Underlying these managerial methods is the assumption that...

Choosing An Organizational Form

The hybridization of the mixed form leads to flexibility. It enables the firm to meet special problems by appropriate adaptation of its organizational structure. There are, however, distinct dangers involved in hybridization. Dissimilar groupings within the same accountability center tend to encourage overlap, duplication, and friction because of incompatibility of interests. Figure 4-5 illustrates another common solution to the problem of project organizational form. The firm sets up what...

Uncertainty of Project Completion Time

When discussing project completion dates with senior management, the PM should try to determine the probability that a project will be completed by the suggested deadline or find the completion time associated with a predetermined level ol risk. With the information in Table 8-2, this is not difficult. If we assume that the activities are statistically independent of each other, the.11 the variance of a set of activities is equal to the sum of the variances of the indiviQ' ual activities...

The Project Life Cycle

Project Life Cycle Uncertainty

Most projects go through similar stages on the path from origin to completion. We define these stages, shown in Figure 1-2, as the project's life cycle. The project is born its start-up phase and a manager is selected, the project team and initial resources are assembled, and the work program is organized. Then work gets under way and momentum quickly builds. Progress is made. This continues until the end is in sight. But completing the final tasks seems to take an inordinate amount of time,...

Chapter Project Termination

13.1 The Varieties of Project Termination 13.2 When to Terminate a Project 13.4 The Final Report - A Project History Project Management in Practice - Nucor's Approach to Termination by Addition Project Management in Practice - A Smooth Termination-Transition for Suncor's Ontario Refinery CASE I - Cincinnati Milacron Inc. Casting Cleaning CASE II - Beta Company The ZI5 Engine Program A Classic Rtadiiig - Knowing When to Pull the Plug

Demand Forecasts and Scenarios

For this proposal, three scenarios were analyzed in terms of future demand and financial impacts. The baseline Scenario I assumed that the new line would successful. Scenario 11 assumed the lapanese would soon follow and compete successfully with Big Red in this line. Scenario III assumed that the new ''ie was a failure. The sales volume forecasts under these three scenarios are shown in Table 1. There was, however, not a lot of confidence in any these forecasts. In the preceding few years...

Toward Realistic Time Estimates

The calculations of expected network times, and the uncertainty associated withjj those time estimates performed in the preceding sections are based, as we notedA on estimating optimistic and pessimistic times at the .99 level. That is, a is esti-s' mated such that the actual time required for an activity will be a or higher 99 per-sf cent of the time and will be b or lower 99 percent of the time. We then noted, paren-T thetically, that no project managers of our acquaintance are comfortable...

Activity Budgeting vs Program Budgeting

Thus far we have discussed one facet of an organization's philosophy of budgeting. Another facet has to do with the degree to which a budget is activity-oriented or program-oriented, a distinction we have mentioned before. The traditional organizational budget is activity-oriented. Individual expenses are classified and assigned to basic budget lines such as phone, materials, personnel-clerical, utilities, direct la- bor, etc. These expense lines are gathered into more inclusive categories, and...

Questions For Discussion

Firms are more in a layoff mode of operation at such times, not a hiring mode. To hire staff while laying off line workers would certainly anger the employees. But Dave was concerned about other C1M issues as well. For instance, due to the extreme seniority of the employees, the plant would be losing a number of skilled, knowledgeable employees in the next few years. How would he get the needed production information to new workers CIM could be a big help with this problem by capturing the...

The Matrix Organization

Personnel, four individuals from R amp D, and perhaps others not shown. These individuals come from their respective functional divisions and are assigned to the project full-time or part-time, depending on the project's needs. It should be emphasized that the PM controls when and what these people will do, while the functional managers control who will be assigned to the project and what technology will be used. With heavy representation from manufacturing and R amp D, Project 1 might involve...

An Iterative Budgeting Process NegotiationinAction

In Chapter 5, we recommended an iterative planning process with subordinates developing action plans for the tasks for which they were responsible. Superiors review these plans, perhaps suggesting amendments. See also the latter part of Section 5.3. The strength of this planning technique is that primary responsibility for the design of a task is delegated to the individual accountable for its completion, and thus it utilizes participative management or employee involvement . If done correctly,...

Negotiation In Actionthe Quad Sensor Project

Dave Dogers, an experienced project manager, was assigned the project of desij ing and setting up a production system for an industrial instrument. The instrumf would undoubtedly be quite delicate, so the design and fabrication methods for tt shipping container were included in the project. Production of containers capable, meeting the specifications in this case were outside the experience of the firm, bi_. one engineer in the container group had worked with this type of package in a previ'...

Pro jcf anSmcnt in Practice

' ScicctingJ oject iagcrs at'ffliyrelecoin, Inc. The normal approach to selecting project managers for telecommunications projects is to select someone trained in engineering, since this person will undoubtedly have the appropriate technical background. However, GTE Telecom has found that this is an improper utilization of their resources and instead now uses managers trained in project management, free to draw upon engineering resources as needed. This allows their project managers to handle...