Project Management for Business and Engineering This Page Intentionally Left Blank Project Management for Business and Engineering Principles and Practice N D E D I T I O N John M Nicholas Loyola University Chicago Amsterdam Boston Heidelberg Paris San Diego San Francisco London New York Singapore Sydney Oxford Tokyo Elsevier Butterworth–Heinemann 200 Wheeler Road, Burlington, MA 01803, USA Linacre House, Jordan Hill, Oxford OX2 8DP, UK Copyright © 2004, Elsevier Inc All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone: (+44) 1865 843830, fax: (+44) 1865 853333, e-mail: permissions@elsevier.com.uk You may also complete your request on-line via the Elsevier homepage (http://elsevier.com), by selecting “Customer Support” and then “Obtaining Permissions.” Front cover photograph of the Mars rover courtesy NASA/JPL Recognizing the importance of preserving what has been written, Elsevier prints its books on acidfree paper whenever possible ∞ Library of Congress Cataloging-in-Publication Data Application submitted British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library This book was previously published by Pearson Education, Inc ISBN: 0-7506-7824-0 For information on all Butterworth–Heinemann publications visit our Web site at www.bh.com 04 05 06 07 08 09 10 10 Printed in the United States of America To Sharry, Julia, Joshua, and Abigail This Page Intentionally Left Blank CONTENTS Preface xv CHAPTER Introduction 1.1 In the Beginning 1.2 What Is a Project? 1.3 Project Management: The Need 1.4 Response to a Changing Environment 1.5 Systems Approach to Management 1.6 Project Goals 10 1.7 Project Management: The Person, the Team, the System 1.8 About This Book 12 Study Project Assignment 15 MS Project 15 Review Questions 15 Endnotes 16 PART I: PHILOSOPHY AND CONCEPTS 11 17 CHAPTER What Is Project Management? 19 2.1 Functions and Viewpoints of Management 19 2.2 Project Viewpoint versus Traditional Management 21 2.3 Evolution of Project Management 24 2.4 Where Is Project Management Appropriate? 27 2.5 Project Management: A Common Approach in Everyday Business 2.6 Different Forms of Project Management 31 2.7 Project Environments 35 2.8 Project Management in Industrial Settings 36 2.9 Project Management in the Service Sector 40 2.10 Project and Program Management in Government 42 2.11 Summary 45 Review Questions 46 Questions About the Study Project 47 Case 2-1 47 Case 2-2 49 Endnotes 50 29 vii CHAPTER Systems, Organizations, and System Methodologies 3.1 Systems Thinking 51 3.2 Definition of System 52 3.3 Systems Concepts and Principles 53 3.4 Human Organizations 58 3.5 Systems Approach 64 3.6 Systems Analysis 68 3.7 Systems Engineering 74 3.8 Systems Management 76 3.9 Summary 77 Review Questions 79 Questions About the Study Project 80 Case 3-1 81 Endnotes 82 PART II: SYSTEMS DEVELOPMENT CYCLE 51 85 CHAPTER Systems Development Cycle: Early Stages 87 4.1 Systems Life Cycles 88 4.2 Systems Development Cycle 89 4.3 Systems Development Cycle, Systems Engineering, and Project Management 4.4 Constraints in Systems Development 94 4.5 Phase A: Conception 95 4.6 The Project Proposal 106 4.7 Project Contracting 111 4.8 Summary 115 Review Questions 116 Questions About the Study Project 117 Case 4-1 117 Case 4-2 118 Endnotes 118 CHAPTER Systems Development Cycle: Middle and Later Stages 120 5.1 Phase B: Definition 120 5.2 Phase C: Execution 132 5.3 Production/Build Stage 138 5.4 Implementation Stage 141 5.5 Phase D: Operation 143 5.6 Systems Development in Industrial and Service Organizations 144 5.7 Systems Development in Large Government Programs 148 5.8 Summary 151 Review Questions 152 Questions About the Study Project 153 Case 5-1 153 viii Contents 93 Case 5-2 Case 5-3 Endnotes 154 155 156 Part III: SYSTEMS AND PROCEDURES 157 Chapter 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 Planning Fundamentals 159 Planning Steps 160 The Project Master Plan 161 Scope and Work Definition 164 Project Organization Structure and Responsibilities Project Management System 177 Scheduling 177 Planning and Scheduling Charts 179 Summary 184 Review Questions 188 Questions About the Study Project 189 Case 6-1 190 Case 6-2 191 Endnotes 191 Chapter 7.1 7.2 7.3 7.4 7.5 7.6 Network Scheduling and PDM 193 Logic Diagrams and Networks 193 The Critical Path 205 Calendar Scheduling and Time-Based Networks Management Schedule Reserve 217 PDM Networks 217 Summary 222 Review Questions and Problems 224 Questions About the Study Project 228 Endnotes 228 Chapter 8.1 8.2 8.3 8.4 8.5 PERT, CPM, Resource Allocation, and GERT 229 Program Evaluation and Review Technique (PERT) 230 Critical Path Method (CPM) 238 Scheduling with Resource Constraints 244 GERT 253 Discussion and Summary 258 Review Questions and Problems 260 Questions About the Study Project 262 Case 8-1 263 Endnotes 266 Chapter Cost Estimating and Budgeting 9.1 Cost Estimating 269 9.2 Cost Escalation 269 Contents 173 213 268 ix Transport of Group A and Group B subassemblies from the IBC plant to the MPD site will be accomplished in one-half day Agreement for delivery is with Acme Systems Contractor, Co Following are the items identified in the agreement as deliverable to MPD: Item Hardware (Group A): storage racks, 10´ * 15´ * 6´ Installed at site Final structural, functional checkout Delivered 400 shipping containers Installed at site Delivered 1000 size D43A parcel buckets Delivered 600 size D25B parcel buckets Delivered 600 size D12C parcel buckets Overhead track conveyor system (1567´ noncontiguous linear section, 18 crossover points, distribution uniform balance, weld supported at 6˝ intervals) Installed at site Final structural, functional checkout Date Nov 16, 2005 Nov 30, 2005 Dec Dec Dec Dec 1, 2005 10, 2005 10, 2005 10, 2005 Nov 1, 2005 Nov 5, 2005 Hardware (Group B): robot transporter units (each 300 lb max load capacity compatible with three-size parcel buckets, 380 Mh, retrieval at farthest point min.) Installed at site Four unit functional checkout Integration checkout, groups A and B Nov 10, 2005 Nov 12, 2005 Jan 5, 2006 Software Group: Submission of software specifications to CompuResearch Corp (CRC) (Installation of DEM-LAN network, four CRC2950 workstation terminals and CRC4000 server, all performed by CRC) (Software-integration checkout, performed by CRC) Sept 21, 2005 February 10, 2006 March 6, 2006 Final checkout: Two copies, system operation/maintenance manuals Robot-transporter/CRC4000 integration Benchmark systems test, with parcels User training Final system checkout, user 590 Appendix C March April April April April Logistical On-Line System Project Master Plan 6, 2006 1, 2006 5, 2006 12–13, 2006 14, 2006 AUTHOR INDEX A Abbott, J., 50 Adams, J., 32, 50, 501 Adams, M., 476 Allen, J., 118, 191 Allen, T., 501, 502 Alter, S., 553 Archibald, R., 11, 16, 50, 192, 305, 382, 383, 422, 429, 476, 501, 502 Argus, R., 338 Arias, S., 50 Aronstein, D., 326, 339, 476 Ashley, D., 543, 554 Atkins, W., 118, 156, 501 Avots, I., 553 B Bach, J., 156 Bach, S., 501 Baginski, B., 50 Balloun, J., 547, 554 Banta, D., 50 Barber, F., 2, 15 Barndt, S., 50, 501 Beam, W., 83, 562 Beardsworth, A., 532 Beishon, J., 82, 562 Bennis, W., 507, 532 Bernstein, P., 338 Bicknell, B., 476 Bicknell, K., 476 Biggs, C., 118, 156 Billish, M., 50 Birks, E., 118, 156 Bisno, H., 533 Blanchard, B., 76, 82, 556 Blanchard, K., 50, 505, 506, 532 Bluedorn, A., 475 Boguslaw, R., 82, 191 Boucher, W., 82 Boulding, K., 82 Bounds, G., 476 Bradley, T., 50 Bresnan, M., 532 Brooks, F., 267 Brown, J., 382 Bryman, A., 532, 533 Burns, J., 476 Bussey, N., 119 E C F Callon, M., 59, 61, 82 Capodice, D., 50 Carlson, B., 50 Cartwright, D., 501 Chandler, M., 476, 477, 501, 506, 532, 533 Chapman, R., 50, 156, 503, 532 Chase, W., 83, 502, 561 Chestnut, H., 82, 562 Churchman, C W., 82 Clark, C., 266 Clark, K., 462, 476 Clausen, L., 50 Clausing, D., 476 Clayton, E., 267 Cleland, D., 16, 50, 59, 82, 191, 192, 502 Connell, J., 156 Cooke, W., 82 Cooper, A., 156 Cowan, B., 339 Cumba, M., 50 Cummings, T., 533 Cusumano, M., 119, 145, 156, 429, 475, 502 Fabrycky, W., 76, 82, 556 Fazar, W., 266 Fetherson, D., 156, 305 Fiedler, F., 505, 532, 506 Fleming, Q., 382 Ford, J., 532 Frame, J D., 102, 103, 119, 156 French, J P., 501 D Davis, K., 26, 50, 475 Davis, S., 532, 533 DeGreene, K., 83 Delaney, T., 50 DeMarco, T., 339 Denney, E., 382, 412 Dickson, W., 50 Dides, S., 50 Dingle, J., 305, 339 Dorner, D., 339 Dreger, J., 218 Dvir, D., 543, 554 Dyer, W., 514, 532, 533 Eisner, H., 339, 382 Evans, J., 266 G Gaddis, P., 501 George, C., 16 Gilbreath, J., 475 Gilbreath, R., 119, 339 Ginsberg, M., 553 Goldlatt, E., 249, 267, 352, 382 Grady, J., 339, 562 Greers, T., 412 Guimaraes, T., 553 Gunderson, N., 338 H Hall, A., 532 Hamilton, H., 82 Harris, K., 156 Harrison, F., 192, 305, 382 Harrison, J., 50 Hauser, J., 476 Hellriegel, D., 50 Hersey, P., 50, 505, 506, 532 Herzberg, F., 554 Hirsch, W., 119, 156, 569 Hjek, V., 119, 156, 429, 569 Hoag, M., 82 Hodgetts, R., 501 Hoel, K., 382 Hofer, W., 50, 532 Holt, L., 553, 554 591 Hoppleman, J., 382 House, J., 533 Huse, E., 533 J Jang, J., 547, 554 Janos, L., 476, 501 Janson, R., 50 Jaselskis, E., 543, 554 Jenkins, G., 82, 562 Johnson, R., 50, 82, 267 Jones, J., 532 K Kahn, H., 82 Kast, F., 82 Katz, R., 501, 502 Keating, J., 475 Kefalas, A., 82 Keider, S., 553 Kelley, J., 267 Kerzner, H., 16, 191, 266, 267, 305, 502, 545, 554 Kharbanda, O., 339 Khurana, A., 476 Kiel, E., 532 King, W., 16, 50, 59, 182, 191, 192, 502 Klein, G., 547, 554 Klingel, A., 266 Kloman, E., 504, 532 Koziol, J., 50 Krakowski, M., 267 L Lammie, J., 476 Lanagan, A., 50 Larson, J., 50 Lasden, M., 553, 554 Law, J., 59, 61, 82 Lawrence, P., 475, 476, 501, 532, 533 Levine, H., 412 Levy, F., 228, 267, 305, 382 Levy, O., 543, 554 Lewin, K., 548, 554 Lientz, B., 118, 191 Linstone, H., 339 Livingston, J., 454, 476 Lockamy, A., 476 Lorsch, J., 475, 476, 501 Luce, R., 339 Lurie, C., 543, 554 M Malcolm, D., 266 Mandakovic, T., 119 Mann, I., 82 Mantel, S., 16, 50 Martin, M., 32, 50, 501 Mausner, B., 554 592 Author Index Mayo, E., 21 McCann, J., 475 McKillip, J., 119 Mead, S., 412 Meier, R., 267 Meister, D., 118 Meredith, J., 16, 50 Michaels, J., 339 Miller, R., 266, 267, 569 Mitroff, I., 339 Molson, D., 50 Moody, F., 521, 533 Moore, L., 267 Morgan, C., 50, 156 Muirhead, B., 382, 417, 429 Murdock, R., 50 N Nanus, W., 507, 532 Naughton, J., 82, 553 Newell, W., 267 Nicholas, J., 476, 532 Norko, W., 554 O Olson, D., 266 Optner, S., 67 P Palla, R., 412 Paroubek, P., 156 Parsons, T., 82 Pember, M., 50 Peters, G., 82, 553, 562 Peters, T., 452, 475, 476 Petit, T., 64, 82 Petrozzo, D., 50 Pham, T., 382 Piccirillo, A., 326, 339, 476 Pilcher, J., 50 Pinto, J., 339, 554 Pontious, N., 50 Popper, K., 535, 553 Posner, B., 554 Post, D., 50 Potok, C., 16 Prenger, M., 50 Project Management Institute, 267, 412 Q Quade, E., 82 Quick, J C., 533 Quick, J D., 533 R Rabodeay, G., 118 Raiffa, H., 339 Randolph, W., 554 Ranney, G., 476 Rath, G., 82 Raven, B., 501 Reilly, A., 532 Reinertsen, D., 476 Rhodes-Rodriquez, A., 50 Rich, B., 476, 501 Riggs, J., 192 Robert, M., 533 Roethlisberger, F., 50 Roetzheim, W., 339 Rogers, G., 50 Roman, D., 16, 35, 50, 119, 340, 341, 382, 412, 429, 501 Roseboom, J., 266 Rosenau, M., 10, 16, 119, 305 Rosenzweig, J., 50, 82 S Sabbagh, K., 476 Sakac, N., 50 Saladis, F., 50 Sarason, S., 191 Sayles, L., 476, 477, 501, 506, 532 Schmenner, R., 133 Schmidt, W., 533 Schoderbek, C., 82 Schoderbek, P., 82 Schrieber, A., 267 Selby, R., 119, 145, 156, 382, 429, 475, 502 Shafer, L., 156 Shah, D., 476 Shanks, J., 553 Sharad, D., 50 Shenhar, A., 543, 554 Sigurdsen, A., 383 Simon, H., 82 Simon, W., 382, 429 Slevin, D., 554 Slocum, J., 50 Smith, P., 476 Smith, R., 501 Snow, C P., 13, 16 Snyderman, B., 554 Solomon, King, Sonder, W., 119 Stewart, A., 119 Stewart, J., 16, 50 Stewart, R., 119 Stone, D., 305 Survant, T., 476 Szilagyi, A., 50, 382 T Taha, H., 82 Taylor, S., 382 Terraine, J., 16 Thamhain, H., 519, 533 Thomas, R., 475 Thome, P., 67, 82 Thompson, C W., 82, 382 Toffler, A., 34, 50 Tomczak, D., 50 V Vaill, P., 509, 510, 532, VanSlyke, R., 260 Vazsonyi, A., 267 W Walker, M., 267 Warshaw, L., 533 Waterman, R., 452, 475, 476 Weist, J., 228, 267, 305, 382 Wheelwright, S., 462, 476 Whitten, N., 156, 339, 429 Wileman, D., 519, 533 Willard, R., 67, 82 Williams, J., 533 Wilson, T., 305 Wolff, M., 554 Wood, M., 50 Y Yorks, L., 476 Yourdan, E., 156, 339 Z Zander, A., 501 Wakabayashi, H., 339 Wall, W., 553, 554 Author Index 593 SUBJECT INDEX A Academy Awards, 488 Accepting risk, 323 Action plan, 418–419 (illus.), 418 Activity (See also Work task; Work packages) contingency, 279 critical, 206, 211 detail level, 203–204 dummy, 198–201 duration time, PERT, 231–232 interruptible, 218 network, 194 noncritical, 211 on-arrow, 196–198 on-node, 194–196 redundant, 201–203 resources per, 245–246, 251 split, 246, 252 Activity on arrow (AOA) , 196–201 (illus.), 198–202 AON, comparison, 204 PDM, comparison, 220–221 scheduling with, 208–212 Activity on node (AON), 194–196 (illus.), 194, 196, 197 AOA, comparison, 204 PDM, comparison, 220–221 scheduling with, 212–213 Actual cost of work performed (ACWP), 356–358, 360–361 Ad hoc committee, 34 Air Force, Australian, 61 Air Force, U.S., 151, 325, 453, 462 Alexandria, Queen of Russia, 484 Alternatives, in project feasibility study, 105 in systems analysis, 70 Aircraft development projects, examples, 59–62, 460 Ames Research Center, 434 Analogy estimate, 275–276 Analogy for risk identification, 309–310 Analysis model, 70 Analysis of solution, 120 Analysis in systems analysis, 71–72 594 Apollo Space Program, 9, 32 Artemis, 400 (illus.), 403, 404 AT&T, 463 Attributes of system, 53 Authority gap, 484 as influence, 483–484 project manager’s, 484–486 traditional sources, 483 Avoidance of risk, 320, 325 B Bar chart (See Gantt chart) Base estimate, 279 Basic project management, 31–32 Behavioral viewpoint of management, 21 Bhopal, India, accident, 318 Bidders list, 98 “Bloatware,” 135–136 Block flow diagraming, 132, 558–559 (illus.), 558 Boeing Corp., 407, 470 design-build teams, 460 matrix organization, 445, 447 777 aircraft, 460 Bonus payment, 243–244 Booz, Allen, Hamilton, 230 Borglum, Gutzon, 479–480 Boundary of system, 53–54, 58 Brainstorming, 311 Breadboard, 322, 339, 559 British Aircraft Corp., 60–61 Budget reserve, 270, 354 Budgeted cost of work performed (BCWP), 356–359, 360–361 Budgeted cost of work scheduled (BCWS), 356–359, 360–361 Budgeting with PMISs, 387 Budgets and cost accounts, 286–288 vs cost estimates, 281 elements of, 281–284 feasible region, 294 in planning process, 160 Buy in, 269 C Cash flow, 299–300 (illus.), 300 Cause-and-effect diagram, 311–312 (illus.), 311 Challenger space shuttle, 536 Change impact of, 372 project failure, factor in, 541 reasons for, 372–373 Change agent, project manager as, 479 Change clause, 271 Change control, 349, 371–375 board, 374, 440 management function, 20 system, 271, 373–374 Change request document, 374 (illus.), 375 process, (illus.), 374 in systems development, 457 Central Limit Theorem, 265 Channel Tunnel (See English Channel Tunnel) Charismatic authority, 483, 486 Charts expense, 179–182 (illus.), 184 Gantt, 179–182 hierarchy of, 182 (illus.), 185 performance, 414 Checklist, risk, 310, 312–313 (illus.), 310, 313 Chernobyl accident, 319 Chrysler Corp., 463, 470 Classical viewpoint of management, 20 Commerce Business Daily, 98 Commitment in effective teams, 509 in successful projects, 543–544 Communication hub, project manager as, 478 informal, 452 PMISs for, 388 in project failure, 539–540 in risk management, 324 in successful projects, 546, 547 Completion date constrained resource, 248 estimated, 365–369 expected, 205–207, 211–212, 220–221 multiple-project, 253 simulated, 235–236, 332 target, 211–212 probability of meeting, 233–234 Complexity, risk due to, 309 (illus.), 313 Composite impact factor, 315–316 Composite likelihood factor, 313–314 Computer-based PMIS tools and systems, 385–389 web-based, 405–407 Conception phase conflict during, 519–520 cost estimating during, 269, 273 identifying risk during, 308 PMIS, role in, 407 in systems development cycle, 91–92, 95–115 Concorde airliner, 270 Concurrency, risk due to, 309 (illus.), 313 Concurrent engineering, 71, 458–463 Configuration management, 271, 349, 373–374 Conflict consequences, 520–521 contract inspired, 518 intergroup, 515–516 managing, 521–523 team methods, 523–525 project life cycle, sources during, 519–520 (illus.), 519 project organization, within, 518–519 subsystems, between, 56 team, 508, 514–515, 520–525 user-contractor, 518 Confrontation, 522 Constraints project, 104, 371 resource, 244–245, 248–252 system, 56, 66 in systems analysis, 70 in systems development, 94 Construction projects, 112 management relationships (illus.), 455 project management of, example (illus.), 24 Consultant, team building, 511–512 Contingency on final payment, 424 fund, 270–271, 273–274, 278, 279 triggers, 312 types of, 279 Subject Index Contingency approach to management and leadership, 21, 505 Contingency planning, 323, 324 Contract closing, 423–424 cost escalation, influence of, 272–273 cost plus, 237, 518, 563, 565–566 fixed price, 237, 518, 563–566 incentives, 243–244, 566–568 kinds of, 113 negotiated adjustment to, 423–424 negotiating the, 113–114 and phase of project, 274 and proposal, 107 release, 346 and risk, 319–320 sign-off, 424 statement of work, 114–115 variables in, 563–564 work package, 171 Contract administration, 112, 139–140, 375–376 Contract administrator, 492 Contracting environment and process, 111–112 parties involved, (illus.), 112 subcontracting, 112–113 Contractor associate, 454–455 conflict with user, 518 contracting process, role in, 111–114 in feasibility stage, 97 final involvement in project, 142–143 integration, 45 lead or prime, 454–455 in project planning, 128–129 in proposal preparation, 98, 106–107 in requirements definition, 121 risk exposure from contracts, 564–567 and system objectives, 124 systems development process, role in, 91–92 systems engineering, role in, 556 Control (See also Project control) cost, 342–343, 356–357 management function, 20 vs planning, 341 problems of, 376–377 process, 340–341, 345–349 quality, 349–350 schedule, 350–356 scope change, 349 Conversion, system, 142 Coordination, from project office, 451 Coordinators, 26, 441–442 (illus.), 442 Cost (See also Project cost) actual, 563 control, 342–343, 356–357 PMISs, 387 escalation, 269–270 causes of, 270–273 estimates reconciling, 280 work package, 171 estimating, 269 process and methods, 274–281 standards, 278 in systems development process, 273–274 recurring vs nonrecurring, 275 reducing, 280–281 schedules, 293–300 summaries, 288–292 target, 563 variance, 358–359, 370–371 limits, 370–371 (illus.), 370, 371 Cost accounting system, 343–345, 347 Cost accounts 173, 177, 286 aggregation of, 289, 291 control of, 344–345 WBS, integration within, 287–288 (illus.), 288 and work packages, 288–289 Cost analysis, 356–357 early and late times, 293–299 net worth of late start, 299 Cost engineering estimate, 276–279 Cost performance index, 360–361, 369–370 Cost plus contract; cost plus fixed fee contract, 237, 320, 518, 563, 565–566 Cost plus incentive fee contract, 556 (See also Incentive contracts) Cost sharing ratio, 564, 566–567 Cost slope, 239 CPM, 25, 238–244 critical activities, 206 history of, 238 reducing project duration, 239–240 time-cost relationship, 238–239 Crash time-cost, 238–239 Criteria in multiple incentive contracts, 567–568 in systems analysis, 70 Critical chain, 249 (illus.), 250 Critical design review, 416, 417 Critical path (See also CPM), 205–213 (illus.), 207–209 activities, 206 multiple, 207 near critical, 233–234 vs non-critical paths, 242 project duration, reducing, 239–240 Critical Path Method (See CPM) Crystal Ball, 237–238, 267 595 C/SCS, 25 Customer (See also User) needs, QFD treatment of, 466 reports for, 420 risk exposure from contracts, 564–567 in systems engineering, 556 Customer differentiation, 437 Customer liaison, 493 D Data collection, 347–349 Decision maker, 53, 71 Decision tree, 329–330 Defects in management process, 536 quality, 131 Definition phase conflict during, 519–520 cost estimating in, 273, 274 PMIS role in, 407–408 project failure, source of, 540 and project planning, 159 project success, factor in, 546 of systems development cycle, 92, 120–131 in systems engineering, 75 Delta Airlines, 452 Delta flood control project (Netherlands), 124, 452 Department of Defense, U.S (See DOD) Dependency, risk due to, 309, 313 (illus.), 313 Design, 92 complexity, 133–134, 136 control of, 136–137 costs (illus.), 137 detailed, 75, 559–560 freeze, 137 functional, 132 (illus.), 133, 134 interaction, 135–136 margin, 321–322 off-the-shelf, 274 preliminary, 75, 557–559 reviews, 136 stage, 132–138 in systems development cycle, 92, 120–131 in systems engineering process, 75 Design-build, 134, 460, 512 Design to cost, 124 Design to X, 124 Differentiation, organizational, 436–437 Digital Equipment Company, 463 Direct labor expense, 281 Direct nonlabor expense, 282 Direction-provider, project manager as, 478, 481 Director, motion picture, 488 Documentation postinstallation review, 427 of present system, 104 596 Subject Index for risk identification, 326 summary report, 426 Document-sharing tools, 406–407 DOD, 25, 151 DOD/NASA, 171, 344 Dummy activity, 198–201 DuPont Corp., 25 E Earned value, 25, 343, 345 (See also Budgeted cost of the work performed) Economic and social causes of cost escalation, 271–272 Einstein, Albert, 535 Elements of systems, 53, 62, 66, 67 E-mail, 407 Emotional stress (See Stress) End-item, 137 vs side-items, 423 English Channel Tunnel (Chunnel), 3, 133–134, 304–305, 443, 452 Enhancement, system, 424 Entrepreneur, project manager as, 478 Entry conditions, 130–131 Environment project, 35–36 system, 53–54, 66 “Environmental problem,” 59 Epcot, 27 ERP system, 441 Escalation cost, 269–273 provision for, in contract, 564 Estimate vs budgets, 281 elements of, 281–284 reconciling, 280 Estimate at completion (EAC), 365–366 Estimating, cost, 269 bottom-up vs top-down, 280 methods, 275–279 process, 274–281 project failure, source of, 540 in systems development cycle, 273–274 Estimator, professional, 272 Evaluation (See also System evaluation) formative, 414 summary, 414, 424–427 system, 77 in systems engineering, 560–561 Evangelist, project manager as, 478, 496 Event, 163, 194 defined, 177–178 (illus.), 178 interface, 178 milestone, 178 origin, 198 terminal, 198 Event-oriented networks, 204 Execution phase conflict during, 519–520 cost estimating during, 273, 274 PMIS, role in, 408–409 and project control, 159 of systems development cycle, 92, 132–142 Expectation theory of conflict, 522–523 Expectations of team members, 514 Expected completion time/cost, 328–329, 355 Expected payoff, 332 Expected value decision tree, (illus.), 330 of risk consequence, 317, 327–329 Expeditor, project, 26, 440–441 (illus.), 441 Expert power, 483, 486 External control, 342, 565 External risks, 309 Exit conditions, 131 Expense direct labor, 281 direct nonlabor, 282 material, 299–300 overhead, general, and administrative, 282–283 weekly and cumulative, 293–299 Expert opinion estimate, 275 Extranet, 406 F Failure causes of, 536–542 criteria, 535–536 (illus.), 536 from lack of planning, 161 likelihood of, 312–315 in project termination, 421 risk of, 307 vs success, 542 Failure report, 418–419 Fast tracking, 93, 134 Feasibility stage, 96–98, 104 (illus.), 97 Feasibility study, 102–106 in proposal, 106, 107 in systems engineering, 557 Feasible budget region, 294 (illus.), 298 Fee, 563 Fee swing, 567–568 Feedback, system, 56, 58 Field manager, 493 Firewall, 406 Fixed price contract, 237, 518, 563, 564 Fixed price incentive fee contract, 567 Fixed price with redetermination contract, 564–565 Float (See Slack) Flow diagram, functional block, 558–559 (illus.), 558 Flowchart, process, 311 Force field analysis, 548–550 (illus.), 548 Forces, facilitating and restraining project success, 548–550 Ford Motor Co., 463 Forecast, project expenditures, 160, 293–300 Forecast to complete (ETC), 365–369 (illus.), 366 Foreign currency, 305 Functional area representatives, 493 differentiation, 436–437 managers, roles, 420, 494, 496 (illus.), 497 Functional readiness review, 416 Functional requirements, 124 Functions, system, 557 G Gantt, Henry L., 179 Gantt chart, 25, 163, 179–184 (illus.), 179–181, 186, 187 advantages, 181 disadvantages, 182, 184 hierarchy of, 182 (illus.), 185 vs networks, 215 preparing, 180 showing work status, 347 General and administrative expense (G&A), 282–283 General Motors Corp., 443, 463 Geographic differentiation, 436 GERT, 25, 223, 253–258 network, (illus.), 257 nodes, 254–255 (illus.), 254–255 vs PERT/CPM, PDM, 253–254 Global system, 59–62 Goals, 547 (See also Objectives; Project goals) Graphical evaluation and review technique (See GERT) Great pyramids of Egypt, 1–2, (illus.), Group (See also Team) cohesiveness, 510 norms and process issues, 511 productivity software, 406–407 Groupthink, 520 H Hazard, 308 (See also Risk) impact of, 315–316 Herzberg, Frederick, 542, 553 Hewlett Packard Corp., 452, 461, 463 Hierarchy management, 63 (illus.), 64 system, 55, 58 Hillel, 551 Subject Index House of quality, 463–467 example, (illus.), 464–465 HTML, 380, 405 I IBM Corp., 26 Impact, risk, 307, 315–316 Implementation planning for, 140–141 in successful projects, 547–548 in system development, 92, 141–143 Incentive contracts, 243–244 cost plus incentive fee, 556 fixed price incentive fee, 567 multiple incentives, 567–568 (illus.), 568 Inflation, cost, 271–272 Influence diagram, (illus.), 314 Information, project monitoring, 341–342 Information systems, 385 (See also PMIS) Initiation of project, 91, 95–96, 161 Inputs, system, 56 Installation project, example, 38–39 Integrated project plan, 468–470 Integration in large-scale projects, 452–455 in organizations, 436–437 project, 438–439 project manager’s role, 441, 478, 481 project office function, 451 of project phases and functions, (illus.), 456 system, 57, 453–455 in systems development projects, 456–458 (See also Concurrent engineering; Quality function deployment) Integration contractors, 453–455 Integrators, 439 Interaction design, 135–136 Interactive development cycle, (illus.), 127 Interdepartmental teams (See Teams, cross- or multi-functional) Intergroup conflict resolution, 524–525 problem solving, 515–517 Internal review, 417 (See also Review meetings; Reviews) Internal risks, 308–309 International space station, 3, 4, (illus.), major components, (illus.), 453 Internet, 388, 405, 406–407 Internet Explorer, 400, 405 Intranet, 388, 405, 406–407 Investigation, initial, 96 Invitation to bid (See RFP) J Jet Propulsion Laboratory, 417, 434 Johnson, Kelly, 485–486 L LaGrande hydroelectric complex (Quebec), 444, 452 Large-scale projects, integration in, 452–454 relationships (illus.), 453 Leadership approach, style, 504–505, 507 contingency, 505 in effective teams, 509 participative, 505–507 situational, 505 management function of, 20 Learning sources past projects, 163 summary evaluation, 424–425 Legal authority, 483 Letter of interest or intent, 91–92 Level of effort, 344 Levi Strauss Co., 452 Lewin, Kurt, 548 Liaison roles, 439 (illus.), 440 Life cycle costs, 457–458 (illus.), 458 Likelihood, risk, 307, 312–315, 316, 318, 325, 338 Loading and leveling resources, 245–248 Lockheed (Lockheed-Martin) Corp., 325 matrix organization, 445 Polaris program, 230 project managers, examples, 485–486 systems development at, 461–462 Logic diagram, 193–194 (illus.), 194 M Maintenance, 143–144 Management conflict, 68, 521–523 functions of, 19–20 (illus.), 20 stress, 526–528 systems, 68, 76–77 systems approach to, 64–65 viewpoints of, 20–21 Management information system, 385 (See also PMIS) Management by project, 29 Manager of projects, 446, 494–495 (illus.), 497 Managerial competency of project manager, 482 Manhattan Project, 7–8, 10, 50 Margin, requirements, 122–123, 321 Market risk, 308 Mars Climate Orbiter, 531–532 Mars Pathfinder Mission, 7, 10, 354–355, 417–419 (illus.), 354 Marshall Field’s, 47, 48 597 Master plan (See Project master plan) Matrix manager, 26, 446 Matrix organization, 26, 444–447, 448–449 (illus.), 445 Maturity and immaturity, project, risk from, 309, 313 (illus.), 313 Maximax criterion, 331 Maximin criterion, 331 MBWA, 452 Meeting room, 419 Microsoft Corp postmortems, 426 product launch, 355–356 project manager training, 490 project organization, 449 project vision statement, 95 software development, 145–146 team conflict, example, 521 Microsoft Office, 390 Microsoft Project, 15, 389–390 (illus.), 216, 391–392 Milestones, 163, 194, 177–178 Minimax criterion, 331 Mitsubishi Kobe shipyards, 463 Models, production, 562 Models and modeling, 69 Monitoring function of, 341 information, 341–342 performance indices for, 369–370 of risk, 324 Moses, leadership of, Motivation, 505, 506–507 Motorola Corp., systems development at, 461–462 Mount Rushmore National Monument, 479–480 (illus.), 479 Multiple incentive contract, 567–569 (illus.), 568 Multi-project management, 388, 400 organizations, 445 scheduling, 253 Multi-tasking, 350–351 (illus.), 351 N Napoleon, 325 NASA Apollo space program, 9, 32 Climate Orbiter spacecraft, 531–532 cost overruns, 270 Mars Pathfinder mission (See Mars Pathfinder mission) organization, (illus.), 44, 435 planetary exploration program, example, 148–150 problem failure report, 418 program office, 452 teamwork, 504, 510 National Park Service, U.S., 42–43 598 Subject Index Navy, U.S., 230 Needs definition process, 102–103 in systems engineering, 555–556 troublesome aspects, 103–104 Negotiation, contract, 113–114 Netscape, 405 Network, 55, 193–205 activity-on-arrow, 196–201 activity-on-node, 194–196 constrained resource (See Resource planning) CPM method, 238–244 creating a, 205 criticism of methods, 221–222 detail level, 203–204 (illus.), 203 event-oriented, 204 vs Gantt chart, 215 GERT method, 253–258 PDM, 217–222 PERT method, 230–238 time-based, 213–215 Network-based planning, 25 and PMISs, 387 New venture management, 33–34 Newton, Sir Isaac, 535 Node (See Activity on node) Node, branching, 254–255 Normal distribution, table, 234 Normal time-cost, 238–240 Normandy Invasion, 4–5, 26 O Objectives in effective teams, 510, 514 in planning process, 160 project, 270 system, 55, 66, 124–125, 557 in systems analysis, 70 in systems engineering, 74 Office of projects, 451 reports to, 419, 420 Omark Industries, 463 Open system, 58 Operation phase in systems development cycle, 92–93, 143–144 in systems engineering, 77 Oracle, 389, 400 Oral reports, 415 Organizational design, 434–438 Organizations, 58–63 (See also Project organizations) formal, 434–452 informal, 451–452 as open systems, 58 organic, 438 project, 438–452 vs traditional, 23 properties of, 62–63 traditional forms of, 436–438 Organizing, management function, 19–20 Outputs, system, 56 Overhead expenses, 282 allocation in projects, 344–345 direct vs indirect, 283 Overrun allowance, 279 P Parametric estimate, 276 Pareto optimum, 247 Partial project, 443, 444 Participative management, 505–507 Payoff table, 330–332 PDM vs AOA and AON, 220 relationships, 217–219 (illus.), 218, 219 Peer review, 416, 417 Penalty charge, 243–244 Percent complete, 343 Performance, project, 356–365 evaluation of, 414–415 and PMISs, 387 indices, 356–362 measurement of, 88, 346, 348 review meetings, 415 standards, 341 technical analysis, 349, 363–365 to-date, 341 Performance target, contract, 567–568 PERT, 25 completion date probability, 232–233 criticism of, 237–238 history, 230 in risk analysis, 317–318 simulating, 235–236 three-time estimates, 230–233 PERT/Cost systems, 343–344 PERT/CPM, 230, 253, 258, 343 Phased project planning, 93, 270 Physical layout, office, 452 Plan (See also Project master plan) action, 418 risk management, 324, 325 for teamwork, 511, 514–515 Planning (See also Project planning) contingency, 323 vs control, 341 as management function, 19 network usage in, 205 risk response, 319–320 Planning and control process, 159 project failure, cause of, 539–541 role of WBS, 170–171 role of work package, 173 PMIS, 63, 177, 285, 415, 420 computer-based, 385–386 definition of, 384–385 features, 387–389 functions of, 385, 389 project, fitting to, 410–411 in project life cycle, 407–410 software, popular, 389–405 web-based, 405–410 Polaris missile program, 230 Popper, Karl, 535 Postcompletion project review, 425–426 Postcompletion project summary, 143, 163, 425–426 for risk identification, 309–310 Postinstallation system review, 143, 426–427 Postmortem, project, 146, 425–426 Power, managerial, 483–484, 486 Precedence, 193–194 Precedence diagraming method (See PDM) Predecessors, 195 immediate, 195–196, 199, 201, 205 redundant, 201, 203 Preliminary design review, 416 Price, project, 563, 564–568 Primavera, 390 (illus.), 398–399, 401–402 Priority resource, 247 risk, 318–319 scheduling, heuristics for, 251–252 team members’, 414 Probabilistic analysis in GERT, 254–258 in PERT, 232–234 simulation for, 235–236 Probability distribution beta, 231–233, 238 normal, 233–234 vs likelihood, 338 of output, 254–255 of target completion date, 232–233 Problem formulation in project feasibility, 105 in systems analysis, 71 Process, system, 56 Process design, 560 Process differentiation, 437 Process flow diagram, 25 schematic (illus.), 104 Procrastination, work, 351 Proctor & Gamble Corp., 463 Procurement management, 97 Producer, motion picture, 488 Product development (See also Systems development) conflict during, 521 interaction design, 135–136 organization at Microsoft, 449 projects, examples, 8, 36–37, 145 QFD use at Chrysler, 469–470 Product differentiation, 437 Product management, 35 Product readiness review, 416 Production capability, 560 planning for, 137–138 Production/build in systems development, 138–141 Production/fabrication, 75, 92 Productivity software, 406–407 Subject Index Profit and billing, 238 Program examples, 33, 42–45 (illus.), 33 vs project, 50 in systems development cycle, 90 Program evaluation and review technique (See PERT) Program management, 32–33 examples, 42–45 Program manager, 45 reports, 420 Program office, 451 Project (See also individual subjects, e.g.: Project accountant; Project audit; etc.) antiquity, examples, 1–3, 24–25 authority, sources of, 484–486 (illus.), 485 budget (See Budgets) characteristics, 4, 22 contingency amount, 279 duration, 205–207, 220–221 reducing, 238–240 shortest, 240–242 evaluation, 414–415 examples, familiar, 4–9, 30–31, 36–45 extensions, 424 failure, 535–542 force-field analysis, 548–550 (illus.), 549 functional managers and leaders, 493–494 internal conflict, 518–519 meeting room, 419 vs nonprojects, 5, 7, 25 postcompletion review, 426–427 review meetings, 415–419 risky, 307 success, 542–548 summary evaluation, 424–427 systems nature of, ignoring, 539 termination, 420–424 typology of (illus.), Project accountant, 269, 493 Project audit, 417–418 Project center, 443 Project champion, 495–496 Project charter, 160 Project close-out (See Termination) Project control change control, 371–375 and contracts, 375–376 emphasis, 349–356 failure, source of, 541 forecasting to-complete, 365–369 index monitoring, 369–370 internal vs external, 342 performance analysis, 356–365 PERT/Cost systems for, 343–344 problems with, 376–377 process, 345–349 subsystem, 63 success, factor in, 547 variance limits, 370–371 Project controller, 492 Project coordinator, 26, 442, 493 Project cost direct, 238–242 indirect, 242–243 optimum, 243 overhead, 282–283, 433–345 Project cost accounting system (PCAS) 284–286, 420 (illus.), 285 and cost accounts, 286–287, 290 Project contracting (See Contracting) Project engineer, 491–492 Project expeditor, 26, 440–441 Project feasibility (See Feasibility) Project form, selection of, 447–449 (illus.), 448 Project goals: time, cost, technical performance, 5, 10, 88 (illus.), 10 Project initiation, 91, 95–96 Project initiation, proposal, and authorization process, 115 (illus.), 115 Project integrators, 439 Project life cycle, 87, 90 conflict, sources within, 519–520 (illus.), 519 managing, 88–89 PMIS applications during, 407–409 (illus.), 408 risk during, 307–308 Project management in aircraft development, example, 59–62 applicability of, 27–29 in auditing, example, 40–41 commercial and for-profit, 35 as a common approach, 29 computer-based applications, 386–389 (See also PMIS) in disaster recovery, example, 47–48 environments of, 35–36 ethical conduct in, 551 failure, causes of, 537–542 (illus.), 537 features of, 11–12, 22–24 forms of, 31–34 in fundraising, example, 42 getting started, 551 government and nonprofit, 35 history, 24–26 in industrial settings, 36–40 in management consulting, example, 41–42 in manufacturing, example, 39–40 military, 35–36 misuse of techniques, 539 need for, 7–9 philosophy, 12–13 in R&D, example, 39–40 as risk management, 323–326 in service sector, example, 40–42 in small projects, example, 40 software, 25 (See also PMIS) success, causes of, 543–548 (illus.), 543 599 in systems development cycle, 92 Project management (cont.) vs traditional management, 21–24 vertical-horizontal integration in, 11–12 (illus.), 12 web-based, 405–407 Project Management Forum, 411 Project management information system (See PMIS) Project Management Institute, 411 Project Management Software Survey, 411 Project management system, 11–12, 63–64 elements, 177 example, 59–62 Project manager, 11, 22, 31 authority, sources of, 483–486 (illus.), 483 competency and orientation, 481–482, 488 controlling design, 136–137 design stage, role in, 135 first appearance, 26 in government, 42–45 integrator role, 441, 446 job responsibilities, 481 (illus.), 497 leadership of, 504–507 in matrix projects, 445–446 personal characteristics, 486–487 project failure, source of, 538–539 project success, factor in, 545, 547 proposal preparation, role in, 106 in pure projects, 443 reports to, 420 review meetings, role in, 416 role, 478–480 examples, 36–45 moving into, 490 ways of filling, 490–491 selection, recruiting, 488 skills, 487–488 termination, responsibilities during, 422–423 training, 489–490 types of, 26–27 Project master plan, 92, 160, 161–163 contents, 129, 161–163 example, 570–590 preparing, example, 162–163 side items, 423 Project net worth, 299 Project office, 419, 450–452 (illus.), 450 example, 36 members in, 491–493 (illus.), 493 Project organizations (see also Organizations) in planning process, 160 structure of, 173, 177 WBS, integrating with, 173 (illus.), 174 Project performance (See Performance) 600 Subject Index Project planning charts, 179–184 fundamentals, 159–188 for implementation, 140–141 PMIS, example, 409–410 process, 128–129 for production, 137–138 project failure, source of, 540 project success, factor in, 546–547 with QFD, 466–470 and scheduling, 179–184 steps, 160 tools, 163–164 Project organizations (See also Organizations) coordinators and expeditors, 440–442 integration, 438–439 liaisons, task forces, teams, 439–442, 449 matrix, 444–447, 448–449 project office, 450–452 pure project, 442–444, 446–449 requirements, 438 selecting a form, 447–449 Project proposal (See Proposal) Project release, 346 Project risk (See Risk) Project schedule, 177 (See also Scheduling) master, 178 in planning process, 160 task, 178–179 Project Scheduler, 390 (illus.), 393 Project scope of work (See scope of work) Project summary (See Postcompletion project summary) Project system, vs global system, 59–62 Project teams, 11, 31, 92 (See also Teams) building new, 513–515 effective, 508–510 groups comprising, 507–508 improving, 510–513 roles in, 491–494 (See also Team) Project viewpoint of management, 21–23 Proposal, project, 91, 98, 112 (See also RFP) contents (illus.), 108 as contract, 107 preparation of, 97, 106–108 for project extensions, 424 vs project master plan, 161, 162 selection of, 109–111 unsolicited, 102 Prototype, 126, 322, 339, 559, 560, 562 Punch list, 423 Pure project, 26 manager, 26–27 organization, 442–444, 448 (illus.), 443 Q Quality of conformance, 130 control, 349 defects, 131 plan, 130 and requirements, 88 risk factor, 309 tests, 139 Quality assurance supervisor, 493 Quality circle, 415–416 Quality function deployment (QFD), 128, 192, 458, 463–470 Quality improvement team, 351 Quality management plan, 349 R Rapid prototyping, 126 software development example, 126–128 Rasputin, 484 Rating methods, proposal, 109–111 Recycling program, example of systems analysis, 72–73 Redetermination, contract, 564–565 Reduction of risk, 320–323 Referent power, 483 Regret table, 331–332 (illus.), 332 Relocation project, examples, 30–31, 146–147 Reports evaluation, 414–415 problem failure, 418–419 project summary, 426 status, 419–420 Request for proposal (See RFP) Requirements, 55, 105 changes in, 271 definition steps and difficulties, 122 functional, 124 operational, 557, 558 performance, 125 priority level, 122 vs project objectives, 124–125 in project plan, 129 QFD treatment of, 466–469 user, 121–124, 126, 130 Research and development (R&D) project, example, 38–39 Reserve budget, 270, 354 schedule, 217 Resource management, 387 Resource planning constrained, 248–252 loading and leveling, 245–248 (illus.), 246, 247 Resources adequate, 547 constrained, 59, 541 effect on scheduling, 244–253 in systems analysis, 70 Responsibilities members of project team, 491–494 project manager, 481 Responsibility matrix, 163, 175–176 (illus.), 175, 176 Review meetings, 416–419 Reviews critical, 156 postcompletion project, 425–426 preliminary, 156 RFP, 96, 98–102, 106–107, 109 contents (illus.), 98 example, 99–101 project extensions, 424 scope statement in, 164–165 Rich, Ben, 485–486 Risk (See also individual topics, e.g.: Risk checklist; Risk cost; etc.) analysis methods, 327–332 assessment, 312–319 concepts, 307, 316–317 consequence, 316–317, 318, 325, 327–329 consequence rating, 316–317 of failure, 307, 314–315 identification techniques, 307–312 impact, 315–316, 318, 325 likelihood, 307, 312–315, 318, 325, 338 of opportunity, 307 priority, 318–319 sources, 308–309, 310 symptoms, 312 tolerance, 307 Risk checklist, 310, 312–313 Risk cost, 328–329 Risk officer, 324 Risk management, 307 (See also Risk) caveats, 325–326 principles, 321–326 response planning, 319–323 Risk profile, 324 Risk reserve, 324 (See also Budget reserve; Schedule buffer or reserve; Time buffer) Risk time, 327–328 Role ambiguity, 526 Role clarification technique, 523–524 Role conflict, 526 Roles outside the project team, 494–496 project manager, 478–480, 490–491 project team, 491–494 relationships among, 496 (illus.), 497 Royal Air Force, 60–61 Royal Navy, 60 S Schedule analysis, 356–359 calendar, 213–215 control, 350–356 cost, 293–300 Subject Index network, 208–212 variance, 358 Schedule buffer or reserve, 217, 270, 354 (See also Time buffer) Schedule performance index, 360–361, 369–370 Scheduling, 177–179 (See also CPM; Gantt chart; PDM; PERT) with constrained resources, 244–253 late, effect on risk and net worth, 299 with PMISs, 387 project failure, source of, 541 Scope of work, project, 270 definition, 164 in planning, 160 from requirements, 123 statement, 164–165 Security, information, 406 Selection process, proposal, 109–111 Sensitivity analysis, 69 Side items, 137, 423 Simulation, 332 of completion times, 235–236 in GERT, 255, 257 Situational leadership, 505 Skunk Works, 462, 485 (See also Lockheed) Slack free, 211 in PDM, 220 total, 209–210, 212 Social support, 527–528 Socio-technical systems, 62 Software PMI, 389–405 group productivity, 406–407 Software development, example, 145–146 Space station (See International Space Station) Specifications baseline, 126 design, 132 system, 126 SQL, 389, 390, 400 SR-71 aircraft, 476 Stakeholder, project, 91, 496 risk tolerance, 307 Stand-alone project, 443–444 Standards for cost estimating, 278–279 Statement of work contract, 114–115 example, 99 proposal, 106, 108: RFP, 98 work package, 171 Statue of Liberty, 30, 509–510 Status date, Gantt chart (illus.), 181 Stealth fighter, 325, 462 Stone Mountain, 480 Strategy, in uncertainty, 330–332 Stress factors influencing, 525 management of, 526–528 sources, project, 525–526 Structure, organization (See also Organization) formal, 434–436 formal vs informal, 422 system, 55–56 (illus.), 55, 62 Study project, 14, 15 Subcontracting, 112–113 Subsystems, 53 environmental, 59 functional, 62 management, 63064 Success, project, 542–543 Summary evaluation, project, 424–427 Support system, 555, 559 Sybase, 400 Sydney Opera House, 336–337 System (See also individual topics, e.g.: System architecture; System concept; etc.) configuration, 558–559 failure, 535 integration, 57 (See also Integration) life cycle, 68, 88–89, 560–562 maintenance, 143–144 natural vs human-made, 57 objectives of, 124–125, 126, 129 open, 58, 414 open vs closed, 57 operating, 555, 558 organizations as, 58–59 (illus.), 59 partitioning, 74–75 principles, 52–57 specifications, 126–128, 129 support, 555, 559 user, 91 (See also User) System architecture, 74 System concept, 75, 92 stage of systems engineering, 557 System construction stage, systems engineering, 560 System defects, 131 System definition stage, systems engineering, 557–559 System design, 557–560 System evaluation, 143–144 stage of systems engineering, 561–562 (illus.), 560 System fabrication, 138 System installation and conversion stage, systems engineering 142–143 System operation stage, systems engineering, 560–561 System production stage, system engineering, 560 System support stage, systems engineering, 560–561 Systems analysis, 68–69 elements of, 69–70 process, 71–74 (illus.), 71 example, 72–73 in systems approach, 68 601 Systems analysis (cont.) in systems engineering, 557, 558 vs systems engineering and systems management, 77 Systems approach framework 65–66 management viewpoint, 21 methodology, 66–68 (illus.), 67 project management as, 9–10 synthesis in, 60 Systems development integrated vs nonintegrated, 456–457, 459 life cycle costs, 457–458 (illus.), 457 stage of systems engineering, 559–560 Systems development cycle constraints in, 94 examples, 145–151 phases, 89–92 (See also Conception; Definition; Execution; Operation) (illus.), 90 vs systems engineering, 93 Systems development organization (SDO), 91, 111, 115 (See also Contractor) Systems engineering, 74 process stages, 75–76, 555–563 (illus.), 76, 556 vs systems analysis and system management, 73, 77 in systems development cycle, 92 in systems life cycle, 68 Systems management, 76–77 vs systems analysis and systems engineering, 77 (illus.), 77 Systems specifications, 126–128, 129 Systems synthesis, 68 Systems thinking, 51 T Target date meeting, 234–235 probability of meeting, 233–234 Task completion time, revising, 362–363 Task force, 34, 439, 448 Team (See also Teams) commitment to project, 545 conflict (See Conflict) guidelines, 514–515 Team building, 510–513 Team inspection process, 349–350 Team review meeting, 416–419 Team roles, project, 491–494 relationships, 496 (illus.), 467 Teams building new, 513–515 concurrent engineering, 460–461, 513 602 Subject Index cross- or multi-functional, 34, 71, 441–442, 448, 459, 512 design-build, 440, 460, 512 disbanding, 515 functional, 441 heavyweight, 462–463 high-performing, 508–510 improving ongoing, 512–513 integrated vs nonintegrated, 456–457, 459 (illus.), 457, 459 integrating using QFD, 468–469 involvement in definition, 128 permanent, 440 product development, Microsoft example, 449 as project form, 439 trouble with, 508 Teamwork, 509–510 Technical competency, project manager’s, 482 Technical performance measurement (TPM), 349, 363–365 (illus.), 364 Technical risk, 308–309 Termination, project, conflict during, 519–520 formal, 321 PMIS role, 409 project failure, sources of, 541 reasons for, 421 responsibilities during, 422–423 successful, 547 Testing acceptance, 141–142 during execution phase, 138–139 system, 560 Three Gorges project, China, 443 Time buffer, 317–318, 352–354 early (ES and EF), 208, 209–210 late (LS and LF), 208–210 project completion, 211–212 slack, 209–210, 220 Time estimate in PERT, 230–233, 237, 317–318 updating, 362–363 Time variance, 357–358 (illus.), 359 Time-cost relationship, 238–240 (illus.), 239 Tolerance on cost variance, 370–371 Top management approval of project master plan, 161 project failure, source of, 583 project success, factor in, 544–545, 547 reports to, 419–420 role in project, 495 Toyota, 463 Traceability, 467 Training project manager, 489–490 user, 141 Trakker, 390 (illus.), 396, 397 Transfer of risk, 319–320 U Uncertainty (See also Risk) cost escalation, cause of, 270–271 effect on completion time estimate, 367–369 (illus.), 369 payoff table, 330–332 time-cost regions of, 273 (illus.), 273 Unsolicited proposal, 102 User acceptance testing, 141–142 commitment to project, 546–547 conflict with contractor, 518 contracting process, role in, 96–97, 111–114 needs, 98, 102–104 project failure, role in, 540 “real,” 102 requirements definition, 121, 124 systems development, role in, 91 training, 141–142 User requirements (See Requirements) V Vancouver Airport, 322–323 Variability, task, 351–352 Variance, performance, 342, 370–371, 382 accounting, 357–358 cost, 358 time, 357–358 Variance analysis, cost, 342–343 Variance limits, cost, 370–371 Verification in systems analysis, 71–72 Virtual private network, 406 von Neumann, John, 338 W Walt Disney Co., 452 Epcot, 27 safety criteria, 546 Web-based tools, 390, 400, 405–407 Welcom, 390 (illus.), 394, 395 Work authorization, 346–347 (illus.), 346 Work breakdown structure (WBS), 106–107, 132, 163 creating, 165–170 (illus.), 166, 167, 168, 169 Gantt chart using, 180 in planning and control process, 170–171 in project management system, 177 project organization, integration with, 173 (illus.), 174 and responsibility matrix, 175 in risk analysis, 310–311 Work definition, 165–173 process, 160 and WBS, 165–170 Work order release, 346 Work overload/underload, 526 Work package supervisor, 494, 497 assessing project performance, 348–349 Work packages, 171–173 analysis, 359–362 control using, 344–345 Subject Index cost account for, 288 vs events and milestones, 177, 178 example, 171–172 in Gantt chart, 179–180 in project management system, 177 properties, 169 (illus.), 170 in responsibility matrix, 175 in WBS, 165, 362 Work progress, 343, 362 Work requisition/work order, 115 Work task, 160 (See also Activity) classification, 274–275 in Gantt chart, 180 well-defined, 169 Worker loading (See Loading and leveling resources) World War II, 21, 71, 74, 453–454 (See also Manhattan Project; Normandy Invasion) World Wide Web, 388 Written 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Expeditors and Coordinators 44 0 Pure Project Organizations 44 2 Matrix Organization 44 4 Selecting a Project Form 44 7 Project Office 45 0 43 4 xi 14. 11 14. 12 14. 13 14. 14 14. 15 The Informal Organization 45 1... Project 42 8 Endnotes 42 9 PART IV: ORGANIZATION BEHAVIOR Chapter 14 14. 1 14. 2 14. 3 14. 4 14. 5 14. 6 14. 7 14. 8 14. 9 14. 10 Contents 40 7 41 3 43 1 Project Organization Structure and Integration 43 3 Formal... Case 14- 1 47 3 Case 14- 2 47 4 Endnotes Chapter 15 15.1 15.2 15.3 15 .4 472 47 5 Project Roles, Responsibility, and Authority The Project Manager 47 8 Project Management Authority 48 3 Selecting the Project