TEAMFLY Team-Fly ® Page i Project Management Page ii Dr. Kerzner's 16 Points to Project Management Maturity 1. Adopt a project management methodology and use it consistently. 2. Implement a philosophy that drives the company toward project management maturity and communicate it to everyone. 3. Commit to developing effective plans at the beginning of each project. 4. Minimize scope changes by committing to realistic objectives. 5. Recognize that cost and schedule management are inseparable. 6. Select the right person as the project manager. 7. Provide executives with project sponsor information, not project management information. 8. Strengthen involvement and support of line management. 9. Focus on deliverables rather than resources. 10. Cultivate effective communication, cooperation, and trust to achieve rapid project management maturity. 11. Share recognition for project success with the entire project team and line management. 12. Eliminate non - productive meetings. 13. Focus on identifying and solving problems early, quickly, and cost effectively. 14. Measure progress periodically. 15. Use project management software as a tool— not as a substitute for effective planning or interpersonal skills. 16. Institute an all- employee training program with periodic updates based upon documented lessons learned. Page iii Project Management A Systems Approach to Planning, Scheduling, and Controlling Seventh Edition Harold Kerzner, Ph.D. Division of Business Administration Baldwin-Wallace College Berea, Ohio Page iv Copyright © 2001 by John Wiley & Sons. All rights reserved. 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This title is also available in print as ISBN 0 - 471 - 39342 - 8 (cloth : alk. paper) For more information about Wiley products, visit our web site at www.Wiley.com Page v To Dr. Herman Krier, my Friend and Guru, who taught me well the meaning of the word "persistence" Page vii Contents Preface xix 1 Overview 1 1.0 Introduction 1 1.1 Understanding Project Management 2 1.2 Defining Project Success 5 1.3 The Project Manager – Line Manager Interface 6 1.4 Defining the Project Manager's Role 9 1.5 Defining the Functional Manager's Role 12 1.6 Defining the Functional Employee's Role 15 1.7 Defining the Executive's Role 16 1.8 Working with Executives 16 1.9 The Project Manager As the Planning Agent 17 1.10 Project Champions 19 1.11 The Downside Risk of Project Management 20 1.12 Project - Driven Versus Non – Project - Driven Organizations 24 1.13 Marketing in the Project - Driven Organization 26 1.14 Classification of Projects 29 1.15 Location of the Project Manager 30 1.16 Differing Views of Project Management 32 1.17 Concurrent Engineering: A Project Management Approach 34 1.18 Total Quality Management (TQM): A Project Management Approach 35 Problems 39 Case Studies Jackson Industries 42 Kombs Engineering 44 Williams Machine Tool Company 45 Page viii 2 Project Management Growth: Concepts and Definitions 47 2.0 Introduction 47 2.1 General Systems Management 47 2.2 Project Management: 1960 – 1985 48 2.3 Project Management: 1985 – 2000 60 2.4 Resistance to Change 65 2.5 Systems, Programs, and Projects: A Definition 70 2.6 Product Versus Project Management: A Definition 72 2.7 Maturity and Excellent: A Definition 74 2.8 Informal Project Management: A Definition 75 2.9 Project Life Cycles 76 2.10 Project Management Methodologies: A Definition 83 2.11 Systems Thinking 86 Problems 89 Case Studies L. P. Manning Corporation 89 Project Firecracker 90 3 Organizational Structures 97 3.0 Introduction 97 3.1 Organizational Work Flow 100 3.2 Traditional (Classical) Organization 101 3.3 Developing Work Integration Positions 105 3.4 Line – Staff Organization (Project Coordinator) 109 3.5 Pure Product (Projectized) Organization 110 3.6 Matrix Organizational Form 113 3.7 Modification of Matrix Structures 124 3.8 Center for Project Management Expertise 128 3.9 Matrix Layering 129 3.10 Selecting the Organizational Form 131 3.11 Structuring the Small Company 139 3.12 Strategic Business Unit (SBU) Project Management 141 3.13 Transitional Management 143 Problems 145 Case Studies Jones and Shephard Accountants, Inc. 151 Fargo Foods 154 Quasar Communications, Inc. 156 [...]... criticism was made by many colleagues In particular, I am indebted to those industrial/government training managers whose dedication and commitment to quality project management education and training have led to valuable changes in this edition To Dr Mark Collier, President of Baldwin-Wallace College, I again express my deepest appreciation and respect for his never-ending support and encouragement toward... project management skills, but also to those functional managers and upper-level executives who must provide continuous support to all projects During the past several years, management' s knowledge and understanding of project management has matured to the point where almost every company and industry is using project management in one form or another These companies have come to the realization that project. .. Preface As we enter the twenty-first century, our perception of project management has changed Project management, once considered nice to have, is now recognized as a necessity for survival Organizations that were opponents of project management are now advocates Management educators of the 1970s and 1980s, who preached that project management could not work, are now staunch supporters Project management. .. several workable possibilities for organizational forms of the future that could integrate complex efforts and reduce bureaucracy The acceptance of project management has not been easy, however Many executives are not willing to accept change and are inflexible when it comes to adapting to a different environment The project management approach requires a departure from the traditional business organizational... consideration The project management approach is relatively modern It is characterized by new methods of restructuring management and adapting special management techniques, with the purpose of obtaining better con- Page 2 trol and use of existing resources Thirty years ago project management was confined to U.S Department of Defense contractors and construction companies Today, the concept behind project. .. questions, additional case studies, challenging problems, and cross-word puzzles The workbook and the textbook are ideal as a self-study tool for the Project Management Institute's Certification Exam An instructor's manual is available only to college and university faculty members by contacting your local Wiley sales representative or by visiting the Wiley web site at www .wiley. com/kerzner One-day, two-day,... organizational form, which is basically vertical and which emphasizes a strong superior– subordinate relationship 1.1— Understanding Project Management In order to understand project management, one must begin with the definition of a project A project can be considered to be any series of activities and tasks that: •Have a specific objective to be completed within certain specifications •Have defined start and. .. understand project management Chapters 6 through 8 deal with the support functions of time management, conflicts, and other special topics Chapters 9 and 10 describe executive involvement and the critical success factors for predicting project success It may seem strange that ten chapters on organizational behavior and structuring are needed prior to the ''hard-core" chapters of planning, scheduling, and controlling. .. bureaucratic, and experience has shown that it cannot respond rapidly enough to a changing environment Thus, the traditional structure must be replaced by project management, or other temporary management structures that are highly organic and can respond very rapidly as situations develop inside and outside the company Project management has long been discussed by corporate executives and academics as one... project management is being applied in such diverse industries and organizations as defense, construction, pharmaceuticals, chemicals, banking, hospitals, accounting, advertising, law, state and local governments, and the United Nations The rapid rate of change in both technology and the marketplace has created enormous strains on existing organizational forms The traditional structure is highly bureaucratic, . Points to Project Management Maturity 1. Adopt a project management methodology and use it consistently. 2. Implement a philosophy that drives the company toward project management maturity and. the Project Manager 30 1.16 Differing Views of Project Management 32 1.17 Concurrent Engineering: A Project Management Approach 34 1.18 Total Quality Management (TQM): A Project Management. Introduction 47 2.1 General Systems Management 47 2.2 Project Management: 1960 – 1985 48 2.3 Project Management: 1985 – 2000 60 2.4 Resistance to Change 65 2.5 Systems, Programs, and Projects: A Definition 70 2.6