A Systems Approach to Planning, Scheduling, and Controlling
Harold Kerzner
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Project Management
A Systems Approach to Planning, Scheduling, and Controlling
Harold Kerzner
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About This Book
The bestselling project management text for students and professionals—now updated and expanded
This Eleventh Edition of the bestselling "bible" of project management maintains the streamlined approach of the prior editions and moves the content even closer to PMI®'s Project Management Body of Knowledge (PMBOK®). New content has been added to this edition on measuring project management ROI, value to the organization and to customers, and much more. The capstone "super" case on the "Iridium Project" has been maintained, covering all aspects of project management. Increased use of sidebars throughout the book helps further align it with the PMBOK and the Project Management Professional (PMP®) Certification Exam.
This new edition features significant expansion, including more than three dozen entirely new sections and updates on process supporting; types of project closure; project sponsorship; and culture, teamwork, and trust. This comprehensive guide to the principles and practices of project management:
Offers new sections on added value, business intelligence, project governance, and much more
Provides twenty-five case studies covering a variety of industries, almost all of which are real-world situations drawn from the author's practice
Includes 400 discussion questions and more than 125 multiple-choice questions
Serves as an excellent study guide for the PMP Certification Exam
(PMI, PMBOK, PMP and Project Management Professional are registered marks of the Project Management Institute, Inc.)
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Related Case Studies (from Kerzner/Project Management Case Studies, 4th Edition)
Related Workbook Exercises (from Kerzner/Project Management Workbook and PMP ®/CAPM® Exam Study Guide, 11th Edition)
PMBOK® Guide, 5th Edition, Reference Section for the PMP® Certification Exam
Kombs Engineering
Williams Machine Tool Companya
Hyten Corporation
Macon, Inc.
Continental Computer Corporation
Jackson Industries
Multiple Choice Exam
Integration Management
Scope Management
Human Resource Management
1.0 INTRODUCTION
Executives will be facing increasingly complex challenges during the next decade. These challenges will be the result of high escalation factors for salaries and raw materials, increased union demands, pressure from stockholders, and the possibility of long-term high inflation accompanied by a mild recession and a lack of borrowing power with financial institutions. These environmental conditions have existed before, but not to the degree that they do today.
In the past, executives have attempted to ease the impact of these environmental conditions by embarking on massive cost-reduction programs. The usual results of these programs have been early retirement, layoffs, and a reduction in manpower through attrition. As jobs become vacant, executives pressure line managers to accomplish the same amount of work with fewer resources, either by improving efficiency or by upgrading performance requirements to a higher position on the learning curve. Because people costs are more inflationary than the cost of equipment or facilities, executives are funding more and more capital equipment projects in an attempt to increase or improve productivity without increasing labor.
Unfortunately, executives are somewhat limited in how far they can go to reduce manpower without running a high risk to corporate profitability. Capital equipment projects are not always the answer. Thus, executives have been forced to look elsewhere for the solutions to their problems.
Almost all of today’s executives are in agreement that the solution to the majority of corporate problems involves obtaining better control and use of existing corporate resources, looking internally rather than externally for the solution. As part of the attempt to achieve an internal solution, executives are taking a hard look at the ways corporate activities are managed. Project management is one of the techniques under consideration.
The project management approach is relatively modern. It is characterized by methods of restructuring management and adapting special management techniques, with the purpose of obtaining better control and use of existing resources. Forty years ago project management was confined to U.S. Department of Defense contractors and construction companies. Today, the concept behind 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, 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 of 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 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:
PMBOK® Guide, 5th Edition
1.2 What Is a Project?
1.3 What Is Project Management?
Have a specific objective to be completed within certain specifications
Have defined start and end dates
Have funding limits (if applicable)
Consume human and nonhuman resources (i.e., money, people, equipment)
Are multifunctional (i.e., cut across several functional lines)
Project management, on the other hand, involves five process groups as identified in the PMBOK® Guide, namely:
Project initiation
Selection of the best project given resource limits
Recognizing the benefits of the project
Preparation of the documents to sanction the project
Assigning of the project manager
Project planning
Definition of the work requirements
Definition of the quality and quantity of work
Definition of the resources needed
Scheduling the activities
Evaluation of the various risks
Project execution
Negotiating for the project team members
Directing and managing the work
Working with the team members to help them improve
Project monitoring and control
Tracking progress
Comparing actual outcome to predicted outcome
Analyzing variances and impacts
Making adjustments
Project closure
Verifying that all of the work has been accomplished
Contractual closure of the contract
Financial closure of the charge numbers
Administrative closure of the papework
Successful project management can then be defined as having achieved the project objectives:
Within time
Within cost
At the desired performance/technology level
While utilizing the assigned resources effectively and efficiently
Accepted by the customer
The potential benefits from project management are:
Identification of functional responsibilities to ensure that all activities are accounted for, regardless of personnel turnover
Minimizing the need for continuous reporting
Identification of time limits for scheduling
Ident...
Table of contents
Cover
Table of Contents
Title
Copyright
Dedication
Preface
1 Overview
2 Project Management Growth: Concepts and Definitions
3 Organizational Structures
4 Organizing and Staffing the Project Office and Team
5 Management Functions
6 Management of Your Time and Stress
7 Conflicts
8 Special Topics
9 The Variables for Success
10 Working with Executives
11 Planning
12 Network Scheduling Techniques
13 Project Graphics
14 Pricing and Estimating
15 Cost Control
16 Trade-Off Analysis in a Project Environment
17 Risk Management
18 Learning Curves
19 Contract Management
20 Quality Management
21 Modern Developments in Project Management
22 The Business of Scope Changes
23 The Project Office
24 Managing Crisis Projects
25 Future of Project Management
26 The Rise, Fall, and Resurrection of Iridium: A Project Management Perspective
Appendix A: Solutions to the Project Management Conflict Exercise
Appendix B: Solution to Leadership Exercise
Appendix C: Dorale Products Case Studies
Appendix D: Solutions to the Dorale Products Case Studies
Appendix E: Alignment of the PMBOK® Guide to the Text