Welcome to the class. Let’s get to know one another!! As you are introducing you

Welcome to the class. Let’s get to know one another!! As you are introducing yourself, first, tell us little about where you live, your work, your program, and any other information you think others would find interesting – Remember – You are not required to share anything with which you are not comfortable!
Please also review the table of content of your textbook. Talk about some of the topics you feel will be the most interesting to learn and why.
TABLE OF CONTENTCONTENTS
Preface xiii
Chapter 1 Introduction: Why Project Management? 1
PROJECT PROFILE: Development Projects that are Transforming Africa 1
The Need for Projects 3
What is a Project? 3
General Project Characteristics 5
PROJECT PROFILE: President Obama Signs the Program Management Improvement and Accountability Act 8
Why are Projects Important? 9
PROJECT PROFILE: London’s Crossrail: Europe’s Largest Construction Project 10
Project Life Cycles 12
BOX 1.1: Project Managers in Practice 14
Determinants of Project Success 15
BOX 1.2: Project Management Research in Brief 18
Developing Project Management Maturity 19
Employability Skills 23
Communication 23
Critical Thinking 23
Collaboration 23
Knowledge Application And Analysis 23
Business Ethics And Social Responsibility 23
Information Technology Application And Computing Skills 24
Data Literacy 24
Project Elements and Text Organization 24
Summary 28
Key Terms 29
Discussion Questions 29
Case Study 1.1 MegaTech, Inc. 30
Case Study 1.2 The IT Department at Hamelin Hospital 30
Case Study 1.3 Disney’s Expedition Everest 31
Case Study 1.4 “Throwing Good Money after Bad”: the BBC’s Digital Media Initiative 32
Internet Exercises 35
PMP Certification Sample Questions 35
Answers 35
Notes 35
Chapter 2 The Organizational Context: Strategy, Structure, and Culture 38
PROJECT PROFILE: The Airbus A 380: A Failure of Strategy? 38
Implementing Strategy Through Projects 40
Projects and Organizational Strategy 41
Stakeholder Management 43
Identifying Project Stakeholders 44
Managing Stakeholders 47
Organizational Structure 49
Forms of Organizational Structure 50
Functional Organizations 50
Project Organizations 53
Matrix Organizations 54
Moving to Heavyweight Project Organizations 57
BOX 2.1: Project Management Research in Brief 58
Project Management Offices 59
Organizational Culture 62
How Do Cultures Form? 64
Organizational Culture and Project Management 66
PROJECT PROFILE: Electronic Arts and the Power of Strong Culture in Design Teams 67
Summary 68
Key Terms 70
Discussion Questions 70
Case Study 2.1 Rolls-Royce Corporation 71
Case Study 2.2 Classic Case: Paradise Lost—The Xerox Alto 72
Case Study 2.3 Project Task Estimation and the Culture of “Gotcha!” 73
Case Study 2.4 Widgets ’R Us 73
Internet Exercises 74
PMP Certification Sample Questions 74
Answers 75
Integrated Project—Building Your Project Plan 76
Notes 78
Chapter 3 Project Selection and Portfolio Management 80
PROJECT PROFILE: Project Selection Procedures: A Cross-Industry Sampler 80
Introduction: Project Selection 81
Approaches to Project Screening and Selection 84
Method One: Checklist Model 84
Method Two: Simplified Scoring Models 85
Limitations of Scoring Models 87
Method Three: The Analytical Hierarchy Process 88
Method Four: Profile Models 91
Financial Models 93
Payback Period 94
Net Present Value 95
Discounted Payback 97
Internal Rate of Return 97
Choosing a Project Selection Approach 99
PROJECT PROFILE: Project Selection and Screening at GE: The Tollgate Process 100
Project Portfolio Management 101
Objectives and Initiatives 102
The Portfolio Selection Process 103
Developing a Proactive Portfolio 105
Keys to Successful Project Portfolio Management 108
Problems in Implementing Portfolio Management 108
Summary 110
Key Terms 111
Solved Problems 111
Discussion Questions 112
Problems 112
Case Study 3.1 Keflavik Paper ­Company 115
Case Study 3.2 Project Selection at Nova Western, Inc. 116
Internet Exercises 118
Notes 118
Chapter 4 Leadership and The Project Manager 120
PROJECT PROFILE: NASA Taps a Leader with the Right Stuff to Run Their Mars 2020 Project 120
Introduction: Successful Projects Need Leaders 122
Leaders Versus Managers 122
How the Project Manager Leads 124
Acquiring Project Resources 124
Motivating and Building Teams 125
Having a Vision and Fighting Fires 125
Communicating 126
BOX 4.1: Project Management Research in Brief 129
Traits of Effective Project Leaders 129
Conclusions about Project Leaders 130
PROJECT PROFILE: Leading by Example for the London Olympics—Sir John Armitt 131
Project Champions 132
Champions—Who Are They? 133
What Do Champions Do? 134
How to Make a Champion 135
The New Project Leadership 136
BOX 4.2: Project Managers in Practice 137
PROJECT PROFILE: The Challenge of Managing Internationally 138
Project Management Professionalism 138
Project Management and Ethics 140
Unethical Behaviors in Project Management 142
PROJECT PROFILE: Brazilian Construction Giant Caught in Wide-Spread Corruption Scandal 143
Summary 144
Key Terms 145
Discussion Questions 146
Case Study 4.1 In Search of Effective Project Managers 146
Case Study 4.2 Finding the Emotional Intelligence to Be a Real Leader 147
Case Study 4.3 Volkswagen and Its Project to Cheat ­Emissions Tests 147
Case Study 4.4 Problems with John 149
Internet Exercises 152
PMP Certification Sample Questions 152
Answers 153
Notes 153
Chapter 5 Scope Management 156
PROJECT PROFILE: Berlin’s Brandenburg Willy Brandt International Airport 156
Introduction: The Importance of Scope Management 158
Conceptual Development 158
The Statement of Work 161
The Project Charter 164
PROJECT PROFILE: Statements of Work: Then and Now 164
The Scope Statement 164
The Work Breakdown Structure 165
Purposes of the Work Breakdown Structure 165
The Organization Breakdown Structure 170
The Responsibility Assignment Matrix 173
PROJECT PROFILE: Defining a Project Work Package 174
Work Authorization 175
Scope Reporting 176
BOX 5.1: Project Management Research in Brief 177
Control Systems 178
Configuration Management 179
Project Closeout 180
Project Management and Sustainability 181
Managing Projects for Sustainability 183
PROJECT PROFILE: Nicaragua’s Canal and Sustainability Challenges 185
Summary 186
Key Terms 187
Discussion Questions 188
Problems 188
Case Study 5.1 Boeing’s Virtual Fence 188
Case Study 5.2 California’s High-Speed Rail Project 190
Case Study 5.3 Project Management at Dotcom.com 192
Case Study 5.4 The Expeditionary Fighting Vehicle 193
Internet Exercises 195
PMP Certification Sample Questions 195
Answers 196
MS Project Exercises 196
Appendix 5.1: Sample Project Charter 196
Integrated Project—Developing the Work Breakdown Structure 199
Notes 200
Chapter 6 Project Team Building, Conflict, and Negotiation 203
PROJECT PROFILE: Team-Building Events – Heli-skiing and Zombie Apocalypses 203
Introduction 205
Building the Project Team 205
Identify Necessary Skill Sets 205
Identify People Who have the required Skills 206
Talk to Potential Team Members and Negotiate with Functional Heads 207
Build in Fallback Positions 207
Assemble the Team 208
Characteristics of Effective Project Teams 208
A Clear Sense of Mission 208
A Productive Interdependency 209
Cohesiveness 209
Trust 209
Enthusiasm 210
Results Orientation 210
Reasons Why Teams Fail 210
Poorly Developed or Unclear Goals 211
Poorly Defined Project Team Roles and Interdependencies 211
Lack of Project Team Motivation 211
Poor Communication 212
Poor Leadership 212
Turnover Among Project Team Members 212
Dysfunctional Behavior 212
Stages in Group Development 213
Stage One: Forming 213
Stage Two: Storming 214
Stage Three: Norming 214
Stage Four: Performing 214
Stage Five: Adjourning 214
Punctuated Equilibrium 215
Achieving Cross-Functional Cooperation 216
Superordinate Goals 216
Rules and Procedures 217
Physical Proximity 217
Accessibility 217
Outcomes of Cooperation: Task and Psychosocial Results 218
Virtual Project Teams 218
PROJECT PROFILE: Tele-Immersion Technology Eases the Use of Virtual Teams 220
Conflict Management 221
What Is Conflict? 221
Sources of Conflict 222
Methods for Resolving Conflict 224
PROJECT PROFILE: Engineers Without Borders: Project Teams Impacting Lives 225
Negotiation 226
Questions to Ask Prior to the Negotiation 226
Principled Negotiation 227
Invent Options for Mutual Gain 229
Insist on Using Objective Criteria 230
Summary 231
Key Terms 232
Discussion Questions 232
Case Study 6.1 Columbus Instruments 232
Case Study 6.2 The Bean Counter and the Cowboy 233
Case Study 6.3 Johnson & Rogers ­Software Engineering, Inc. 234
Exercise in Negotiation 236
Internet Exercises 237
PMP Certification Sample Questions 237
Answers 238
Notes 238
Chapter 7 Risk Management 241
PROJECT PROFILE: Samsung’s Galaxy Note 7—Failure to Manage a New Product for Risk 241
Introduction: What is Project Risk? 243
BOX 7.1: Project Managers in Practice 245
Risk Management: A Four-Stage Process 246
Risk Identification 246
PROJECT PROFILE: Japan Decommissions a $9 Billion Nuclear Reactor that was Hardly Used 248
Risk Breakdown Structures 249
Analysis of Probability and Consequences 249
Risk Mitigation Strategies 252
Use of Contingency Reserves 254
Other Mitigation Strategies 255
Control and Documentation 255
PROJECT PROFILE: Collapse of Shanghai Apartment Building 257
Project Risk Management: An Integrated Approach 259
Summary 261
Key Terms 262
Solved Problem 262
­Discussion Questions 262
Problems 262
Case Study 7.1 Classic Case: de Havilland’s Falling Comet 263
Case Study 7.2 The Building that Melted Cars 266
Case Study 7.3 Classic Case: Tacoma Narrows Suspension Bridge 267
Internet Exercises 269
PMP Certification Sample Questions 269
Answers 270
Integrated Project—Project Risk Assessment 271
Notes 273
Chapter 8 Cost Estimation and Budgeting 274
PROJECT PROFILE: New York City’s Second Avenue Subway – Two Miles Completed for Only $5 Billion Spent 274
Cost Management 276
Direct Versus Indirect Costs 277
Recurring Versus Nonrecurring Costs 278
Fixed Versus Variable Costs 279
Normal Versus Expedited Costs 279
Cost Estimation 279
Learning Curves in Cost Estimation 283
Software Project Estimation—Function Points 286
BOX 8.1: Project Management Research in Brief 287
Problems with Cost Estimation 289
BOX 8.2: Project Management Research in Brief 290
Creating a Project Budget 291
Top-Down Budgeting 292
Bottom-Up Budgeting 293
Activity-Based Costing 293
Developing Budget Contingencies 295
Summary 297
Key Terms 298
Solved Problems 298
­Discussion Questions 299
Problems 300
Case Study 8.1 The Hidden Costs of Infrastructure Projects—The Case of Building Dams 303
Case Study 8.2 Sochi Olympics—What’s the Cost of National Prestige? 305
Internet Exercises 307
PMP Certification Sample Questions 307
Answers 308
Integrated Project—Developing the Cost Estimates and Budget 309
Notes 311
Chapter 9 Project Scheduling: Networks, Duration Estimation, and Critical Path 313
PROJECT PROFILE: Preparing for a Major Golf Tournament – It’s a Long Road to the First Tee 313
Introduction 315
Project Scheduling 315
Key Scheduling Terminology 317
Developing A Network 319
Labeling Nodes 319
Serial Activities 320
Concurrent Activities 320
Merge Activities 321
Burst Activities 321
Duration Estimation 324
Constructing the Critical Path 328
Calculating the Network 328
The Forward Pass 329
The Backward Pass 331
Probability of Project Completion 333
Laddering Activities 335
Hammock Activities 336
Options for Reducing the Critical Path 337
BOX 9.1: Project Management Research in Brief 338
Summary 339
Key Terms 340
Solved Problems 340
Discussion Questions 342
Problems 342
Case Study 9.1 ­Moving the Historic Capen House 345
Internet Exercises 347
MS Project Exercises 347
Answers 348
PMP Certification Sample Questions 348
Notes 349
Chapter 10 Project Scheduling: Lagging, Crashing, and Activity Networks 350
PROJECT PROFILE: Kiruna, Sweden – A Town on the Move! 350
Introduction 352
Lags in Precedence Relationships 352
Finish to Start 352
Finish to Finish 353
Start to Start 353
Start to Finish 354
Gantt Charts 355
Adding Resources to Gantt Charts 356
Incorporating Lags in Gantt Charts 357
BOX 10.1: Project Managers in Practice 357
Crashing Projects 359
Options for Accelerating Projects 359
Crashing the Project: Budget Effects 364
Activity-On-Arrow Networks 367
How Are They Different? 367
AOA Versus AON 372
Controversies in the Use of Networks 373
Conclusions 374
Summary 375
Key Terms 375
Solved Problems 376
Discussion Questions 377
Problems 377
Case Study 10.1 Project ­Scheduling at Blanque Cheque Construction (A) 379
Case Study 10.2 ­Project Scheduling at Blanque Cheque Construction (B) 380
MS Project ­Exercises 380
PMP Certification Sample Questions 381
Answers 382
Integrated Project—Developing the Project Schedule 383
Notes 384
Chapter 11 Advanced Topics in Planning and Scheduling: ­Agile and Critical Chain 386
PROJECT PROFILE: General Electric – Using Agile Methods to Speed New Project Delivery 387
Introduction 387
Agile Project Management 388
What Is Unique About Agile PM? 389
Tasks Versus Stories 391
Key Terms in Agile PM 391
Steps in Agile 393
Sprint Planning 393
Daily Scrums 393
The Development Work 394
Sprint Reviews 394
Sprint Retrospective 395
Keys to Success with Agile 395
Problems with Agile 396
BOX 11.1: Project Management Research in Brief 397
Extreme Programming (XP) 397
Theory of Constraints and Critical Chain Project Scheduling 398
Theory of Constraints 398
The Critical Chain Solution to Project Scheduling 399
Developing the Critical Chain Activity Network 402
Critical Chain Solutions Versus Critical Path Solutions 404
PROJECT PROFILE: Eli Lilly Pharmaceuticals and Its Commitment to Critical Chain Project Management 405
Critical Chain Solutions to Resource Conflicts 406
Critical Chain Project Portfolio Management 407
BOX 11.2: Project Management Research in Brief 410
Critiques of CCPM 411
Summary 411
Key Terms 413
Solved Problem 413
D­iscussion Questions 414
Problems 414
Case Study 11.1 It’s an Agile World 416
Case Study 11.2 Ramstein Products, Inc. 417
Internet Exercises 418
Notes 418
Chapter 12 Resource Management 420
PROJECT PROFILE: Environmental Concerns and Political Leadership Impact Fossil Fuel Project Cancellations 420
Introduction 422
The Basics of Resource Constraints 422
Time and Resource Scarcity 423
Resource Loading 425
Resource Leveling 426
Step One: Develop the Resource-Loading Table 430
Step Two: Determine Activity Late Finish Dates 430
Step Three: Identify Resource Overallocation 432
Step Four: Level the Resource-Loading Table 432
Resource-Loading Charts 435
BOX 12.1: Project Managers in Practice 438
Managing Resources in Multiproject Environments 439
Schedule Slippage 439
Resource Utilization 439
In-Process Inventory 440
Resolving Resource Decisions in Multiproject Environments 440
Summary 442
Key Terms 443
Solved Problem 443
Discussion Questions 444
Problems 444
Case Study 12.1 The Problems of Multitasking 446
Case Study 12.2 “First Come, First Served”: Resource Challenges for Sunrise Restoration† 447
Internet Exercises 448
MS Project Exercises 448
PMP Certification Sample Questions 449
Answers 450
Integrated Project—Managing Your Project’s Resources 451
Notes 451
Chapter 13 Project Evaluation and Control 452
PROJECT PROFILE: U.S. Army Can’t Track Spending on its Spending Tracker Project 452
Introduction 453
Control Cycles—A General Model 454
Monitoring Project Performance 454
The Project S-Curve: A Basic Tool 455
S-Curve Drawbacks 457
Milestone Analysis 457
Problems with Milestones 459
The Tracking Gantt Chart 459
Benefits and Drawbacks of Tracking Gantt Charts 460
Earned Value Management 460
Terminology for Earned Value 461
Creating Project Baselines 462
Why Use Earned Value? 462
Steps in Earned Value Management 464
Assessing a Project’s Earned Value 465
Using Earned Value to Manage a Portfolio of Projects 470
Flow of Earned Value System 470
PROJECT PROFILE: Earned Value at Northrop Grumman 471
Issues in the Effective Use of Earned Value Management 472
Human Factors in Project Evaluation and Control 474
Critical Success Factor Definitions 476
Conclusions 477
Summary 478
Key Terms 479
Solved Problem 479
Discussion Questions 480
Problems 481
Case Study 13.1 The IT Department at Kimble College 483
Case Study 13.2 The Superconducting S­upercollider 484
Case Study 13.3 “Dear Mr. President—Please cancel our project!”: The Honolulu Elevated Rail Project 485
Internet Exercises 487
MS Project Exercises 487
PMP Certification Sample Questions 488
Answers 489
Appendix 13.1: Earned Schedule 489
Notes 494
Chapter 14 Project Closeout and Termination 496
PROJECT PROFILE: Amazon’s Golden Touch Fails with a High-Tech Gadget 496
Introduction 497
Types of Project Termination 498
BOX 14.1: Project Managers in Practice 498
Natural Termination—the Closeout Process 500
Finishing the Work 500
Handing Over the Project 500
Gaining Acceptance for the Project 501
Harvesting the Benefits 501
Reviewing How It All Went 502
Putting It All to Bed 504
Disbanding the Team 504
What Prevents Effective Project Closeouts? 505
Early Termination for Projects 505
Making the Early Termination Decision 507
PROJECT PROFILE: Aftermath of a “Feeding Frenzy”: Dubai and Canceled Construction Projects 508
Shutting Down the Project 509
Allowing for Claims and Disputes 510
BOX 14.2: Project Management Research in Brief 511
Preparing the Final Project Report 513
Conclusion 514
Summary 514
Key Terms 515
Discussion Questions 515
Case Study 14.1 New Jersey Kills Hudson River Tunnel Project 516
Case Study 14.2 The Project That Wouldn’t Die 517
Case Study 14.3 The Navy Struggles to Avoid Cancellation of its Littoral Combat Ship Program 518
Internet Exercises 519
PMP Certification Sample Questions 520
Answers 521
Appendix 14.1: Sample Pages from Project Sign-off Document 522
Notes 526
Appendix A The Cumulative Standard Normal Distribution 528
Appendix B Tutorial for MS Project 2016 529
Appendix C Project Plan Template 539
Glossary 543
Company Index 553
Name Index 555
Subject Index 559

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