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- Herausgeber: John Wiley & Sons
- Kategorie: Fachliteratur
- Sprache: Englisch
The gold standard for project management students and professionals—enhanced with AI, agile, and data-driven strategies in this landmark 14th edition.
For over four decades, Project Management: A Systems Approach to Planning, Scheduling, and Controlling has been the go-to resource for project managers, students, and professionals worldwide. In this newly revised 14th edition, renowned project management expert Harold Kerzner integrates the latest advancements, from artificial intelligence (AI) and data-driven decision-making to agile and hybrid methodologies, ensuring today's project leaders are equipped to navigate an evolving landscape.
Aligned with the Project Management Body of Knowledge (PMBOK® Guide), this bestselling guide prepares readers for the PMP® exam's principles-first approach. Whether you're leading complex global projects, managing sustainability initiatives, or leveraging AI for project insights, this book provides the tools to drive success. In this new 14th edition, you'll find:
- Cutting-edge insights on AI in project management, data-driven strategies, and emerging methodologies.
- Practical frameworks for settting clear objectives, defining project success, and managing risks.
- Comprehensive guidance on agile, hybrid, and traditional project management approaches.
- In-depth coverage of sustainability and corporate social responsibility in project execution.
- Real-world strategies for managing complex, large-scale, and global projects.
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Seitenzahl: 1719
Veröffentlichungsjahr: 2025
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Table of Contents
Cover
Table of Contents
Title Page
Copyright
Dedication
Preface
1 Overview
1.0 INTRODUCTION
1.1 UNDERSTANDING PROJECT MANAGEMENT
1.2 DEFINING PROJECT SUCCESS
1.3 TRADE‐OFFS AND COMPETING CONSTRAINTS
1.4 THE ENTRY‐LEVEL PROJECT MANAGER
1.5 THE TALENT TRIANGLE
1.6 THE PROJECT MANAGER–LINE MANAGER INTERFACE
1.7 DEFINING THE PROJECT MANAGER'S ROLE
1.8 DEFINING THE FUNCTIONAL MANAGER'S ROLE
1.9 DEFINING THE FUNCTIONAL EMPLOYEE'S ROLE
1.10 DEFINING THE EXECUTIVE'S ROLE
1.11 WORKING WITH EXECUTIVES
1.12 COMMITTEE SPONSORSHIP/GOVERNANCE
1.13 THE PROJECT MANAGER AS THE PLANNING AGENT
1.14 PROJECT CHAMPIONS
1.15 PROJECT‐DRIVEN VERSUS NON–PROJECT‐DRIVEN ORGANIZATIONS
1.16 CLASSIFICATION OF PROJECTS
1.17 COMPLEX PROJECTS
1.18 LOCATION OF THE PROJECT MANAGER
1.19 GROWTH OF DATA‐DRIVEN PROJECT MANAGEMENT
1.20 DIFFERING VIEWS OF PROJECT MANAGEMENT
1.21 PUBLIC‐SECTOR PROJECT MANAGEMENT
1.22 INTERNATIONAL PROJECT MANAGEMENT
1.23 CONCURRENT ENGINEERING: A PROJECT MANAGEMENT APPROACH
1.24 ADDED VALUE
1.25 STUDYING TIPS FOR THE PMI
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PROJECT MANAGEMENT CERTIFICATION EXAM
ANSWERS
PROBLEMS
CASE STUDY
NOTES
2 Project Management Growth: Concepts and Definitions
2.0 INTRODUCTION
2.1 THE EVOLUTION OF PROJECT MANAGEMENT: 1945–2025
2.2 RESISTANCE TO CHANGE
2.3 SYSTEMS, PROGRAMS, AND PROJECTS: A DEFINITION
2.4 NON‐TRADITIONAL PROJECTS
2.5 SUSTAINABILITY PROJECTS
2.6 PROJECTS VERSUS OPERATIONS
2.7 PRODUCT VERSUS PROJECT MANAGEMENT: A DEFINITION
2.8 MATURITY AND EXCELLENCE: A DEFINITION
2.9 INFORMAL PROJECT MANAGEMENT: A DEFINITION
2.10 THE MANY FACES OF SUCCESS
2.11 THE MANY FACES OF FAILURE
2
2.12 CAUSES OF PROJECT FAILURE
2.13 DEGREES OF SUCCESS AND FAILURE
2.14 DEFINING SUCCESS AND FAILURE CRITERIA
2.15 PROJECT HEALTH CHECKS
2.16 THE STAGE‐GATE PROCESS
2.17 PROJECT LIFE CYCLES
2.18 THE FUZZY FRONT END
2.19 PROJECT PORTFOLIO MANAGEMENT
2.20 GATE REVIEW MEETINGS (PROJECT CLOSURE)
2.21 CLIENT ENGAGEMENT PROJECT MANAGEMENT
2.22 PROJECT MANAGEMENT METHODOLOGIES: A DEFINITION
2.23 FROM ENTERPRISE PROJECT MANAGEMENT METHODOLOGIES TO FRAMEWORKS
2.24 GROWTH OF STRATEGIC PROJECT MANAGEMENT
2.25 BUSINESS MODELS
2.26 METHODOLOGIES CAN FAIL
2.27 LEAN PROJECT MANAGEMENT
2.28 ORGANIZATIONAL CHANGE MANAGEMENT AND CORPORATE CULTURES
2.29 INNOVATION CULTURES
2.30 THE VUCA ENVIRONMENT
2.31 COVID‐19 AND CULTURAL CHANGE
2.32 BENEFITS HARVESTING AND CULTURAL CHANGE
2.33 AGILE AND ADAPTIVE PROJECT MANAGEMENT CULTURES
2.34 PROJECT MANAGEMENT INTELLECTUAL PROPERTY
2.35 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
CASE STUDY
NOTES
3 Organizational Structures
3.0 INTRODUCTION
3.1 ORGANIZATIONAL WORKFLOW
3.2 TRADITIONAL (CLASSICAL) ORGANIZATION
3.3 PURE PRODUCT (PROJECTIZED) ORGANIZATION
3.4 MATRIX ORGANIZATIONAL FORM
3.5 MODIFICATION OF MATRIX STRUCTURES
3.6 THE STRONG, WEAK, OR BALANCED MATRIX
3.7 PROJECT MANAGEMENT OFFICES
3.8 SELECTING THE ORGANIZATIONAL FORM
3.9 STRATEGIC BUSINESS UNIT (SBU) PROJECT MANAGEMENT
3.10 SEVEN FALLACIES THAT DELAY PROJECT MANAGEMENT MATURITY
3.11 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
NOTES
4 Organizing and Staffing the Project Office and Team
4.0 INTRODUCTION
4.1 THE STAFFING ENVIRONMENT
4.2 SELECTING THE PROJECT MANAGER: AN EXECUTIVE DECISION
4.3 SKILL REQUIREMENTS FOR PROJECT AND PROGRAM MANAGERS
4.4 SPECIAL CASES IN PROJECT MANAGER SELECTION
4.5 THE CHANCE OF GLORY
4.6 TODAY'S PROJECT MANAGERS
4.7 DUTIES AND JOB DESCRIPTIONS
4.8 THE PROJECT ORGANIZATIONAL STAFFING PROCESS
4.9 THE PROJECT OFFICE
4.10 PRICING OUT MANAGEMENT SUPPORT
4.11 THE FUNCTIONAL TEAM
4.12 IDENTIFYING DESIRED PROJECT WORKFORCE SKILLS
4.13 HOW SOME WORKERS VIEW PROJECT MANAGEMENT
4.14 PROJECT WORKFORCE RECRUITMENT POLICY
4.15 DEGREES OF PERMISSIVENESS
4.16 FINDING CRITICALLY SKILLED WORKERS
4.17 THE INVENTORY SKILLS MATRIX
4.18 STAFFING WITH TEMPORARY AND CONTRACT WORKERS
4.19 WORKING WITH THE TECHNICAL PRIMA DONNA
4.20 HANDLING LAZY WORKERS
4.21 HANDLING TOXIC TEAM MEMBERS
4.22 CREATIVITY BOUNDARY CONDITIONS
4.23 THE PROJECT ORGANIZATIONAL CHART
4.24 STAKEHOLDER INVOLVEMENT IN PROJECT STAFFING
4.25 DEVELOPING PROJECT WORKFORCE BACKUP PLANS
4.26 SELECTING THE PROJECT MANAGEMENT IMPLEMENTATION TEAM
4.27 STAFFING PROBLEMS
4.28 MISTAKES MADE BY INEXPERIENCED PROJECT MANAGERS
4.30 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
NOTES
5 Management Functions
5.0 INTRODUCTION
5.1 CONTROLLING
5.2 DIRECTING
5.3 PROJECT AUTHORITY
5.4 INTERPERSONAL INFLUENCES
5.5 BARRIERS TO PROJECT TEAM DEVELOPMENT
5.6 MICROMANAGING PROJECTS
5.7 SUGGESTIONS FOR HANDLING THE NEWLY FORMED TEAM
5.8 TEAM BUILDING AS AN ONGOING PROCESS
5.9 LEADERSHIP IN A PROJECT ENVIRONMENT
5.10 SERVANT LEADERSHIP
5.11 ENGAGING TEAM MEMBERS
5.12 USING KINDNESS AS A PROJECT LEADERSHIP COMPONENT
5.13 VALUE‐BASED PROJECT LEADERSHIP
5.14 TRANSFORMATIONAL PROJECT MANAGEMENT LEADERSHIP
5.15 ORGANIZATIONAL IMPACT
5.16 EMPLOYEE–MANAGER PROBLEMS
5.17 GENERAL MANAGEMENT PITFALLS
5.18 TIME MANAGEMENT PITFALLS
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5.19 HUMAN BEHAVIOR EDUCATION
5.20 CONTINUOUS LEARNING
5.21 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
CASE STUDY
NOTES
6 Communications Management
6.0 INTRODUCTION
6.1 MODELING THE COMMUNICATIONS ENVIRONMENT
6.2 THE PROJECT MANAGER AS A COMMUNICATOR
6.3 PROJECT REVIEW MEETINGS
6.4 PROJECT MANAGEMENT BOTTLENECKS
6.5 ACTIVE LISTENING
6.6 EMOTIONAL INTELLIGENCE
6.7 COMMUNICATION TRAPS
6.8 PROJECT PROBLEM SOLVING
6.9 USING ACTION ITEMS
6.10 BRAINSTORMING
6.11 WHY PROJECT TEAMS FREQUENTLY FAIL AT BRAINSTORMING
6.12 THINKING OUTSIDE THE BOX
6.13 PREDICTING THE OUTCOME OF A DECISION
6.14 FACILITATION
6.15 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
CASE STUDY
NOTE
7 Conflicts
7.0 INTRODUCTION
7.1 THE CONFLICT ENVIRONMENT
7.2 TYPES OF CONFLICTS
7.3 CONFLICT RESOLUTION
7.4 THE MANAGEMENT OF CONFLICTS
2
7.5 CONFLICT RESOLUTION MODES
7.6 UNDERSTANDING SUPERIOR, SUBORDINATE, AND FUNCTIONAL CONFLICTS
3
7.7 DISAGREEMENTS VERSUS CONFLICTS
7.8 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
CASE STUDY
NOTES
8 Special Topics
8.0 INTRODUCTION
8.1 EFFECTIVE PROJECT MANAGEMENT IN THE SMALL BUSINESS ORGANIZATION
8.2 MEGA PROJECTS
8.3 MANAGING COMPLEXITY
8.4 MORALITY, ETHICS, AND THE CORPORATE CULTURE
8.5 PROFESSIONAL RESPONSIBILITIES
8.6 INTERNAL PARTNERSHIPS
8.7 EXTERNAL PARTNERSHIPS
8.8 TRAINING AND EDUCATION
8.9 PROJECT MANAGEMENT CERTIFICATION PROGRAMS
8.10 INTEGRATED PRODUCT/PROJECT TEAMS
8.11 VIRTUAL PROJECT TEAMS
8.12 UNDERSTANDING DIVERSITY
8.13 USING DIVERSITY, EQUITY, AND INCLUSION TO FOSTER INNOVATION AND CREATIVITY
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8.14 MANAGING INNOVATION PROJECTS
8.15 INNOVATION USING SKUNK WORKS AND PROJECT MANAGEMENT
8.16 AGILE PROJECT MANAGEMENT
8.17 GROWTH OF HYBRID METHODOLOGIES
8.18 IMPLEMENTING HYBRID METHODOLOGIES
18
8.19 ARTIFICIAL INTELLIGENCE BENEFITS
8.20 ARTIFICIAL INTELLIGENCE IMPLEMENTATION RISKS
8.21 ARTIFICIAL INTELLIGENCE AND INTELLECTUAL PROPERTY RIGHTS
8.22 THE NEED FOR ARTIFICIAL INTELLIGENCE SKILLS
8.23 PROJECT MANAGEMENT DIGITALIZATION
8.24 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
CASE STUDY
NOTES
9 The Variables for Success
9.0 INTRODUCTION
9.1 PREDICTING PROJECT SUCCESS
9.2 PROJECT MANAGEMENT EFFECTIVENESS
1
9.3 EXPECTATIONS
9.4 LESSONS LEARNED
9.5 UNDERSTANDING BEST PRACTICES
9.6 DOWNSIDE RISKS WITH BEST PRACTICES
9.7 STUDYING TIPS FOR THE PMI
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CASE STUDY
NOTE
10 Working with Executives
10.0 INTRODUCTION
10.1 THE PROJECT SPONSOR
10.2 HANDLING DISAGREEMENTS WITH THE SPONSOR
10.3 THE COLLECTIVE BELIEF
10.4 THE EXIT CHAMPION
10.5 THE IN‐HOUSE REPRESENTATIVES
10.6 STAKEHOLDER RELATIONS MANAGEMENT
3
10.7 PROJECT PORTFOLIO MANAGEMENT
10.8 POLITICS
10.9 SCOPE CHANGE CONTROL
10.10 HIDDEN AGENDAS
10.11 WHEN SPONSORSHIP FAILS
10.12 STUDYING TIPS FOR THE PMI
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PROBLEMS
CASE STUDY
NOTES
11 Planning
11.0 INTRODUCTION
11.1 BUSINESS CASE
11.2 VALIDATING THE ASSUMPTIONS
11.3 VALIDATING THE OBJECTIVES
11.4 GENERAL PLANNING
11.5 LIFE‐CYCLE PHASES
11.6 LIFE‐CYCLE MILESTONES
11.7 KICKOFF MEETINGS
11.8 UNDERSTANDING PARTICIPANTS' ROLES
11.9 ESTABLISHING PROJECT OBJECTIVES
11.10 THE STATEMENT OF WORK
11.11 PROJECT SPECIFICATIONS
11.12 DATA ITEM MILESTONE SCHEDULES
11.13 WORK BREAKDOWN STRUCTURE
11.14 WBS DECOMPOSITION PROBLEMS
11.15 WORK BREAKDOWN STRUCTURE DICTIONARY
11.16 PROJECT SELECTION
11.17 THE ROLE OF THE EXECUTIVE IN PLANNING
11.18 MANAGEMENT COST AND CONTROL SYSTEM
11.19 WORK PLANNING AUTHORIZATION
11.20 WHY DO PLANS FAIL?
11.21 STOPPING PROJECTS
11.22 HANDLING PROJECT PHASEOUTS AND TRANSFERS
11.23 DETAILED SCHEDULES AND CHARTS
11.24 MASTER PRODUCTION SCHEDULING
11.25 PROJECT PLAN
11.26 THE PROJECT CHARTER
11.27 PROJECT BASELINES
11.28 VERIFICATION AND VALIDATION
11.29 PROJECT RESOURCE PLAN
11.30 MANAGEMENT CONTROL
11.31 CONFIGURATION MANAGEMENT
11.32 ENTERPRISE PROJECT MANAGEMENT METHODOLOGIES
11.33 PROJECT AUDITS
11.34 STUDYING TIPS FOR THE PMI
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PROBLEMS
NOTES
12 Network Scheduling Techniques
12.0 INTRODUCTION
12.1 NETWORK FUNDAMENTALS
12.2 GRAPHICAL EVALUATION AND REVIEW TECHNIQUE (GERT)
12.3 DEPENDENCIES
12.4 SLACK TIME
12.5 NETWORK REPLANNING
12.6 ESTIMATING ACTIVITY TIME
12.7 ESTIMATING TOTAL PROJECT TIME
12.8 TOTAL PERT/CPM PLANNING
12.9 CRASH TIMES
12.10 PERT/CPM PROBLEM AREAS
12.11 ALTERNATIVE PERT/CPM MODELS
12.12 PRECEDENCE NETWORKS
12.13 LAG
12.14 SCHEDULING PROBLEMS
12.15 THE MYTHS OF SCHEDULE COMPRESSION
12.16 STUDYING TIPS FOR THE PMI
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ANSWERS
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CASE STUDY
NOTES
13 Pricing and Estimating
13.0 INTRODUCTION
13.1 GLOBAL PRICING STRATEGIES
13.2 TYPES OF ESTIMATES
13.3 PRICING PROCESS
13.4 ORGANIZATIONAL INPUT REQUIREMENTS
13.5 LABOR DISTRIBUTIONS
13.6 OVERHEAD RATES
13.7 MATERIALS/SUPPORT COSTS
13.8 PRICING OUT THE WORK
13.9 SMOOTHING OUT DEPARTMENT MAN‐HOURS
13.10 THE PRICING REVIEW PROCEDURE
13.11 SYSTEMS PRICING
13.12 DEVELOPING THE SUPPORTING/BACKUP COSTS
13.13 THE LOW‐BIDDER DILEMMA
13.14 SPECIAL PROBLEMS
13.15 ESTIMATING PITFALLS
13.16 ESTIMATING HIGH‐RISK PROJECTS
13.17 PROJECT RISKS
13.18 THE DISASTER OF APPLYING THE 10 PERCENT SOLUTION TO PROJECT ESTIMATES
13.19 LIFE‐CYCLE COSTING (LCC)
13.20 LOGISTICS SUPPORT
13.21 ECONOMIC PROJECT SELECTION CRITERIA: CAPITAL BUDGETING
13.22 PAYBACK PERIOD
13.23 THE TIME VALUE OF MONEY AND DISCOUNTED CASH FLOW (DCF)
13.24 NET PRESENT VALUE (NPV)
13.25 INTERNAL RATE OF RETURN (IRR)
13.26 COMPARING IRR, NPV, AND PAYBACK
13.27 RISK ANALYSIS
13.28 CAPITAL RATIONING
13.29 PROJECT FINANCING
13.30 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
CASE STUDY
NOTE
14 Cost Control
14.0 INTRODUCTION
14.1 UNDERSTANDING CONTROL
14.2 THE OPERATING CYCLE
14.3 COST ACCOUNT CODES
14.4 BUDGETS
14.5 THE EARNED VALUE MEASUREMENT SYSTEM (EVMS)
14.6 VARIANCE AND EARNED VALUE
14.7 THE COST BASELINE
14.8 JUSTIFYING THE COSTS
14.9 THE COST OVERRUN DILEMMA
14.10 RECORDING MATERIAL COSTS USING EARNED VALUE MEASUREMENT
14.11 MATERIAL VARIANCES: PRICE AND USAGE
2
14.12 SUMMARY VARIANCES
14.13 STATUS REPORTING
14.14 COST CONTROL PROBLEMS
14.15 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
CASE STUDY
NOTES
15 Metrics
15.0 INTRODUCTION
15.1 PROJECT MANAGEMENT INFORMATION SYSTEMS
15.2 ENTERPRISE RESOURCE PLANNING
15.3 PROJECT METRICS
15.4 KEY PERFORMANCE INDICATORS (KPIs)
15.5 SELECTING THE RIGHT METRICS
15.6 GROWTH OF NEW PROJECT METRICS AND KPIs
15.7 VALUE‐BASED METRICS
15.8 STRATEGIC METRICS
15.9 METRICS FOR MEASURING INTANGIBLE ASSETS
15.10 DASHBOARDS AND SCORECARDS
15.11 METRICS FEEDBACK
15.12 METRICS AND CUSTOMER RELATIONS MANAGEMENT
15.13 BUSINESS INTELLIGENCE
15.14 CHALLENGES WITH METRICS MANAGEMENT PROGRAMS
15.15 CRISIS DASHBOARDS
15.16 STUDYING TIPS FOR THE PMI
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PROJECT MANAGEMENT CERTIFICATION EXAM
ANSWERS
PROBLEMS
NOTES
16 Trade‐off Analysis in a Project Environment
16.0 INTRODUCTION
16.1 METHODOLOGY FOR TRADE‐OFF ANALYSIS
16.2 CONTRACTS: THEIR INFLUENCE ON PROJECTS
16.3 INDUSTRY TRADE‐OFF PREFERENCES
16.4 PROJECT MANAGER'S CONTROL OF TRADE‐OFFS
16.5 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
17 Risk Management
17.0 INTRODUCTION
17.1 DEFINITION OF RISK
17.2 TOLERANCE FOR RISK
17.3 DEFINITION OF RISK MANAGEMENT
17.4 CERTAINTY, RISK, AND UNCERTAINTY
17.5 RISK MANAGEMENT PROCESS
17.6 PLAN RISK MANAGEMENT
17.7 RISK IDENTIFICATION
17.8 RISK ANALYSIS
17.9 QUALITATIVE RISK ANALYSIS
17.10 QUANTITATIVE RISK ANALYSIS
17.11 PLAN RISK RESPONSE
17.12 MONITOR AND CONTROL RISKS
17.13 SOME IMPLEMENTATION CONSIDERATIONS
17.14 THE USE OF LESSONS LEARNED
17.15 DEPENDENCIES BETWEEN RISKS
17.16 THE IMPACT OF RISK‐HANDLING MEASURES
17.17 RISK AND CONCURRENT ENGINEERING
17.18 STUDYING TIPS FOR THE PMI
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PROJECT MANAGEMENT CERTIFICATION EXAM
ANSWERS
PROBLEMS
CASE STUDY
NOTES
18 Learning Curves
18.0 INTRODUCTION
18.1 GENERAL THEORY
18.2 THE LEARNING CURVE CONCEPT
18.3 GRAPHIC REPRESENTATION
18.4 KEY WORDS ASSOCIATED WITH LEARNING CURVES
18.5 THE CUMULATIVE AVERAGE CURVE
18.6 SOURCES OF EXPERIENCE
18.7 DEVELOPING SLOPE MEASURES
18.8 UNIT COSTS AND USE OF MIDPOINTS
18.9 SELECTION OF LEARNING CURVES
18.10 FOLLOW‐ON ORDERS
18.11 MANUFACTURING BREAKS
18.12 LEARNING CURVE LIMITATIONS
18.13 COMPETITIVE WEAPON
18.14 STUDYING TIPS FOR THE PMI
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ANSWERS
PROBLEMS
NOTES
19 Contract Management
19.0 INTRODUCTION
19.1 PROCUREMENT
19.2 PLAN PROCUREMENTS
19.3 CONDUCTING THE PROCUREMENTS
19.4 CONDUCT PROCUREMENTS: REQUEST SELLER RESPONSES
19.5 CONDUCT PROCUREMENTS: SELECT SELLERS
19.6 TYPES OF CONTRACTS
19.7 INCENTIVE CONTRACTS
19.8 CONTRACT TYPE VERSUS RISK
19.9 CONTRACT ADMINISTRATION
19.10 CONTRACT CLOSURE
19.11 USING A CHECKLIST
19.12 PROPOSAL‐CONTRACTUAL INTERACTION
19.13 STUDYING TIPS FOR THE PMI
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ANSWERS
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CASE STUDY
NOTES
20 Quality Management
20.0 INTRODUCTION
20.1 DEFINITION OF QUALITY
20.2 THE QUALITY MOVEMENT
20.3 QUALITY MANAGEMENT CONCEPTS
20.4 THE COST OF QUALITY
20.5 THE SEVEN QUALITY CONTROL TOOLS
20.6 ACCEPTANCE SAMPLING
20.7 IMPLEMENTING SIX SIGMA
20.8 QUALITY LEADERSHIP
20.9 RESPONSIBILITY FOR QUALITY
20.10 QUALITY CIRCLES
20.11 TOTAL QUALITY MANAGEMENT (TQM)
20.12 STUDYING TIPS FOR THE PMI
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NOTES
21 Modern Developments in Project Management
21.0 INTRODUCTION
21.1 THE PROJECT MANAGEMENT MATURITY MODEL (PMMM)
21.2 CONTINUOUS IMPROVEMENT
21.3 CAPACITY PLANNING
21.4 COMPETENCY MODELS
21.5 END‐OF‐PHASE REVIEW MEETINGS
21.6 BENCHMARKING
CASE STUDY
NOTE
APPENDIX A: Solution to Leadership Exercise
SITUATION 1
SITUATION 2
SITUATION 3
SITUATION 4
SITUATION 5
SITUATION 6
SITUATION 7
SITUATION 8
SITUATION 9
SITUATION 10
SITUATION 11
SITUATION 12
SITUATION 13
SITUATION 14
SITUATION 15
SITUATION 16
SITUATION 17
SITUATION 18
SITUATION 19
SITUATION 20
APPENDIX B: Solutions to the Project Management Conflict Exercise
PART 1: FACING THE CONFLICT
PART 2: UNDERSTANDING EMOTIONS
PART 3: ESTABLISHING COMMUNICATIONS
PART 4: CONFLICT RESOLUTION
PART 5: UNDERSTANDING YOUR CHOICES
PART 6: INTERPERSONAL INFLUENCES
APPENDIX C: Dorale Products Case Studies
DORALE PRODUCTS (A)
DORALE PRODUCTS (B)
DORALE PRODUCTS (C)
DORALE PRODUCTS (D)
DORALE PRODUCTS (E)
DORALE PRODUCTS (F)
DORALE PRODUCTS (G)
DORALE PRODUCTS (H)
DORALE PRODUCTS (I)
DORALE PRODUCTS (J)
APPENDIX D: Solutions to the Dorale Products Case Studies
CASE STUDY (A)
CASE STUDY (B)
CASE STUDY (C)
CASE STUDY (D)
CASE STUDY (E)
CASE STUDY (F)
CASE STUDY (G)
CASE STUDY (H)
CASE STUDY (I)
CASE STUDY (J)
CASE STUDY (K)
Author Index
Subject Index
End User License Agreement
List of Tables
Chapter 1
TABLE 1–1. DUAL RESPONSIBILITY
TABLE 1–2. REPORTING RELATIONSHIPS
TABLE 1–3. TYPES OF PROJECT GOVERNANCE
TABLE 1–4. PROJECT MANAGERS VERSUS PROJECT CHAMPIONS
TABLE 1–5. CLASSIFICATION OF PROJECTS/CHARACTERISTICS
Chapter 2
TABLE 2–1. LIFE‐CYCLE PHASES FOR PROJECT MANAGEMENT MATURITY
TABLE 2–2. BENEFITS OF PROJECT MANAGEMENT
TABLE 2–3. RECESSIONARY EFFECTS
TABLE 2–4. DEFINITION SUMMARY
TABLE 2–5. DIFFERENCES BETWEEN TRADITIONAL AND NON‐TRADITIONAL PROJECTS
TABLE 2–6. SUCCESS FACTORS
TABLE 2–7. TRADITIONAL AND FUTURE DEFINITIONS
TABLE 2–8. AUDITS VS. HEALTH CHECKS
TABLE 2–9. LIFE‐CYCLE PHASE DEFINITIONS
TABLE 2–10. FORMS OF PROJECT CLOSURE
TABLE 2–11. RIGID VS. FLEXIBLE PROJECT MANAGEMENT
TABLE 2–12. SOME DIFFERENCES BETWEEN OPERATIONAL AND STRATEGIC PROJECT MANAGE...
TABLE 2–13. COMPONENTS OF A BUSINESS MODEL
TABLE 2–14. COMPARISON OF TRADITIONAL AND LEAN PROJECT MANAGEMENT
TABLE 2–15. RESISTANCE: WORK HABITS
TABLE 2–16. RESISTANCE: SOCIAL GROUPS
TABLE 2–17. RESISTANCE: EMBEDDED FEARS
TABLE 2–18. RESISTANCE: WAGE AND SALARY ADMINISTRATION
TABLE 2–19. TRUST IN CUSTOMER–CONTRACTOR RELATIONSHIPS
TABLE 2–20. ISSUES WITH INTELLECTUAL PROPERTY
Chapter 3
TABLE 3–1. ADVANTAGES OF THE TRADITIONAL (CLASSICAL) ORGANIZATION
TABLE 3–2. DISADVANTAGES OF THE TRADITIONAL (CLASSICAL ORGANIZATION)
TABLE 3–3. ADVANTAGES AND DISADVANTAGES OF THE PRODUCT ORGANIZATIONAL FORM
TABLE 3–4. ADVANTAGES AND DISADVANTAGES OF A PURE MATRIX ORGANIZATIONAL FORM...
TABLE 3–5. PROJECT MANAGEMENT COMPARED TO PROJECT ENGINEERING
Chapter 4
TABLE 4–1. PROJECT MANAGEMENT POSITIONS AND RESPONSIBILITIES
Chapter 5
TABLE 5–1. BARRIERS TO EFFECTIVE TEAM BUILDING AND SUGGESTED HANDLING APPROAC...
TABLE 5–2. EFFECTIVENESS‐INEFFECTIVENESS INDICATORS
TABLE 5–3. CHANGING VALUES
Chapter 6
TABLE 6–1. COMMUNICATIONS POLICY
TABLE 6–2. STRENGTHS AND RISKS OF VARIOUS TECHNIQUES
TABLE 6–3. CONSEQUENCE TABLE
Chapter 8
TABLE 8–1. EFFECTIVE IPTS
TABLE 8–2. INEFFECTIVE IPTS
TABLE 8–3. CHARACTERISTICS OF TRADITIONAL AND VIRTUAL TEAMS
TABLE 8–4. TYPES OF VIRTUAL TEAMS
TABLE 8–5. TECHNOLOGY AND CULTURE
TABLE 8–9. COMPARISON OF TRADITIONAL VERSUS AGILE PROJECT MANAGEMENT
TABLE 8–10. VARIABLES FOR SELECTING A DEVELOPMENT APPROACH
Chapter 9
TABLE 9–1. VARIABLES TO PARENT AND CLIENT ORGANIZATIONS SUPPORT
TABLE 9–2. RESULTS OF IMPLEMENTING BEST PRACTICES
Chapter 10
TABLE 10–1. THE PROJECT‐LINE INTERFACE
TABLE 10–2. THE EXECUTIVE INTERFACE
TABLE 10–3. VESTED INTEREST OR NOT?
Chapter 11
TABLE 11–1. ASSUMPTION VALIDATION CHECKLIST
TABLE 11–2. SPECIFICATION FOR STATEMENT OF WORK
TABLE 11–3. WORK BREAKDOWN STRUCTURE FOR NEW PLANT CONSTRUCTION AND START‐UP...
TABLE 11–4. FEASIBILITY STUDY AND BENEFIT–COST ANALYSIS
TABLE 11–5. TYPES OF PLANS
TABLE 11–6. COMPARISON OF VERIFICATION AND VALIDATION
TABLE 11–7. TYPES OF PROJECT TEMPLATES
TABLE 11–8. STEPS IN PROJECT PLANNING AND CONTROL
Chapter 12
TABLE 12–1. SEQUENCE OF EVENTS
TABLE 12–2. PERT CONTROL OUTPUT INFORMATION.
TABLE 12–3. MYTHS AND REALITIES OF SCHEDULE COMPRESSION
Chapter 13
TABLE 13–1. TWO GLOBAL PRICING STRATEGIES
TABLE 13–2. STANDARD PROJECT ESTIMATING
TABLE 13–3. ESTIMATING MANUAL TABLE OF CONTENTS
TABLE 13–4. CLASSES OF ESTIMATES
TABLE 13–5. CHECKLIST FOR WORK NORMALLY REQUIRED FOR THE VARIOUS CLASSES (I‐I...
TABLE 13–6. DATA REQUIRED FOR PREPARATION OF ESTIMATES
TABLE 13–7. ELEMENTS OF OVERHEAD RATES
TABLE 13–8. CONTRACTOR'S MANPOWER AVAILABILITY
TABLE 13–9. STAFF TURNOVER DATA
TABLE 13–10. STAFF EXPERIENCE PROFILE
TABLE 13–11. LOW‐ VERSUS HIGH‐RISK ACCURACIES
TABLE 13–12. CAPITAL EXPENDITURE DATA FOR PROJECT A
TABLE 13–13. NPV CALCULATION FOR PROJECT A
TABLE 13–14. IRR CALCULATION FOR PROJECT A
TABLE 13–15. CAPITAL PROJECTS
TABLE 13–16. SENSITIVITY ANALYSIS
TABLE 13–17. PROJECTS UNDER CONSIDERATION
Chapter 14
TABLE 14–1. VARIANCE CONTROL FOR PROGRAM X
TABLE 14–2. PROJECT Z, TASK 3 COST SUMMARY FOR WORK COMPLETED OR IN PROGRESS ...
TABLE 14–3. TYPICAL PROJECT PRICING SUMMARY
TABLE 14–4. FORWARD PRICING RATES: SALARY (DEPARTMENT PAY STRUCTURE)
TABLE 14–5. HOURS AVAILABLE FOR WORK
Chapter 15
TABLE 15–1. TWELVE CHARACTERISTICS OF EFFECTIVE KPIs
TABLE 15–2. METRIC MEASUREMENT COMPLEXITY
TABLE 15–3. MEASURING VALUES
TABLE 15–4. PROBLEMS WITH MEASURING VALUES
TABLE 15–5. TYPICAL STRATEGIC ISSUES
TABLE 15–6. STRATEGIC METRICS FOR SPECIFIC TYPES OF PMOs
TABLE 15–7. COMPARING FEATURES
TABLE 15–8. THREE TYPES OF PERFORMANCE DASHBOARDS
TABLE 15–9. PROBLEMS VERSUS CRISES
Chapter 16
TABLE 16–1. CATEGORIES OF CONSTRAINTS
TABLE 16–2. WEIGHING THE ALTERNATIVES
TABLE 16–3. TRADE‐OFF ANALYSIS FOR IMPROVING PERFORMANCE CAPABILITY
TABLE 16–4. SEQUENCE OF RESOURCES SACRIFICED BASED ON TYPE OF CONTRACT
TABLE 16–5. INDUSTRY GENERAL PREFERENCE FOR TRADE‐OFFS
TABLE 16–6. SPECIAL CASES
Chapter 17
TABLE 17–1. CONCISE DEFINITIONS OF RISK, ISSUE, AND PROBLEM
TABLE 17–2. PAYOFF MATRIX (PROFIT IN MILLIONS)
TABLE 17–3. PAYOFF TABLE (PROFIT IN MILLIONS)
TABLE 17–4. REGRET TABLE
TABLE 17–5. LAPLACE CRITERION
TABLE 17–6. SUMMARY OF RESPONSE OPTIONS FOR RISKS AND OPPORTUNITIES
TABLE 17–7. RISK INTERDEPENDENCIES
TABLE 17–8. RISK CATEGORIES AT BOEING
TABLE 17–9. UNMANAGED VERSUS MANAGED CHANGED
Chapter 18
TABLE 18–1. CUMULATIVE PRODUCTION AND LABOR‐HOUR DATA
TABLE 18–2. SAMPLE COST REDUCTIONS DUE TO INCREASED EXPERIENCE
Chapter 19
TABLE 19–1. CONTRACT COMPARISON
TABLE 19–2. TYPICAL MAIN HEADING FOR A CONTRACT PROVISIONS CHECKLIST
Chapter 20
TABLE 20–1. CHANGING VIEWS OF QUALITY
TABLE 20–2. APPROACHES TO QUALITY IMPROVEMENT
TABLE 20–3. ATTRIBUTES OF THE NORMAL (STANDARD) DISTRIBUTION
TABLE 20–4. TYPES OF CONTROL CHARTS AND APPLICATIONS
List of Illustrations
Chapter 1
FIGURE 1–1. Organizational gaps.
FIGURE 1–2. Overview of project management.
FIGURE 1–3. Competing constraints.
FIGURE 1–4. Integration management.
FIGURE 1–5. The project sponsor interface.
FIGURE 1–6. The tip‐of‐the‐iceberg syndrome for matrix implementation.
FIGURE 1–7. Organizational hierarchy.
Chapter 2
FIGURE 2–1. Project management costs versus benefits.
FIGURE 2–2. Industry classification (by project management utilization).
FIGURE 2–3. From hybrid to project‐driven.
FIGURE 2–4. The growth of excellence.
FIGURE 2–5. Evolution of policies, procedures, and guidelines.
FIGURE 2–6. Maturity path.
FIGURE 2–7. Success: point or cube?
FIGURE 2–8. Components of failure (pessimistic planning).
FIGURE 2–9. Components of failure (optimistic planning).
FIGURE 2–10. Risk planning.
FIGURE 2–11. The relationship between marketing and technical personnel.
FIGURE 2–12. System costs.
FIGURE 2–13. Cost–benefit analysis.
FIGURE 2–14. A stream of projects.
FIGURE 2–15. Integrated processes for the twenty‐first century.
FIGURE 2–16. Integrated processes (past, present, and future).
FIGURE 2–17. Methodology inputs.
FIGURE 2–18. Resistance to change.
FIGURE 2–19. Change process.
FIGURE 2–20. Facets of a project management culture.
FIGURE 2–21. Growth of knowledge management.
FIGURE 2–22. PM benchmarking and knowledge management (KM).
Chapter 3
FIGURE 3–1. The traditional management structure.
FIGURE 3–2. Pure product or projectized structure.
FIGURE 3–3. Typical matrix structure.
FIGURE 3–4. Development of a director of project management.
FIGURE 3–5. Philosophy of management.
FIGURE 3–6. Strategic business unit project management.
FIGURE 3–7. SBU project management using platform management.
Chapter 4
FIGURE 4–1. Project management skills.
FIGURE 4–2. How do project managers spend their time?
FIGURE 4–3. Staffing pattern versus time.
FIGURE 4–4. Project organization.
FIGURE 4–5. Dalton Corporation.
FIGURE 4–6. Midas Program office.
FIGURE 4–7. Project engineering department manning for the Midas Program.
FIGURE 4–8. Roles people play that undermine project management implementati...
FIGURE 4–9. Roles people play that support project management implementation...
Chapter 5
FIGURE 5–1. Linear responsibility chart (responsibility assignment matrix)....
FIGURE 5–2. Types of project authority.
FIGURE 5–3. The range of alternatives.
Chapter 6
FIGURE 6–1. A breakdown in communications.
FIGURE 6–2. Communication channels.
FIGURE 6–3. Customer communications.
FIGURE 6–4. Total communication process.
FIGURE 6–5. Information flow pattern from contractor program office.
FIGURE 6–6. Impact analysis matrix.
Chapter 7
FIGURE 7–1. Relationship between conflict causes and sources.
FIGURE 7–2. Association between perceived intensity of conflict and mode of ...
FIGURE 7–3. Association between influence methods of project managers and th...
Chapter 8
FIGURE 8–1. Project management learning curve.
FIGURE 8–2. Lost knowledge within the learning curve.
FIGURE 8–3. Knowledge and authority.
FIGURE 8–4. Generic Predictive Life Cycle
FIGURE 8–5. Generic Adaptive Life Cycle
Chapter 9
FIGURE 9–1. Levels of best practices.
FIGURE 9–2. Usefulness of best practices.
FIGURE 9–3. Levels of best practices.
FIGURE 9–4. Creating a best practices library.
FIGURE 9–5. Best practices library.
Chapter 10
FIGURE 10–1. Project sponsorship.
FIGURE 10–2. Stakeholder power‐interest grid.
EXHIBIT 10–1 Levon's gap analysis.
EXHIBIT 10–2 Project management performance trend.
EXHIBIT 10–3 Increasing performance gap.
Chapter 11
FIGURE 11–1. Typical project launch.
FIGURE 11–2. Work breakdown structure for objective control and evaluation....
FIGURE 11–3. A work package for the cost account intersection within a WBS....
FIGURE 11–4. WBS tree diagram.
FIGURE 11–5. Illustration of a scaling model for one project, Project A.
FIGURE 11–6. Illustration of a checklist for three projects.
FIGURE 11–7. Illustration of a scoring model.
FIGURE 11–8. Phases of a management cost and control system.
FIGURE 11–9. The planning cycle of a management cost and control system.
FIGURE 11–10. Preparation sequence for schedules and program plans.
FIGURE 11–11. Material requirements planning interrelationships.
FIGURE 11–12. Iterations for the planning process.
FIGURE 11–13. Project direction activities.
Chapter 12
FIGURE 12–1. Standard PERT nomenclature.
FIGURE 12–2. PERT sources (burst points) and sinks.
FIGURE 12–3. Conversion from bar chart to PERT chart.
FIGURE 12–4. Simplified PERT network.
FIGURE 12–5. Dummy activity.
FIGURE 12–6. Network with slack time.
FIGURE 12–7. Comparison models for a time‐phase PERT chart.
FIGURE 12–8. Slack identification.
FIGURE 12–9. A typical PERT chart with slack times.
FIGURE 12–10. Slack time.
FIGURE 12–11. Iteration process for PERT schedule development.
FIGURE 12–12. Network replanning of Figure 12–6.
FIGURE 12–13. Parallelization of PERT activities.
FIGURE 12–14. PERT chart for one department.
FIGURE 12–15. Expected time analysis for critical path events in Figure 12–6...
FIGURE 12–16. CPM network.
FIGURE 12–17. CPM crashing costs.
FIGURE 12–18. Region of feasible budgets.
FIGURE 12–19. Determining project duration.
FIGURE 12–20. CPM network with slack.
FIGURE 12–21. Precedence network.
FIGURE 12–22. Typical precedence relationships.
FIGURE 12–23. Computerized information flow.
FIGURE 12–24. Precedence charts with lag.
FIGURE P12–9
FIGURE P12–10
Chapter 13
FIGURE 13–1. The vertical–horizontal interface.
FIGURE 13–2. Functional pricing flow.
FIGURE 13–3. Material planning flowchart.
FIGURE 13–4. Procurement activity.
FIGURE 13–5. Typical manpower loading.
FIGURE 13–6. Linearly increased manpower loading.
FIGURE 13–7. The pricing review procedure.
FIGURE 13–8. System approach to resource control.
FIGURE 13–9. Total reimbursable manpower.
FIGURE 13–10. The moving window/rolling wave concept.
FIGURE 13–11. Decision elements for risk contingencies.
FIGURE 13–12. Elements of base cost and risk contingencies.
Chapter 14
FIGURE 14–1. Phases of a management cost and control system.
FIGURE 14–2. Cost reduction analysis.
FIGURE 14–3. Cost influencers.
FIGURE 14–4. The cost account intersection.
FIGURE 14–5. Cost account code breakdown.
FIGURE 14–6. Work authorization form.
FIGURE 14–7. Planning and budgeting describe, plan, and schedule the work.
FIGURE 14–8. Cost account change notice (CACN).
FIGURE 14–9. Cost data collection and reporting flowchart.
FIGURE 14‐10 Project variance projection.
FIGURE 14–11. The performance index.
FIGURE 14–12. Integrated cost/schedule system.
FIGURE 14–13. Cost account variance analysis report.
FIGURE 14–14. Analysis showing use of 50/50 rule.
FIGURE 14–15. Project Z, task 3 cost data (contractual).
FIGURE 14–16. Physical progress versus time expended.
FIGURE 14–17. The cost baseline.
FIGURE 14–18. WBS level 1 cost breakdown.
FIGURE 14–19. Range of overruns.
Chapter 15
FIGURE 15–1. The boundary box.
Chapter 16
FIGURE 16–1. Overview of project management.
FIGURE 16–2. Project management with trade‐offs.
FIGURE 16–3. Trade‐off forcing factors.
FIGURE 16–4. The typical systems approach.
FIGURE 16–5. Trade‐offs with fixed performance.
FIGURE 16–6. Trade‐offs with fixed performance.
FIGURE 16–7. Trade‐offs with fixed cost.
FIGURE 16–8. Trade‐offs with fixed time.
FIGURE 16–9. Performance versus cost.
FIGURE 16–10. Trade‐off analysis with family of curves.
FIGURE 16–11. Cost–time–performance family of curves.
FIGURE 16–12. Life‐cycle trade‐offs. (Schedule not necessarily typical.)
Chapter 17
FIGURE 17–1. Overall risk is a function of its components.
FIGURE 17–2. Risk preference and the utility function.
FIGURE 17–3. Decision tree.
FIGURE 17–4. Expanded decision tree.
FIGURE 17–5. Life‐cycle risk analysis.
FIGURE 17–6. Prioritization of risks.
FIGURE 17–7. Ordering of trade‐offs (Note: Lower priorities more often under...
FIGURE 17–8. Tolerance for risk.
FIGURE 17–9. Risk‐handling measures.
FIGURE 17–10. Investment in risk management.
FIGURE 17–11. Risk handling versus schedule length.
FIGURE 17–12. Perfect planning.
FIGURE 17–13. Imperfect planning.
FIGURE 17–14. Overlapping risks.
FIGURE 17–15. Future risks.
FIGURE 17–16. Risk analysis prioritization.
FIGURE 17–17. Military operation probability impact matrix.
Chapter 18
FIGURE 18–1. A 75 percent learning curve.
FIGURE 18–2. Logarithmic plot of a 75 percent learning curve.
FIGURE 18–3. A “toe‐down” learning curve.
FIGURE 18–4. A “toe‐up” learning curve.
FIGURE 18–5. A leveling off of the learning curve.
Chapter 19
FIGURE 19–1. Fixed‐price‐incentive‐fee (FPIF) contract with firm target.
FIGURE 19–2. Cost‐plus‐incentive‐fee (CPIF) contract.
FIGURE 19–3. Contract types and risk types.
Chapter 20
FIGURE 20–1. Five typical quality principles.
FIGURE 20–2. The quality improvement process. (Source unknown.)
FIGURE 20–3. The Deming Cycle for Improvement.
FIGURE 20–4. Total quality cost.
FIGURE 20–5. Minimizing the costs of quality (COQ).
FIGURE 20–6. The seven quality control tools.
FIGURE 20–7. Check sheet for material receipt and inspection.
FIGURE 20–8. Cause‐and‐effect diagram.
FIGURE 20–9. Random method.
FIGURE 20–10. Systematic method.
FIGURE 20–11. Process analysis method.
FIGURE 20–12. Identify corrective action.
FIGURE 20–13. Histogram for variables.
FIGURE 20–14. Basic Pareto analysis: Collecting frequency data.
FIGURE 20–15. Basic Pareto analysis: Charting the data.
FIGURE 20–16. Comparative Pareto analysis.
FIGURE 20–17. Solder certification test scores.
FIGURE 20–18. Scatter plot correlation.
FIGURE 20–19. Scatter plot solder quality and certification score.
FIGURE 20–20. The control chart and the normal curve.
FIGURE 20–21. TQM objectives and focus areas.
Chapter 21
FIGURE 21–1. The five levels of maturity.
FIGURE 21–2. Overlapping levels.
FIGURE 21–3. Feedback between the five levels of maturity.
FIGURE 21–4. Degrees of difficulty of the five levels of maturity.
FIGURE 21–5. Why there is a need for continuous improvement.
FIGURE 21–6. The need for continuous improvement.
FIGURE 21–7. Classical capacity planning.
FIGURE 21–8. Improved capacity planning.
FIGURE 21–9. Competency model.
FIGURE 21–10. Core competency analysis.
FIGURE 21–11. Competency models and training.
Guide
Cover
Table of Contents
Title Page
Copyright
Dedication
Preface
Begin Reading
APPENDIX A: Solution to Leadership Exercise
APPENDIX B: Solutions to the Project Management Conflict Exercise
APPENDIX C: Dorale Products Case Studies
APPENDIX D: Solutions to the Dorale Products Case Studies
Author Index
Subject Index
End User License Agreement
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PROJECT MANAGEMENT
A Systems Approach to Planning, Scheduling, and Controlling
FOURTEENTH EDITION
HAROLD KERZNER
Copyright © 2025 by John Wiley & Sons, Inc. All rights reserved, including rights for text and data mining and training of artificial technologies or similar technologies.
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Tomy wife,Jo Ellyn,for her more than 35 yearsof unending love, devotion,and encouragement to continuemy writing of projectmanagement books
Preface
Project management has evolved from a management philosophy restricted to a few functional areas and regarded as something nice to have to an enterprise project management system affecting every functional unit of the company. Simply stated, project management has evolved into a business process rather than merely a project management process. More and more companies are now regarding project management as being mandatory for the survival of the firm. Organizations that were opponents of project management are now advocates. Management educators of the past, who preached that project management could not work and would be just another fad, are now staunch supporters. Project management is here to stay. Colleges and universities are now offering undergraduate and graduate degrees in project management.
This book is addressed not only to those undergraduate and graduate students who wish to improve their project management skills but also to those functional managers and upper‐level executives who serve as project sponsors, provide meaningful governance, and must provide continuous support for projects. During the past several years, management's knowledge and understanding of project management has matured to the point where almost every company is using project management in one form or another. These companies have come to the realization that project management, productivity, and business value creation are related, and that we are now managing our business as though it is a series of projects. Project management coursework is now consuming more of training budgets than ever before.
General reference is provided in the text for engineers. However, the reader should not consider project management as strictly engineering‐related. The engineering examples are the result of the fact that project management first appeared in the engineering disciplines, and we should be willing to learn from their mistakes. Project management now resides in every profession, including information systems, healthcare, consulting, pharmaceutical, banks, and government agencies.
The text can be used for both undergraduate and graduate courses in business, information systems, and engineering. The structure of the text is based on my belief that project management is much more behavioral than quantitative, since projects are managed by people rather than tools. The first seven chapters are part of the basic core of knowledge necessary to understand project management, specifically topics related to PMI®'s “Talent Triangle.” Chapters 8 through 10 deal with the support functions and describe factors for predicting success and management support. It may seem strange that 10 chapters on organizational behavior and structuring are needed prior to the “hard‐core” chapters of planning, scheduling, and controlling. However, these first 10 chapters are needed to understand the cultural environment for all projects and systems. They are necessary for the reader to understand the difficulties in achieving cross‐functional cooperation on projects where team members are working on multiple projects concurrently and why the people involved – all of whom may have different backgrounds – cannot simply be forged into a cohesive work unit without friction. Chapters 11 through 20 are more of the quantitative chapters on planning, scheduling, cost control, estimating, contracting (and procurement), and quality. Chapter 21 focuses on some of the more advanced topics.
Some of the changes that were made in the fourteenth edition include the following new material:
Data‐driven project management
The role of artificial intelligence in projects
Management of nontraditional projects
Understanding sustainability projects
Management of complex projects
Degrees of success and failure
Defining success and failure criteria
Need for new life cycle phases
Agile and hybrid methodologies
The project's fuzzy front end
Project portfolio management
Innovation cultures
The VUCA environment
COVID‐19 and cultural change
Believing projects are a chance for glory
Pricing out management support
Identifying desired manpower skills
Different views of project management
Manpower recruitment policy
Degrees of permissiveness
Finding critically skilled workers
The inventory skills matrix
Staffing projects with temporary contracted workers
Practicing servant leadership
Engaging new team members
Working with the technical prima donna
Handling lazy workers
Handling toxic team members
Establishing creativity boundary conditions
Project staffing problems
Micromanaging projects
New forms of project leadership
Why project brainstorming often fails
Thinking outside of the box
Differences between disagreements and conflicts
Project management digitalization
Working with hidden agendas
When project sponsorship fails
Developing a project resource management plan
Ways to select new metrics
Challenges with metrics management programs
Crises dashboards
Project management benchmarking
The text contains case studies, multiple‐choice questions, and discussion questions. There is also a separate companion book of cases (Project Management Case Studies, 7th Edition) that provides additional real‐world examples.
The fourteenth edition text, the PMBOK® Guide, and the book of cases are ideal as self‐study tools for the Project Management Institute's PMP® Certification exam. At the end of most of the chapters is a section on study tips for the PMP® exam.
This textbook is currently used in the college market, in the reference market, and for studying for the PMP® Certification exam. Therefore, to satisfy the needs of all markets, a compromise had to be reached on how much of the text would be aligned to the PMBOK® Guide and how much new material would be included without doubling the size of the text. Some colleges and universities use the textbook to teach project management fundamentals without reference to the PMBOK® Guide. The text does not contain all of the material necessary to support each section or process in the PMBOK® Guide. Therefore, to study for the PMP® Certification exam, the PMBOK® Guide must also be used together with this text. The text covers material for almost all of the PMBOK® Guide knowledge areas but not necessarily in the depth that appears in the PMBOK® Guide.
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 website. Access to the instructor's material and supporting material can be provided only through John Wiley & Sons Publishers, not the author.
One‐, two‐, and three‐day seminars on project management and the PMP® Certification Training using the text are offered by contacting Lori Milhaven, Executive Vice President, the International Institute for Learning, at 800‐325‐1533, extension 5121 (email address: [email protected]).
The problems and case studies at the end of the chapters cover a variety of industries. Almost all of the case studies are real‐world situations taken from my consulting practice or from research. Feedback from my colleagues who are using the text has provided me with fruitful criticism, most of which has been incorporated into the fourteenth edition.
The majority of the articles on project management that have become classics have been referenced in the textbook throughout the first 11 chapters. These articles were the basis for many of the modern developments in project management and are therefore identified throughout the text.
Many colleagues provided valuable criticism. 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 and previous editions. I am indebted to Dr. Edmund Conrow, PMP®, for more than a decade of assistance with the preparation of the risk management chapters in all of my texts. I am also indebted to Dr. Rene Rendon for his review and recommendations for changes to the chapter on Contract Management.
To the management team and employees of the International Institute for Learning, thank you all for 35 years of never‐ending encouragement, support, and assistance with all of my project management research and writings.
Harold Kerzner
The International Institute for Learning
2025
1Overview
1.0 INTRODUCTION
In the United States, the roots of project management date back to the Department of Defense (DOD) and heavy construction companies during the 1960s. Early use of project management focused on the completion of unique, or sometimes repetitive, projects with a heavy focus on compliance with budgets and schedules. To maintain standardization and control in the way that projects were managed, DOD established policies and procedures for gate reviews and the way that status should be reported.
In the early years, project management was seen as a part‐time job rather than as a career path position. In many companies, project management existed in only a small portion of the business, which made it difficult for some projects to get total company support.
Executives began realizing the complexities of resource control and effective project staffing. In addition, the rapid rate of change in both technology and the marketplace created enormous strains on existing organizational forms. The traditional structure, which was highly bureaucratic, showed that it could not respond rapidly enough to a changing environment. Thus, the traditional structure was replaced by project management, or other temporary management structures, that were highly organic and could respond very rapidly as situations developed inside and outside the company. The organic nature of project management practices today allows project managers to customize the project management tools and processes to adapt to a variety of different environments.
The acceptance of project management was not easy. Many executives were not willing to accept change and were inflexible when it came to adapting to a different environment and flexible organizational structures. The project management approach required a departure from the traditional business organizational form, which was basically vertical, and which emphasized a strong superior–subordinate relationship. Many executives had very strong beliefs as to how a company should be run and refused to recognize or admit that project management could benefit their company.
Unfavorable economic conditions forced executives to reconsider the value that project management could bring to a firm. Some of the unfavorable conditions included the recessions of the late 1970s and early 1990s, the housing crisis that began in 2008, the European economy downturn in 2013 and 2014, the world economic slowdown in 2015, and the COVID‐19 pandemic. These unfavorable conditions emphasized the need for better control of existing resources, the creation of a portfolio of projects that would maximize the value brought to the firm, and a higher percentage of project successes. It soon became apparent that project management could satisfy all of these needs, and that project management is a necessity in both bad and good economic conditions. 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.
Almost all of today's executives are convinced that project management can and does work well. Project management is now being applied to all facets of a business rather than just parts of the business. Projects are now being aligned with corporate or strategic objectives. Simply stated, “Why work on a project that is not aligned to strategic objectives with the goal of creating business value?” In some companies – such as IBM, Microsoft, and Hewlett‐Packard – project management is recognized as a strategic competency necessary for the survival of the firm. This recognition of the importance of project management today permeates almost all industries and companies of all sizes.
1.1 UNDERSTANDING PROJECT MANAGEMENT
In order to understand project management, one must begin with the definition of a project. A project can be any series of activities and tasks that:
Have a specific objective, with a focus on the creation of business value, 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)
The result or outcome of the project can be unique or repetitive and must be achieved within a finite period. Because companies have very limited resources, care must be taken that the right mix of projects is approved. As such, another outcome of a project is that it provides business value to the company as opposed to being a “pet” project for the personal whims of one person.
Project management is the application of knowledge, skills, and tools necessary to achieve the project's requirements. The knowledge, skills, and tools are usually grouped into activities or processes. PMI®'s PMBOK® Guide, 6th edition, identified five process groups. Some of the activities within these groups included:
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 when necessary
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 paperwork
Many companies viewed the five process groups as life‐cycle phases and created a singular methodology that all projects were required to follow. Each process group had documentation requirements and performance measurements, and reporting was aligned to the process groups. This one‐size‐fits‐all approach limited the flexibility that project teams needed to customize project management to the requirements of each project. In the 7th edition of the PMBOK® Guide, it was recommended that project teams be given the freedom to select their own approach for each project as well as the models, methods, and artifacts best suited for this project.
The 6th edition of the PMBOK® Guide focused on process groups and areas of knowledge, with an emphasis on the inputs, tools and outputs needed. In the 7th edition, the emphasis was on eight performance domain areas that are deemed critical for repetitive project success:
Stakeholders
Team
Development Approach and Life Cycle
Planning
Project Work
Delivery
Measurement
Uncertainty
Although each of the eight domains appears as independent, the domains overlap and interact with each other. The information within the domains can be customized for each project. The processes, tools, and techniques discussed in the 6th edition of the PMBOK® Guide direct the behavior that project managers should consider for the performance domains to be successfully implemented.
Successful project management, as seen from a corporate perspective, can be defined as achieving a continuous stream of project objectives within time, within cost, at the desired performance/technology level, while utilizing the assigned resources effectively and efficiently, and by providing customers and/or stakeholders with the benefits and value they expected. Because each project is inherently different and each customer can have different requirements, the activities included within the performance domains may change from project to project. The PMBOK® Guide identifies industry‐accepted activities regarded as best practices for each performance domain and these best practices can be structured to create several project management delivery systems that can be applied and customized to a variety of projects.
The potential benefits from effective project management are:
Clear 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
Identification of a methodology for trade‐off analysis
Measurement of accomplishment against plans
Early identification of problems so that corrective action may follow
Improved estimating capability for future planning
Knowing when objectives cannot be met or will be exceeded
Unfortunately, the benefits cannot be achieved without overcoming obstacles such as project complexity, customer's special requirements and scope changes, organizational restructuring, project risks, changes in technology, and forward planning and pricing.
Project management is designed to make better use of existing resources by getting work to flow horizontally as well as vertically within the company. This approach does not really destroy the vertical, bureaucratic flow of work but simply requires that line organizations talk to one another horizontally so that horizontal and vertical workflow will be accomplished more smoothly throughout the organization and in a concurrent manner. The vertical flow of work is still the responsibility of the line managers. The horizontal flow of work is the responsibility of the project managers, and their primary effort is to communicate and coordinate activities horizontally between the line organizations.
Figure 1–1
