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Providing new and updated content throughout, the seventh edition’s concise pedagogy and AdManage Everything From Simple Tasks To Your Project Portfolio. Try It Free!% Cloud-Based · Enterprise Ready · Make Collaboration Work · Over 3,, UsersProject Management Software | Smartsheet AdManage Everything From Simple Tasks To Your Project Portfolio. Try It Free!The leading work management platform you need to move from idea to impact blogger.comt Management Software | Smartsheet Chapter 1, Project Management Concepts, is a foundation chapter that discusses the definition of a project and its attributes; managing a project within the constraints of scope, quality, schedule, budget, resources, risks, and customer satisfaction; the project life cycle of initiating, planning, performing, and closing a project, as well as monitoring and controlling the project and managing changes; the definition of project management and the steps of the project management process Providing new and updated content throughout, the seventh edition’s concise pedagogy and ... read more

Which of the following is true about earned value analysis? a Schedule variance is determined by subtracting the earned value from the planned value. b The cost performance index is a ratio of budgeted costs to actual costs. c Cost variance is determined by subtracting the earned value from the actual cost. When using a cost-plus contract, who assumes the risk of unforeseen problems? a Contractor b Project manager c Worker d No one A planning tool that displays the levels of project work is a: a Gantt chart. b Pareto diagram. c skills inventory. d work breakdown structure. a Fixed-price b Unit-price c Cost-plus d Incentive A risk response plan includes all of the following except: a possible risks, potential causes, and how they may affect the project. b a prioritized list of project risks, their owners, and planned responses.

c warning signs of a possible risk occurrence. d a mitigation strategy to eliminate the possibility of risk events from occurring. When a project schedule is slipping, corrective action might entail all of the following except: a adding more or higher-skilled personnel. b adding additional equipment or other resources. c changing the sequence to allow activities to be done in parallel or to overlap. d negotiating with preceding activities to complete their activities in a shorter time. Many people become project managers by accident. Someone names you to manage a project because of your areas of expertise, not because you have any project management training. However, even if you become a project manager by accident, managing a project by accident is an invitation to disaster! Learning project management skills can help you complete projects on time, on budget, and on target.

The discipline of project management includes proven strategies for clarifying project objectives, avoiding serious errors of omission, and eliminating costly mistakes. It also addresses the necessary in- terpersonal skills for acquiring the cooperation, support, and resources to get the job done. Project management is not just for project managers. Team members need to know how to carry out their parts of the project, and business execu- tives need to understand how to support project management efforts in the organization. Project management consists of the knowledge, skills, methods, techniques, and tools used to plan and manage project work. It establishes a sound basis for effective planning, scheduling, resourcing, decision making, management, and plan revision.

Project management skills help complete projects on schedule, within budget, and in full accordance with project specifications. At the same time, they help achieve the other goals of the organization, such as productivity, quality, and cost-effectiveness. The objective of project management is to en- sure that projects meet agreed goals of time, cost, and scope. Noah was a project manager. It took careful planning and execution to construct the ark and gather two of every animal on earth, including all the necessary food and water. The pyramids of Egypt stand today because of countless successful projects and project managers. Although there have been brilliant project managers over the years, proj- ect management was not recognized as a formal management concept until operations research in the s and s pioneered methods and specialized tools to manage expensive, high-profile aerospace projects such as Polaris and Apollo.

NASA and the U. Department of Defense established project man- agement standards that they expected their contractors to follow. In the middle and late s, business managers began searching for new techniques and organizational structures that would help them adapt quickly to changing en- vironments. The s and s brought more published data on project management, leading to the development of theories, methods, and standards. The construction industry, for example, saw the potential benefits of formal project management and began to adopt standards and develop new tech- niques. Large-scale initiatives such as quality improvement and reengineering provided data, analysis, and problem-solving techniques, but no structured discipline to implement them.

Therefore, managers turned to project man- agement for direction in implementing and tracking such large-scale projects. By the s, industries in both profit and nonprofit sectors realized that the size and complexity of their activities were unmanageable without formal project management processes and tools. Large and small organizations recognize that a structured approach to planning and managing projects is a necessary core competency for success. Appen- dix C has contact information for these and other organizations. PMI offers cre- dentialed certifications such as the PMP® Project Management Professional to those who demonstrate competency in the field of project management through education and experience—and by passing rigorous certification exams. PMI sets standards and accredits degree-granting educational programs in proj- ect management. In , PMI published the first Project Management Body of Knowledge PMBOK® to document and standardize generally accepted project management information and practices.

The current edition, A Guide to the Project Management Body of Knowledge PMBOK® Guide , is a basic reference for anyone interested in project management. It provides a common lexicon and consistent structure for the field of project management. The PMBOK® Guide, which is stud- ied and cited by thousands of project managers, is updated regularly. Universities offer undergraduate and graduate degree programs in proj- ect management. See Appendix C for a list of organizations and websites. Think About It. Would applying project management standards in your organization produce benefits? PROJECT WORK Project work and traditional functional work differ in significant ways. It is important to understand the differences. Functional Work Functional work is routine, ongoing work. Each day, secretaries, financial an- alysts, and car salespeople perform functional work that is mostly repetitive, even if their activities vary somewhat from day to day.

A manager assigned to the specific function provides training and supervision, and manages them according to standards of productivity, such as quantity of work performed or number of sales. Functional work is typically structured as a hierarchical organization with traditional formal lines of authority, as shown in Exhibit Projects are temporary because they have a defined beginning and end. They are unique because the product, service, or result is different in some distinguishing way from similar products, services, or results. The construc- tion of a headquarters building for ABC Industries is an example of a project.

The unique work is defined by the building plans and has a specific beginning and end. A project manager is responsible for the project, overseeing the con- tractors, and managing the schedule and budget. In mature organizations, multiple projects may be grouped and managed together in a program to obtain benefits and control not available from man- aging them individually. Multiple programs may be grouped and prioritized into portfolios aligned around larger strategic organizational objectives. Project teams typically are not organized in the same hierarchical struc- ture as that used by traditional functional groups. Project teams are organized in various ways, which are described later in this chapter. Exhibit illustrates how functional and project responsibility fit to- gether, using the functional departments in a publishing company, with project managers assigned to accomplish specific publication projects.

Solid vertical lines show the functional responsibilities of the writing, editing, design, print- ing, and distribution departments. Broken horizontal lines show the project responsibilities of specific project managers assigned to given publications projects. Because not all projects require the services of every functional de- partment, circles indicate where people are assigned to a project. Project 2 uses outsourced resources. Project 3 is a video that uses an external video duplication company rather than the internal printing facility. A project manager manages horizontally via projects rather than vertically via functional experts. Exhibit shows that Dennis is responsible for Project 1. To get the job done, he must enlist the help of editors and designers from one functional manager, and printers and distributors from another functional manager.

In some organizations, functional managers are called resource managers because they are responsible for assigning resources to the project. In the real world, there are at times overlaps between project and func- tional managers. If functional resources other than a project management staff are assigned to a project manager, then the manager has functional re- sponsibility and is acting as both project manager and functional manager. Exhibit compares functional and project work. The traditional functional approach is not adequate in a project environ- ment and does not promote quality work on time and within budget. The project approach promotes the innovation, experimentation, and entrepre- neurship needed in the workplace today. xhibit Comparison of Project and Functional Work Functional Project Type of work Repeated, ongoing.

Unique, no rehearsal. Often involves change. Focus Operations, accomplishing effective Completing the project. Management Managing people. Managing work. responsibility Budgets Ongoing operational budgets. Project budgets to fund specific projects. Exhibit continues on next page. Functional Project Responsiveness Less responsive. Longer response More responsive. Shorter response to customers and time. changing environments Consistency and Industry standards. May have fewer standards because standards work is unique. Cross-cultural Varies across cultures. More constant across cultures. relevance Risk Ongoing work is stable and less Higher risk because work is unique risky. and unknown. Visibility May have little visibility if standards Obviously noted when project are not met. objectives are not met. Think of two examples of functional work: Think of two examples of project work: Does your organization understand the difference between project and functional work?

How can you help coworkers and management implement project management philosophies? Draw a diagram showing how your organization manages projects. Speed, quality, and cost management are taking on increased sig- nificance in business, government, and nonprofit sectors. Project management allows managers to plan and manage strategic initiatives that generate new revenue in expanding sectors of the market. Project management tools de- crease time to market, manage expenses, ensure quality products, and enhance profitability. Project management helps sell products and services by posi- tively differentiating them from their competitors. Project management is one of the most important management techniques for ensuring the success of an organization. The global marketplace and e-commerce are forcing organizations to change.

Consider the business trends in the next section. This can be accomplished only across functional lines of authority in a project environment. With the shift from mass production to custom production of goods and services, project management is an increasingly important aspect of a responsive management style. Businesses are shifting from traditional hierarchical management to project management. Orga- nizational charts are changing from vertical structures to team-centered project structures. Middle management is also disappearing as companies rely on computers to gather and analyze information. The new focus is on projects and project teams assigned to solve specific problems. Teams might be set up to design a new product or reengineer the ordering process.

Project teams come and go as new problems and opportunities arise. Companies offer less job security as they refocus on core competencies and outsource noncore work. They teach marketable skills but do not promise a job tomorrow. Personal success is measured by the value of the projects on which a person works. The goal is growth in the profession, not movement up the corporate ladder into management. This has been the norm for decades in Hollywood, where cast- ing agents match actors with projects. In the entertainment industry, pro- ducers are the top-level management, casting and talent agents are the resource providers, movie directors are the project managers, and actors and crew are the talent.

There is more pressure with less time, more work with less staff, and more cost management with less tolerance for mistakes. The solution to this dilemma lies in a proac- tive rather than reactive management style. Systematic project management is a proactive style. Exhibit compares reactive and proactive styles. Many companies conduct business as a series of projects. Each project is justified because it creates a product or service that the company can sell or because it reduces or controls costs. As the number of potential projects in- creases, there is a greater need to choose the right projects and execute them xhibit Careers in the Typical Company of Tomorrow Career Title Function Top-level CEO, president, executive VP sets strategy management Resource provider CFO, CIO, HR manager, VP of provides budget; develops and marketing, engineering, etc.

manages expert staffs Project manager project manager uses money and people from the resource providers Talent chemist, engineer, accountant, reports to resource provider but programmer spends much time on project teams © American Management Association. As competition between vendors increases, the winning com- pany is the one with superior project management processes, reports, tools, and organization. Organizations that were once hierarchical and bureaucratic now realize that success requires internal and external networking. Functional depart- ments are no longer self-sufficient, but interdependent.

Teams are formed from various functional departments to accomplish project work. When one project is complete, individuals are reassembled into another team to take on another project. How could you benefit from using more project management principles? Exercise continues on next page. List projects you manage or would like to manage in the future. What problems do you see in man- aging the projects you have listed? As you read subsequent chapters, try to identify ways you can address these problems. Suggested answers are given in Appendix A. When a project is conceived, management might appoint a project manager and team members with little attention to the skills needed for the job. They take people from their regular jobs to work on the project, or worse yet, they ask team members to do the project in addition to their regular work.

This section discusses the need for an organization to formally adopt project management methodologies. It presents the major organizational structures and discusses the advantages and disadvantages of each. Finally, it gives some considerations on how to organize for greater efficiency and con- tinuity in projects. Everyone must recognize project manage- © American Management Association. Senior management must recognize the need for project management and be willing to establish a formal project management system.

Managing projects is considerably different from managing functional groups. Senior executives need to recognize that project management requires special con- cepts, skills, and tools. Managers schooled in traditional concepts of business management might find this difficult to understand. Also, functional line man- agers might have difficulty understanding the difference between functional and project responsibilities. Implementing a project management system requires more than lip serv- ice; senior management must provide the time, budget, and resources to do it.

The entire organization must have a long-term commitment to the project management process and support it without constantly shifting priorities. The role and authority of the project managers must be clearly defined and supported. Project managers are not simply people selected from among the project teams; they need to have project management skills. If manage- ment simply assigns a technical person to be the project manager, the organ- ization loses in two ways. First, if the person does not also have project management skills, the project might fail. Second, the organization loses a good technical person from the project team. Also, the organization must be willing to change. Functional departments with a strong and unique sense of identity might feel that project managers cannot fully understand or correct their problems.

No one system works equally well in all organizations. Be willing to adapt the system as you experience successes or failures, so the system can operate at optimum efficiency in your organi- zation. You may need to be patient in helping your organization adopt a proj- ect management system because it will take time to implement. For project management to be effective in any organization, there should be formal, written policies and procedures that explain the role and authority of project managers and how project management functions in the organiza- tion. Exhibit is an example of such a written policy statement. Definition of a project A temporary endeavor undertaken to create a unique product, service, or result. Responsibility The director of the Project Management Division is responsible for the operation of the project management system.

The director prepares policy statements and maintains the policy and pro- cedure manual. The director tracks all approved projects and reports project status to senior man- agement. Project objectives All projects are defined in terms of 1 cost, 2 time, and 3 project scope. These objectives are the basis for project approval, budgeting, tracking, and reporting. Project managers A project manager is assigned to each project when it is approved. The manager may be from the Project Management Division or from another functional division as needed. The project man- ager is responsible to see that the project accomplishes its objectives of cost, time, and project scope. The lines of responsibility and communication with senior management will be identified as needed with each project.

Does your organization have written statements like Exhibit ? Could it benefit from such a state- ment? It often constrains the availability of resources or the terms under which resources are available to the project. Organizational structures typically span the spectrum from functional to project, with a variety of matrix structures in between. The next sections describe the characteristics, advan- tages, and disadvantages of functional, project, and matrix organizational struc- tures. It is important to understand how your organization is structured so you can decide how to use project management techniques within that context.

Functional Organization The classic functional organization is a hierarchy in which people are grouped into functional divisions, such as marketing or production. Each employee has one clear superior. In functional organizations, the scope of projects is typi- cally limited to the boundaries of the functional division. Each division has its own project managers who report to the head of the division, as illustrated in Exhibit These project managers operate independently from project managers in other divisions. For example, project managers in the marketing division come from the ranks of salespeople. They are responsible for defining requirements, scheduling work, setting priorities, providing facilities, acquiring and managing re- sources, adhering to company policies, and ensuring quality. They might be moved around within the division as needed. xhibit Functional Organizational Structure CEO V.

Because project managers and team members have expertise in the functional area, project requirements can be defined and challenged intelligently. This means that fewer changes will be made and that a more practical end product can result. Since they must live with the end result of the project, they are committed to it. Problem situations can be identified and corrected quickly. Enterprise policies and practices might not be enforced uniformly across divisions. It might be difficult for senior executives to manage the various projects within the organization. Many aspects of a project are handled as ongoing functional work of the division, so it might be dif- ficult to identify and account for the true cost of a project.

Project Organization In a project organization, projects are centralized in a separate division of skilled project managers that serves the project management needs of all di- visions of the company see Exhibit This is often referred to as a project management office PMO. A centralized project management office is respon- sible for the direct management of all the projects in an organization. xhibit Project Organizational Structure CEO V. of Finance Sales Projects © American Management Association. These common standards aid communication and provide efficiency. A centralized organizational structure makes it easier to see productivity trends and take steps to improve processes in the organization.

Enterprise port- folio management allows senior management to set priorities across projects and allocate resources for the overall good of the organization. Rather than serving the needs of the project office, careful focus must be given to the needs of the project and the people it benefits. The project office must constantly assess the value they provide to ensure that the value exceeds the cost. Matrix Organizations Matrix organizations are a blend of functional and project organizations. A weak matrix see Exhibit has many of the characteristics of a functional organization, and the project manager role is more of a coordinator or expe- diter with limited authority. A strong matrix organization see Exhibit has many of the characteristics of a project organization, with a full-time proj- ect manager who has significant authority and a project administrative staff.

In a matrix organization, the project team has a dual reporting role to a project manager, coordinator, or expediter who provides project management skills and a functional manager who provides technical and functional skills. In a strong matrix organizational structure, the project manager has more power than the functional manager. In a weak matrix structure, the balance of power leans toward the functional manager. xhibit Weak Matrix Organization CEO Marketing Production Information Manager Manager Manager Staff Staff Staff Staff Project Coordinator Staff Staff from different functional departments are assigned to a project. One staff member is assigned to coordinate the project.

Personnel and skills are less redundant, and when expertise is scarce, it may be applied more flexibly to different projects. Conflicts between project requirements and functional organization poli- cies may be perceived and resolved readily. When team members receive conflicting instructions from project and functional managers, time and effort are wasted clarifying the communi- cation. The team might be unable to react fast enough to meet changing project requirements. In the process of resolving conflicting priorities, project personnel can become confused and demoralized.

The chart in Exhibit shows project manager authority in each of the organizational types. Reread the ad- vantages and disadvantages of your organizational structure and keep them in mind as you operate within that structure. When faced with difficulties, many project managers jump to the con- clusion that restructuring the organization will solve all the problems. Al- though it is important to have the right organizational structure, it is unhealthy to reorganize too often. Petronius Arbeiter illustrated this fallacy about two thousand years ago Townsend, : We trained hard, but it seemed that every time we were beginning to form up into teams we would be reorganized.

I was to learn later in life that we tend to meet any new situation by reorganizing, and a wonderful method it can be for producing the illusion of progress while creating confusion, inefficiency, and demoralization. As you have seen, each possible organizational structure has both advan- © American Management Association. Before your organization considers reorganizing, be sure that the advantages outweigh the disadvantages to your organization. The advantages must be significant enough to make up for the confusion and pain of making the change. Reorganizing has a significant impact on any organi- zation.

Do not underestimate the lost productivity during the time it takes to make the change. It will take time for people to function efficiently under the new structure. Exercise Organizational Types Determine which of the basic organizational types describes your current organization. Draw a chart of your current organizational structure, using solid lines to show formal reporting relation- ships and broken lines to show lines of communication. Review the characteristics, advantages, and disadvantages listed in this chapter for your or- ganizational type. List the things you need to do to work effectively within this structure.

How often does your organization follow effective project management processes? Score your re- sponses in the appropriate spaces on a scale of 0 to 10 as indicated below: 0 1 2 3 4 5 6 7 8 9 10 Never Almost never Sometimes Almost always Always What can you do to better implement project management? PROJECT LIFE CYCLE A good project management system follows a standard project life cycle with defined project phases. A Guide to the Project Management Body of Knowledge PMBOK® Guide draws from best practices in the project management pro- fession to provide a general framework for starting projects, organizing and preparing, carrying out the project work, and closing projects. Although this generic life cycle may be adapted to the specific needs of your organization, it is important to have a structure in place to provide a common reference for comparing projects and communicating throughout the organization.

Initiating: Defining and authorizing the project. Planning: Establishing the project scope, refining the objectives, and defin- ing the course of action to attain the objectives. Executing: Integrating people and other resources to carry out the work de- fined in the project plan. Monitoring and Controlling: Tracking, reviewing, and regulating the progress and performance of the project plan, identifying where changes to the plan are required, and taking corrective action. Closing: Finalizing all activities across all the process groups to formally close the project. Although it is important to understand these general processes and learn the skills needed to execute each process, in practice, these processes overlap and interact in iterative ways, and many processes are repeated during the project.

More detail about each of these processes is found in chapters throughout this course. Exercise Project Life Cycle Consider how you or others in your organization initiate, plan, execute, monitor, control, and close projects. Rate the current effectiveness according to the following statements. Project plans are in sufficient detail to effectively manage projects. The vice president of marketing has named Robert, her top salesman, to manage a project to engineer and manufacture the new product. She asks Robert to develop a schedule and budget and present it to the executive management team the following week. When Robert presents his plans to the executive management team, there is considerable dis- cussion about whether the company should begin manufacturing the new phone.

After the meeting, the chief operations officer COO of the company approaches Robert and asks him to move for- ward with the project and report directly to him. The COO asks to personally approve each project expense. In the meantime, the COO will work on getting the approval of the executive team. Based on the concepts presented in this chapter, what steps should Robert take to ensure the success of the project? Suggested answers are in Appendix A. Project management is a set of knowledge, skills, methods, techniques, and tools that people use to effectively plan and manage project work. It establishes a sound basis for effective planning, scheduling, resourcing, decision making, managing, and plan revision. The objective of project management is to ensure that projects meet agreed goals of time, cost, and scope.

Today, modern project management is a premier solution in business operations. Large and small organizations recog- nize that a structured approach to planning and managing projects is a nec- essary core competency for success. Project work and traditional functional work differ in significant ways. Functional work is routine, ongoing work. A manager is assigned to the spe- cific function and provides worker training and supervision. The need for project management is apparent in the world today as speed, quality, and cost management are becoming increasingly important. Implementing a project management system requires a long-term commit- ment and management support. Organizational structures typically span the spectrum from functional to project types, with a variety of matrix structures in between.

A functional organization is a hierarchy in which people are grouped into func- tional divisions, such as marketing or production. In a project organization, projects are centralized in a separate divi- sion of skilled project managers that serves the project management needs of all divisions of the company. This is often referred to as a project management office. Matrix organizations are a blend of functional and project structures. A weak matrix has many of the characteristics of a functional organization and the project manager role is more that of a coordinator or expediter with lim- ited authority. A strong matrix organization has many of the characteristics of a project organization, with a full-time project manager who has significant authority and a project administrative staff.

In a matrix organization, the proj- ect team has a dual reporting role to a project manager, coordinator, or expe- diter who provides project management skills and a functional manager who provides technical and functional skills. It is important to set up a formal planning and management system that is flexible enough to operate in the real world, but still rigorous enough to provide control. The system helps you define the problem or opportunity, establish project objectives, develop the project plan, begin project work, monitor and manage the work, and then close the project.

Answering the questions fol- lowing each chapter will give you a chance to check your comprehension of the concepts as they are presented and will reinforce your understanding of them. As you can see below, the answer to each numbered question is printed to the side of the question. Before beginning, you should conceal the answers by placing a sheet of paper over the answers as you work down the page. Then read and answer each question. Compare your answers with those given. For any questions you answer incorrectly, make an effort to understand why the answer given is the correct one.

You may find it helpful to turn back to the appropriate section of the chapter and review the material of which you were unsure. At any rate, be sure you understand all the review questions before going on to the next chapter. Which of the following is true of a matrix organization? b a In a strong matrix, the functional manager has more power than the project manager. b Conflicts between project requirements and functional organization policies are perceived and resolved more readily. c A matrix reduces conflicts and competition between project and functional management. d Dual management lines facilitate communication. Which of the following is true of project and functional work? a a Secretaries, financial analysts, and car salespeople are examples of those who perform functional work. b Project managers are responsible to deliver the agreed-upon outcomes of a project. c The focus of project work is accomplishing effective, ongoing work.

d Functional managers are responsible for achieving the approved objectives of a project. Which of the following is true of project planning? c a Planning must be completed before any project work begins. b Since things invariably change during the life of the project, you should spend no more than 5 percent of the project on planning. c You cannot manage without a plan. d Once you develop a plan, it is important to stick with it throughout the life of the project. Which of the following describes the proper sequence of elements in 4. d a planning and management system? a Establish project objectives, define the problem or opportunity, develop the plan, begin project work, monitor, manage, close the project. b Establish project objectives, develop the plan, define the problem or opportunity, begin project work, monitor, manage, close the project. c Define the problem or opportunity, develop the plan, establish project objectives, begin project work, monitor, manage, close the project.

d Define the problem or opportunity, establish project objectives, develop the plan, begin project work, monitor, manage, close the project. All of the following are true of project management except: 5. c a projects and project teams help an organization solve specific problems. b project management can help deliver projects on time and decrease time to market. c project management works best in a functional organizational structure. d project management tools help manage expenses and ensure quality products. The role of the project manager can be a tricky one, especially when the proj- ect manager has no formal authority over the people he or she must work with to get the job done. THE ROLE OF THE PROJECT MANAGER The project manager is the person assigned to manage a specific project, and the one who is expected to meet the approved objectives of a project—in- cluding project scope, budget, and schedule.

She or he has overall responsi- bility for planning, organizing, integrating, managing, leading, decision making, communicating, and building a supportive climate for the project. Once top management has approved the project plan, the project man- ager carries it out. This includes carefully monitoring and reporting on progress, resolving problems as they arise, controlling any changes in the proj- ect plan, and managing risk. When all project objectives are met, the project manager declares the project complete. Except for a project management support team, people and other resources are not typically assigned directly to the project manager.

In a large project, a support team of clerks, accountants, and others might be assigned to help with specific management tasks. In a small project, there might be no support team. PROJECT MANAGER SKILLS Exhibit shows the basic skills a project manager needs. A project manager needs to be strong in all five areas to be successful. Project Management Skills Project management skills include the tools needed to plan and execute a project, such as being able to estimate costs, and to prepare workable sched- ules and adequate budget plans. To execute a project, a project manager needs to be able to analyze status information, prepare clear reports, and conduct project audits.

These technical skills are discussed in Chapters 3 to 8. Universi- ties, private training companies, and organizations such as the American Management Association and the Project Management Institute routinely offer training opportunities. See Appendix C for a list of organizations that provide training. Teamwork In working with team members, project managers use a combination of formal authority and persuasion skills. Project managers should have the interpersonal skills necessary to build, motivate, lead, and inspire a project team to perform well and achieve the project objectives. In particular, the various phases of project work such as planning, execution, reporting, and management must be integrated. The more complex the product, the greater the need for integration. For example, the project manager might have to integrate electrical drawings from the en- gineering staff with functional specifications from the civil engineers.

Engi- neers and designers should be involved not only in the design process, but also in the approval of the final design and specifications. Other players that likely need to be involved in the approval and acceptance phases include ac- counting and executive management to sign off on the project. Project integration management also involves making trade-offs among competing options to accomplish the project objectives. Technical Skills Since project managers do not perform the actual work of the project, they do not need the same technical skill level as the people doing the work. As the project manager integrates all aspects of the project, technical expertise is essential to identify potential problems.

However, as the project manager gains technical experience, she or he must also be careful to maintain a broad perspective and not let technical ex- pertise lead to micromanaging, or worse yet, doing the project work! The proj- ect manager must concentrate on managing the project, allowing team members to perform the technical work and confining his or her technical in- volvement to evaluating the work of the team. Knowledge of the Organization The most proficient project management skills in the world will not compen- sate for a procedural blunder caused by not understanding the company cul- ture, policies, personalities, or politics. The project manager negotiates with many people and needs to know their personalities, needs, and desires.

The more the project manager knows about the organization, the better equipped that manager is to maneuver around pitfalls and get what is needed for the project. Every organization has a unique culture, and individual divisions within an organization often have their own personalities. Understanding these cultures and personalities can help a project manager be more successful. Knowledge of the organization THE MAKEUP OF A PROJECT MANAGER Project management is a combination of many ingredients, including large measures of common sense, ambition, flexibility, resourcefulness, a healthy appetite for negotiation, and a genuine belief that the service performed is of value to the organization. The manager takes every oppor- tunity to build commitment from the various members of the project team. The project manager keeps appropriate people informed and involved throughout the process, soliciting input and suggestions.

No matter how well a project manager plans and executes a project, there will always be problems. The creative challenge is to be able to use imagina- tion and experience to solve problems in creative ways. The problems that arise are seldom unique. Successful project managers solve problems by ap- plying their cumulative knowledge and experience to each obstacle. Over time, their experience likely offers a precedent to almost any problem. Lessons learned in dealing with one project, if applied imaginatively, can go a long way toward solving similar problems in other projects. However, experience alone is not enough to make an individual a success- ful project manager. Experience without the imagination to use it construc- tively and creatively is more likely to be a handicap than an advantage. For some people, years of experience can serve as a straitjacket.

Such managers are blinded by their past experience and can only repeat what they first learned, unable to imagine new ways of addressing problems. Instead of adapting what they know to new situations, they try to make all new situations conform to patterns with which they are familiar. The successful project manager is both a content specialist and a gener- alist. As a content specialist, the manager has a depth of technical knowledge about the project at hand. He or she succeeds because of a drive to understand the requirements, operations, and problems of project sponsors, the project team, and the industry. A good example of the importance of gaining both specific and general knowledge is found in the book How to Be a Successful Executive by J. Paul Getty. Not only was the company saved from making a huge investment in machinery that would have soon been obsolete, but it also obtained the latest equipment well ahead of its competitors.

The junior executive was not a technical expert or engi- neer. His duties were concerned with sales, not production. After a meeting where the plant modernization program was discussed, he took the initiative to research the problem, and found information about the new machinery in an obscure trade journal. His keen interest helped the company succeed. A project manager who shows this type of initiative and understanding can have a positive impact on the cost, quality, and timeliness of projects. Exercise Project Manager Effectiveness Rate yourself on how effectively you manage projects according to the statements below. If you have not yet managed projects, consider how well projects are managed in your organization.

I involve many people in the planning process. Prioritize the five factors in order of their importance to you with number 1 being the most im- portant , then rank each factor on your ability to change it with number 1 being the most open to change. Plot factors A to E on the grid in Exhibit , using the Priority ranking along the left side and the Ability to Change across the bottom. Place the letter of the factor in the grid where the two coordinates meet. The chart in Exhibit divides the grid in Exhibit into four quadrants, then rates the items as they fall into the quadrants. Focus first on issues with high priority and high ability to change. These issues are most important and deserve your attention. Bring those with high priority and low ability to change to the attention of management, so they can determine how these issues can be addressed.

Focus next on issues of low priority and high ability to change. Although these are not as im- portant, they may be worth pursuing since you have an ability to change them. The low priority is- sues with low ability to change probably do not deserve much attention. You might be more effective as a leader, negotiator, salesperson, or broker of information and services, depending on whom you are dealing with and the nature of your relationship with them, as illustrated in Exhibit xhibit Grid for Ranking Issues Inhibiting Success in Managing Projects high 1 P R 2 I O 3 R I 4 T Y 5 low 5 4 3 2 1 high ABILITY TO CHANGE © American Management Association. Performance management feedback, consequences They rely on you for performance reviews and payment. Peer support groups, team members, Negotiator, Informal goals functional managers salesperson, or broker You rely on them for results. Performance management They do not rely on you for Performance contract when performance reviews or payment.

necessary Superior your boss, senior management, Salesperson Technical analysis and information client, or customers and broker You rely on them to define the project Alternatives and recommendations and to provide resources, your performance review, and payment. They rely on you for results. Does your management understand and respect the role of a project manager? What could you do to help management understand it better? Therefore, it is important that the project manager understand these issues and be able to keep them in balance, since they can dramatically affect performance.

Exhibit illustrates the relationship among these three aspects of management. Responsibility Responsibility requires an agreement between two or more people for the pur- pose of achieving a desired result. A project manager is responsible for ac- xhibit The Relationship of Responsibility, Authority, and Accountability Responsibility te ura con ns sis me ten com t Authority appropriate Accountability © American Management Association. It is important to remember, though, that even when the manager has passed along all or part of the responsibility for completing tasks associated with the project, the proj- ect manager still retains full responsibility for the final result.

The project manager must make sure the assigned responsibility is clearly stated and the expected results are mutually understood and accepted by all parties. Accountability Accountability is a consequence of assigned responsibility. When a project man- ager assigns responsibility to another person, the manager must hold that per- son accountable for achieving the desired result or provide consequences for poor performance, such as a negative employee rating, deduction in pay, re- assignment, probation, or termination. The accountability must be consistent with the responsibility assigned.

For example, if a manager assigns a contractor to remodel an office, the manager should hold the contractor accountable for the responsibility assigned. This may include quality of work performed, ad- herence to schedule, and completing the job within budget. However, the manager must assess responsibility with care. Although such inconsistent accountability is clearly unreasonable, it can and does happen. Accountability is a major source of information and motivation. A reliable system of accountability makes good performance visible and provides a basis for accurate performance appraisals. It shows team members that good per- formance matters and is rewarded. When a project manager holds team mem- bers accountable, it helps identify and focus on the sources of problems. Accountability helps decrease poor performance and increase good perform- ance. Authority Authority is the power given to a person to complete the assigned responsibility. It includes the appropriate access to resources to complete the job, such as access to personnel or signature authority for the expenditure of funds.

Au- thority must be commensurate with the responsibility assigned and appro- priate to the accountability. To continue with our previous example of the office remodeling job, the manager should give the contractor the appropriate authority to complete the work. This may include a budget and access to the building commensurate with the size and scope of the remodeling job. If the schedule requires overtime and night work, the manager needs to grant workers hour access to the building. If this access is denied, the contractor cannot be held accountable if the schedule is not met.

Then, as skill level and experience increase, the man- ager can grant more authority and check up less often, until full authority is warranted. Maintaining the Balance Project managers must maintain good balance in assigning responsibility, del- egating authority, and holding people accountable. The authority must be ap- propriate for the responsibility, and the accountability must be commensurate with the authority and the responsibility. Successful organizations have written policies and procedures that define how responsibility, accountability, and authority work in the project manage- ment environment. It is important to define in writing the specific responsi- bilities and authority given to the project manager, in terms of personnel, equipment, materials, and funds.

Will the project manager have authority to hire and terminate team members, or will the functional managers handle these responsibilities? What purchase authority will the project manager have to obtain equipment and materials necessary to the project? What signature authority will the project manager have for other project expenditures? If such policies are not in place in your organization, it may be important to your success as a project manager to help get these established. Exercise Responsibility, Accountability, and Authority How well do you balance responsibility, accountability, and authority? Score your responses in the appropriate spaces on a scale of 0 to 10, as indicated below: When you assign responsibility, how clearly do you state the expected results and ensure they are mutually understood and accepted?

Team members can have various roles in the project, such as engineers, technicians, construction workers, and others needed to perform the project work. Each project is unique, and so are the roles of the people performing the work. In each project, it is important to identify all the players and define their roles and responsibilities. An information technology project, for example, might include the roles shown in Exhibit Defining roles only takes a short while, yet it pays great dividends throughout the life of the project, by making sure that individuals understand their roles and how to interface with other team members. If this does not happen, communication can be confused or misdirected, and conflicts and power struggles can arise. Exercise Role of Team Members Consider a project at work that you are familiar with. Think of one or two team members in that project and write a role description for them. Be sure to include the key responsibilities, account- abilities, and authority needed for each team member.

Did those team members understand and work within those definitions? Could any possible conflicts or confusion have been cleared up by better role definition? The president is the project sponsor, the customers of the project are the people who will use the system to review order status, and the stake- holders include others in the company who benefit from the system, such as the marketing or finance departments. Although you might think these roles are obvious, they often are not. Some projects get into serious trouble because they have several project sponsors who each want different results from the project. Other projects have no project sponsors who want to take responsibility for the project. Still other projects are in trouble because the customer is not well defined—believe it or not, sometimes no one knows who will use the product or service that the project will create!

Other projects fail because the needs of a stakeholder were not addressed or their expectations were not properly managed. Project Sponsor s The project sponsor is the person or group who requests the project. The project sponsor might come from a variety of sources, such as senior manage- ment, middle management, functional managers, or other project managers. Someone in the organization might generate an idea for a project, which then percolates to someone in upper management, who approves the project. In this case, who is the project sponsor? The individual who came up with the idea or the senior manager who approved the project? The key is to determine who takes responsibility for the project and who has the authority to give di- rection to the project by approving its objectives and making decisions when issues arise.

It is critical that you identify the individual or group of individuals with the authority to approve the project objectives and give direction to the proj- ect. If senior management identifies a person to be the project sponsor for a project, be sure that management also delegates to that individual the author- ity to approve project objectives and make decisions for the project. Some project managers assume that an individual has such authority, only to find out much too late that someone else actually has approval authority and has reversed earlier decisions! Once you have identified the project sponsor, it is important to get a commitment of support for the project. Discussions with the project sponsor can confirm understanding of the project scope and its relative priority when compared with other projects in the organization.

Customers The customer is the person or group of people who will use the product, serv- ice, or result that the project creates. Once you have identified your customers, it is important to get their commitment to support the project. If there is more than one group of cus- tomers, it is important to define the role each will play in the project. It is important to identify and consult with the customer throughout the life of the project. Many projects fail because they do not meet the needs of the customer. You cannot assume that the needs of the customer have been fairly represented by the project sponsor when the project was approved. You must confirm and reconfirm customer needs as the project progresses to en- sure that the final result will meet their requirements.

Other Stakeholders In addition to the project sponsor and customers, most projects have additional stakeholders who have an interest in and perhaps control over the project. Home Successful Project Management [7th ed. Successful Project Management [7th ed. Successful Project Management , Successful Project Management, Third Edition, covers the fundamentals of project management, focusing on practical skill 6MB Read more. It is a complicated, multilayered matter, whether you manage projects for your entire co 2MB Read more. Project Management 2, 5MB Read more. Project Management 4MB Read more. Optimizing Project Management , X 2, 7MB Read more. Lean3 Project Management , 68 16MB Read more. Project Management IPMA , 94 6MB Read more.

edu no longer supports Internet Explorer. To browse Academia. edu and the wider internet faster and more securely, please take a few seconds to upgrade your browser. This course consists of text material for you to read and three types of activities the pre-and post-test, in-text exercises, and end-of-chapter review questions for you to complete. These activities are designed to reinforce the concepts introduced in the text portion of the course and to enable you to evaluate your progress. Which of the following is not true of project management? Project management skills can help you complete projects on time, on budget, and on target. Project management is a reactive management style. Project management helps you avoid serious errors of omission and eliminate costly mistakes. d The objective of project management is to ensure that projects meet agreed goals of time, cost, and scope. Ro Altamirano. Log in with Facebook Log in with Google. Remember me on this computer.

Enter the email address you signed up with and we'll email you a reset link. Need an account? Click here to sign up. Download Free PDF. Successful Project Management. Ricardo Hernandez. Continue Reading Download Free PDF. Related Papers. Download Free PDF View PDF. Copyright © Larry Richman. Published by AMACOM, a division of the American Management Association International, New York, NY. Used by permission of the publisher. All rights reserved. This material may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. ISBN ISBN Printed in the United States of America. The History of Project Management Project Management Today Functional Work vs. New Work Weighted Estimating Formula Range Estimates Rolling Wave Estimates Work Environment and Skill Level Type of Contract Fixed-Price Contract Unit-Price Contract Cost-Plus Contract Incentives Using Project Management Software Recap Review Questions 5 Planning the Activities 81 Sequencing Activities Schedule Network Diagrams Creating a Network Diagram Understanding a Network Diagram Calculating the Critical Path Using the Critical Path Method CPM Critical Path Calculations Critical Chain Method Recap Review Questions 6 Preparing a Project Plan 93 Preparing Schedules Milestones Gantt Charts Crashing the Schedule Preparing Resource Plans Identifying the Required Skills Recruiting Personnel Assigning People to Activities Leveling the Resources Adjusting the Project Schedule Preparing Budget Plans Managing Risk © American Management Association.

This practical, concise course covers the fundamentals of project management, focusing on practical skills you can apply immediately to complete projects on time, on budget, and on target. This course teaches you how to use proven strategies in large or small projects to clarify the objectives, avoid serious errors of omission, and elimi- nate costly mistakes. Modern project management is a premier solution in business and non- profit organizations. Project managers find success using a structured ap- proach to project planning, scheduling, resourcing, decision making, and management. Team members need to know how to carry out their part of the project, and business executives need to un- derstand how they must support project management efforts in the organiza- tion. Now you can master the skills and techniques you need to bring projects in on schedule, and on budget, with Successful Project Management. Course Objective: Develop skills to plan and execute projects to ensure that they meet agreed goals of time, cost, and scope.

As the Director of the Publications and Media Project Office of The Church of Jesus Christ of Latter-Day Saints, he leads a project office that manages 8, printed, audiovisual, software, and Web proj- ects each year in languages. He has also developed and implemented com- puter-assisted project management systems. Richman has authored thirteen books, including four on project management, as well as articles in professional journals. Richman specializes in teaching the basic principles and processes of project management. As a management consultant, he provides one-on- one coaching to executives and managers and has taught hundreds of corpo- rate employees in classroom settings. Richman holds an M. in Instructional Science and lives in Salt Lake City, Utah. Take the pre-test before you study any of the course material to determine your existing knowl- edge of the subject matter.

Submit one of the scannable answer forms en- closed with this course for grading. On return of the graded pre-test, complete the course material. Take the post-test after you have completed all the course material. By comparing results of the pre-test and the post-test, you can measure how effective the course has been for you. To have your pre-test and post-test graded, please mail your answer forms to: Educational Services American Management Association P. Box Florida, NY All tests are reviewed thoroughly by our instructors and will be returned to you promptly. If you would like to take the course for credit, you will need to either purchase a hard copy of the course from www.

org or you can purchase an online version of the course from www. Reading each chapter twice will increase the like- lihood of your understanding the text fully. We recommend that you work on this course in a systematic way. Reading the text and working through the exercises at a regular and steady pace will help ensure that you get the most out of this course and retain what you have learned. In your first reading, concentrate on getting an overview of the chapter content. Read the learning objectives at the beginning of the chapter first. They will act as guidelines to the major topics of the chapter and identify the skills you should master as you study the text. As you read the chapter, pay attention to the headings and subheadings. Find the general theme of each section and see how that theme relates to others. In your second reading, look for the details that underlie the themes. Read the entire chapter carefully and methodically, underlining key points, working out the details of examples, and making marginal notes as you go.

Complete the activities. These can take a variety of forms, including essays, short-answer quizzes, or charts and questionnaires. Completing the activities will enable you to try out new ideas, practice and improve new skills, and test your understanding of the course content. THE REVIEW QUESTIONS After reading a chapter and before going on to the next chapter, work through the Review Questions. Answering the questions and comparing your answers to those given will help you grasp the major ideas of that chapter.

If you per- form these self-check exercises consistently, you will develop a framework in which to place material presented in later chapters. Please fol- low the directions on the form carefully. Be sure to keep a copy of the completed answer form for your records. No photocopies will be graded. When completed, mail your answer form to: Educational Services American Management Association P. Box Florida, NY If you are viewing the course digitally, the scannable forms enclosed in the hard copy of AMA Self-Study titles are not available digitally. Which of the following is true of functional work? a Functional work is routine, ongoing work. b Functional work is a unique, temporary endeavor. c A functional manager is responsible for the approved objectives of a project budget, schedule, and scope. d Functional work has a specific beginning and end.

Do you have questions? Need clarification? Project quality management encompasses which of the following areas: a customer satisfaction. b prevention over inspection. c continuous quality improvement. d all of the above. The critical path generally has: a zero duration. b zero float. c zero lag. d zero resources. a Schedule status b Cumulative c Exception d Summary schedule status 5. Potential risks can be classified in the following four ways: 1. low impact; high probability 2. high impact; high probability 3. low impact; low probability 4. high impact; low probability Which of the following describes the priority order in which you should address these risks with the most important listed first? The major organizational structures are: a functional, project, and matrix. b project, operational, and functional. c reactive, proactive, and functional.

d matrix, project, and operational.

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Download Product Flyer is to download PDF in new tab. This is a dummy description. Providing new and updated content throughout, the seventh edition’s concise pedagogy and Feb 3,  · Successful Project Management 7th Edition Gido Solutions Manual Full AdManage Everything From Simple Tasks To Your Project Portfolio. Try It Free!The leading work management platform you need to move from idea to impact blogger.comt Management Software | Smartsheet Providing new and updated content throughout, the seventh edition’s concise pedagogy and Chapter 1, Project Management Concepts, is a foundation chapter that discusses the definition of a project and its attributes; managing a project within the constraints of scope, quality, schedule, budget, resources, risks, and customer satisfaction; the project life cycle of initiating, planning, performing, and closing a project, as well as monitoring and controlling the project and managing changes; the definition of project management and the steps of the project management process ... read more

In a strong matrix organizational structure, the project manager has more power than the functional manager. xhibit Comparison of Project and Functional Work Functional Project Type of work Repeated, ongoing. Project Management IPMA , 94 6MB Read more. The benefits and consequences, advantages and disadvantages, plusses and minuses of each opportunity need to be considered and evaluated. Exhibit continues on next page.

c skills inventory. Identify what access the project team will have to each of the stakeholders. It can be fatal to overemphasize the schedule when funds have become critical. Each project is unique, and so are the roles of the people performing the work, successful project management 7th edition pdf download. Profitability Measures There are several quantitative measures that may be applied at senior and ex- ecutive management levels that can indicate the expected profitability of a project and impact project selection. Functional depart- ments are no longer self-sufficient, but interdependent. Implementing a project management system requires a long-term commit- ment and management support.

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