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SECTION 1
THE DISCIPLINE OF
PROJECT MANAGEMENT
1.1.1 Introduction
The words ‘‘success’’ and ‘‘failure’’, like the word ‘‘beauty’’, are in the
eyes of the beholder. In the project management context, the word ‘‘suc-
cess’’ is used in the context of achieving something desirable, planned, or
attempted—that is, the delivery of the project results on time, within
budget, and having an operational or ‘‘strategic fit’’ with the enterprise’s
mission, objectives, and goals.
The word ‘‘failure’’ describes the condition or fact of not achieving the
expected end results. Project failure is a condition that exists when the
project results have not been delivered as was expected. However, if the
project results are acceptable to the user, then overrun of costs and sched-
ule may be tolerated.
Determining success or failure requires that performance standards be
developed on the project, which can be compared to the results that are
being produced. Project success and failure may be perceived differently
by different project stakeholders:
1.1
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THE DISCIPLINE OF PROJECT MANAGEMENT
• A project that has overrun cost and schedule goals but provides the user
with the results that had been expected might be judged a success by
the user.
• A project team member who gains valuable experience on the project
team may consider the project a success.
• A supplier who has provided substantial resources to the project may
consider the project a success.
• A contractor who lost a bid to do work for the project could consider
the project a failure.
• Because of a project’s ambiguities, a determination of relative success
or failure may be difficult to determine.
• The subjective nature of a determination of project success or failure
makes it challenging to develop objective measures of success or failure.
• The meaning of project success or failure may vary depending on the
period in the life cycle when the determination is made.
Nevertheless, there are some general standards used in judging whether
a project is a success or a failure:
• The project was permitted to run beyond the point where its results were
needed to support the customer’s expectations.
• Inadequate management processes were carried out on the project.
• A faulty design of the project’s technical performance standards was
conducted.
• The project stakeholders were unhappy with the progress on the project
and / or the results that were obtained.
• Top management failed to support the project.
• Unqualified people served on the project team.
• The project met the requirements, but did not solve the business need.
Given the general standards for determining project success or failure,
the contributing factors include the following as shown on Table 1.1 and
Table 1.2
Have performance standards been developed for the project that can be
used as criteria for determining project success or failure?
Do the project team, general managers, and senior management un-
derstand what are the likely factors of success and failure?
3. Are the project accomplishments reviewed on a regular basis to deter-
mine whether or not success or failure factors are present?
4. Are provisions in place to conduct major progress reviews to determine
if the project results are likely to have an appropriate operational or
strategic fit?
1.1.6 Summary
In this section, some ideas concerning project success and failure were
presented. Included in the textual material were some examples of the
forces and factors that can contribute to project success and failure. Fi-
nally, various questions propose some criteria that could be used to de-
termine the relative success or failure of a project.
1.2.1 Introduction
Source: Thomas H. Stewart, ‘‘The Corporate Jungle Spawns A New Species,’’ Fortune,
10, 1995, pp. 179–180.
4. Do the people understand that the key questions to be dealt with in the
management of a project include its cost, schedule, technical perform-
ance ‘‘deliverables’’, and strategic fit in the organization?
5. Do the key members of the organization accept the idea that project
management is an idea whose time has come, and has progressed from
being a ‘‘special case’’ to an important element in the management of
an organization?
1.2.7 Summary
1.3.1 Introduction
1.3.5 Authority-Responsibility
1.3.9 Summary
This book is about project management, a field of practice and study that
has evolved since antiquity. In the last 45 years, there has been a dramatic
increase in both book and periodical literature; and this Project Manage-
ment Portable Handbook presents the key elements to be found in this
discipline. In this section, a philosophy of project management will be
presented as an overview of this important discipline, and as a basing
point from which people who work in project management can use to gain
a conceptual understanding of the major elements of this discipline. Figure
1.1 presents an overview of the major considerations involved in the man-
agement of a project. These considerations are covered in this Project
Management Portable Handbook, along with many other issues with
which the project team should be conversant.
1.4.2 A Philosophy
philosophy is an outlook about something such as a field of thought
practice. Other meanings of this word include a ‘‘way of thinking’’
the field, such as an inquiry into the nature of project management
include its conceptual framework, processes, techniques, and framework
principles. Those who are involved in project management will find
the development of a philosophy or way of thinking about this dis-
is valuable. Indeed, how an individual thinks about project man-
will be reflected in how they work in the field.
• Projects are the principal means by which the organization deals with
change.
• Changes in organizational products, services, or organizational processes
are brought about through the use of projects.
• Each project has specific objectives regarding its cost, schedule, and
technical performance capability.
• Each project, when completed, adds to the operational and / or strategic
capability of the organization.
• Projects have a distinct life cycle, starting with the emergence of an idea
in the conceptual phase, through to the delivery of the project results to
a user or ‘‘customer.’’
• Projects change the organizational design and culture of an organization,
primarily through the workings of the ‘‘matrix organization.’’
• A focal point is designated in the organization through which the re-
sources supporting a project are planned, integrated, and utilized to de-
liver the project results.
• Specialized planning, organization, motivation, leadership, and control
techniques have emerged to support the management of a project’s re-
sources.
• Professional societies, such as the Project Management Institute, have
emerged to facilitate the global transfer of project management theory
and practice.
• Today, project management is recognized as having a rightful place in
the continued emergence of the management discipline.
• Although project management emerged in the construction industry, to-
day it is practiced in all industries, in military entities, educational en-
tities, ecclesiastical organizations, in the social field, and in the political
domain.
• The management of the project stakeholders poses a major challenge
for the project manager, and the project team.
• A body of knowledge has developed to describe the art and science of
project management.
• This body of knowledge is changing the way that contemporary orga-
nizations are managed.
Project management is the wave of the future—the role played by proj-
ect management in the years ahead will be challenging, exciting, and
crucial.
• Establish the strategic fit of the project. Ensure that the project is truly
a building block in the design and execution of organizational strategies,
and that it provides the project owner with an operational capability not
currently existing or improves an existing capability.
• Identify strategic issues likely to affect the project.
• Develop the project technical performance objective. Describe the proj-
ect deliverable end product(s) that satisfies a customer’s needs in terms
of capability, capacity, quality, quantity, reliability, efficiency, etc.
• Describe the project through the development of the project WBS. De-
velop a product-oriented family tree division of hardware, software, ser-
vices, and other tasks to organize, define, and graphically display the
product to be produced, as well as the work to be accomplished to
achieve the specified product.
Identify and make provisions for the assignment of the functional work
packages. Decide which work packages will be done in-house, obtain
the commitment of the responsible functional work managers, and plan
for the allocation of appropriate funds through the organizational work
authorization system.
Identify project work packages that will be sub-contracted. Develop pro-
curement specifications and other desired contractual terms for the de-
livery of the goods and services to be provided by outside vendors.
Develop the master and work package schedules. Use the appropriate
scheduling techniques to determine the time dimensions of the project
through a collaborative effort of the project team.
• Develop the logic networks and relationships of the project work pack-
ages. Determine how the project parts can fit together in a logical re-
lationship.
• Identify the strategic issues that the project is likely to face. Develop a
strategy for how to deal with these issues.
• Estimate the project costs. Determine what it will cost to design, de-
velop, and manufacture (construct) the project, including an assessment
of the probability of staying within the estimated costs.
• Perform risk analysis. Establish the degree or probability of suffering a
setback in the project’s schedule, cost, or technical performance param-
eters.
• Develop the project budgets, funding plans, and other resource plans.
Establish how the project funds should be utilized, and develop the nec-
essary information to monitor and control the use of funds on the proj-
ect.
• Ensure the development of organizational cost accounting system inter-
faces. Since the project management information system is tied in
closely with cost accounting, establish the appropriate interfaces with
that function.
• Select the organizational design. Provide the basis for getting the project
team organized, including delineation of authority, responsibility, and
accountability. At a minimum, establish the legal authority of the or-
ganizational board of directors, senior management, and project and
functional managers, as well as the work package managers and project
professionals. Use the linear responsibility chart (LRC) to determine
individual and collective roles on the project team.
• Provide for the project management information system. An information
system is essential to monitor, evaluate, and control the use of resources
on the project. Accordingly, develop such a system as part of the project
plan.
• Assess the organizational cultural ambience. Project management works
best where a supportive culture exists. Project documentation, manage-
ment style, training, and attitudes all work together to make up the
culture in which project management is found. Determine what project
management training would be required. What cultural fine-tuning is
required?
• Develop project control concepts, processes, and techniques. How will
the project’s status be judged through a review process? On what basis?
How often? By whom? How? Ask and answer these questions prospec-
tively during the planning phase.
• Develop the project team. Establish a strategy for creating and main-
taining effective project team operations.
• Integrate contemporaneous state-of-the-art project management philos-
ophies, concepts, and techniques. The art and science of project man-
Project organizing deals with the determination of the individual and col-
lective roles that people in the organizational play in supporting project
objectives, goals, and strategies. The major considerations involved in such
organizing include:
In the final matters of managing the project, the knowledge, skills, and
attitudes of the project manager will be the principal determinant in the
success or failure of the project.
1.4.9 Summary
This section presented the idea of a Project Management Philosophy as a
way of thinking about the conceptual framework, processes, techniques,
and principles that are involved in the management of projects. A philos-
ophy was described as a way of thinking about the management of proj-
ects. Two figures were presented which identified the major considerations
and the use of key management functions in the project management pro-
cess.
1.5.1 Introduction
1.5.2 Background
Organizations and people gain significantly from improved processes that
provide the optimum solution to business requirements. Project manage-
ment has the potential, when fully implemented, to provide the most ef-
fective means of developing and delivering new products. The project
management process is a streamlined process to focus specifically on the
result and delivery to customers.
Project management is successfully used in many industries today and
number of different applications of the process is expanding. New and
vative approaches to using project management as the process of
are emerging and demonstrating the flexibility of the overall pro-
The basic concepts of project management permit flexibility in tai-
to meet the organization’s needs for an effective process that real-
the most benefits.
Benefits are derived from processes when there is a minimum use of
and maximum stakeholder satisfaction. Waste in any area is a
negative benefit, or an opportunity, for a project to improve. Waste is
defined as ‘‘any consumption of resources (materials, people’s time, en-
ergy, talent, and money) in excess of the amount required to do the job.
Some of the most frequent opportunities for improving productivity and
avoiding waste are shown in Figure 1.3.
Benefits for
Organization
Senior Managers
Customers
The change between the level of benefits delivered before and after
new project management practices must be measured to have a quantifi-
able meaning. Without solid project plans, it is often difficult to objectively
measure the advances. Measures of effectiveness may be developed and
implemented from a subjective basis.
1.5.8 Summary
1.6.1 Introduction
vary in the practice and enforcement of ethical conduct to the extent that
there is no consistent practice. Random and situational ethics do not sup-
port professionalism or build confidence in others that the collective group
can or will abide by any rules of conduct.
F: Seek, accept and offer honest criticism of work, and properly credit
the contribution of others.
G: Assist project team members, colleagues and co-workers in their
professional development.
Article III: Project Managers shall, in their relations with their em-
ployers and clients:
A: Act as faithful agents or trustees for their employers and clients
in professional or business matters.
B: Keep information on the business affairs or technical processes of
an employer or client in confidence while employed, and later, until such
information is properly released.
C: Inform their employers, clients, professional societies or public
agencies of which they are members or to which they may make any
presentations, of any circumstance that could lead to a conflict of interest.
D: Neither give nor accept, directly or indirectly, any gift, payment
or service of more than nominal value to or from those having business
relationships with their employers or clients.
E: Be honest and realistic in reporting project quality, cost and time.
Article IV: Project Managers shall, in fulfilling their responsibilities
to the community:
A: Protect the safety, health and welfare of the public and speak out
against abuses in these areas affecting the public interest.
B: Seek to extend public knowledge and appreciation of the project
management profession and its achievements.
Responsibility Ethical
Obligation
Summary
Ethical behavior for all true project management practitioners is guided
by a code of ethics. If the code of ethics is missing, then there is no
consistent professional obligation to others and the individual cannot be
considered a professional.
1. Ireland, Lewis R., Joann Schrock, and Walter Pike, ‘‘Ethics for the
Project Manager,’’ Project Management Quarterly, Project Manage-
ment Institute, Drexel Hill, PA, August 1983). This article deals spe-
cifically with the ethical obligations of a project manager to several
parties. It is the foundation for the current Project Management Insti-
tute’s Certification Program. These fundamentals have not changed, but
there have been changes to some words to accommodate the shift from
a project manager, the leader, to anyone working in a project.
2. IEEE Study on Ethics and Ethical Conduct for Engineers, McLean,
VA, c. 1980. This study of ethics and ethical conduct describes the
requirements for engineers to be considered professionals. There are
extensive examples of ethical behavior and misbehavior.
1.7.1 Introduction
Professional associations are collections of individuals with common in-
terests. In the US, there are more than 54,000 professional associations
that range in size from as few as four individual members to more than
10,000,000 individual members. The common interests may be either per-
sonal or professional or both.
Collectively, a group of professionals can achieve more than they can
individually in advancing the profession. The resultant products of many
professional associations become the de facto standard for government and
industry. For example, IEEE publishes engineering standards that are used
universally between US government and industry. Another example is the
This vision statement sets the stage for all of the Institute’s goals.
Through this guidance, PMI is expanding its interests to all individuals
who have a desire to be more knowledgeable in project management and
have a desire to benefit from the products and services offered.
PMI is comprised of components that service members’ interests in
areas and across the spectrum of the entire organization. Local needs
met through 132 chapters that meet on a periodic basis to provide
programs and exchanges. Across the membership, 20 Specific
Groups provide exchanges of information to meet the needs of
viduals in unique disciplines, work areas, or functional areas. Both
serve the members in different ways and through different
More than 90 percent of the PMI members are affiliated with
chapter or Specific Interest Group.
The PMI has five core competencies that form its current and future
framework for services as shown in Fig. 1.7.
• Certification—the Project Management Professional (PMP) Certifica-
tion Program. This program is designed to test the knowledge of indi-
➢ Leadership
Certification
➢ Education
➢∑ Publications
Summary
➢ Research
➢ Standards
The PMBOK Guide uses a simple process model for each area that
Inputs, Tools and Techniques, and Outputs. This model provides
y to the treatment of each area and provides rigor to the pro-
Inputs typically are Outputs from a prior process, but will some-
time be from an external source. Tools and Techniques vary from expert
judgment to standards that have been specifically identified for project
management. Outputs are the result of the application of the tools and
techniques.
2. What are your needs that PMI can meet through one or more of its
core competencies?
3. How would your organization benefit from you belonging to a profes-
sional association such as PMI?
4. In what ways have you benefited from the products and services of a
professional association?
5. What is the dollar value of your affiliation with a professional associ-
ation and how does your organization quantify the benefits of mem-
bership?
1.7.7 Summary
1.8.1 Introduction
The project management profession has its own body of knowledge that
has been developed over more than 50 years. The body of knowledge has
been codified into formal documents since 1983 and continues to grow
with the profession. Several professional organizations have developed dif-
ferent versions of a project management body of knowledge.
The Project Management Institute (PMI) in Newtown Square, Penn-
sylvania, has been the primary leader in developing the project manage-
ment body of knowledge. Other organizations such as the International
Project Management Association in Switzerland and the Australian Insti-
tute for Project Management in Australia have developed bodies of knowl-
edge. All organizations refer to their respective bodies of knowledge as
standards.
General Unique
Practices Practices &
Knowledge
General
Knowledge
----
Input
• Feasibility Study
• Business Plan
• Expert Judgment
• Problem Analysis
• Checklist
Output
• Project Plan
The PMBOK Guide has been adopted by some companies in the United
States to supplement their project management methodologies. This ac-
ceptance of the PMBOK Guide as the standard of choice demonstrates
the value of having the collective knowledge of a professional association
develop it. The knowledge base in PMI spans six continents in more than
100 countries.
The PMBOK Guide is so structured that it can be used to augment
most methodologies and project life cycles. The input-output processes
may be used in a variety of ways within any business approach. Some
differences may be noted in the ‘‘tools and techniques’’ component of this
process. The tools and techniques can vary because of the differences in
rigor that some organizations apply to their methodologies.
Controlling
Process
1.8.7 Summary
Standards for project management vary between countries and for different
reasons. National laws or the registration of processes with the government
will often determine whether the standards include or exclude areas. Re-
gardless, the guidance is provided in the standard and the standard be-
comes the body of knowledge for a profession.
The most widely distributed and used project management standard is
PMI’s PMBOK Guide. It has more than 450,000 copies distributed
around the world and has been translated into at least six languages other
than English (American version). Even in countries with other standards,
the PMBOK Guide has gained greater acceptance than the local project
management standards.
Annotated Bibliography
Parry, Matthew, et al, ‘‘Ethics, Standards, and Accreditation Report,’’
Project Management Quarterly, Project Management Institute, Drexel
Hill, PA, August 1983. This article describes the initial efforts to de-
velop a body of knowledge.
Parry, Matthew, et al, A Guide to the Project Management Body of
Knowledge, Project Management Institute, Drexel Hill, PA, 1984. The
project management body of knowledge was defined for use in pre-
paring the Project Management Professional Certification Program.
3. Wideman, R. Max, et al, A Guide to the Project Management Body of
Knowledge, Project Management Institute, Upper Darby, PA, 1987. The
project management body of knowledge was further refined in 1987
and expanded in this document.
• Organizing: What’s involved and why? In carrying out this function the
needed human and non-human resources are determined, and the desired
patterns of authority, responsibility, and accountability are established.
• Motivation: What brings out the best performance of the project team
members and other people who support the project?
• Directing: Who decides what and when? In the discharge of this func-
tion, the project managers and other managers provide for the face-to-
face leadership in the making and oversight of the execution of decisions
involved in the commitment of resources on the project.
• Controlling: Who judges results and by what standards? In this function
the project manager, team members, and other managers carry out the
monitoring, evaluation, and control of the use of resources supporting
the project.
Establish ‘‘limits’’ of authority for decision making for the allocation of project
resources.
Develop leadership style.
Enhance interpersonal skills.
Prepare plan for increasing participative management techniques in managing the
project team.
Develop consensus decision-making techniques for the project team.
Establish cost, schedule, and technical performance standards for the project.
Prepare plans for the means to evaluate project progress.
Establish a project management information system for the project.
Prepare project review strategy.
Evaluate project progress.
Team Planning
Team Organization
Team Motivation
Team Direction
Team Control
Have performance standards been established for the team? For the individual
members?
What feedback on the team’s performance does the manager have who appointed
the team?
How often does the team get together to formally review its progress?
Has the team attained its objectives and goals in an effective and efficient
manner?
Do the team members understand the nature of control in the operation of the
team?
Adapted from M.H. Mescon et al., Management (New York: Harper & Row, 1981), p. 167.
1.9.3 Summary
In this section, the management functions were presented as the major
building blocks in the process of managing projects. Planning, organizing,
motivation, direction, and control were presented as these major building
blocks. Examples are given of why and how the use of such functions
were provided during the process of managing projects.
● Full assessment of the project outcomes before major resources are committed
to continue development of the project.
● Identify need for further study and development for the project.
● Confirm the decision to continue development, create a ‘‘prototype’’, and assess
the full impact of the project for production or installation.
● Firm identification of the human and non-human resources that will be required
for the continued development and deployment of the project results.
● Preparation of final system performance requirements.
● Preparation of plans to support the project results.
● Identification of areas of the project where high risk and uncertainty dictate
further assessment.
● Definition of system inter-and intra-system interfaces.
● Development of a preliminary logistic support, technical documentation, and
after-sale plan.
● Preparation of suitable documentation required to support the system to include
policies, procedures, job descriptions, budget and funding protocol, and other
documentation necessary to track and report on the progress being made.
● Development of protocols on how the project will be monitored, evaluated, and
controlled.
During this period the project results are produced (constructed) and de-
livered as an effective, economical and supportable product, service, or
organizational process. The plans and strategies conceived and defined
during the proceeding phases are updated to support production (construc-
tion) initiatives. Other major elements of work carried out during this
phase are reflected in Table 1.8.
Entry into this phase indicates that the project results have been proven
economical, feasible, and practicable and are worthy of being implemented
by the user to support their operational or strategic initiatives. Other major
elements of work carried out during this phase include those shown in
Table 1.9.
In this phase, the enterprise ‘‘gets out of the business’’ which the project
results provided. The ‘‘getting out of the business’’ may be caused by loss
1. Have ‘‘boiler plate’’ criteria been developed for how products, services,
and organizational processes and their associated activities will be man-
aged, giving due consideration for the issues likely to arise in the life
cycle of these activities?
2. Do the project team members, and other project stakeholders under-
stand the meaning and implications of managing projects on a ‘‘life-
cycle’’ basis?
3. Have key points been established to facilitate the making and execution
of decisions involving the major issues in the management of proj-
ects—in particular those points at which the use of resources on a
project should be continued, or a decision made to terminate the proj-
ect?
4. Do the project monitoring, evaluation, and control processes take into
consideration the key issues or elements involved in the life cycle of
each project?
5. Does the culture of the enterprise support the concept of a project life
cycle, which can be used as one of the templates for the management
of the project?
1.10.7 Summary
In this section, the concept and processes involved in a project’s life cycle
were presented as a useful protocol for the management of a project. A
generic life cycle approach was used to illustrate how the use of such an
approach can bring about added order and improved protocol for the man-
agement of a project. The reader and user of the life cycle approach sug-
gested in this section, should find that the guidance put forth in the chapter
can improve the efficiency and effectiveness with which product, service,
or process development is conceptualized and carried out.