Teloxy Engineering Project Management Paper.

Teloxy Engineering Project Management Paper.

Dr. Kerzner’s 16 Points to Project Management Maturity

1. Adopt a project management methodology and use it consistently.

2. Implement a philosophy that drives the company toward project management maturity and communicate it to everyone.

3. Commit to developing effective plans at the beginning of each project. Teloxy Engineering Project Management Paper.

4. Minimize scope changes by committing to realistic objectives.

5. Recognize that cost and schedule management are inseparable.

6. Select the right person as the project manager.

7. Provide executives with project sponsor information, not project management information.

8. Strengthen involvement and support of line management.

9. Focus on deliverables rather than resources.

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10. Cultivate effective communication, cooperation, and trust to achieve rapid project management maturity.

11. Share recognition for project success with the entire project team and line management. Teloxy Engineering Project Management Paper.

12. Eliminate nonproductive meetings.

13. Focus on identifying and solving problems early, quickly, and cost effectively.

14. Measure progress periodically.

15. Use project management software as a tool—not as a substitute for effective planning or interpersonal skills.

16. Institute an all-employee training program with periodic updates based upon documented lessons learned.

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PROJECT MANAGEMENT

A Systems Approach to Planning, Scheduling,

and Controlling

E L E V E N T H E D I T I O N

H A R O L D K E R Z N E R , P h . D . Senior Executive Director for Project Management

The International Institute for Learning New York, New York

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Cover illustration: xiaoke ma/iStockphoto

Published by John Wiley & Sons, Inc., Hoboken, New Jersey Published simultaneously in Canada

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Library of Congress Cataloging-in-Publication Data: Kerzner, Harold.

Project management : a systems approach to planning, scheduling, and controlling / Harold Kerzner, Ph. D. Senior Executive Director for Project Management, the International Institute for Learning, New York, New York. — Eleventh edition.

pages cm Includes bibliographical references and index. ISBN 978-1-118-02227-6 (cloth); ISBN 978-1-118-41585-6 (ebk); ISBN 978-1-118-41855-0 (ebk); ISBN 978-1-118-43357-7

(ebk); ISBN 978-1-118-48322-0 (ebk); ISBN 978-1-118-48323-7 (ebk) 1. Project management. 2. Project management—Case studies. I. Title.

HD69.P75K47 2013 658.4’04 —dc23

2012026239 Printed in the United States of America 10 9 8 7 6 5 4 3 2 1

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To

Dr. Herman Krier,

my Friend and Guru,

who taught me well the

meaning of the word “persistence”

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Contents

Preface xxiii

1 OVERVIEW 1

1.0 Introduction 1 1.1 Understanding Project Management 2 1.2 Defining Project Success 7 1.3 Success, Trade-Offs, and Competing Constraints 8 1.4 The Project Manager–Line Manager Interface 9 1.5 Defining the Project Manager’s Role 14 1.6 Defining the Functional Manager’s Role 15 1.7 Defining the Functional Employee’s Role 18 1.8 Defining the Executive’s Role 19 1.9 Working with Executives 19 1.10 Committee Sponsorship/Governance 20 1.11 The Project Manager as the Planning Agent 23 1.12 Project Champions 24 1.13 The Downside of Project Management 25 1.14 Project-Driven versus Non–Project-Driven Organizations 25 1.15 Marketing in the Project-Driven Organization 28 1.16 Classification of Projects 30 1.17 Location of the Project Manager 30 1.18 Differing Views of Project Management 32 1.19 Public-Sector Project Management 34 1.20 International Project Management 38 1.21 Concurrent Engineering: A Project Management Approach 38 1.22 Added Value 39 1.23 Studying Tips for the PMI® Project Management Certification Exam 40

Teloxy Engineering Project Management Paper.

Problems 42

Case Study Williams Machine Tool Company 44

vii

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2 PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS 47

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2.0 Introduction 47 2.1 General Systems Management 48 2.2 Project Management: 1945–1960 48 2.3 Project Management: 1960–1985 49 2.4 Project Management: 1985–2012 55 2.5 Resistance to Change 59 2.6 Systems, Programs, and Projects: A Definition 64 2.7 Product versus Project Management: A Definition 66 2.8 Maturity and Excellence: A Definition 68 2.9 Informal Project Management: A Definition 69 2.10 The Many Faces of Success 70 2.11 The Many Faces of Failure 73 2.12 The Stage-Gate Process 76 2.13 Project Life Cycles 78 2.14 Gate Review Meetings (Project Closure) 83 2.15 Engagement Project Management 84 2.16 Project Management Methodologies:  Teloxy Engineering Project Management Paper.A Definition 85 2.17 Enterprise Project Management Methodologies 87 2.18 Methodologies Can Fail 91 2.19 Organizational Change Management and Corporate Cultures 94 2.20 Project Management Intellectual Property 100 2.21 Systems Thinking 101 2.22 Studying Tips for the PMI® Project Management Certification Exam 104

Problems 107

Case Study Creating a Methodology 108

3 ORGANIZATIONAL STRUCTURES 111

3.0 Introduction 111 3.1 Organizational Work Flow 113 3.2 Traditional (Classical) Organization 114 3.3 Developing Work Integration Positions 117 3.4 Line-Staff Organization (Project Coordinator) 121 3.5 Pure Product (Projectized) Organization 122 3.6 Matrix Organizational Form 125 3.7 Modification of Matrix Structures 132 3.8 The Strong, Weak, or Balanced Matrix 136 3.9 Center for Project Management Expertise 136 3.10 Matrix Layering 137

viii CONTENTS

Teloxy Engineering Project Management Paper.