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Successful Project Management
Fourth Edition
Michael S. Dobson
Successful Project Management, Fourth Edition
How to Complete Projects on Time, on Budget, and on Target
© 2015 American Management Association. 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 13: 978-0-7612-1567-7
ISBN 10: 0-7612-1567-0
AMACOM Self-Study Program
http://www.amaselfstudy.org
AMERICAN MANAGEMENT ASSOCIATION
http://www.amanet.org
Contents
About This Course xiii
How to Take This Course xv
Pre-Test xvii
Common Stakeholders
Other Stakeholders
Issues in Stakeholder Management
Constraints
Hierarchy of Constraints
Ranking Constraints
Assumptions
Project Charter
Obtaining Approval and Buy-In
Progressive Elaboration and the Project Objective
Recap
Review Questions
Recap
Review Questions
List of Exhibits
Exhibit 1–1 Case Study: Establishing a Project Management Office (PMO)
Exhibit 1–2 The Five Project Management Process Groups
Exhibit 1–3 The Ten Project Management Knowledge Areas
Exhibit 2–1 Phases
Exhibit 2–2 Analyzing Stakeholders
Exhibit 2–3 The Triple Constraint
Exhibit 2–4 Hierarchy of Constraints
Exhibit 3–1 Statement of Work
Exhibit 3–2 Guidelines for Writing Requirements
Exhibit 3–3 Work Breakdown Structure in “Org Chart” and Outline Format
Exhibit 3–4 Department Based vs. Phase Based WBS
Exhibit 3–5 Network Diagram
Exhibit 3–6 Critical Path
Exhibit 3–7 Forward Pass
Exhibit 3–8 Forward Pass Summary
Exhibit 3–9 Backward Pass
Exhibit 3–10 Backward Pass Summary
Exhibit 3–11 Critical Path and Float
Exhibit 3–12 Critical Path and Float Summary
Exhibit 3–13 Gantt Chart
Exhibit 3–14 Gantt Chart Data
Exhibit 3–15 Completed Gantt Chart
Exhibit 4–1 PERT Formulas
Exhibit 4–2 Standard Deviation Diagram
Exhibit 4–3 Z Table
Exhibit 5–1 Skill Requirements
Exhibit 5–2 Team Skills
Exhibit 5–3 Responsibility Assignment Matrix
Exhibit 5–4 Crashing a Project Using CPM
Exhibit 5–5 Summary of Crashing Activities
Exhibit 5–6 Communications and Stakeholder Management Plan Template
Exhibit 6–1 The Project Environment
Exhibit 6–2 Risk Identification
Exhibit 6–3 Sample Risk Register
Exhibit 6–4 Risk Triage Flowchart
Exhibit 6–5 Probability and Impact Matrix
Exhibit 6–6 Expected Monetary Value
The management of projects is often vital to the success and growth of organ-
izations. Unlike ongoing operations, projects are both temporary and unique.
Because they are temporary, they often do not have the benefit of fully devel-
oped, mature, and permanent organizations devoted to their success. Because
they are at least in some respects unique, they each involve special problems,
issues, and considerations.
Project management, in a nutshell, is the art, craft, and science of manag-
ing projects. It is a wide-ranging and complex discipline that incorporates and
uses elements from many different disciplines. Although project management
was once considered just an aspect of such fields as architecture or engineering,
today project management is considered to be a discipline in its own right.
In a fast-moving and fast-changing world, project management skills are
often a vital element in your career growth and ultimate success. Even when
managing projects is only an element of your overall job, success in managing
projects often has a disproportionate impact on your career.
Successful Project Management, Fourth Edition, is an introductory course in
project management. In this course, you will learn the fundamental concepts,
strategies, techniques, and approaches of modern project management. The
course is designed for active project managers, technical team members who
need to understand the overall project approach in order to perform their roles
effectively, and senior managers and executives who must hire, supervise, and
evaluate project managers in their employ.
We will follow the basic project management approach as laid out in A
Guide to the Project Management Body of Knowledge (PMBOK® Guide), 5th Edition,
popularly known as the PMBOK® Guide, along with other sources listed in
the Bibliography and Recommended Reading section at the end of the course.
We strongly encourage you to read and study widely.
This course consists of text material for you to read and three types of activ-
ities (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 brought out in the text portion of the course and to enable you to
evaluate your progress.
Certificate
Once you have taken your post-test, you will receive an email with your grade
and a certificate if you have passed the course successfully (70% or higher).
All tests are reviewed thoroughly by our instructors, and your grade and a
certificate will be returned to you promptly.
The Text
The most important component of this course is the text, for it is here that
the concepts and methods are first presented. Reading each chapter twice will
increase the likelihood of your understanding the text fully.
We recommend that you work on this course in a systematic way. Only
by reading the text and working through the exercises at a regular and steady
pace will 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’s con-
tents. Read the learning objectives at the beginning of each chapter first. They
serve as guidelines to the major topics of the chapter and enumerate the skills
you should master as you study the text. As you read the chapter, pay attention
to the heading and subheadings. Find the general theme of the section and
see how that theme relates to others. Don’t let yourself get bogged down with
details during the first reading; simply concentrate on remembering and un-
derstanding the major themes.
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 the examples, and making marginal notations as
you go. Complete the exercises.
FOR QUESTIONS AND COMMENTS: You can also contact Self Study at 1-800-225-3215
or visit the website at www.amaselfstudy.org.
10. Look at the WBS that follows this question. How is it organized?
(a) By department or work group
(b) By phase
(c) By cost account
(d) By difficulty or risk
Develop a Course
Instructional Systems
Production Operations Marketing
Design
Ship Materials to
Develop Exercises Conduct Beta Test Approve New Course
Seminar Location
Finalize Course
13. The extent to which the project’s product, service, and result satisfy the
needs for which it was undertaken is known as:
(a) quality.
(b) scope.
(c) risk.
(d) WBS.
14. Look at the following network diagram. What is the critical path?
(a) A→B→D→H
(b) A→E→C→D→H
(c) A→E→F→G→H
(d) A→C→H
Activity B Activity D
4 days 3 days
15. Today, we were supposed to have completed four activities that were
planned to cost $2,500 each. We have actually accomplished only three
of those activities and we have spent $7,000 to date. In earned value
method terms, what is our cost performance index, rounded to the
nearest whole percent?
(a) 93%
(b) 107%
(c) 75%
(d) 133%
18. What performance measurement baseline can serve as a metric for all
three triple constraints?
(a) Cost baseline
(b) Responsibility assignment matrix
(c) Tracking Gantt chart
(d) Weekly status reports
20. How frequently should you hold status meetings or require status
reports?
(a) Preferably weekly, but no less often than monthly
(b) Whenever a problem or issue arises
(c) When the project sponsor or customer need an update
(d) Varies based on the speed of change within the project
25. You have identified a risk that the price of raw materials you need for
the project could potentially double in price by the time you would
normally purchase them. You decide you will buy the materials far in
advance of need to lock in the price. What risk response strategy have
you used?
(a) Avoid
(b) Mitigate
(c) Transfer
(d) Contingency plan
Learning Objectives
By the end of this chapter, you should be able
to:
• Describe the origins and growth of project
management as a discipline.
• Define projects and project management and
explain the concepts of progressive elabora-
tion and iterative activity as they apply to proj-
ect management.
• Describe the relationship between projects
and the organization, including the roles of
programs and portfolios, the function of a
Project Management Office (PMO), and the
characteristics of functional, projectized, and
matrix organizations.
• Identify and describe the five fundamental
processes of project management.
• List and define the ten knowledge areas of
project management.
In the United States, the largest and best-known project management or-
ganization is the Project Management Institute (PMI), established in 1984. Its
standard terminology and guidelines for project management are contained
in A Guide to the Project Management Body of Knowledge (PMBOK® Guide), currently
in its fifth edition. The PMBOK® Guide is used by both the American National
Standards Institute (ANSI) and the Institute of Electrical and Electronics En-
gineers (IEEE) as its official standard. The PMI offers a range of credentials
for project managers, most famously the Project Management Professional
(PMP®) designation. This course is designed to be compatible with the fifth
edition of the PMBOK® Guide.
xhibit 1–1
Case Study: Establishing a Project Management Office (PMO)
You’ve learned that many organizations establish a Project Management Office (PMO) to provide
guidance, leadership, resources, and technical support to individual projects throughout the organ-
ization, and your CEO has expressed a desire to establish a PMO function in your own organization.
Because you are studying project management, you’ve been asked to lead this project.
In your initial discussions, you discover that the organization has relatively little understanding
of what a PMO is or what it does, and that some managers are skeptical of it. There is a concern
that managers may lose power and authority to the new PMO. On the other hand, several recent
projects have ended up failing, and there is a fear that your competitors, many of whom already
have PMOs, may pull ahead in the marketplace.
You have been directed to establish a PMO in time for the annual stockholders’ meeting, which
will take place in nine months.
Exercise 1–1
Getting Started
Instructions: We will use the Exhibit 1–1 case study, “Establishing a PMO,” throughout this book to
practice the skills we are learning.
When you are first given a project, it’s often the case that the project is not fully fleshed out,
and that’s okay. You normally must go through a process of gaining additional understanding and
insight about the project before you can manage it effectively. Read the following series of ques-
tions. Some of the answers are contained in the case study description, but not all of them. Answer
the questions to the best of your ability. Don’t worry if you can’t answer every question fully—that’s
quite normal at the beginning of a project.
When you have finished, turn to Appendix A: Answers to Exercises and Case Studies at the end
of this course to compare your responses with ours.
2. Why are we doing this project? How will the project benefit us if it is successful?
6. Who are the stakeholders—the people who will be affected by our project?
7. Does our project face opposition? What is the nature of that opposition? Why are some people
opposed? Can their issues be addressed?
8. Are there any major known risks that we can see at the beginning of the project?
One of the favorite Greek stories has been that of Orpheus, who
went down to Hades to bring his dead wife whom he adored, back to
earth, and about whom Peri, Gluck, and others wrote operas. He was
son of Apollo and of Calliope, the Muse of Epic Poetry, and became
such a fine performer on all instruments, that he charmed all things
animate and inanimate. He tamed wild birds and beasts, and even
the trees and rocks followed him as he played, the winds and the
waves obeyed him, and he soothed and made the Dragon, who
guarded the Golden Fleece, gentle and harmless.
On the cruise of the Argo in search of the Golden Fleece, Orpheus
not only succeeded in launching the boat when the strength of the
heroes had failed in the task, but when they were passing the islands
of the Sirens, he sang so loudly and so sweetly that the Sirens’ songs
could not be heard and the crew were saved.
Music in Their Daily Life
When a people have legends about music you may know that they
love it. Such was the case with the Greeks. They did not call their
schools high schools and colleges but Music schools, and everything
that we call learning they included under the name of music. Every
morning the little Greek boy was sent to the Music school where he
was taught the things that were considered necessary for a citizen to
know. Here he learned gymnastics, poetry, and music. At home too,
music was quite as important as in school, and we know that they
had folk songs which had to do with the deeds of ordinary life, such
as farming and winemaking and grape-picking, and the effect and
beauty of the seasons of the year. (See Chap. IX.) They can well be
divided into songs of joy and songs of sorrow, and seem to have
existed even before Homer the Blind Bard. If you ever have tried to
dance or do your daily dozen without music, you will understand at
once how much help music always has been to people as they
worked.
Harvest Songs
All harvest songs in Greece had the name of Lytiersis. Lytiersis was
the son of King Midas, known as the richest king in the world.
Lytiersis was a king himself but also a mighty reaper, and according
to Countess Martinengo-Cesaresco who has written a book called
Essays in the Study of Folk-Songs it was his “habit to indulge in
trials of strength with his companions and with strangers who were
passing by. He tied the vanquished up in sheaves and beat them. One
day he defied an unknown stranger, who proved too strong for him
and by whom he was slain.” The first harvest song was composed to
console King Midas for the death of his son. We can make a fable
from this story which means that Nature and Man are always
struggling against each other.
The harvest festivals founded in Greece led to others in Brittany,
France, North Germany and England. So does the deed of one race
affect other races.
The Liturgies
Among the taxes, or five special liturgies, that the Greeks had to
pay, was the obligation for certain rich citizens to supply the Greek
tragedies with the chorus. Every Greek play had its chorus and every
chorus had to have its structures; a choregic monument to celebrate
it; one or more flute players, costumes, crowns, decorations, teachers
for the chorus and everything else to make it succeed. This cost,
which would equal many thousands of dollars, was undertaken as a
duty quite as easily as our men of wealth pay their income taxes. You
can see a greatly enlarged copy of a choregic monument, the Soldiers’
and Sailors’ monument at 89th Street and Riverside Drive, in New
York City, and also one at the Metropolitan Museum.
In old Greece the musicians were also poets. Homer, Hesiod,
Pindar, Æschylus, Sophocles, Sappho, Euripides, Plato, not only
wrote their dramas but knew what music should be played with
them. In fact no play was complete without its chorus and its music
and its flute-player. You have heard of the Greek chorus. Don’t for a
moment think it was like our chorus. It consisted of a group of
masked actors (all actors in those days wore masks), who appeared
between the acts and intoned (chanted) the meaning of the play and
subsequent events. In fact the chorus took the place of a libretto,
—“words and music of the opera,” for it explained to the audience
what it should expect. It spoke and sang some of the most important
lines of the play and danced in appropriate rhythms. So it brought
together word, action and music, and was a remote ancestor of
opera, oratorio and ballet.
Festivals
Besides the occupational songs and those for the drama festivals,
the Greeks had the great game festivals where in some, not only
competitions in sports took place but also flute playing and singing.
The oldest of these festivals was the Olympic games, first held in 776
B.C. and every four years thereafter. These games played so important
a part in the lives of the Greeks that their calendar was divided into
Olympiads instead of years. While music was evident in the Olympic
games, music and poetry were never among the competitions.
The Pythian games were chiefly musical and poetic contests and
were started in Delphi, 586 B.C., where they were held every nine
years in honor of the Delphian Apollo whose shrine was at Delphi.
The Isthmian and Nemean games were also based on poetic and
musical contests. Warriors, statesmen, philosophers, artists and
writers went to these games and took part in them. Maybe some time
we will realize the power of music as did the Greeks nearly one
thousand years before the birth of Jesus.
The Greek Scales
When the second tetrachord began on the tone above the fourth
tone of the first tetrachord, he calls it the breaking method, thus:
By using the join and the break with each of the three modes,
Dorian, Phrygian and Lydian, you can see to what a great variety of
scales and names this would lead. The Greeks spoke of their scales
from the top note down, instead of from the lowest note up, as we do.
The first kithara was supposed to have been an instrument of four
strings that could be tuned in any of these different ways, with the
half-step either between the first and second strings, or between the
second and third, or between the third and fourth. Two instruments
tuned differently formed the complete scale, but it did not take long
to add strings to their lyres and kitharas so that they could play an
entire scale on one instrument.
The little Greek boy was taught in school to tune the scale
according to the fourth string of his lyre, which was the home tone or
what we should call tonic. Our tonic falls on the first degree of the
scale, but in the primary modes of the Greeks, the tonic fell on the
fourth degree, and was called the final. When the final was on pitch
all the other strings had to be tuned to it.
These tetrachords are supposed to have been perfected by
Terpander, in the six hundreds before Christ. His melodies were
called nomes and were supposed to have had a fine moral effect on
the Spartan youth in giving him spirit and courage. The Greeks
thought that all music and that every one of their modes had a
special effect on conduct and character.
After the Messenian war, Sparta was in such a state of upheaval
that the Delphian oracle was consulted. The answer was:
“When Terpander’s Cithar shall sound
Contention in Sparta shall cease.”
The Greeks were the first to write down their music, or to make a
musical notation whereby the singers and players knew what tones to
use. Their system was their alphabet with certain alterations. They
had names describing each tone not unlike our use of the word tonic
for the first degree of the scale, and dominant for the fifth and so on.
Of course they did not have the staff and treble and bass clefs as
we have, but they were groping for some way of recording music in
those far away days.
Pythagoras as far back as 584–504 B.C., not only influenced the
music in the classical Greek period (400 B.C.), but down to and
throughout the Middle Ages to the Renaissance (1500s). To this day
music is based on his mathematical discovery. He worked out a
theory of numbers based on the idea that all nature was governed by
the law of numbers and modern scientists have proven that he was
correct in many of his ideas. In fact our orchestras and pianos are
tuned in accordance with his theories.
He invented an instrument called the monochord which consisted
of a hollow wooden box with one string and movable fret. He
discovered that when he divided the string exactly in half by means
of the fret, the tone produced was an octave higher than the tone
given out by striking the entire string; one-third of the string
produced the interval of a fifth above the octave; one-fourth the
length of the string produced a fourth above the fifth; one-fifth
produced a third (large or major) above the fourth; one-sixth
produced a third (small or minor); one-seventh produced a slightly
smaller third and one-eighth produced a large second, three octaves
above the sound of the entire string:
The truth of Pythagoras’ theory of tone relationship has been
proven by an experiment in physics showing that all of the above
tones belong to the same tone family. An amusing experiment can be
made by pressing silently any one of the tones marked 2, 3, 4, 5, 6, or
8, and striking the fundamental tone sharply, the key you are
pressing silently will sound so that you can distinctly hear its pitch.
The Greeks seem to have had no harmony (that is, combining of
two or more tones in chords) outside of the natural result of men’s
voices and women’s singing together. But they had groups of singers
answering each other in what is called antiphony (anti-against,
phony-sound). Even our American Indians have their song leader
and chorus answering each other.
Greek rhythm followed the rhythm of the spoken word and was
considered a part of their poetic system.
Greek Instruments
The Romans, law givers, world conquerors and road builders, gave
little new to music, for they did not show a great talent for art. They
were influenced by Greek ideals and Greek methods. They were
warlike by nature, and from defenders of their state they became
conquerors. As they grew nationally stronger and more secure, they
learned music, oratory, architecture and sculpture from Greek
teachers. Many Romans well known in history were singers and
gifted players on the Greek kithara, lyre, and flute (aulos).
The Romans seemed to have cared more about the performing of
music than for the composing of it, and “offered prizes to those who
had the greatest dexterity, could blow the loudest or play the fastest.”
(Familiar Talks on History of Music.—Gantvoort.)
As they come to America today the musicians of other lands
flocked to Rome, especially those who played or sang, because they
were received with honor and were richly paid.
The Romans, among them Boethius (6th century B.C.), wrote
treatises on the Greek modes, were very much interested in the
theory of music, and built their scales like the Greeks. To each of the
seven tones within an octave they gave the name of a planet, and to
every fourth tone which was the beginning of a new tetrachord, the
name of a day of the week which is named for the planet.
B C D E F G A
Saturn Jupiter Mars Sun Venus Mercury Moon
Saturday Sunday Monday
B C D E F G A
Saturn Jupiter Mars Sun Venus Mercury Moon
Tuesday Wednesday
B C D E F G A
Saturn Jupiter Mars Sun Venus Mercury Moon
Thursday Friday
The days of the week in French show much more clearly than in
English the names of the planets, in the case of Tuesday—mardi,
(Mars); Wednesday—mercredi (Mercury); Thursday—jeudi,
(Jupiter); Friday—vendredi, (Venus).
The Greeks brought their instrument, the kithara, to Rome, and
with it a style of song called a kitharoedic chant, which was usually a
hymn sung to some god or goddess. The words, until three hundred
years after the birth of Jesus, were in the Greek language; the Latin
kitharoedic songs like those of the poets Horace and Catullus were
sung at banquets and private parties, Cicero too, was musical.
Courtesy of the
Metropolitan
Museum of Art.
Chinese
Instruments.
Fig. 5.—Trumpets.
Fig. 6.—Te’ch’ing—sonorous stone.
Fig. 7.—Yang-Ch’in or Dulcimer.
Fiddles from Arabia (Fig. 8, Rebab); Japan (Fig. 9, Kokin);
Corea (Fig. 10, Haggrine) and Siam (Fig. 11, See Saw Duang).
The Koto-Player.