Ebook Project management for business and engineering: Principles and practice (2nd edition) – Part 2

Ebook Project management for business and engineering: Principles and practice (2nd edition) – Part 2 include of the following contents: Chapter 6: planning fundamentals; chapter 7: network scheduling and PDM; chapter 8: PERT, CPM, resource allocation, and GERT; chapter 9: cost estimating and budgeting; chapter 10: managing risks in projects; chapter 11: project control; chapter 12: project management information systems; chapter 13: project evaluation, reporting, and termination; chapter 14: project organization structure and integration; chapter 15: project roles, responsibility, and authority; chapter 16: managing participation, teamwork, and conflict; chapter 17: project failure, success, and lessons learned.
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Ebook Project management for business and engineering: Principles and practice (2nd edition) – Part 2 Part Systems and Procedures III CHAPTER 6 Planning Fundamentals CHAPTER 7 Network Scheduling and PDM CHAPTER 8 PERT, CPM, Resource Allocation, and GERT CHAPTER 9 Cost Estimating and Budgeting CHAPTER 10 Managing Risks in Projects CHAPTER 11 Project Control CHAPTER 12 Project Management Information Systems CHAPTER 13 Project Evaluation, Reporting, and Termination S uccessful project management goes beyond coordinating people and groups; it involves defining the goals and work they must ac- complish, then providing leadership and direction to ensure the work gets done. Overall project goals need to be articulated into shorter term objectives with carefully plotted plans, schedules, and budgets to accomplish them. Controls are then needed to make sure plans and schedules are carried out as intended. Over the years an impressive collection of methods has been de- veloped to help project managers collect and use information for defining and directing work. The next eight chapters describe these methods, including techniques and procedures for specifying, sched- uling, and budgeting project activities, organizing and keeping records, and monitoring and controlling work to achieve project goals. Procedures are best conducted within the framework of a system to ensure that all elements are accounted for, properly organized, and executed. The so-called Project Management System and the various structures, activities, and frameworks that comprise it—work break- down structures, cost accounting systems, management information systems, and many others—are also described in this section. 158 Part III Systems and Procedures Chapter Planning Fundamentals 6 Big fleas have little fleas Upon their backs to bite ’em Little fleas have lesser fleas And so ad infinitum. —Old rhyme1 O ne distinguishing feature of projects is that each is tailored toward some unique end-item or result. That uniqueness implies that every project must be defined anew and a scheme created telling everyone involved what to do. Deciding and specifying what to do is the function of project planning. Making sure it is done right is the function of project control. Three things occur in the planning and control process: (1) During the con- ception and definition phases (before project work actually begins) a plan is prepared specifying the project requirements, work tasks, responsibilities, sched- ules, and budgets; (2) during the execution phase the plan is compared to actual project performance, time, and cost; if there are discrepancies, (3) corrective actions are taken and the requirements, schedules, and budgets updated. Planning and control are essential parts of project management; they enable people to under- stand what is needed to meet project goals and reduce the uncertainty of out- comes. Planning and control are the subjects of the next six chapters. This chapter gives an overview of the planning process and the initial steps in preparing proj- ect plans. 159 6.1 PLANNING STEPS Top management gives the authorization to begin planning shortly after a business need, contract request, or RFP is received. This authorization releases funds so that plans, schedules, and budgets can be prepared. These plans are then used to justify additional funds and authorize work for the remainder of the project. A project manager, if not already assigned or involved, is now identified to over- see the planning. A project charter is created that briefly gives the statement of work, expected end-items or results, and required resources. If the work is being per- formed under contract, the contract will serve as the charter. The purpose of the charter is to enable the project manager, senior management, and functional man- agers to reach agreement about the scope of the project and the resources they will commit to it. Because every project is different, there is never an a priori, established way speci- fying how each and every one should be done. New projects pose new questions. For starters, the project team needs to answer questions about what has to be done, how it has to be done, by whom, in what order, for how much, and by when. The formalized way to answer these questions is through the planning process. The process addresses the questions in roughly the following steps: 1. Project objectives, requirements, and scope are set. These outcome elements specify project end-items, desired results, and time, cost, and performance targets. (What, for how much, and by when?) The scope includes specific acceptance re- quirements that the customer uses to determine acceptability of results or end- items. Everything specified in these requirements must be completed during the project to the customer’s satisfaction. 2. The specific work activities, tasks, or jobs to achieve objectives are broken down, defined, and listed. (What?) 3. A project organization is created specifying the departments, subcont ...