Index
acknowledgment, in communication model, 234
active listening, 234
activity definition, 78
activity lists, 81–83, 185, 203
adaptive approach to planning, 33
ad hoc meeting style, 147
affinity diagrams, 69–70
analogous estimating, 51, 104, 129
Applied Imagination (Osborn), 69
assumptions
of customers, 73
in project scope statement, 75
of project team, 73
quality, 93
in risk management, 187, 205–206
autocratic management approach, 225
avoidance, as risk response, 197–198
backward pass, 141
bait-and-switch schemes, 117
baselines, 71, 90, 112, 113, 156–157, 161
bidder conference, 57
bonus-driven project, 127, 142
bottlenecks, 159
brainstorming, 69–70
budgets. see project budget
business owners
communication with stakeholders, 209–210
internal costs of project initiation, 40–43
investment in projects, 46–47
organizational model and, 38–39
project costs and, 95
project goals and, 66
work breakdown structure (WBS) and, 79 see also project stakeholders
business partners, 48. see also project stakeholders
business risks, 182–183
cause-and-effect charts, 174–175
certificate of closure, 272, 277
chairs, 147
change control
change control system, 24, 34–35, 62–63, 163–171, 177–179, 221, 266–267
in closing the project, 266–267
methods to prevent project change, 177–179
change fees, 178
change logs, 169–170
change request forms, 62–63, 154–155, 164, 165–169, 171
chart of accounts, 103–104
checklists, 115
claims administration, 268–271
closing the project, 14, 26–27, 263–286
certificate of closure, 272, 277
change control, 266–267
claims administration in, 268–271
contracts in, 98–99, 272–273, 275, 281–284
failing/failed projects, 28, 230–231, 264, 275
invoicing and project payments, 6, 273, 281–284
official closing activities, 273–277
project procurements, 27, 271–273
project schedule in, 124–125
quality and, 263–264, 265, 267, 268–271, 284–285
rewarding project team, 35, 253–254, 277–280, 286
scope verification in, 264–268, 271
tips for improving, 284–286
code of accounts, 77–79
across layers in organizational model, 40
change control and, 168–169
communication model, 233–234
communications management plan, 89, 219–223
in cost-laden project phases, 249
as hidden project cost, 119
in payment process, 283–284
persistence of, 113
planning, 19–20
project performance, 25, 224–237
in risk management, 201–202
rules for change, 178
in schedule control, 145–146, 159–160, 161–162
tips for effective, 235–237
in work breakdown structure (WBS), 77–78
in workflow design and management, 261 see also project stakeholders
communication channel, 213–214
competitions, 279–280
complete planning, 33
compliance officers, 48–49. see also project stakeholders
compressing schedules, 142–145
confidence, 232–233
configuration management system, 167
consideration, in contracts, 63–64
constraints
external, as hidden project cost, 120
other types of, 93
in project evaluation and selection, 45
in project scope statement, 75
triple constraints of project management, 9–10, 125
contests, 279–280
contingency plans, 196–197
contracts, 59–63
awarding, 58
basic requirements, 63–64
change control and. see change control
in closing process, 98–99, 272–273, 275, 281–284
cost estimates for, 51–52, 108
creating, 51–52
defined, 59
identifying stakeholders through, 211
in initiation stage, 51–52, 58, 59–64
not-to-exceed (NTE) clauses, 61, 107
project budget and, 109
purpose of, 59
terms of, 110
control accounts, 80–81
corrective actions, 157
cost baseline, 90, 112, 113, 156–157
cost-benefit ratio, 44
cost control, 112–118, 155–158
project cost baseline and, 90, 112, 113, 156–157
in project cost management framework, 99–100
cost estimates
budget estimates, 101–102, 109
in cost-laden project phases, 248
creating, 51–52, 78, 100–103, 104–108
definitive estimates, 102
in project cost management framework, 99
in risk identification, 186
rough order of magnitude (ROM), 101
in work breakdown structure (WBS), 78
cost-laden project phases, 247–250
cost management plan, 203
cost of conformance/nonconformance, 29, 118
cost of quality/poor quality, 29, 118–119
cost overruns, 158
cost plus fixed fee contracts, 61, 116–117
cost plus incentive fee contracts, 61, 116–117
critical path, 138–140, 162, 207
customers
assumptions of, 73
false solutions and, 66–67
payment for project, 6, 273, 281–284
project goals and, 47, 50, 65–67
role of, 4
in stakeholder identification, 48 see also project stakeholders
cutover risk, 196–197
decoder, in communication model, 234
definitive estimates, 102
delegation of authority, 59
deliverables
acceptance of, 114
delivery of, 285
failing/failed projects, 28, 230–231, 264, 275
payment process and, 282
project management software and, 84
in project scope statement, 74–75
in project statement of work (SOW), 54
testing, 54
in work breakdown structure (WBS), 76, 77–79
Deming, W. Edwards, 172–174
democratic management approach, 226
discounts, 282–283
documents
for change requests, 62–63, 154–155, 164, 165–169, 171
identifying stakeholders through, 210–211
organizing and archiving, 285–286
in procurement process, 56–57
project management software and, 83–85
project plans, 92
project scope statement, 9, 53, 72–75
requirements documentation, 71, 72–73
saving time with, 148
stakeholder register, 49, 212–213, 215
updating project components, 170–171 see also contracts
8/80 rule, 77
80/20 principle, 176
encoder, in communication model, 234
enhancing, as risk response, 199
entrepreneurs
profit margin and, 41
project managers compared with, 33 see also business owners
errors and omissions, 25, 29, 62, 85, 98–100, 113–115, 118–119, 129, 142–143, 153, 169, 173–174, 177–178, 228, 267–268, 285
evaluating projects, 43–46
exceptional management approach, 224–225
exclusions, in project scope statement, 75
expected monetary value, 192, 193
exploiting, as risk response, 199
external conditions
as hidden project cost, 120
project scope changes and, 154
face-to-face communication, 222–223, 235–237
failing/failed projects, 28, 230–231, 264, 275
15/15 rule, 230–231
final project report, 275–276
finish-to-finish (FF) activities, 133–134, 136–137
finish-to-start (FS) activities, 132, 133, 136
firm-fixed-price contracts, 60
first-time first-use penalties, 186
fixed-price contracts, 60, 61, 63, 117, 155
force majeure (acts of God), 200
forward pass, 140–141
framework, 96. see also project cost management framework
Get Clients (Hayden), 97
goals
confusion about, 65–66
project schedule and, 124–125
understanding customer, 47, 50
gold plating, 152
grade, quality versus, 28
gross profit, 42
hard logic, 131–132
Hayden, C. J., 97
Herzberg’s theory of motivation, 278–279
historical information, 51, 104, 129, 186–187
human resources management, 88–89
change control and, 168
in cost-laden project phases, 249
creating project, 19
in risk management, 204
tracking and reporting, 227
hygiene agents, 278–279
initiation stage, 14, 15–16, 37–64
completing projects for others, 46–50
contracts in, 51–52, 58, 59–64
internal costs of project initiation, 40–43
managing projects for customers, 50–52
procurement in, 56–59
project evaluation and selection, 43–46
project purpose definition, 38–40
project statement of work (SOW) in, 52–56
integrated change control, 24, 167–169
internal costs, of project initiation, 40–43
interviews, 68–69
invitation for bid (IFB), 57
iron triangle of project management, 9–10, 125
issue identification, 256–258
issue logs, 221–222
job accounting, 80–81
just-in-time approach, 134
kaizen, 261–262
key performance indicators (KPIs), 54–55, 228–229
key stakeholders, 217
labor utilization, 88
laissez-faire management approach, 225
late-payment penalties, 283
law of diminishing returns, 143–144
legal issues
in claims administration, 270
compliance and regulations officers, 48–49
warranties, 55, 264 see also contracts
lessons learned document, 285
letter of completion, 272
listening, in communication model, 233–234
low-level risk watch list, 197
management reserve, 129
management style, 224–225
mandatory dependencies, 131
markup percentage, 42–43
meetings
project status, 228–229
Microsoft Project, 83–85
milestones, 93–94, 120, 148, 265
mission of project, 46
mitigation, as risk response, 198
model-driven project management, 32–33
monitoring and controlling, 14, 23–26, 149–179
change control system, 24, 34–35, 62–63, 163–171, 177–179, 221, 266–267
processes in, 24–26
project costs, 23, 98, 112–118, 120–121, 150, 155–158, 166, 168
project schedule, 25, 124, 145–146, 150, 158–163, 166, 168
project scope, 25, 150, 151–155, 165–166, 167–168, 203
quality. see quality control (QC)
Monte Carlo simulation, 191–192
negative risk events, 183–184
negative stakeholders, 216–217
neutral stakeholders, 216
nominal group technique, 69
not-for-profit organizations, 43
not-to-exceed (NTE) clauses, 61, 107
objectives, understanding customer, 47, 50
offer, 64
offer and acceptance, in contracts, 64
offeree, 64
offeror, 64
operational transfer plans, 274–275
operations management, 48, 246. see also project stakeholders
opportunity cost, 44
organizational model, 38–40
Osborn, Alex, 69
overutilization, 127
owners. see business owners
Pareto charts, 175–176
Parkinson’s law, 128–130
payment for project, 6, 12–13, 110–112, 273, 281–284
payment plans, 283
performance reports, 230–237
period of performance, 55
PITA (pain in the ass) stakeholders, 45–46, 207
Plan-Do-Check-Act cycle in, 172–174
planning packages, 80–81
planning stage, 14, 17–21, 65–94
key questions for, 92–94
profitable projects and, 31–33
project activity lists in, 81–83
project failure and, 230–231
project goals and, 65–67
project management plan in, 17, 85–94
project management software in, 83–85
project requirements in, 17, 67–72
project schedule in, 123–148
project scope statement in, 9, 53, 72–75
updating project components, 170–171
work breakdown structure (WBS) in, 18, 76–81, 79
positive risk events, 183–184, 192–193
positive stakeholders, 215–216
positive time, 136–137
power-influence grid, 217–218
praise, 253
predecessor activities, 131
predictability, 107–108
preventive actions, 157–158
processes
defined, 14
in project management life cycle, 13–27
in sample project life cycle, 10–13
process improvement, 172
procurement, 56–59
bidder conference in, 57
change control and, 169
in closing the project, 27, 271–273
in cost-laden project phases, 248
defined, 56
documents in, 56–57
lead time in, 135–137
planning for, 21
procurement management plan, 90
project manager as buyer and seller in, 58–59
in risk management, 204
steps in, 56–58
procurement audits, 272
procurement package, 273
product scope, 170
profitability
linking to quality, 27–31
predictability and, 107
in project evaluation and selection, 44–45
project management plan and, 86
target profit margin, 41–43
profit margin
cost changes and, 116
in cost estimates, 52
determining, 31–33, 41–43, 93, 97–99
importance of, 41
project(s)
defining, 8
nature of, 6–7
project activities
defining, 18
project activity lists, 81
project activity relationships, 132–135
project budget, 108–112
budget estimates, 101–102, 109
cost changes and, 116
cost management plan and, 87
defined, 108
documents for, 109
establishing, 19
funding and, 12–13, 110–112 “in the red,” 108
nature of, 108–109
in project cost management framework, 99
project calendar, 88
project cost(s), 95–121
change control and, 24, 34–35, 62–63, 166, 168
chart of accounts, 103–104
controlling, 23, 25, 98, 112–118, 120–121, 150, 155–158, 166, 168
cost baseline, 90, 112, 113, 156–157
cost estimates and, 51–52, 78, 100–103, 104–108
in cost management framework, 96–100
cost management plan, 87
determining, 98
hidden costs, 119–121
linking to project schedule, 125–127
problems with, 114–118
project budget and, 108–112
tracking and reporting, 227
in triple constraints of project management, 9–10, 125
project cost management framework, 96–100
cost management plan in, 87
profit margin and, 97–99
project duration
defined, 45
estimating, 124
in project evaluation and selection, 45
project schedule in, 124, 125–126
reducing, 143–145
project execution, 14, 21–23, 85–94, 124
project funding, 12–13, 110–112
project information, 22–23
project life cycle, 10–13, 118–119, 244–247
project management, 50–52
acknowledging need for, 246
contracts in. see contracts
fear of, 7–8
importance of, 7
procurement in. see procurement
project statement of work (SOW) in, 52–56, 58
tips for improving, 34–35
triple constraints of, 9–10, 125
project management information system (PMIS), 164–165
project management life cycle, 13–27
closing the project, 14, 26–27, 263–286
executing the project, 14, 21–23, 85–94, 124
initiating the project, 14, 15–16, 37–64
monitoring and controlling the project, 14, 23–26, 149–179
overview of, 14–15
planning the project, 14, 17–21, 65–94, 123–148
risk management, 20, 78, 181–207
project management plan, 17, 85–94
components of, 87–91
expectations defined in, 112–113
key questions in, 92–94
project management plan template, 34, 130
project scope and, 86–87
sequence of components in, 91
project management software, 83–85, 160–161
project managers
authority over project team, 251–252
as buyers and sellers, 58–59
compared with entrepreneur, 33
cost changes and, 116
management style of, 224–225
number of projects, 93
organizational model and, 39–40
project goals and, 66
project schedule and, 128–129
relationship with project team, 251–253
in stakeholder identification, 47
understanding customer goals and objectives, 47, 50 see also project stakeholders
project markup, 42–43
project materials, 61, 63, 94, 116–117
project network diagram, 137–142, 146, 162, 203
project performance, 25, 224–237
failing/failed projects, 28, 230–231, 264, 275
tracking and reporting, 25, 224–231
project phases, 244–247
cost-laden, 247–250
defining, 38–40
in project scope statement, 74
in project statement of work (SOW), 53
project requirements, 17, 67–72
affinity diagrams and, 69–70
brainstorming and, 69–70
change control system and, 178
interviews and, 68–69
nominal group technique and, 69
prototypes and, 70–71
requirements documentation and, 71, 72–73
requirements traceability matrix and, 71–72
understanding work and, 97–98
project resources
defined, 126
project schedule, 123–148
in closing process, 124–125
compressing, 142–145
controlling, 25, 124, 145–146, 150, 158–163, 166, 168
in cost-laden project phases, 248
creating, 128–130
defined, 123
linking to project costs, 125–127
linking to project scope, 125–127
Parkinson’s law and, 128–130
planning, 123–124
project budget and, 109
schedule management plan and, 87–88, 203–204
sequencing activities in, 18, 130–137
tips for, 147–148
tracking and reporting, 226–227
in triple constraints of project management, 9–10
project scope
approving, 28
change control and, 153–155, 165–166, 167
controlling, 25, 150, 151–155, 165–166, 167–168, 203
decomposition of, 76, 102, 147
of failing projects, 28
information for stakeholders and, 220
linking to project schedule, 125–127
nature of, 8–9
preventing changes in, 179
in project activity lists, 81
project management plan and, 86–87
project scope statement, 9, 53, 72–75
in risk management, 186, 203, 205
scope baseline, 90
scope creep, 115
scope management plan, 87
scope verification, 54, 120, 249–250, 264–268, 271
in triple constraints of project management, 9–10, 125
updating project components, 170
in work breakdown structure (WBS), 77, 151–152
project sponsors, 47–48. see also project stakeholders
project stakeholders. see project stakeholders
categories of, 215–217
communication with. see communication
conferring with, 232–237
of failing projects, 28
managing expectations of, 23, 254–255
PITA (pain in the ass) stakeholders, 45–46, 207
project costs and, 95–96
in project evaluation and selection, 45–46
project goals and, 65–66
stakeholder analysis, 45–46, 49–50, 207, 214–219
project statement of work (SOW), 52–56, 58, 68–69
as basis of proposal, 55–56, 58
creating, 56
defined, 52
information in, 53–55
nature of, 52–53
as predecessor to contract, 53
updating, 58
project status meetings, 228–229
project team
acquiring, 22
assumptions of, 73
communication in virtual teams, 223
coordination of, 255–260
decisions affecting, 258–259
developing, 22
in project execution, 22
project management software and, 84
project schedule and, 128–129
recognizing and rewarding, 35, 253–254, 277–280, 286
in stakeholder identification, 48 see also project stakeholders
proof of agreement, in contracts, 64
proposals
cost estimates for, 51–52
project statement of work (SOW) as basis of, 55–56
prototypes, 70–71
punch lists, 274
pure risks, 182–183
qualitative risk analysis, 20, 189–190
quality
assumptions concerning, 93
change control and, 168
grade versus, 28
lagging, 29
linking to profit, 27–31
quality management plan, 88
schedule compression and, 142–143
tracking and reporting, 228
in work breakdown structure (WBS), 78
quality assurance (QA)
evolution over time, 30
implementing, 22
policy creation for, 29–30
quality control (QC), 171–177
in closing the project, 263–264, 265, 267, 268–271, 284–285
errors and omissions, 25, 29, 62, 85, 98–100, 113–115, 118–119, 129, 142–143, 153, 169, 173–174, 177–178, 228, 267–268, 285
importance of, 30–31
inspections in, 177
Pareto charts in, 175–176
performing, 25
Plan-Do-Check-Act cycle in, 172–174
root-cause analysis in, 174–175
quality planning, 19
quantitative modeling, 191
quantitative risk analysis, 20, 190–192, 194
RACI charts, 259–260
receiver, in communication model, 234
referent power, 251–252
regulations officers, 48–49. see also project stakeholders
remote workers, 223
request for proposal (RFP), 56–57
request for quote (RFQ), 57
requirements documentation, 71, 72–73
requirements traceability matrix, 71–72
residual risk, 201
resource breakdown structure, 130
resource calendar, 88
resource leveling, 146, 243–244
resource utilization, 242–243
responsibility assignment matrix (RAM), 260
rewards, 35, 182–184, 253–254, 277–280, 286
risk contingency reserve, 192–195
risk exposure, 192–195
risk management, 181–207
analyzing risk events in, 183–184, 188–195
change control and, 169
defined, 20
identifying project risk, 20, 78, 184–188
monitoring and controlling project risk, 26, 202–207
qualitative risk analysis, 20, 189–190
quantitative risk analysis, 20, 190–192, 194
questions for project risks, 205–207
risk and reward in, 182–184
risk exposure and, 192–195
risk management plan, 89–90, 204
tracking and reporting risks, 228
risk matrix, 189
risk owners, 201
risk triggers, 201
rolling-wave planning, 32
root-cause analysis, 174–175
rough order of magnitude (ROM), 101
rules for change, 177–178
sales representatives, 66, 211
sandbagging, 117
schedule. see project schedule schedule baseline, 90, 161
schedule management plan, 87–88, 203–204
schedule variation, 161
scope creep, 115
scope management plan, 87
in closing the project, 264–268, 271
in cost-laden project phases, 249–250
secondary risk, 200–201
selecting projects, 43–46
seller responses, to project statement of work (SOW), 58
sender, in communication model, 233
services, offering additional, 117–118
sharing, as risk response, 199–200
shortcuts, 120
soft logic, 132
source selection, for project statement of work (SOW), 58
SOW. see project statement of work (SOW)
stakeholder management strategy, 216
stakeholder register, 49, 212–213, 215
standards
project management plan template, 34, 130
for project workflow, 241–242
start-to-finish (SF) activities, 133, 134
start-to-start (SS) activities, 133, 136–137
statement of work (SOW). see project statement of work (SOW)
successor activities, 131
supporting detail, 91
technical changes, project scope changes and, 153–154
terminology of project, 86, 222
terms of acceptance, in project scope statement, 74
three-point estimates, 105–108, 129–131
time and materials contracts, 61, 116–117
transference, as risk response, 198
trend analysis, 158
triple constraints of project management, 9–10, 125
trust, 232–233
utility function, 193–194
vague requirements, 119
value-added changes, 153
variance reports, 230
virtual teams, 223
Vroom’s expectancy theory, 277
waiting time, 136–137
walkthroughs, in closing the project, 274, 285
WBS dictionary, 79
winning the job, 98
work authorization systems, 145–146, 159–160
work breakdown structure (WBS), 76–81
categories of deliverables in, 76, 77–79
change control system and, 163–164
in closing the project, 274
control account, 80–81
as cornerstone of project management, 79
in cost-laden project phases, 248
creating, 18, 77, 80, 81–83, 172
defined, 76
insufficient information and, 80
job accounting, 80–81
overview of, 76
planning package, 80–81
project budget and, 109
project schedule and, 125–127, 146
project scope and, 77, 151–152
updating project components, 170
in workflow design and management, 241
work packages in, 76, 77, 81, 227, 274
workflow design and management, 71, 239–262
coordinating efforts, 255–260
cost-laden project phases, 247–250
exploring project work, 240–244
phase identification, 244–247
project team management, 250–255
project workflow, defined, 240
tips for improving, 260–262
working hours, 94
work packages, 76, 77, 81, 227, 274
workshops, stakeholder, 69
0/50/50 approach, 283
zero-sum rewards, 279–280