MATECHNOL.0

Sixth Edition

Kathy Schwalbe, Ph.D., PMPAugsburg College

; \ COURSE TECHNOLOGY* » CENGAGE Learning-

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Preface xviiChapter 1 Introduction to Project Management 1

Introduction 2What Is a Project? 4

Examples of Information Technology Projects 4Project Attributes 6The Triple Constraint 8

What Is Project Management? 10Project Stakeholders <•' 10Project Management Knowledge Areas 12Project Management Tools and Techniques 12Project Success 14

Program and Project Portfolio Management 17Programs 17Project Portfolio Management 18

The Role of the Project Manager 21Project Manager Job Description 21Suggested Skills for Project Managers 22Importance of People and Leadership Skills 24Careers for Information Technology Project Managers 25

The Project Management Profession 27History of Project Management 27The Project Management Institute 29Project Management Certification 30Ethics in Project Management 31Project Management Software ,- 32

Chapter Summary 35Quick Quiz 35Discussion Questions 37Exercises 38Companion Web Site 39Key Terms 39End Notes 40

Chapter 2 The Project Management and Information Technology Context 43A Systems View of Project Management 44

What Is a Systems Approach? 45The Three-Sphere Model for Systems Management 45

Understanding Organizations 47The Four Frames of Organizations 47Organizational Structures 48Organizational Culture 51

Stakeholder Management 52The Importance of Top Management Commitment 54The Need for Organizational Commitment to Information Technology 55The Need for Organizational Standards 56

Project Phases and the Project Life Cycle 57Product Life Cycles 59The Importance of Project Phases and Management Reviews 61

The Context of Information Technology Projects 63The Nature of Information Technology Projects 63Characteristics of Information Technology Project Team Members 64Diverse Technologies 64

Recent Trends Affecting Information Technology Project Management 65Globalization t 65Outsourcing / 66Virtual Teams 67

Chapter Summary 70Quick Quiz • 71Discussion Questions • 72Exercises 73Companion Web Site ' 74Key Terms 74End Notes 75

Chapter 3 The Project Management Process Groups: A Case Study 77Project Management Process Groups 78Mapping the Process Groups to the Knowledge Areas 83Developing an Information Technology ProjectManagement Methodology 85Case Study: JWD Consulting's Project Management Intranet Site Project 86

Project Pre-Initiation and Initiation 87Project Planning 96Project Execution 106Project Monitoring and Controlling 111Project Closing 114

Chapter Summary 123Quick Quiz ' 123Discussion Questions 125Exercises 125Companion Web Site 126Key Terms , 127End Notes 127

viii Table of Contents

Chapter 4 Project Integration Management 129What Is Project Integration Management? 130Strategic Planning and Project Selection 133

Strategic Planning 133Identifying Potential Projects 135Aligning Information Technology with Business Strategy 136Methods for Selecting Projects 138

Developing a Project Charter 147Developing a Project Management Plan 151

Project Management Plan Contents 151Using Guidelines to Create Project Management Plans 154

Directing and Managing Project Execution 155Coordinating Planning and Execution 156Providing Strong Leadership and a Supportive Culture 157Capitalizing on Product, Business, and Application Area Knowledge 157Project Execution Tools and Techniques 158

Monitoring and Controlling Project Work / 159Performing Integrated Change Control 161

Change Control on Information Technology Projects 162Change Control System • 162

Closing Projects or Phases , 164Using Software to Assist in Project Integration Management 165Chapter Summary 167Quick Quiz 168Discussion Questions 169Exercises 170Running Case 171Tasks 172Companion Web Site 173Key Terms / 173End Notes 174

Chapter 5 Project Scope Management 177What Is Project Scope Management? • 178Collecting Requirements 179

What Are Requirements? 179How Do You Collect Requirements? 181How Do You Document Requirements? 182

Defining Scope - 183Creating the Work Breakdown Structure 186

Approaches to Developing Work Breakdown Structures 191The WBS Dictionary and Scope Baseline 194Advice for Creating a WBS and WBS Dictionary 196

Verifying Scope 196Controlling Scope 198

Table of Contents ix

Suggestions for Improving User Input 200Suggestions for Reducing Incomplete and Changing Requirements 200

Using Software to Assist in Project Scope Management 202Chapter Summary 204Quick Quiz 204Discussion Questions 206Exercises 206Running Case 207Tasks 208Companion Web Site 208Key Terms 209End Notes 210

Chapter 6 Project Time Management 211The Importance of Project Schedules 212Defining Activities 214Sequencing Activities 217

Dependencies /' 217Network Diagrams 218

Estimating Activity Resources 221Estimating Activity Durations - 222Developing the Schedule 223

Gantt Charts 224Critical Path Method 228Critical Chain Scheduling 233Program Evaluation and Review Technique (PERT) 236

Controlling the Schedule 237Reality Checks on Scheduling and the Need for Discipline 238

Using Software to Assist in Project Time Management 239Words of Caution on Using Project Management Software 240

Chapter Summary .' 243Quick Quiz 244Discussion Questions 245Exercises 246Running Case . 249Tasks 249Key Terms 250End Notes 252

Chapter 7 Project Cost Management 253The Importance of Project Cost Management 254

What Is Cost? 255What Is Project Cost Management? 256

Basic Principles of Cost Management 257Estimating Costs 261

Types of Cost Estimates 261

x Table of Contents

Cost Estimation Tools and Techniques 263Typical Problems with Information Technology Cost Estimates 264Sample Cost Estimate 265

Determining the Budget 270Controlling Costs 272

Earned Value Management 273Project Portfolio Management 278

Using Project Management Software to Assist in Project Cost Management 279Chapter Summary 282Quick Quiz 282Discussion Questions 284Exercises 285Running Case 286Tasks 286Companion Web Site 287Key Terms 288End Notes 289

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Chapter 8 Project Quality Management 291The Importance of Project Quality Management 292What Is Project Quality Management? . 294Planning Quality . 296Performing Quality Assurance 298Performing Quality Control 299Tools and Techniques for Quality Control 300

Statistical Sampling 306Six Sigma 307Testing 313

Modern Quality Management 315Deming and his 14 Points for Management 315Juran and the'Importance of Top Management Commitment to Quality 316Crosby and Striving for Zero Defects 316Ishikawa's Guide to Quality Control 317Taguchi and Robust Design Methods 317Feigenbaum and Workers' Responsibility for Quality 318Malcolm Baldrige National Quality Award 318ISO Standards 318

Improving Information Technology Project Quality 319Leadership 319The Cost of Quality / 320Organizational Influences, Workplace Factors, and Quality 321Expectations and Cultural Differences in Quality 322Maturity Models 323

Using Software to Assist in Project Quality Management 326Chapter Summary 327Quick Quiz 328

Table of Contents xi

Discussion Questions 329Exercises 330Running Case 331Tasks 331Companion Web Site 332Key Terms 332End Notes 334

Chapter 9 Project Human Resource Management 337The Importance of Human Resource Management 338

The Global IT Workforce 338Implications for the Future of IT Human Resource Management 340

What Is Project Human Resource Management? 342Keys to Managing People 344

Motivation Theories 344Thamhain and Wilemon's Influence and Power 348Covey and Improving Effectiveness 350

Developing the Human Resource Plan ," 352Project Organizational Charts 352Responsibility Assignment Matrices 354Staffing Management Plans and Resource Histograms . 356

Acquiring the Project Team 357Resource Assignment 358Resource Loading • 359Resource Leveling 361

Developing the Project Team 362Training 363Team-Building Activities 364Reward and Recognition Systems 368

Managing the Project Team 368Tools and Techniques for Managing Project Teams 368General Advice on Managing Teams 369

Using Software to Assist in Human Resource Management 370Chapter Summary 372Quick Quiz 373Discussion Questions 375Exercises 375Running Case 376Companion Web Site 377Key Terms 377End Notes 378

Chapter 10 Project Communications Management 381The Importance of Project Communications Management 382Identifying Stakeholders 385Planning Communications 386

xii Table of Contents

Distributing Information 388Using Technology to Enhance Information Distribution 389Formal and Informal Methods for Distributing Information 390Distributing Important Information in an Effective and Timely Manner 391Selecting the Appropriate Communications Medium 392Understanding Group and Individual Communication Needs 394Setting the Stage for Communicating Bad News 394Determining the Number of Communications Channels 395

Managing Stakeholders 396Reporting Performance 398Suggestions for Improving Project Communications 399

Using Communication Skills to Manage Conflict 399Developing Better Communication Skills 400Running Effective Meetings 402Using e-Mail, Instant Messaging, and Collaborative Tools Effectively 403Using Templates for Project Communications 406

Using Software to Assist in Project Communications , 410Chapter Summary / 414Quick Quiz 414Discussion Questions 416Exercises ' 417Running Case 418Companion Web Site 418Key Terms 418End Notes 419

Chapter 11 Project Risk Management 421The Importance of Project Risk Management 422Planning Risk Management 428Common Sources of Risk on Information Technology Projects 430Identifying Risks / ' 434

Suggestions for Identifying Risks 434The Risk Register 436

Performing Qualitative Risk Analysis 438Using Probability/Impact Matrixes to Calculate Risk Factors 438Top Ten Risk Item Tracking 441

Performing Quantitative Risk Analysis 442Decision Trees and Expected Monetary Value 442Simulation 444Sensitivity Analysis 446

Planning Risk Responses 447Monitoring and Controlling Risks 450Using Software to Assist in Project Risk Management 450Chapter Summary 452Quick Quiz 453Discussion Questions 455

Table of Contents xiii

Exercises 455Running Case 456Companion Web Site 457Key Terms 457End Notes 459

Chapter 12 Project Procurement Management 461The Importance of Project Procurement Management 462Planning Procurements 466

Tools and Techniques for Planning Procurements 468Procurement Management Plan 473Statement of Work 474Procurement Documents 475Source Selection Criteria 476

Conducting Procurements 477Administering Procurements 479Closing Procurements ,• 481Using Software to Assist in Project Procurement Management' 481Chapter Summary 484Quick Quiz 485Discussion Questions 486Exercises 487Running Case 488Companion Web Site 488Key Terms 489End Notes 490