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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.
Kesä kerkeimmällään,
nälkä närkeimmällään.
Kewätsadet kaswattaa,
syyssadet kadottaa.
Kohta lapsi-kuollehella,
toinen wäärin mennehellä.
Koiraparwi: poikaparwi.
Kuluu kuikistellenki,
menee maistellenki.
Kuluu pidettäwä,
otettawa onnahtaa.