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 PROJECT MANAGEMENT
FOR

ENGINEERING AND TECHNOLOGY

David L. Goetsch

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Library of Congress Cataloging-in-Publication Data

Goetsch, David L.
Project management for engineering & technology/by David L. Goetsch.
pages cm
ISBN-13: 978-0-13-281640-3
ISBN-10: 0-13-281640-7
1. Project management. I. Title. II. Title: Project management for engineering and technology.
T56.8.G63 2014
658.4’04—dc23 2013042178

10 9 8 7 6 5 4 3 2 1

ISBN 10: 0-13-281640-7

ISBN 13: 978-0-13-281640-3
 BRIEF CONTENTS

Preface xiii

PART ONE Overview of Project Management

Chapter 1 Overview of Project Management 1
Chapter 2 Roles and Responsibilities of Project Managers 19

PART TWO Project Management—Process Functions

Chapter 3 Project Initiation 39
Chapter 4 Project Planning: The Schedule 59
Chapter 5 Project Planning: The Cost Estimate and Budget 80
Chapter 6 Project Planning: Human Resource, Communication,
Procurement, and Quality Plans 95
Chapter 7 Project Planning: The Risk Management Plan 115
Chapter 8 Project Execution: Build the Project Team 137
Chapter 9 Project Execution: Procurements 160
Chapter 10 Project Monitoring and Control 182
Chapter 11 Project Closeout 206

PART THREE Project Management—People Functions

Chapter 12 Project Managers as Team Leaders 219
Chapter 13 Project Managers as Motivators 233
Chapter 14 Project Managers as Communicators
and Negotiators 253
Chapter 15 Project Managers and Personal Time
Management 280
Chapter 16 Project Managers and Change 295
Chapter 17 Project Managers and Diversity 304
Chapter 18 Project Managers and Adversity 319

Index 330
iii
This page intentionally left blank
 CONTENTS

Preface xiii

PART ONE Overview of Project Management

Chapter 1 Overview of Project Management 1
Project Defined 1
Need for Project Managers 6
Essential Elements of a Project 7
Internal Versus External Projects 10
Speaking the Language of Project Management 12
Project Success Criteria 14
People Skills in Project Management 15
Summary 16
Key Terms and Concepts 17
Review Questions 17
Application Activities 17
Endnotes 18

Chapter 2 Roles and Responsibilities of Project Managers 19

The Project Manager’s Functions 19
Process Functions of Project Managers 19
People Functions of Project Managers 26
Characteristics of an Effective Project Manager 29
Functional, Matrix, and Project-Based Organizations 31
Project Management Certifications 34
Summary 36
Key Terms and Concepts 37
Review Questions 37
Application Activities 38
Endnotes 38

PART TWO Project Management—Process Functions

Chapter 3 Project Initiation 39
Outcomes of the Project Initiation Phase 40
Project Description 41
v
vi Contents

Project Feasibility Analysis 41

Project Concept Document 43
Project Charter 45
Stakeholder Register 52
Project Kickoff Meeting 54
Summary 57
Key Terms and Concepts 57
Review Questions 57
Application Activity 58
Endnotes 58

Chapter 4 Project Planning: The Schedule 59

Benefits of Planning and Scheduling 59
The Planning and Scheduling Process 62
Developing the Work Breakdown Structure 63
Key Facts About Developing a WBS 68
The WBS Dictionary 68
Enterprise Environmental Factors 69
Estimating Activity Duration and Sequencing Activities 69
Displaying the Project Schedule 70
The CPM Network Diagram 72
Scheduling Software and Combined Schedule Formats 76
Summary 78
Key Terms and Concepts 78
Review Questions 79
Application Activities 79
Endnotes 79

Chapter 5 Project Planning: The Cost Estimate

and Budget 80
The Cost Estimate 81
Costs to Be Included in Estimates 82
Estimating Methods 85
Estimating Products 87
The Budget 91
Summary 92
Key Terms and Concepts 93
Review Questions 93
Application Activities 94
Endnotes 94
 Contents vii

Chapter 6 Project Planning: Human Resource, Communication,

Procurement, and Quality Plans 95
The Human Resource Plan 95
The Communication Plan 101
Procurement Plan 102
The Quality Management Plan 106
Summary 112
Key Terms and Concepts 113
Review Questions 114
Application Activities 114
Endnotes 114

Chapter 7 Project Planning: The Risk Management Plan 115

Risk Defined 116
Risk Management Defined 117
Classifications of Risk Factors 118
Risk as it Relates to Project Success Criteria 119
Risk Identification Process 121
Qualitative Risk Analysis 126
Quantitative Risk Analysis 129
Quantitative Analysis Tools 130
Summary 134
Key Terms and Concepts 134
Review Questions 135
Application Activities 135
Endnotes 136

Chapter 8 Project Execution: Build the Project Team 137

Teambuilding Defined 137
Common Mission: The Basis of Effective Teamwork 137
Building the Project Team 139
Explaining the Roles of Team Members 141
Explain How the Team Is Supposed to Operate 141
Four-Step Model for Building Effective Teams 142
Initiating the Team’s Work 147
Teams Should Be Coached 147
Handling Conflict in Teams 154
Summary 157
Key Terms and Concepts 158
viii Contents

Review Questions 158

Application Activities 159

Chapter 9 Project Execution: Procurements 160

Procurement Methods 160
Preparing an RFP or RFQ Package 166
Bonds, Addenda, and Alternates 170
Contracts for Subcontractors and Materials Suppliers 171
Evaluating Bidders and Bids 174
Ethics in Procurement 175
Summary 180
Key Terms and Concepts 181
Review Questions 181
Application Activities 181

Chapter 10 Project Monitoring and Control 182

Monitoring and Controlling Scope 182
Monitoring and Controlling the Schedule 186
Monitoring and Controlling Costs 187
Quality Monitoring and Control Methods 196
Monitoring and Controlling Risk 202
Summary 203
Key Terms and Concepts 204
Review Questions 204
Application Activities 205
Endnotes 205

Chapter 11 Project Closeout 206

Steps in the Project Closeout Process 208
Verify the Scope 208
Close Out the Contract 209
Close Out the Administrative Aspects of the Project 210
Conduct a Lessons-Learned Review 211
Develop the Project Closeout Report 214
Recognize Team Members 215
Complete the Final Step 216
Summary 217
Key Terms and Concepts 217
Review Questions 217
Application Activities 218
 Contents ix

PART THREE Project Management—People Functions

Chapter 12 Project Managers as Team Leaders 219
Leadership Defined 219
Influencing Team Members 221
Eight Cs of Leadership for Project Managers 222
Caring and Leadership 224
Competence and Leadership 228
Character and Leadership 228
Communication and Leadership 229
Clarity and Leadership 229
Commitment and Leadership 229
Courage and Leadership 230
Credibility and Leadership 231
Summary 231
Key Terms and Concepts 232
Review Questions 232
Application Activity 232

Chapter 13 Project Managers as Motivators 233

Motivation Defined 234
Motivational Context 234
Basic Survival Needs and Motivation 235
Safety and Security Needs and Motivation 237
Social Needs and Motivation 238
Esteem Needs and Motivation 240
Self-Actualization Needs and Motivation 248
Developing Personal Motivation Plans 248
Additional Motivation Strategies 249
Summary 250
Key Terms and Concepts 251
Review Questions 251
Application Activities 252
Endnotes 252

Chapter 14 Project Managers as Communicators

and Negotiators 253
Begin with a Communication Plan 253
Communication Skills Can Be Learned 254
x Contents

Communication Defined 255

Communication Is a Process 256
Not All Communication Is Effective 257
Factors That Can Inhibit Communication 258
Listening Well Improves Communication 260
Nonverbal Communication 264
Verbal Communication 266
Communicating Corrective Feedback 267
Written Communication 269
Influencing and Negotiating in Project Management 270
Negotiation Defined 270
Characteristics of Effective Negotiators 271
Preparation and Successful Negotiations 272
Conducting Negotiations 273
After Agreeing—Follow Through 276
Summary 277
Key Terms and Concepts 278
Review Questions 278
Application Activities 279

Chapter 15 Project Managers and Personal Time

Management 280
Poor Time Management and Team Performance 281
Common Time Management Problems and Their Solutions 281
Summary 293
Key Terms and Concepts 294
Review Questions 294
Application Activities 294

Chapter 16 Project Managers and Change 295

Change Management Model for Project Managers 296
Summary 302
Key Terms and Concepts 303
Review Questions 303
Application Activities 303

Chapter 17 Project Managers and Diversity 304

Diversity Defined 304
Diversity-Related Concepts 305
Prejudice is Learned Behavior That Can Be Unlearned 313
 Contents xi

Overcoming Prejudice and Embracing Diversity 313

Summary 317
Key Terms and Concepts 317
Review Questions 318
Application Activities 318

Chapter 18 Project Managers and Adversity 319

Do Not Give Up and Never Quit 320
Face Adversity and Overcome It 322
Accept Adversity as a Normal Part of Life 323
Accept That Life Can Be Unfair 324
Help Team Members Who Are Facing Adversity 325
Dealing with Micromanagers Who Create Problems 325
Summary 328
Key Terms and Concepts 329
Review Questions 329
Application Activities 329

Index 330
This page intentionally left blank
 PREFACE

BACKGROUND
In the fields of engineering and technology, efficient, effective project management is criti-
cal. All engineering and technology projects—design, manufacturing, quality improvement,
process development—share common goals: The projects are to be completed on time,
within budget, and according to specifications. These goals cannot be achieved without
effective project management. Engineering and technology projects range from the design
and manufacture of the largest jetliner to the smallest circuit board, and projects must be
well managed if they are to be completed successfully.
This unrelenting demand to complete projects on time, within budget, and accord-
ing to specifications has created a pressing need for specialized education and training
for those who manage engineering and technology projects. Project managers must know
how to manage processes and lead people. The process aspects of project management
include: cost estimation, planning/scheduling, procurement, risk management, monitoring,
and closeout. The people aspects of project management include: leadership, motivation,
communication, and efficient/effective management of time, change, diversity, and adver-
sity. Project management has become a specialized field within the broad fields of engineer-
ing and technology, a specialized field requiring specialized instructions in both the process
and people aspects of the job.

WHY IS THIS BOOK WRITTEN AND FOR WHOM?

This book is written to fulfill the need for a comprehensive, up-to-date, practical teaching
resource that focuses on helping engineering and technology students become effective
project managers. This book is developed in accordance with specifications contained in
A Guide to the Project Management Body of Knowledge (PMBOK Guide) maintained by the
Project Management Institute (PMI), Pennsylvania. It provides comprehensive coverage of
both aspects of project management—process management and leading people—specifically
from the perspective of engineering and technology projects. Educators and students in
engineering and technology disciplines will benefit from the material presented herein. The
direct, straightforward presentation of material focuses on making the principles of project
management practical, understandable, and useful for students. Up-to-date research has
been integrated throughout the text along with real-world activities and cases.

ORGANIZATION OF THE BOOK

The text contains 18 chapters organized in three parts. Part Two covers all of the process
skills needed by project managers. Part Three covers all of the people skills needed by pro-
ject managers. The chapters are presented in an order that is compatible with the typical
organization of a course in project management, and a standard chapter format is maintained
xiii
xiv Preface

throughout the book. In addition to text, photos, and illustrations, each chapter contains
a list of chapter topics, summary, key terms and concepts, review questions, and practical
application activities. Every chapter contains a case study of a challenging engineering project
that illustrates for students how complex the projects they might work on can be and why
effective project management is so critical.

DOWNLOAD INSTRUCTOR RESOURCES FROM THE INSTRUCTOR

RESOURCE CENTER
Supplementary teaching and learning materials are provided online. These materials include
a PowerPoint presentation covering all chapters in the book, a comprehensive test bank,
and an Instructor’s Manual. To access supplementary materials online, instructors need to
request an instructor access code. Go to www.pearsonhighered.com/irc to register for an
instructor access code. Within 48 hours of registering, you will receive a confirming e-mail
including an instructor access code. Once you have received your code, locate your text
in the online catalog and click on the Instructor Resources button on the left side of the
catalog product page. Select a supplement, and a login page will appear. Once you have
logged in, you can access instructor material for all Pearson textbooks. If you have any dif-
ficulties accessing the site or downloading a supplement, please contact Customer Service at
http://247pearsoned.custhelp.com/.

HOW THIS BOOK DIFFERS FROM OTHERS

The approach taken in this book is the result of more than 100 interviews with project man-
agers, students, and professors in engineering and technology disciplines. Through these
interviews the author learned that most textbooks on project management take a generic
approach in an attempt to reach the broadest possible market. Consequently, this text focuses
solely on project management as it relates to engineering and technology so that all text,
illustrations, cases, and activities can be specific to engineering and technology and so that
concepts can be treated in greater depth than is possible in a generic text.

ABOUT THE AUTHOR

David L. Goetsch is Emeritus Vice President and Professor at Northwest Florida State
College. Prior to entering higher education full time, Dr. Goetsch had a career in the private
sector that included project management positions in engineering and manufacturing settings.
He served as a project manager in an engineering and manufacturing firm that designed,
manufactured, and assembled the components for nuclear reactors. He now serves on the
board of directors of Fort Walton Machining, Inc. in Fort Walton Beach, Florida. Dr. Goetsch
has been selected as Professor of the Year at Northwest Florida State College and the University
of West Florida, Florida’s Outstanding Technical Instructor of the Year, and was also the
recipient of the U.S. Secretary of Education Award for having the Outstanding Technical
Program in the United States in 1984 (Region 10).
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