Project Management

Chapter 4

The project scope definition, priorities, and breakdown structure are the keys to nearly

every aspect of managing the project. The scope definition provides focus and emphasis

on the end item(s) of the project. Establishing project priorities allows managers to

make appropriate trade-off decisions. The structure helps ensure all tasks of the project

are identified and provides two views of the project--one on deliverables and one on

organization responsibility. The WBS avoids having the project driven by organization

function or by a finance system. The structure forces attention to realistic requirements

of personnel, hardware, and budgets. Use of the structure provides a powerful framework

for project control that identifies deviations from plan, identifies responsibility,

and spots areas for improved performance. No well-developed project plan or control

system is possible without a disciplined, structured approach. The WBS, OBS, and cost

account codes provide this discipline. The WBS will serve as the database for developing

the project network which establishes the timing of work, people, equipment,

and costs.

PBS is often used for process-based projects with ill-defined deliverables. In small

projects responsibility matrices may be used to clarify individual responsibility.

Chapter 6

Many project managers feel the project network is their most valuable exercise and

planning document. Project networks sequence and time-phase the project work, resources,

and budgets. Work package tasks are used to develop activities for networks.

Every project manager should feel comfortable working in an AON environment.

The AON method uses nodes (boxes) for activities and arrows for dependencies. The

forward and backward passes establish early and late times for activities. Although

most project managers use computers to generate networks and activity times, they

find a keen understanding of network development and the ability to compute activity

times is invaluable in the field. Computers break down; input errors give false information;

some decisions must be made without computer "what if " analysis.

Project managers who are well acquainted with network development and AON

methods and who are able to compute activity times will encounter fewer problems

than project managers less well acquainted. Project networks help to ensure there are

no surprises.

Several extensions and modifications have been appended to the original AON

method. Lags allow the project planner to more closely replicate the actual conditions

found in practice. The use of lags can result in the start or finish of an activity becoming

critical. Some computer software simply calls the whole activity critical rather

than identifying the start or finish as being critical. Caution should be taken to ensure

that lags are not used as a buffer for possible errors in estimating time. Finally, hammock

activities are useful in tracking costs of resources used for a particular segment

of a project. Hammock activities can also be used to reduce the size of a project network

by grouping activities for simplification and clarity. All of the discussed refinements

to the original AON methodology contribute toward better planning and control

of projects.

Chapter 7

To put the processes discussed in this chapter in proper perspective one should recognize

that the essence of project management is risk management. Every technique in

this book is really a risk management technique. Each in its own way tries to prevent

something bad from happening. Project selection systems try to reduce the likelihood

that projects will not contribute to the mission of the firm. Project scope statements,

among other things, are designed to avoid costly misunderstandings and reduce scope

creep. Work breakdown structures reduce the likelihood that some vital part of the

project will be omitted or that the budget estimates are unrealistic. Teambuilding

reduces the likelihood of dysfunctional conflict and breakdowns in coordination. All

of the techniques try to increase stakeholder satisfaction and increase the chances of

project success.

From this perspective managers engage in risk management activities to compensate

for the uncertainty inherent in project management and that things never go according

to plan. Risk management is proactive not reactive. It reduces the number of surprises

and leads to a better understanding of the most likely outcomes of negative events.

Although many managers believe that in the final analysis, risk assessment and contingency

depend on subjective judgment, some standard method for identifying, assessing,

and

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