Managing Projects for Success a Triology

Contents

List of tables vii

List of figures viii

Preface ix

Acknowledgements xii

List of abbreviations xiv

PART 1: THE FRAMEWORK 1

Chapter 1 Change: using it to our advantage 3

Chapter 2 Management: the means to transform 21

Chapter 3 Systems theory 33

Chapter 4 Systems mapping 51

Chapter 5 Projects: one-time events 68

Chapter 6 Project management process 90

Chapter 7 Project scope management and time management 107

Chapter 8 Project cost management and communication management 127

Chapter 9 Project risk management and procurement management 144

Chapter 10 Project human resources management and quality management 163

Part 1 References 178

PART 2: PLANNING FOR CONTROL 183

Chapter 11 Planning the project 185

Chapter 12 Scheduling methods 204

Chapter 13 Network scheduling 228

Chapter 14 Precedence diagramming and scheduling 243

Chapter 15 Resource allocation 255

Chapter 16 Least-cost scheduling 276

Chapter 17 Program evaluation and review technique 294

Chapter 18 Work progress and updating 310

Chapter 19 Project time and cost control 329

Chapter 20 Tracking and analysing delays 343

Part 2 References 358

PART 3: THE TOOL KIT 361

Chapter 21 Conceptualising the project 363

Chapter 22 Economic evaluation and funding 381

Chapter 23 Defining the project 400

Chapter 24 The value process 416

Chapter 25 Concurrent engineering and configuration management 442

Chapter 26 Risk identification, analysis and allocation 462

Chapter 27 Cost estimation methods 488

Chapter 28 Procuring goods and services 506

Chapter 29 The project team and its management 531

Chapter 30 Implementation and close-out 557

Part 3 References 573

Reading list 577

Index 579

List of tables

1-1 Characteristics of the two hemispheres of the human brain 11

3-1 Comparison of the analytical approach and the systems approach 36

4-1 Some components of systems 61

12-1 Lower full activity, with reference to Figure 12-8 218

15-1 Tabulating project network and resource data 268

16-1 A worksheet for an example project 289

17-1 The central limit theorem 305

18-1 Values of total earnings or expenditure 320

18-2 Trend analysis 322

18-3 Variance of activity performance factor 323

18-4 The importance of subcontractor A to completion 325

19-1 Budget cost of work scheduled compared with budget cost of

work performed and actual cost of work performed 337

21-1 Scoring options or alternatives 275

22-1 Cashflow 384

22-2 Sensitivity testing – initial cost plus 30% 393

22-3 Sensitivity testing – no salvage value 393

22-4 Comparison of alternatives 398

23-1 Costs and saving (in monetary units) 405

23-2 A progress measurement system 407

24-1 Function costs 430

24-2 Information relative to Table 24-3 436

24-3 Calculation of life-cycle costs 436

25-1 Some tools and their outcomes 448

26-1 Some major sources of risk 468

26-2 Duration, probability and expected value 472

26-3 Triangular and beta distributions 474

26-4 Information relative to Figure 26-6(a) 475

26-5 10 x 10 array of three-digit random numbers 476

26-6 A range of risk measures 479

27-1 Template for improved cost estimation 499

27-2 A summary of operating cost estimates 503

28-1 An example of prequalification evaluation 511

29-1 A questionnaire for discovering areas of strength and weakness 553

Li st of figures

1-1 Rate of change in social development 5

1-2 Structure of the brain 9

3-1 Organisational systems and its management 45

4-1 Feedback loop 55

4-2 Reinforcing loop 56

4-3 Balancing feedback 57

4-4 Components of systems maps 62

4-5 Components of influence diagrams 63

4-6 Components of multiple cause diagrams 65

4-7 Components of sign-graph diagrams 66

5-1 Project examples 73

6-1 Triple constraints 94

6-2 Project management processes 101

6-3 Processes within a project or a phase 103

7-1 Project scope management processes 109

7-2 Project time management processes 116

7-3 AON and AOA diagrams 118

7-4 Sequence of significant scope and time outputs 124

7-5 Different dependency relationships 126

8-1 Project cost management processes 129

8-2 Project communications management processes 136

8-3 Sequence of significant cost and communication outputs

(scopes = time outputs shown) 141

9-1 Project risk management processes 147

9-2 Project procurement management processes 153

9-3 Sequence of significant risk and procurement outputs 160

10-1 Project human resources management processes 165

10-2 Project quality management processes 169

11-1 Project management processes with time 188

11-2 An example of a tree-like WBS 191

11-3 A very small section of a project = s RAM 194

11-4 Activity sequencing terminology 196

11-5 Best practice in crossing dependency lines 197

11-6 A solution to Exercise 11-3 202

12-1 Basic type of bar chart 208

21-2 Linked activity bar chart 209

21-3 (a) & (b) Bar charts for combined activities and milestones 209

12-4 Partial relationship chart 210

12-5 LOB x-axis 213

12-6 LOB using only start buffers 214

12-7 (a) LOB using start and finish buffers; (b) Completed LOB

diagram 215

12-8 Time-chainage chart 217

12-9 (a), (b), (c) & (d) Arrow diagram notation 220

12-10 Sloping format 221

12-11 Staff format 222

12-12(a) & (b) Dummy activities 222

12-13(a) & (b) Dummy activities relative to node numbering 223

12-14Use of cross-over symbols 223

12-15 Example of AOA diagram 224

12-16 Example of AON diagram 224

12-17A solution to Exercise 12-1 226

12-18 A solution to Exercise 12-2 227

12-19A solution to Exercise 12-3 227

13-1 Planning levels 231

13-2 Typical node box 232

13-3 Example of node network 233

13-4 A forward pass 234

13-5 A backward pass 236

13-6 The revised node 237

13-7 More than one successor 237

13-8 A solution to Exercise 13-1 240

13-9 A solution to Exercise 13-2 241

13-10A solution to Exercise 13-3 241

13-11 A solution to Exercise 13-4 242

14-1 A solution to Exercise 14-1 253

14-2 A solution to Exercise 14-2 253

15-1 Resources indicated 259

15-2 More than one resource 259

15-3 Separate resource histograms 260

15-4 Operatives (1) 263

15-5 Critical activities only 264

15-6 Operatives (2) 265

15-7 Rescheduled 266

15-8 Seven days 269

15-9 Eleven days 269

15-10Part schedule 270

15-11 Levelling completed 271

15-12Network analysis of Exercise 15-4 273

15-13 Bar chart interpretation 274

15-14Resource usage histogram 274

16-1 Cost breakdown structure 284

16-2 Time-cost relationship 287

16-3 Network analysis of Exercise 16-4 292

16-4 Tabulated worksheet of least cost 293

17-1 Work sequence 297

17-2 (a) Frequency histogram and (b) probability distribution 299

17-3 Activity time centrality and variability 300

17-4 Example of time-based network 305

17-5 Table of cumulative probabilities 306

18-1 Progress earnings/payments profile 321

19-1 Cost baseline 334

19-2 A planning and scheduling hierarchy 341

20-1 Example network 351

20-2 As-planned bar graph 351

20-3 As-built bar graph 351

20-4 Adjusted as-built bar chart 353

20-5 Adjusted bar chart excluding non-excusable delays 354

20-6 Adjusted bar chart excluding compensable delays 354

20-7 Adjusted bar chart excluding concurrent compensable and

non-excusable delays 354

20-8 Adjusted bar chart excluding concurrent and excusable delays 355

21-1 A classification of production systems 365

21-2 Simplified evaluations and selection process 370

21-3 An optimal scheme process 371

22-1 Graphical cashflow 385

22-2 Patterns of cashflow 388

22-3 Net present value diagram 389

22-4 An internal rate of return graph 390

22-5 Sensitivity testing – change in discount rate 394

23-1 Design flow diagram for sub-project #1 406

23-2 An example of activity control points 407

23-3 Project procurement management process 409

23-4 Up-front project deliverables 413

24-1 Six-stage value engineering process 418

24-2 When to apply the value process 420

24-3 Typical cost model template 427

24-4 Decreasing cost histogram 429

24-5 Cost:worth comparison 431

24-6 FAST diagram template 432

24-7 Example of a technical FAST diagram 433

24-8 Standard form for logging ideas 434

24-9 Illustration of criteria weighting 437

24-10 Analysis matrix 438

24-11 A solution to Exercise 24-4 441

25-1 Technology management life phases 444

25-2 Classifying technological projects 445

25-3 Effect of delay in ) getting to market = 447

25-4 House of quality 449

25-5 Example of QFD application 450

25-6 CM flow diagram for early project phases 453

25-7 Project trend report form 456

25-8 Project change notice form 457

26-1 The range of uncertainty 464

26-2 Window of opportunity 465

26-3 Categories of risk 466

26-4 Up-front project planning 467

26-5 Brainstorming process 470

26-6 Developing/using a probability distribution 471

26-7 Decision tree 473

26-8 Six-step Monte Carlo process 474

26-9 Spider diagram 477

26-10 A solution to Exercise 26-2 486

27-1 Estimating type versus accuracy range 493

27-2 Examples of cost-capacity relationships 496

27-3 Typical breakdown of a project = s capital cost 498

27-4 Cumulative probability chart 501

28-1 Procurement activities 508

28-2 A simple purchase order template 510

28-3 Template for registering procurement status 512

28-4 Model expediting report 513

28-5 Template for materials received 515

28-6 A range of contractual approaches 517

28-7 A partnering process flow diagram 523

28-8 A selection of project team groupings 526

29-1 Functional organisation structure 535

29-2 Project organisation structure 536

29-3 Project matrix structure 536

29-4 Selecting the form of project organisation 539

29-5 The role of the project manager 542

29-6 Conflict process 546

29-7 Conflict intensity versus project phase 548

30-1 An integrated meetings/reports system 560

30-2 The last step – lessons learned 569