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_Successful_Project_Management_7e.pdf
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Seventh Edition
Jack Gido, Jim Clements, and Rose Baker
Executive Product Director: Mike Schenk Product Manager: Aaron Arnsparger
Content Developer: MPS North America- Tara Slagle
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Unless otherwise noted all items Cengage Learning
2018, 2015 Cengage Learning
ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S. copyright law, without the prior written permission of the copyright owner.
Library of Congress Control Number: 2016955571 Student Edition:
ISBN: 978-1-337-09547-1
Loose-leaf Edition: ISBN: 978-1-337-11608-4
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CHAPTER 1 PART 1
CHAPTER 2 CHAPTER 3
PART 2
Project Management Concepts 2 Initiating a Project
Identifying and Selecting Projects 36 Developing Project Proposals 64
34
CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER
4 5 6 7 8 9
Planning, Performing, and Controlling the Project 100 Defining Scope, Quality, Responsibility, and Activity Sequence 102 Developing the Schedule 146
Resource Utilization 214
PART 3 CHAPTER 10 CHAPTER 11 CHAPTER 12 CHAPTER 13
Appendix A Appendix B Appendix C Appendix D
324
Determining Costs, Budget, and Earned Value Managing Risk 288
Closing the Project 304
People: The Key to Project Success
The Project Manager 326
The Project Team 360
Project Communication and Documentation Project Management Organizational Structures
242
Project Management Information Systems 467
Project Management Websites 479
Project Management Associations around the Globe 481 Acronyms 485
Reinforce Your Learning Answers 487 Glossary 503
Index 511
Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii About the Authors. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .xxix
CHAPTER 1
Project Management Concepts ................................................. 2
Project Attributes 5
Balancing Project Constraints 7
Project Life Cycle 10 Initiating 11 Planning 12 Performing 12 Closing 14
Project Management Process 15 Stakeholder Engagement 22
Global Project Management 23 Project Management Associations 24
Benefits of Project Management 25 Summary 27
Questions 29
Internet Exercises 29
Case Study 1: A Not-for-Profit Organization 30
Case Study 2: E-Commerce for a Small Supermarket 31 Bibliography 32
PART 1 Initiating a Project
CHAPTER 2
Identifying and Selecting Projects ............................................. 36 Project Identification 38
Project Selection 39
Project Charter 42
Preparing a Request for Proposal 47
Soliciting Proposals 53
Summary 56
Questions 57
Internet Exercises 57
Case Study 1: A Midsize Pharmaceutical Company 58 Case Study 2: Transportation Improvements 59 Bibliography 62
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
ix
x Contents
CHAPTER 3
Developing Project Proposals ................................................. 64 Building Relationships with Customers and Partners 67
Pre-RFP/Proposal Marketing Decision to Develop a Proposal Creating a Winning Proposal
69 70
73
Proposal Preparation
Proposal Contents
Technical Section Management Section 77 Cost Section 78
75 75
74
Pricing Considerations 80
Simplified Project Proposal 81 Proposal Submission and Follow-Up 83 Customer Evaluation of Proposals 84
Contracts 87
Fixed-Price Contracts 87 Cost-Reimbursement Contracts 87 Contract Terms and Conditions 88
Measuring Proposal Success 89 Summary 91
Questions 93
Internet Exercises 94
Case Study 1: Medical Information Systems 94
Case Study 2: New Manufacturing Facility in China 96 Bibliography 99
PART 2 Planning, Performing, and Controlling the Project
CHAPTER 4
Defining Scope, Quality, Responsibility, and Activity Sequence . . . . . . . . . . . . . . . . . 102 Establish Project Objective 105
Define Project Scope 106
Plan for Quality 110
Create Work Breakdown Structure 112
Assign Responsibility 116
Define Activities 118
Sequence Activities
119 Network Principles 119
Create Network Diagram 121
Planning for Information Systems Development 125
An Information System Example: Internet Applications Development for ABC Office Designs 129
Project Management Information Systems 130 Summary 132
Questions 134
Internet Exercises 135
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
Case Study 1: A Not-for-Profit Medical Research Center 135 Case Study 2: The Wedding 137
Bibliography 139
Appendix: Microsoft Project 139
CHAPTER 5
Developing the Schedule..................................................... 146
Estimate Activity Resources 149
Estimate Activity Durations 150
Establish Project Start and Completion Times 151
Develop Project Schedule 152 Earliest Start and Finish Times 152 Latest Start and Finish Times 156 Total Slack 158
Critical Path 160
Free Slack 163
Bar Chart Format 165
Project Control Process 166
Effects of Actual Schedule Performance 168 Incorporate Changes into Schedule 169 Update Project Schedule 170
Control Schedule 171
Scheduling for Information Systems Development 176
An Information System Example: Internet Applications Development for ABC Office Designs (Continued) 178
Project Management Information Systems 180
Agile Project Management 183 Summary 189
Questions 192
Internet Exercises 194
Case Study 1: A Not-for-Profit Medical Research Center 194 Case Study 2: The Wedding 195
Bibliography 195
Appendix 1: Probabilistic Activity Durations 196
Appendix 2: Microsoft Project 206
CHAPTER 6
Resource Utilization......................................................... 214 Resource-Constrained Planning 216
Resource Requirements Plan 218
Resource Leveling 220
Resource-Limited Scheduling 222
Resource Requirements for Information Systems Development 227 An Information System Example: Internet Applications Development for ABC Office Designs (Continued) 227
Project Management Information Systems 228 Summary 231
Questions 232
Internet Exercises 233
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
Contents
x i
x i i
Contents
Case Study 1: A Not-for-Profit Medical Research Center 233 Case Study 2: The Wedding 233
Bibliography 234
Appendix: Microsoft Project 234
CHAPTER 7
Determining Costs, Budget, and Earned Value................................ 242
Estimate Activity Costs 245
Determine Project Budget 247
Aggregate Total Budgeted Cost 247 Develop Cumulative Budgeted Cost 249
Determine Actual Cost 251
Actual Cost 251
Committed Costs 251
Compare Actual Cost to Budgeted Cost 252
Determine Value of Work Performed 254
Analyze Cost Performance 256 Cost Performance Index 257 Cost Variance 258
Estimate Cost at Completion 258 Control Costs 260
Manage Cash Flow 261
Cost Estimating for Information Systems Development 263
An Information System Example: Internet Applications Development for ABC Office Designs (Continued) 264
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