THE AMA HANDBOOK OF PROJECT MANAGEMENT SECOND EDITION This page intentionally left blank THE AMA HANDBOOK OF PROJECT MANAGEMENT SECOND EDITION Edited By (cid:2)PAUL C. DINSMORE, PMP (cid:2)JEANNETTE CABANIS-BREWIN AMACOMAmerican Management Association New York Atlanta Brussels Chicago Mexico City San Francisco Shanghai Tokyo Toronto Washington, D.C. Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel.: 212-903-8316. Fax: 212-903-8083. Web site: www. amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Library of Congress Cataloging-in-Publication Data Dinsmore, Paul C. The AMAhandbook of project management/Paul C. Dinsmore, Jeanette Cabanis- Brewin, 2nd ed. p. cm. Includes index. ISBN 0-8144-7271-0 1. Project management—Handbooks, manuals, etc. I. Cabanis-Brewin, Jeanette. II. Title. HD69.P75A46 2006 658.4'04—dc22 2005015020 © 2006 Amacom, a division of American Management Association. All rights reserved. Printed in the United States of America. “PMI” and the PMI logo are service and trademarks of the Project Management Institute, Inc., which are registered in the United States of America and other nations; “PMP” and the PMPlogo are certification marks of the Project Management Institute, Inc., which are registered in the United States of America and other nations; “PMBOK,” “PM Network,” and “PMI Today”are trademarks of the Project Management Institute, Inc., which are registered in the United States of America and other nations; “...building professionalism in project management...” is a trade and service mark of the Project Management Institute, Inc., which is registered in the United States of America and other nations; and the Project Management Journallogo is a trademark of the Project Management Institute, Inc. PMI did not participate in the development of this publication and has not reviewed the content for accuracy. PMI does not endorse or otherwise sponsor this publication and makes no warranty, guarantees, or representation—expressed or implied—as to its accuracy or content. PMI does not have any financial interest in this publication and has not contributed any financial resources. This publication 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, pho- tocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Printing number 10 9 8 7 6 5 4 3 2 1 CONTENTS FOREWORD David I. Cleland, Ph.D. xi PREFACE Paul C. Dinsmore, PMP, and Jeannette Cabanis-Brewin xiii ACKNOWLEDGMENTS xvii ABOUT THE EDITORS xix CHAPTER 1 What Is Project Management? Project Management Concepts and Methodologies FRANCIS M. WEBSTER, JR. PHD, AND JOAN KNUTSON 1 SECTION ONE The Project Management Body of Knowledge: Comprehension and Practice INTRODUCTION 13 CHAPTER 2 Bodies of Knowledge and Competency Standards In Project Management ALAN M. STRETTON 15 CHAPTER 3 Project Management Process Groups: Project Management Knowledge in Action GEREE STREUN, PMP, CSQE 25 CHAPTER 4 Initiation Strategies for Managing Major Projects PETER W. G. MORRIS 31 CHAPTER 5 Comprehensive Planning for Complex Projects DAVID L. PELLS 44 CHAPTER 6 Controlling Costs and Schedule: Systems That Really Work RALPH D. ELLIS, JR. 60 CHAPTER 7 Project Management Integration in Practice GEREE STREUN, PMP, CSQE 69 v CHAPTER 8 Project Scope Management in Practice RENEE MEPYANS-ROBINSON 74 CHAPTER 9 Time Management in Practice VALIS HOUSTON, PMP 81 CHAPTER 10 Project Cost Management in Practice MUHAMED ABDOMEROVIC, PMP 89 10A Studies in Cost Management: Earned Value—An Integrated Project Management Approach LEE R. LAMBERT, PMP 104 CHAPTER 11 Project Quality Management in Practice GEREE STREUN, PMP, CSQE 119 11A Studies in Project Quality Managment: Achieving Business Excellence Using Baldrige, Business Process Management, Six Sigma, and Project Management ALAN MENDELSSOHN AND MICHAELHOWELL 125 CHAPTER 12 Human Resource Management in Practice LEE TOWE, PMP 136 12A Studies in Project Human Resource Management: Interpersonal Skills PAULC. DINSMORE, PMP 144 12B Studies in Project Human Resource Management: Leadership HANS J. THAMHAIN, PHD, PMP 155 CHAPTER 13 Project Communications Management in Practice RENEE MEPYANS-ROBINSON 165 13A Studies in Communications Management: Achieving Project Success Through Team Building and Stakeholder Management JOHN TUMAN, JR., P.ENG 174 CHAPTER 14 Risk Management in Practice DAVID HILLSON, PHD, PMP, FAPM, FIRM 184 CHAPTER 15 Project Procurement Management in Practice JUDITH A. EDWARDS, PHD, PMP 196 vi 15A Studies in Procurement Management: Managing to Avoid Claims IRVING M. FOGEL 206 CHAPTER 16 Preparing for the Project Management Professional Certification Exam THEODORE BOCCUZZI, PMP 211 SECTION TWO The Profession of Project Management INTRODUCTION 225 CHAPTER 17 Project Management Ethics: Responsibility, Values, and Ethics in Project Environments THOMAS MENGEL, PHD, PMP 227 CHAPTER 18 Professionalization of Project Management: What Does It Mean for Practice? BILLZWERMAN AND JANICE THOMAS, PHD 236 CHAPTER 19 Competency and Careers in Project Management J. KENTCRAWFORD, PMP, AND JEANNETTE CABANIS-BREWIN 248 SECTION THREE Organizational Issues in Project Management INTRODUCTION 267 CHAPTER 20 Project Management: AStrategic Asset? KAM JUGDEV, PHD, PMP 269 CHAPTER 21 Enterprise Project Management: Elements and Deployment Issues CHRIS VANDERSLUIS 280 CHAPTER 22 Project Portfolio Management: Principles and Best Practices GERALD I. KENDALL, PMP 290 CHAPTER 23 Measuring the Value of Project Management JAMES S. PENNYPACKER 302 vii CHAPTER 24 The Project Office: Rationale and Implementation J. KENTCRAWFORD, PMP 312 CHAPTER 25 AProcess of Organizational Change: From Bureaucracy to Project Management Orientation ROBERTJ. GRAHAM, PHD, PMP 323 CHAPTER 26 Managing Multiple Projects: Balancing Time, Resources, and Objectives LOWELLDYE, PMP 333 SECTION FOUR Issues and Ideas in Project Management Practice INTRODUCTION 347 CHAPTER 27 Dealing With Power and Politics in Project Management RANDALLI. ENGLUND 348 CHAPTER 28 Multi-Project Constraint Management: The “Critical Chain” Approach FRANK PATRICK 363 CHAPTER 29 Communities of Practice and Project Management CONNIE DELISLE, PHD, AND KIM ROWE, P.ENG 372 CHAPTER 30 AProject Management Strategy for Six Sigma Projects ANTONIO C.A. MAXIMIANO AND ALONSO MAZINI SOLER 384 CHAPTER 31 Cultural Challenges in Managing International Projects PAULC. DINSMORE, PMP, AND MANUELM. BENITEZ CODAS 399 SECTION FIVE Industry Applications of Project Management Practice INTRODUCTION 411 CHAPTER 32 Building Organizational Project Management Capability: Learning From Engineering and Construction CHRISTOPHER SAUER, FIM 413 viii CHAPTER 33 New Product Development: Issues for Project Management DENNIS M. SMITH 424 CHAPTER 34 Why ITMatters: Project Management for Information Technology KAREN R.J. WHITE, PMP 433 CHAPTER 35 Project Management for Software Engineering LOIS ZELLS 444 CHAPTER 36 R&D Project Management: Adapting to Technological Risk and Uncertainty LEE R. LAMBERT, PMP 458 CHAPTER 37 Applying Project Management Tools and Techniques in the Ecosystem Restoration Industry STAN VERAART, PMP, AND DONALD ROSS 469 About the Contributors 475 Index 489 ix
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