Modern Project Management : Successfully Integrating Project Management Knowledge Areas and Processes

306 Pages·2001·12.62 MB·English

by  Norman R. Howes

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Modern Project Management
Successfully Integrating Project Management Knowledge Areas and Processes
Norman R. Howes
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Disclaimer:
This netLibrary eBook does not include the ancillary media that was packaged with the original
printed version of the book.
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.
Microsoft Access, Microsoft Explorer, Microsoft Excel, and Microsoft Project are registered
trademarks of Microsoft Corporation.
The term and program Modern Project is copyrighted by Norman R Howes.
Library of Congress Catalog-iinng-Publication Data
Howes, Norman R .
Modern project management: successfully integrating project management
knowledge areas and processes / Norman R. H owes.
p. cm .
Includes bibliographical references and ind ex.
ISBN 0-8144-0632-7
1. Industrial project management. I. T itle.
HD69.P75 H69—2001
658.4'04-dc21 00-045108
2001 Norman R. Howes.
All rights reserved.
Printed in the United States of America.
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, photocopying, 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
Page v
Contents
List of Illustrations ix
Preface xiii
How to Use the CD xix
Chapter 1. Introduction 1
Chapter 2. Project Planning 15
2.1 16
Subdivision of the Work
2.2 23
Quantification of the Work
2.3 26
Using Modern Project to Create a WBS
2.3.1 27
Entering WBS Information
2.3.2 32
The WBS Listing Report
2.3.3 34
Entering Task Data
2.3.4 37
The Task Budget Listing Report
2.4 39
Sequencing the Work
2.5 43
Budgeting (Estimating) the Work
2.5.1 47
Using the Cost Accounts Entry/Edit Tool
2.5.2 50
Budget Reports
2.6 54
Scheduling the Work
2.7 62
The Baseline Chart
Chapter 3. Project Monitoring 67
3.1 68
Collecting Actual Expenditures
3.2 72
Cost Reports
3.3 74
Progress Tracking
Page vi
3.4 83
Progress and Status Reports
3.5 84
Scientific Forecasting
Chapter 4. Project Performance Evaluation 105
4.1 106
How is performance evaluated?
4.2 110
Performance Evaluation Reports
4.3 114
Variance Analysis
4.3.1 114
Cost Variances
4.3.2 116
Schedule Variances
4.3.3 118
Variance Reporting
4.3.4 119
The Cost Performance Ratio
4.3.5 122
The Schedule Performance Ratio
Chapter 5. Productivity Measurement 125
5.1 126
Unit Rates
5.2 130
The Productivity Ratio
5.3 131
The Productivity Report
5.4 132
The Importance of Productivity Measurement
Chapter 6. Alternate Views 135
6.1 136
Expanding the Task List
6.2 138
The Expanded Cost Accounts
6.3 142
The Expanded Transaction Lists
6.3.1 142
New Cost Transactions
6.3.2 145
New Progress Transactions
6.3.3 150
New Variance Transactions
6.4 150
Expanded Budget and Cost Reports
6.5 153
The Organizational Breakdown Structure (OBS)
6.5.1 155
Building Alternate Hierarchies
6.5.2 160
Exporting Alternate Hierarchies into the Project Database
6.5.3 162
Hierarchy Maintenance
Chapter 7. Interfacing Scheduling Systems 167
7.1 167
Task Sequencing with Microsoft Project
7.1.1 168
Task-Naming Convention
Page vii
7.1.2 169
Task Sequencing
7.2 179
Resource Scheduling
7.2.1 179
Simple Scheduling
7.2.2 185
The Critical Path
7.2.3 188
Resource Scheduling
7.2.3.1 190
How Resources Are Communicated to the Scheduling
System
7.2.3.2 192
Using Microsoft Project to Produce the Resource List
7.3 200
Pros and Cons of an Automated Interface
7.4 204
The Automated Interface to Microsoft Project
Chapter 8. Government Projects 211
8.1 211
Historical Perspective
8.2 214
Government Project Management Models
8.3 217
Government Project Management Vocabulary
8.3.1 218
Multibudgeting vs. the TAB
8.3.2 220
The Meaning of WBS
8.3.3 224
Government Performance Reporting
8.3.4 228
Additional Performance Measures
Chapter 9. Risk Management 231
9.1 231
Quantification of Risk
9.2 234
Contingency Draw-Down
9.3 240
Statusing Contingency Packages
9.4 241
Risk Management Summary
Chapter 10. Rescuing a Failing Project 243
10.1 243
Determining What Went Wrong
10.2 246
Project Definition
10.3 248
Translating a Definition into a Plan
10.4 250
Replanning
References 253
Index 255
Page ix
List of Illustrations
Figure 1-1. Earned Value report. 4
Figure 1-2. WBS Listing. 7
Figure 1-3. Budgeted Cost Listing. 10
Figure 2-1. Subdivision of example project into control packages. 18
Figure 2-2. WBS for example project. 20
Figure 2-3. Main menu for the Modern Project toolset. 28
Figure 2-4. The WBS data Entry/Edit Tool. 28
Figure 2-5. WBS data to be entered for the example project. 29
Figure 2-6. WBS Listing. 33
Figure 2-7. Task data to be entered. 35
Figure 2-8. The Task Entry/Edit Tool. 37
Figure 2-9. The Task Budget Listing. 38
Figure 2-10. An example of a precedence diagram. 42
Figure 2-11. Quantification and labor-hour estimates for tasks in Figure 2- 46
7.
Figure 2-12. Cost code descriptions for the example project. 48
Figure 2-13. The Cost Code data entry form. 48
Figure 2-14. Cost estimates for the example project. 49
Figure 2-15. Cost Accounts entry/edit form. 50
Figure 2-16. Budgeted Cost Listing. 51
Figure 2-17. Budgeted Qty and Mhr Listing. 53
Figure 2-18. Schedule for the Foundation control package. 59