On Time On Budget: A Step-By-Step Guide for Managing Any Project

320 Pages·1992·8.54 MB·English

by  Sunny Baker

w
A Step-by-step
Guide for Managing
Any Project
Sunny Baker & Kim Baker
PRENTICE HALL
Englewood Cliffs, New Jersey 07632
Rentice-Hall International (UK)L imited, London
Rentice-Hall of Australia Pty. Limited, Sydny
Rentice-Hall Canada, Inc, Tmto
Rentice-Hall Hispanoamericana, S.A., Maim
Prentice-Hall of India Private Limited, New Delhi
RenticeHall of Japan, Inc, Tokyo
Simon dr Schuster Asia Pte. Ltd., Singapore
Editora Rentice-Hall do Brasil, Ltda., Rio de faneiro
PRENTICE-HALL, INC.
Englewood Cliffs, NJ
All rights reserved. No part of this
bodc may be reproduced in any form
or by any means, without permission in
writing from the publisher.
Library of Congress Cataloging-in-Publication Data
Baker, Sunny.
On time/on budget : a stepby-step guide for managing any project
/ by Sunny Baker & Kim Baker.
p. an.
Includes bibliographical references (p. ) and index
ISBN 0-13-633447-4
1. Time management. I. Baker, Kim. 11. Title
HD69.T54B35 1992 92-12298
ISBN 0-13-b33447-Y
PRENTICE HALL
Professional Publishing
Englewood Cliffs, NJ 07632
Slmon & Schusler. A Paramount Communicalions Company
PRINTED IN THE UNITED STATES OF AhfEiUC.4
DEDICATION
For those managers and businesspeople who struggle on, day in and
day out, without clear goals and with inadequate plans, this book is dedicated
to a better way of doing things.

ACKNOWLEDGMENTS
Many thanks to the software companies and management firms, listed in
the UsefulS ources section at the end of the book, for the information and products
they provided to make this book complete.
Special thanks to Kim Commerato of Computer Associates, Sally Jacobs of
POC-IT Management Services, Lenore Dowling of Scitor Corporation, and Nancy
Stevenson of Symantec for their help in providing examples and sample plans
illustrating the power of modem computerized project management tools.
To our students, clients, and professional colleagues, we acknowledge what
we have learned from you over the years. It is our hope that this book reflects
the best of your wisdom and insights.

INTRODUCTION:
The Power of Project Management
in Business
Business is facing increasingly complex challenges. These include adapting to
new technologies, managing rapidly expanding information sources, controlling
escalating salaries, predicting limits on raw materials, assessing environmental
impact, meeting stockholder demands, and dealing with pressures to remain cost-
effectivea nd competitive in a global economy. The cost reduction programs and
management approaches of the past are not enough to meet the challenges. Com-
panies need to employ techniques that streamline operations, reduce risks, and
improve overall productivity. Project management techniques are one part of a
solution to adapt and prosper.
Organizations of all sizes complete projects to meet their goals--whether
opening a new sales office, implementing a training program, coordinating a
fund-raising program, developing an advertising campaign for a new product,
exhibiting at a trade show, or designing a new management information system.
A project is simply a sequence of tasks performed to meet a defined goal and
this makes almost every kind of business endeavor a project. And the underlying
goal of projects in business is almost always the same: to get the defined work
done on time and within budget.
Project management, a discipline rich with procedural tools and proven
methods, has evolved for bringing projects in on time and within budget. Yet,
many businesspeople have not been exposed to the power of project management
techniques. When they do think of project management they envision the intricate
charts and schedules for managing complex engineering projects, such as con-
structing bridges or building space shuttles. But project management is not only
a discipline for scientists and engineer-it is a discipline for business.
The discipline of project management has predictable value in getting things
done on time and within budget in any organization. These proven tools and
techniques are commonly used by engineers and scientists in complex projects
with huge budgets, thousands of tasks, and hundreds of people; but the power
of project management is not limited to engineering and construction applications.
vii
viii Introduction
The techniques and advantages of project management concepts can be applied
to any project in business. When managers use these techniques for their everyday
responsibilities, they become more productive and successful in meeting business
goals and objectives.
So what is it that makes project management different from management of
the day-to-day activities in business? Why does the project manager in the satellite
project regard the work as a project and other businesspeople think of their tasks as
just plain work? Think of the tasks you have recently been responsible for. How
many projects have you completed in the last year? The difference between your
projects and those managed by project managers is only one of focus and technique.
The project managers in engineering consider themselves project managers; busi-
nesspeople consider themselves managers of functions or enterprises.
Because of the engineering and scientific orientation of most project man-
agement texts and reference works, many businesspeople naively consider project
management techniques more complicated than the actual projects-and for good
reason. The unending jargon, indecipherable algorithms, labyrinthine planning
diagrams, and lack of relevant business examples make project management seem
too convoluted for a busy manager to employ in the everyday framework of
business and industry. As the relevance of project management is not always
apparent to business and academic professionals outside the engineering and
scientific disciplines, missed deadlines and overrun budgets are more common
than they need to be.
In On Timelon Budget we have sought to demystify the secrets behind suc-
cessful project management and make the practical tools and techniques of the
discipline available to the business audience at large. Project management prin-
ciples should be considered a central component of every manager's education,
applicable to all kinds of business projects. The project management approach to
planning, scheduling, budgeting, and analysis can help any business improve
output and results. Project management as a discipline starts with the basic man-
agement functions that most businesspeople are already familiar with: planning,
organizing, staffing, directing, and controlling. Project management simply ex-
pands the manager's basic toolbox with a set of welldefined procedural methods
and techniques specifically oriented tocompletinga sequence oftasks with a beginning
and an end. Since most projects in business involve sequenced tasks-almost every
business can benefit from the application of project management principles.
Whether it's training a team of new employees, creating an ad campaign,
or reorganizing the corporation-the techniques of project management can be
used to improve productivity and assure timely completion. Project management
tools also can be used to correct midcourse problems that would otherwise go
undetected and undermine the success of the project. Most of the project man-
agement techniques best used in business are the same ones applied by engineers
to manage complex projects, but in On Time/& Budget they are presented so
nonengineering managers can easily apply them to everyday projects.
Introduction ix
We have attempted to present the project management toolbox for evaluating,
managing, and troubleshooting projects of all sizes in a way that is both accessible
and pertinent for all businesspeople. On Time /On Budget takes managers through
real business projects from start to finish using project management charts, tech-
niques, worksheets, and checklists-enabling businesspeople to improve their
performance in meeting project goals and objectives almost immediately. Managers
are shown how to use the power of project management methods to improve
performance in meeting project goals and controlling costs in their own unique
business endeavors. To put the power of project management methodology to
work immediately, it is only necessary to follow the practical advice and step-
bystep guidelines offered in On Timelon Budget.
The experience-based recommendations and realistic approaches for getting
things done can be applied to a wide range of business endeavors. You'll be taken
step by step through the fundamentals of planning, scheduling, tracking, and
controlling the costs and resources of any project. The practical, easy-to-use check-
lists are applicable to the projects that people in sales, marketing, human resources,
finance, and general management positions are responsible for-yet they are based
on the same general, accepted methods employed by engineering project managers
in building skyscrapers and satellites.
The book provides methods for answering the most common questions facing
every manager responsible for completing projects:
How can I best define the tasks that need to be done?
How much work can be expected of each person on the project?
How long should it take?
How can I control cost overruns?
Where is the project in danger of failure?
What can be done to ensure satisfactory completion of overlapping tasks?
Is my budget on track?
How do I know if we're really on schedule?
Tips for recognizing common project pitfalls are clearly identified. Succinct
advice for handling the myriad of project management "'crises" that managers
face in each stage of a project are provided as well. The book spells out how
projects work, and how projects can be monitored and controlled for successful
completion.
The principles and core concepts of the project management discipline are
thoroughly covered, without clogging the presentation with needless theory, com-
plicated mathematics, or excessive technical jargon. On Time /On Budget is targeted
specifically to managers, business owners, and professionaIs new to project man-
agement in general, though it is also a thorough introduction to core project
management principles for people who intend to go on to managing large-scale,
people-intensive projects in government, science, and other industries.
x Introduction
Unlike traditional works on project management, with their unduly com-
plicated charting systems and interminable technical jargon, the techniques pro-
vided can be used by every manager to enhance productivity, manage people and
other resources effectively, and control project costs-skills that every business
personmust learnand use to be successful and remaincompetitivei n the fast-paced,
increasingly complex world of business.