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Project Manager's Handbook: Applying Best Practices Across Global Industries PDF

574 Pages·2007·7.99 MB·English
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PROJECT MANAGER’S HANDBOOK ABOUT THE EDITORS DAVID I. CLELAND, PH.D., is currently Professor Emeritus in the School of Engineering at the University of Pittsburgh. Internationally known as the “Father of Project Management,” he is a Fellow of the Project Management Institute and the author or editor of 38 books in the fields of project management and engineering management, including Project Management: Strategic Design & Implementation, now in its Fifth Edition; Project Manager’s Portable Handbook,now in its Second Edition (both with Lewis R. Ireland); and Global Project Management Handbook, all published by McGraw-Hill. LEWISR. IRELAND, PH.D.,currently serves as President of the American Society for the Advancement of Project Management. He is a Fellow of the Project Management Institute and has over three decades of experience in the field of project management. Dr. Ireland is the author of Quality Management for Projects and Programs and coauthor (with David I. Cleland) of Project Management: Strategic Design & Implementation, now in its Fifth Edition, and Project Manager’s Portable Handbook,now in its Second Edition. Copyright © 2008 by The McGraw-Hill Companies, Inc. Click here for terms of use. PROJECT MANAGER’S HANDBOOK Applying Best Practices across Global Industries David I. Cleland, Ph.D. Editor Professor Emeritus, School of Engineering University of Pittsburgh Pittsburgh, Pennsylvania Lewis R. Ireland, Ph.D. Editor President American Society for the Advancement of Project Management Clarksville, Tennessee New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Manufactured in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. 0-07-154271-X The material in this eBook also appears in the print version of this title: 0-07-148442-6. All trademarks are trademarks of their respective owners. Rather than put a trademark symbol after every occurrence of a trade- marked name, we use names in an editorial fashion only, and to the benefit of the trademark owner, with no intention of infringe- ment of the trademark. Where such designations appear in this book, they have been printed with initial caps. McGraw-Hill eBooks are available at special quantity discounts to use as premiums and sales promotions, or for use in corporate training programs. For more information, please contact George Hoare, Special Sales, at [email protected] or (212) 904-4069. TERMS OF USE This is a copyrighted work and The McGraw-Hill Companies, Inc. (“McGraw-Hill”) and its licensors reserve all rights in and to the work. Use of this work is subject to these terms. Except as permitted under the Copyright Act of 1976 and the right to store and retrieve one copy of the work, you may not decompile, disassemble, reverse engineer, reproduce, modify, create derivative works based upon, transmit, distribute, disseminate, sell, publish or sublicense the work or any part of it without McGraw-Hill’s prior con- sent. You may use the work for your own noncommercial and personal use; any other use of the work is strictly prohibited. Your right to use the work may be terminated if you fail to comply with these terms. THE WORK IS PROVIDED “AS IS.” McGRAW-HILL AND ITS LICENSORS MAKE NO GUARANTEES OR WARRANTIES AS TO THE ACCURACY, ADEQUACY OR COMPLETENESS OF OR RESULTS TO BE OBTAINED FROM USING THE WORK, INCLUDING ANY INFORMATION THAT CAN BE ACCESSED THROUGH THE WORK VIA HYPERLINK OR OTHERWISE, AND EXPRESSLY DISCLAIM ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. McGraw-Hill and its licensors do not warrant or guarantee that the functions contained in the work will meet your requirements or that its operation will be uninterrupted or error free. Neither McGraw-Hill nor its licensors shall be liable to you or anyone else for any inaccuracy, error or omission, regardless of cause, in the work or for any damages resulting therefrom. McGraw-Hill has no responsibility for the con- tent of any information accessed through the work. Under no circumstances shall McGraw-Hill and/or its licensors be liable for any indirect, incidental, special, punitive, consequential or similar damages that result from the use of or inability to use the work, even if any of them has been advised of the possibility of such damages. This limitation of liability shall apply to any claim or cause what- soever whether such claim or cause arises in contract, tort or otherwise. DOI: 10.1036/0071484426 For more information about this title, click here CONTENTS Preface xv Acknowledgments xvii Introduction xix Part 1 Examples of Projects Found in Specific Countries Chapter 1. Software and Other Project Management Practices in India S.Srinivasan,Chinmay Jain and Bopaya Bidanda 3 1.1. Introduction / 3 1.2. Mini Projects in the Corporate Sector / 4 1.3. Small and Medium-Sized Projects in the Government and Public Sectors / 5 1.4. Major Projects in the Corporate and Public Sectors / 6 1.5. Indian Venture Capital Industry / 8 1.6. Future Problems in Public Projects Execution / 11 1.7. Organizational Aspects in Indian Practice / 11 1.8. Project Management Practices and Issues in the Indian Software Industry / 12 1.9. Project Management Education in India / 20 1.10. Conclusion / 20 1.11. Acknowledgments / 21 Chapter 2. The Sydney 2000 Olympic Games Brian R.Kooyman and Jonathan A.Shahady 23 2.1. Preamble / 23 2.2. History of Sydney’s Successful Bid for the 2000 Summer Olympics / 25 2.3. Objectives and Commitment of the Sydney 2000 Games / 26 2.4. The Early Days of Organizing the Games / 26 2.5. The Various Elements of the Project / 31 2.6. The Progression of Games Preparation and Managing Change / 36 2.7. Testing the Planning Theories, Commissioning, and Moving to Shutdown / 39 2.8. The Application of Project Management Principles to Delivering the Games / 41 2.9. The Outcome: A Successful Games! / 44 2.10. References / 44 Chapter 3. Project Management in Aotearoa (New Zealand) Stephen Harrison 47 3.1. National Heritage / 47 3.2. Cultural Roadblocks to Project Management / 48 3.3. Practical Earned Value / 48 3.4. Stakeholder Management / 54 3.5. Results of Implementation / 59 3.6. Conclusion / 60 3.7. References / 60 v vi CONTENTS Chapter 4. An Evaluation of Major Infrastructure Projects in France: A “Project Finance”Perspective Professor Christophe N.Bredillet 61 Abstract / 61 4.1. Setting Up the Project Finance Scene / 61 4.2. Complexity of Project Finance / 62 4.3. Project Finance Categorizations / 65 4.4. A Case Study: The Eiffel Tower, One of the First Modern BOT/PPP / 68 4.5. BOT: A Trendy Model / 69 4.6. Two Different Approaches: French and Anglo-Saxon Models / 70 4.7. Delegation of Public Utility in France from the Middle Ages to the Present / 73 4.8. Conclusion: The Tent Metaphor / 74 4.9. Acknowledgments / 75 4.10. References / 75 Chapter 5. The Role of Project Management in Spanish Projects Alfonso Bucero 77 5.1. Project Management in Spain / 77 5.2. The CG Project / 78 5.3. Customer Background / 78 5.4. Why Change was Needed / 78 5.5. The Project / 80 5.6. Difficulties / 82 5.7. The Process / 82 5.8. The Team / 86 5.9. The Results / 90 5.10. Summary / 92 5.11. References / 93 Part 2 Examples of Projects from Specific Environments Chapter 6. Managing Projects Financed by International Lending Agencies Robert Youker 97 6.1. Introduction / 97 6.2. What are International Development (ID) Projects? / 98 6.3. Problems in Managing ID Projects / 102 6.4. Conclusion / 105 6.5. References / 105 Chapter 7. Managing Transnational Projects Miles Shepherd 107 7.1. Introduction / 107 7.2. Outline of Issues / 108 7.3. Culture / 108 7.4. Leadership / 113 7.5. Communications / 116 7.6. Physical Aspects / 119 7.7. Conclusion / 122 7.8. Further Readings / 122 7.9. Web References / 122 CONTENTS vii Chapter 8. Managing Projects in Health Systems Beaufort B.Longest 123 8.1. Key Definitions and Concepts / 123 8.2. The Core Activities in Project Management / 126 8.3. Summary / 138 8.4. References / 139 Chapter 9. Managing International Project Management Training Clayman C.Myers 141 9.1. Overview / 141 9.2. Bosnia and Herzegovina / 141 9.3. The Occupied Territories (Palestine) / 143 9.4. Ukraine / 146 9.5. Russian TOT Course / 147 9.6. Peoples Republic of China / 148 9.7. Macedonia / 149 9.8. Summary / 150 Chapter 10. Cross-Cultural Project Management on Major-Sized Global Oil and Gas Plant Projects Hiroshi Tanaka 151 10.1. Introduction / 151 10.2. Value Chain of Oil and Gas Plant Projects / 152 10.3. Rationale of Joint Venture Project Organizations / 153 10.4. JV Management Structure / 156 10.5. Project Management Features / 160 10.6. Lessons Learned / 163 10.7. Acknowledgments / 165 10.8. References / 165 Part 3 Project Management Government Organizations Chapter 11. Elements of Successful Project Management at the National Institute of Standards and Technology Thomas R.Rhodes 169 11.1. Introduction / 169 11.2. Nature of NIST Projects and Programs / 171 11.3. NIST Management and Projects / 173 11.4. Practical Considerations and Guidance for Effective Project Management / 175 11.5. Choosing and Justifying a Project / 180 11.6. Key Ingredients and Practices for Successful Projects / 181 11.7. Summary / 187 Chapter 12. Project Management Success at the Central Intelligence Agency Sean E.O’Hara 189 12.1. A Quick Overview of the Central Intelligence Agency / 189 12.2. Project Management Experience and Expertise / 192 12.3. Effective Stakeholder Management / 192 12.4. “Briefing Up”: Project Review Boards / 194 12.5. The Budget Cycle / 196 viii CONTENTS 12.6. Leadership and the Project Manager / 196 12.7. Communications / 197 12.8. Managing with a Project Schedule / 198 12.9. Lessons Learned / 199 12.10. Project Management Methodology / 200 12.11. Project Management Training and Certification / 201 12.12. Project Management Services / 202 12.13. Parting Words / 203 12.14. Acknowledgments / 204 Chapter 13. Strategies and Results in the Design and Implementation of a Project Management Program for a State Government Tim Jaques and Jonathan Weinstein 205 13.1. Introduction / 206 13.2. Leadership: Project Management Success Starts Here / 207 13.3. Project Management Organization and Structure / 211 13.4. Standards and Processes / 215 13.5. Training, Mentoring, and Certification / 219 13.6. Planning and Execution / 221 13.7. Summary / 225 13.8. Acknowledgments / 225 Chapter 14. Evaluating Project Management Effectiveness of Boston Big Dig and Three Gorges Dam in China Young Hoon Kwak 227 Abstract / 227 14.1. Boston Central/Artery Tunnel Project / 227 14.2. Three Gorges Dam in China / 231 14.3. Acknowledgments / 235 14.4. References / 235 Chapter 15. Project Risk Management for Alaska Oil and Gas Capital Projects Mike Fisher and Jang W.Ra 237 Abstract / 237 15.1. Introduction / 238 15.2. Sources of Project Risk / 240 15.3. Risk Analysis and Methodology / 242 15.4. Risk Management Planning / 242 15.5. Risk Identification / 246 15.6. Qualitative Risk Analysis / 248 15.7. Risk Response Planning / 253 15.8. Risk Register / 254 15.9. Conclusion / 264 15.10. References / 265 Part 4 Project Management Organizational Functions Chapter 16. Legal Considerations in Managing a Nuclear Plant Decommissioning Randall L.Speck 269 16.1. Introduction / 269 16.2. Background on Connecticut Yankee / 270 16.3. Project Characteristics and Legal Framework / 271 CONTENTS ix 16.4. Connecticut Yankee’s Reaction to Its Legal Framework / 274 16.5. Lessons Learned / 280 16.6. Conclusion / 282 16.7. References / 282 Chapter 17. Using Integrated Project Management to Improve Outsourcing Strategy and Business Results Gregory A.Garrett 283 Abstract / 283 17.1. Introduction / 284 17.2. Integrated Project Management (IPM) Life Cycle (5 Phases) / 284 17.3. Case Study: NCR / 287 17.4. Case Study: Hewlett-Packard / 288 17.5. Case Study: Lockheed Martin / 288 17.6. Integrated Project Management (IPM) Life Cycle: Lessons Learned / 289 17.7. First Project Element: Customers’Outsourcing Needs and Goals / 289 17.8. Second Project Element: Supplier Value Chain / 291 17.9. Third Project Element: Project Communications / 293 17.10. Fourth Project Element: Project Teamwork / 294 17.11. Fifth Project Element: Integrated PM Discipline / 295 17.12. The Integrated Project Management (IPM) Life Cycle and Model / 296 17.13. References / 296 Chapter 18. Connecting Projects to Corporate Strategy Paul Varella and Kam Jugdev 297 18.1. Overview / 297 18.2. Introduction / 298 18.3. Strategic Management Process / 299 18.4. Crafting Winning Strategies / 301 18.5. Project Management Resources / 304 18.6. Project Management as a Core Competence / 308 18.7. Conclusion / 309 18.8. Bibliography / 310 Chapter 19. PMO Creation within Financial Services Companies Robert Chaves 313 19.1. Introduction / 313 19.2. Genesis / 314 19.3. Mission / 316 19.4. Organizational Design / 317 19.5. Bricks and Mortar / 320 19.6. Professionalization of the PM Staff / 328 19.7. Project and Portfolio Optimization / 329 Chapter 20. The Evolution of Project Office and Portfolio Management at American Modern Insurance Group,Cincinnati,Ohio Mark Heitkamp and Lee Pinkerton 331 20.1. Overview of American Modern Insurance Group / 332 20.2. Project Management Office Objective / 333 20.3. Project Office Certification / 335 20.4. Strategic Planning and the Project Portfolio / 335 20.5. Project Management Office Evolution / 336

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Discover How Project Management Is Used to Launch and Manage Various Types of Projects Throughout the Industrial World Project Manager’s Handbook presents a wealth of detailed examples that show how project management (PM) is used to launch and manage projects in many different industries around t
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