I. Preamble Ii. Force-Field Analysis Iii. Metamodel Iv. Textbook V. Ms Project Exercise 1

MGT 357 Project Management for
Business
Meeting 3
I. Preamble
II. Force-Field Analysis
III. MetaModel
IV. Textbook
V. MS Project Exercise 1
5-1
I. preamble
Selecting (The GE way, AHP,,…)

1 7
3 4 5 6
14
Defining our Project Scope
8
2 (Ch.5) 9
10
13
12
11
The Cynefin Framework

5-2
Meeting 2
Selecting
Problem 1 (text, p.99)
Performance on Criteria
Project
High Medium Low
Project Demeter Technology X

Ease of Transition X
Projected Cost Savings X
Project Cairo Technology X

Based on your analysis, which project would you argue

in favor of adopting? Why? 5-3
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Meeting 2
Spatial Choice Model
Problem 1 (text, p.99) (keyword: ideal point)
Performance on Criteria
Project
3 2 1
Project Demeter Technology X
Project Cairo Technology X


Meeting 2
Analytic Hierarchy Process
Select the best Project
Technology Ease of TransitionProjected Cost Savings
Demeter Cairo

Meeting 1
Project: A unique, goal-oriented, time-bound, and constrained

undertaking (Exist in many sizes & types)
The World of Skyscraper

Special Topic
Meeting 1
Fall 2013
http://www.fosterandpartners.com/projects/
hongkong-and-shanghai-bank-
headquarters/
5-6
I. preamble
what are lessons learned?
HSBC
5-7
Integrated Project Management
the issues and focal points at the core of your project
Strategic Develop Architecture Evaluate

Planning Projects Alignment Investment and
Risk
Critical Design Review
Cost to Change Priority
Low Initiate Project
Test Run Review

High
Monitor/Operations Maintain Install and Implement

Deploy Project
Maintenance 5-8
Source: adapted from HBR
The Fellows of the HSBC have
managed complicated projects
in complex social environments
Complex
Complicated
Simple Conduct
experiments,
Emphasis on then develop
Classify problems initial problem appropriate
into a coding analysis (other response
system and than sensing and plans
Initiate responses responding) Probe-Sense-Respond
based on
Sense-Analyze-Respond
models/rules 5-9
Sense-Categorize-Respond Snowden and Boone (2007)
I. preamble
Elements of Projects (text, p.5)
• Complex, one-time processes

• Limited by budget, schedule, and resources
• Developed to resolve a clear goal or set of

goals
• Customer-focused
5-10

Meeting 2

Special Topic
Meeting 2
Fall 2013
Defining ERP (Ch.1, Madu and Kuei, 2004)
• ERP is the short form for Enterprise Resource Planning

• ERP is a packaged business software system
• SAP (System, Applications, and Products in data processing)
– SAP R/2 – Mainframe version
– SAP R/3 – Client/Server version
• Microsoft Dynamics GP (formerly Microsoft Business Solutions Great
Plains)
• Quick Book Enterprise Solutions
5-11
Meeting 2
Cisco Systems, Inc.

http://sem.buaa.edu.cn/Teacher/CourseWare/Cisco%20Inc%20Implementing%20ERP.pdf
In late 1993, a director in

manufacturing: “we knew we
were in trouble.”
Risk Manufacturing,
Resource Financial, Order Entry
Requirements Process Change
Strong Best Scope Meeting 3

partners* people change**
Description and The Statement of Work
Approach 15
Stabilization
9- million
Cooperation month
Kickoff: 6/2, 1994
Acceptance Estimated Prototype setup complete: 7/22 , 1994
Criteria time and cost Team training: 7/31, 1994
Process, key data, modification designs
complete: 8/31, 1994
*:KPMG, Oracle (e.g. 30 developers were needed Hardware: 10/15, 1994
for 3 months to modify oracle to support the Critical interface: 12/1,1994
business of Cisco) .
**: data warehouse .
5-12
I. preamble
CISCO
5-13
CISCO - Project Management
Project Analysis
Deliverables Engagement
Process
ERP
Scope Boundaries 1. Business case
Broke into phases called
CRP’s (Conference
Room Pilots)
CRP0 = Training Project Definition Project data
and technical Project
configuration
Stakeholders
CRP1 = System Create WBS/RBS* Tasks
works for order entry, finance, and
each specific manufacturing
area Organizations
CRP2 = Schedule Project
Modifications Systems
(red, yellow, Resource Lists
or green), Institutional
continued Assign Resources Budget/Forecast plan Constraints
training, and
initial testing
CRP3 = Full Actual costs
system testing
“preparation
to go live” Status Progress % Complete/Earned value
• Hardware failures
• System instability
• Software unable to handle *Work Break Structure/Risk Break
initial volume Structure Adapted from Levine, 2002
Meeting 2
CISCO
The economic cost and benefit of a project
investment over time
Project Benefits (e.g. revenue expansion)

Approval
Benefits (e.g. cost reduction)
Maintenance Cost
Time
Capital
Cost
Maximum Maximum
Effect of Effect of
Stable/ Sales
Capable Increase
System System
ERP Project
Completion Stabilized
5-15
I. preamble
Soft skills in CISCO

managing
projects are • Communication • Organizational Effectiveness
the “missing
link” critical
? ? ?
to project
success
• Leadership
• Trustworthiness
Managing
? projects
successfully
?
requires some
soft skills: • Team Buildin
? ? ?
• Creativity • Flexibility
5-16
• Problem Solving &
I. preamble

Special Topic
Meeting 3
Fall 2013
Movie Making
5-17
I. preamble
Jacques Tati
(1907-1982)
French filmmaker
5-18
I. preamble

Example in Point 1:
http://www.youtube.com/watc Play Time, 1967
h?v=YPIA7mpm1wU
Example in Point 2: Mon Trafic (Traffic) 1971

Tati's major feature films Oncle
Les (My
Jacques Tati
(1907-1982) Vacances Uncle)
French filmmaker de 1958, in
Monsieur color Play Time - RESTAURANT SCENE
http://www.youtube.com/watch?v=V
Jour deHulot (Mr.
BF0NobWjEI
L'École des fête (The Hulot's
facteurs Big Day)Holiday) Example in Point 3:
(The 1949 1953
Ang Lee's Life of Pi
School for
5-19
Postmen)
I. preamble
Project Life
(Meeting 1)
Vision in Movie Product Design and
Development
Pre- Production Post- Distribution Exhibition

production production
Project Selection (Meeting 2)
Project Path
Project Scope (Meeting 3) 5-20

(Meeting 1) Project Life Cycles and
Their Effects
designer, interventionist, or problem
solver? Client
Interest
Project
Stake/impact
Resources
Creativity
Project Selection (Meeting 2)
Uncertainty
Conceptualizati Planning Execution Termination

on
Project Stake: the amount of corporate investment in the project (p.13) Fig 1.4 5-21

Meeting 2
Project Selection - Systems Thinking

(adapted from Kerzner 2009)
Screening Models
Constraints: time, Systems thinking is Project
cost, and vital for the success of Selection
performance a project Criteria
Option
Requirement
Option
Requirement
Objective
Trade Off
Requirement
System
Option
Requirement
Option
5-22
Selecting – One-Factor
optional
5-23
Selecting
optional
5-24
Selecting – Two-Factor
Problem 6 (text, p.100)
Define the
efficient
frontier.
• The efficient frontier would be a line running

between Project B and Project E.
5-25

Selecting – More than Two-Factor
movie script
5-26
Selecting – More than Two-Factor
movie script
5-27
Benchmarking:
Text, P.71 – A pharmaceutical firm (Hoechst AG)…when
rating project opportunities…..
Select the best Project
Probability of Probability of Reward to Business Strategic

technical commercial the strategy fit leverage*
success success company
(Project Opportunity 1…Project Opportunity N)

*Strategic leverage: ability of the project to employ and
elevate company resources and skills
PM in Action: Technology Enabled Portable Classrooms vs. Mobile
Classroom 5-28

I. preamble
Project Path
Movie Making
Script Storyboard Production Locatio

s Design n
Scoutin
g
Working Approving
Shooting Overseein Attending
IDEA with the the final
Schedules g Shoot Festivals
Editor edit
Finding
Composer(s)
Production Cast
Casting Practice for soundtrack
Schedules Selectio
s
n
5-29
I. preamble
5-30
I. preamble
The Wimpy Kid Movie Diary
5-31
I. preamble
It sounded good when we

started...
5-32
I. preamble
In the initial weeks upon implementation, we often

find that:
• We have left things out of the plan,

• We have to change the way that we will do the
work,
• Some of the estimates for time, effort, and costs
have been challenged, and
• The project sponsor or client has requested
additions to the scope
5-33
I. preamble
• The most effective way to do it, is

to do it (Amelia Earhart)
• Sometimes things go wrong to

teach you what is right (Alice
Walker)
5-34
II. Force-Field Analysis
5-35
Force-Field Analysis
 List driving forces and opposing forces

 Draw a diagram showing the forces
 (Optional) Assign a score for each force,
where 1=weak and 5=very strong
 (Optional) Sum the forces for and
against the change
5-36
Force-Field Analysis
opposing forces driving forces
wrong estimates (-5) Model-based decision tools (3)

Finish on
time Model-based guidelines (5)
problem team mates (-2)
Within
scope issues (-5) budget Forecasting tools (4)
Obtain
conflicting agendas (-3) the Quality by design (5)
highest
possible
poor communication (-4) Accountability (5)
quality
Total: -14 Total: 22

5-37
III. MetaModel
5-38
MetaModel
Brief Observations/Assessment
HSBC, CISCO
vs. The Wimpy Kid Movie Diary
Strategic Responses (from good

to great)
5-39
MetaModel
Brief Observations/Assessment
concerning
Current issues
Trends in Today’s Project Environment
5-40
MetaModel
Current issues
• The traditional view of a ‘project’ is incomplete
(e.g. outputs vs. benefits)
• Unreliable statements of project scope
• Commitment to infeasible projects
• Breadth of stakeholders
• The need for clarity about project
accountabilities
• The project manager’s place in the
organizational structure
5-41
MetaModel
Trends in Today’s Project

Environment
• High rates of failure
• Disagreement on methodologies and techniques
• Project complexity
• Emergence of programs and portfolios
• Globalization
• Digital world
5-42
MetaModel
Strategic Responses: from good to great

We propose several different
pathways (i.e. the power of the
collective) based on the concept of
recombination.
It is suggested that collective intelligence (e.g.
model thinking) and experience can help
mitigate the effects of project system problems
and execution biases
5-43
MetaModel
from good to great (our MetaModel)

the power of the collective
Culture
Life-World
Education
HSBC, CISCO
The Wimpy Kid Movie Diary
(Project Success=budget, schedule, performance, client

acceptance, dynamic capabilities)
Metamodeling" is the construction of a collection of "concepts" (things, terms, etc.) within a certain domain
(http://en.wikipedia.org/wiki/Metamodeling).
Our MetaModel: from good to great
Awareness of
other
Intellectual Bubble Maps
stakeholders
creativity
Kerzner’s project
management maturity model
The Cynefin Framework
Intellectual
imitation
Self-
awareness
Performance Learning
Paradigm Paradigm
5-45
from good to great
Awareness of
other
Intellectual
stakeholders
creativity
Bubble Maps
Search
routine
(Thinking
and
Intellectual Operating routine playing
imitation (Doing things) with
Self- ideas)
MS Project 2007, 2010, 2013,…
awareness
Performance Learning
Paradigm Paradigm
5-46
from good to great
Soft skills
Awareness of Cooperative
other knowledge Intellectual
stakeholders
creativity
Active
experience
Integrated Project
Management Search
routine
Domain/Task
knowledge
Intellectual Operating
Self- imitation routine
awareness
Passive
experience Performance Learning
Paradigm Paradigm
5-47
from good to great
reflective practitioners
Awareness of Cooperative
other knowledge Intellectual
stakeholders
creativity
Active
experience
Search
Project Scope Management routine
Domain/Task
knowledge
Intellectual Operating
Self- imitation routine
awareness
Passive
experience Performance Learning
Paradigm Paradigm
5-48
skilled technicians
IV. (Project) Scope
Management
Chapter 5
Project Profile (pp.32-33)
Case Study 5.3 (pp.159-160)
5-49
Agenda 0. Project Scope, Kickoff Meetings, Initial
Guidance, Subsequent Guidance
1. Conceptual Development
2. The Scope Statement
Process
3. Work Authorization
4. Scope Reporting
5. Control Systems
6. Project Closeout
7. Managing Scope Change
8. Conflict Resolution 5-50

There are 3 sorts of trigger for
projects:
• Opportunistic projects: arising
from opportunities to enhance
Book Proposal
performance
• Imposed projects: imposed by the
environment in which the organization operates
Play Time - RESTAURANT SCENE
http://www.youtube.com/watch?v=VBF0NobWjEI
• Strategy implementation projects:

emerging from a consciously stated strategic
imperative 5-51
The ultimate goal of PM is: _____
Defining (Ch.5) Delivering
Unfortunately,
• The traditional view of a ‘project’ is incomplete (e.g. outputs vs. benefits)
• The need for clarity about project accountabilities
• The project manager’s place in the organizational structure
• Generation Y
What to do?
We need to uncover the issues and parameters at the core
(defining, planning, scheduling,..) of our projects 5-52
0. Project Scope, Kickoff Meetings, Initial
Guidance, Subsequent Guidance
1 7
3 4 5 6
14
Project Scope vs. Project Scope Management
8
2 10
9 13
12
11
A number of TOY models that give us a deep
insight…
Kickoff Meetings
5-53
Initial Guidance vs. Subsequent Guidance
0.A. Project Scope
Project scope is everything about a

project – work content as well as
expected outcomes.
a comprehensive project scope

analysis (see next slide)
5-54
Question 1. What are the primary benefits of
developing a comprehensive project scope
analysis (text, p.157)?
• A comprehensive project scope analysis serves several
benefits that permit a company to guide the dream of a
project to a successful completion.
• One benefit is transforming the idea of the project into a
working concept.
• Once the concept is developed, project details can be
mapped out. Scope analysis outlines each step of the
project in a detailed manner. The primary benefit to this
is it aligns the project so that the final product will be
consisted with the original goals/objectives.
• By outlining each step, scope analysis increases the
likelihood that the project will stay within budget and time
constraints as well as meet predetermined specifications
and quality parameters.
5-55

0.A. Project Scope Management
(Project) Scope management is the
function of controlling a project in terms of its goals
and objectives and consists of:
(Scope Model A, Dr. Kuei) 1. scope; 2. project

structure and risks; 3. resources needed; 4.
expected outcomes
(Scope Model B, our text)

1) Conceptual development 4) Scope reporting
2) Scope statement 5) Control systems
3) Work authorization 6) Project closeout
5-56

0.A. Project Scope Management
Toy Scope Model A
1 7
3 4 5 6
14
vs.
8
2 10
9 13
12
11
Toy Scope Model B

5-57
Toy Scope Model A
Analyze the project profile on pages 32-33 (project management
improves Lenovo’s bottom line) of the Pinto text using the
following model (template): Resources
Project structure (allocation,
(tasks, CPM, PERT) the baseline effectiveness)
2.1. Needs
3.1. Process 3.2. Resource

limit limit
4.1 Resource
1.1. Total 4.2 Work Authorization use
work required
5.1 Feedback
1.2.
Performance
Performance
defined
(time, quality,
cost,…..)
Scope
(project Targets (time,
scope) 5.2 Control quality, cost,……)
2.2.
Risks/Concerns 5-58
project profile on pages 32-33 (project management
improves Lenovo’s bottom line) of the Pinto text
(1) Strategic Projects: Expanding into new

markets
Solving underlying technical/administrative
problems
Improving efficiency
Integrating resources and improving employee
satisfaction
(2) Project Mgt. Office: transforming the idea of
strategic projects into a doable
concept/project.
5-59

Toy Scope Model A
Analyze the project profile on pages 32-33 (project management
improves Lenovo’s bottom line) of the Pinto text using the
following model (template): Resources
(tasks, CPM, PERT) the baseline effectiveness)
2.1. Needs
3.1. Process 3.2. Resource

limit limit
4.1 Resource
1.1. Total 4.2 Work Authorization use
work required
5.1 Feedback
1.2. into new markets
(1) Strategic Projects: Expanding
Performance
Performance
Solving underlying technical/administrative
defined problems
(time, quality,
Improving efficiency cost,…..)
Integrating
Scope resources and improving employee satisfaction
(project Targets (time,
(2) Project Mgt. Office: transforming the idea of strategic5.2
scope) projects
Controlintoquality,
a cost,……)
doable concept/project.
2.2.
Risks/Concerns 5-60
Toy Scope Model B
Process
4. Scope Reporting
5. Control Systems
6. Project Closeout
5-61
0.B. Kickoff Meetings
(using scope model A or scope model B)
The typical launch of a project begins with a kickoff meeting...
Project Manager, Subject Matter Experts

Stakeholders (SME), Functional Leaders
Kickoff Meetings
Scope Model A
Scope Model B (our Text) Scope reporting
Conceptual development
Control systems
Scope statement process
Work authorization Project closeout
Initial Guidance and Planning

Subsequent Guidance
Execution
5-62
Stakeholders
Parent
Organization
Other External
Functional Environment
Managers
Project Top
Clients Management
Manager
Project
Fig 2.3 Accountant Team
5-63

0.C. Initial Guidance: the statement of position
The Diamond Framework
1 7
3 4 5 6
14
vs.
8
2 10
9 13
12
11
0.D. Subsequent Guidance: the statement of work

5-64
Technology Project Examples of
0.C.The Diamond Your Choice
Framework High-tech
Medium-tech
Low-tech
Supply Chain Enterprise Function

System Derivative Platform Breakthrough
Complexity Initial Guidance Novelty
Regular
Competitive
Time-critical
Adapted from HBR 5-65

Pace
0.D. Subsequent Guidance: the statement of work
0.D. What is a Fishbone Diagram?
Cause and Effect (Fishbone) Diagram
 Enables a team to focus on the content of a
problem, not on the history of the problem or
differing personal interests of team members
 Creates a snapshot of collective knowledge and
consensus of a team; builds support for solutions
 Focuses the team on causes, not symptoms
Effect
Cause 5-66
0.D. Subsequent Guidance
Resource
Requirements Risk
Description
The Statement of Work
and
Approach
Acceptance Estimated
Criteria time and cost
5-67

0.D. Subsequent Guidance
The Statement of Work (SOW) –

Parking Lot
Favored Plans Budget
Option Not to exceed $250,000 for all
Option 2 infrastructure items
1. Description 1
SOW
(Provide Funding Complete repaving before
Planning board
parking for approval homecoming football game
approval
3000 vehicles)
Do not interfere with any other
Constraints Timing scheduled games
5-68
Our Unique, Workable Solutions>>>>
A number of TOY models that give us a deep

insight…
• The traditional view of a ‘project’ is incomplete (e.g. outputs vs. benefits)

• The need for clarity about project accountabilities
• The project manager’s place in the organizational structure
• Generation Y
Initial Guidance vs. Subsequent Guidance
Kickoff Meetings 5-69

Side track…
Go to MS Project Exercise 1
Process
4. Scope Reporting
5. Control Systems
6. Project Closeout
5-70
Scope Model B
(our Text)
The process that addresses project objectives by
finding the best ways to meet them.
Key steps in information development:

• Problem/need statement
• Information gathering (see for example the diamond
framework, Fishbone Diagrams, Dr. Kuei’s Scope
Model A)
• Constraints
• Alternative analysis
• Project objectives
5-71
The Statement of Work (SOW)
Statement of Work (SOW)

A SOW is a detailed narrative description of
the work required for a project.
Effective SOWs contain

1. Introduction and background
2. Technical description
3. Timeline and milestones
4. Client expectations
5-72

A comprehensive SOW can be
found in Table 5.2
Text, pp.139-140
Introduction and Technical description

background
Timeline and milestones Client expectations
5-73

Example in Point:
Cisco Systems, Inc.
• In January of 1994, the company was largely
shut down for two days (problems with its legacy
environment)
• “we cannot wait casually by while order entry,
finance, and manufacturing go out and make
three separate decisions (Cotteleer, 1998).”
5-74
Example in Point:
Cisco Systems, Inc.
In late 1993, a director in
manufacturing: “we knew we
were in trouble.”
Risk Manufacturing,
Resource Financial, Order Entry
Requirements Process Change
Strong Best Scope

partners* people change**
Description and The Statement of Work
Approach 15
Stabilization
9- million
Cooperation month
Kickoff: 6/2, 1994
Acceptance Estimated Prototype setup complete: 7/22 , 1994
Criteria time and cost Team training: 7/31, 1994
Process, key data, modification designs
complete: 8/31, 1994
*:KPMG, Oracle (e.g. 30 developers were needed Hardware: 10/15, 1994
for 3 months to modify oracle to support the Critical interface: 12/1,1994
business of Cisco) .
**: data warehouse .
5-75
Scope Model B
2. The Scope Statement Process
(our Text)
The process that addresses project parameters prior to proceeding
to the development phase
The Scope Statement Process

1. Establish the project goal criteria
a) cost 1.1. Total
work required
b) schedule
1.2.
c) performance Scope Performance
(project Performance
d) deliverables scope)
defined (time, quality,
The Statement of Work cost,…..)
e) review and approval gates
2. Develop the management plan for the project
3. Establish a Work breakdown structure
(WBS)/Organization break structure (OBS)/
Responsibility Assignment Matrix (RAM)
4. Create a scope baseline 5-76

The difference between…
• Kickoff Meetings • The Scope Statement
Process
• Work Breakdown • Organization

Structure Breakdown Structure
5-77
2.1. Work Breakdown Structure

a process that sets a project’s Project structure
(tasks, CPM, PERT)
scope by breaking down its
overall mission into a cohesive Work Breakdown
set of synchronous, increasingly Structure
specific tasks.
1.1. Total
What does WBS accomplish? work required
 Echoes project objectives

Scope
 Offers a logical structure (project
scope)
 Establishes a method of control The Statement of Work
 Communicates project status

 Improves communication
 Demonstrates control structure
5-78

1. Commit Example in Point: Work Breakdown Structure

2. Start Describe the overall project:
3. 1.0 Major Activity Level 1 sub Level 2 sub Level 3 sub

activities activities activities
Analyze ERP Project 1.1 Commit 1.1.1
4. Configure (Integrate the package)

5. Test
1.2 Start 1.2.1
6. Change
7. Support
1.3 Analyze 1.3.1
8. Convert
10. Go-live
5-79
11.Copyright
Improve © 2010 Pearson Education, Inc. Publishing as Prentice Hall
An example of WBS for a project

is shown in Figure 5.5
Text, p.145
An example of Project
Description Form for WBS 1.4.1
is shown in Figure 5.6
Text, p.146
5-80

Work Breakdown Structure and Codes

1.0 The project is the
overall project under
development
1.2 1.3 1.4
Deliverables are
1.2.1 1.3.1
major project
components
1.2.2 1.3.2
1.2.3 Sub-deliverables are

supporting deliverables
1.2.3.1
Work Packages are
1.2.3.2
individual project activities
5-81

Questions to Ponder:
You have just been instructed to develop a schedule for
introducing a new product into the marketplace. Below
are the elements that must appear in your schedule.
Arrange these elements into a work breakdown structure
(down through level 3), and then draw the arrow diagram.
Production layout Reviewing plant Market testing Selecting

costs distributors
Analyzing selling Layout artwork Analyzing customer Approving
cost reactions artworks
Storage and Trade show Selecting Distributing new
shipping costs salespeople products
Training Billing procedures Training distributors Credit procedures
salespeople establishment establishment
Literature to Revising cost of Literature to Revising selling
salespeople production distributors cost
Printing literature Approvals* Promotion Review meeting*
Sales manual Final specifications Trade advertising Material

requisitions
*: approvals and review meetings can appear several times. 5-82

Project structure
(tasks, CPM, PERT) 1.0 introducing a new product
1.1 Study
Deliverables 1.2 1.3 1.4 Manufacturing/Service
Product Development Marketing/Sales
Sub-deliverables 1.3.1 Selecting salespeople

1.3.1.1 Developing criteria for decision
Work Packages 1.3.1.2 Contacting winners
1.3.2 Training salespeople
1.3.3 Sales manual
1.3.4 Literature to salespeople

Work Breakdown Structure
1.1. Total
work required
Scope
(project
scope)
5-83

Defining a Work Package

1.3.1 Selecting salespeople
Lowest level in WBS (1.3.1.1 Developing criteria for decision)
Deliverable result
One owner
Miniature projects
Milestones
Fits organization
Trackable
5-84

Sample WBS in MS Project
Deliverables are
major project
components
• Text, p.146 Sub-deliverables are

supporting deliverables
5-85

Question 3. What are the key characteristics of a

work package (text, p.157)?
• A work package is a specific step of the project. Work

packages are smaller pieces of the whole project, which
are more manageable and definable than the whole.
They create a chronological map from one step to the
next detailing what needs to be completed at each stage.
Each work package includes its own deadline, resource
requirements and supervisor. Work packages can be
further broken down into subtasks that can be assigned
to an individual worker or group. Collectively, all the
work packages of a project combined lead the project
team from the start to completion of the project.
5-86

2.2. Organization Breakdown Structure
Organization Breakdown Structure (OBS) allows

• Work definition
• Owner assignment of work packages
• Budget assignment to departments
OBS links cost, activity & responsibility
5-87

Figure 5.8 The Intersection of the WBS and OBS
Text, p.147
See also p.150
(Figure 5.10)
5-88

2.3.Responsibility Assignment Matrix (Figure 5.11, text, p.151)

LEAD PROJECT PERSONNEL
Task
Dave Sue Ann Jim Bob
Deliverable & Code IS HR R&D R&D IS
Match IT to Problem
Org. Tasks Analysis 1.1.1
1.1
Develop
info 1.1.2
Identify IS Interview
user needs users 1.2.1
1.2
Develop
1.2.2
show
Gain user
“buy in” 1.2.3
Prepare Find cost/ 1.3.1
proposal 1.3 benefit info
Notification Responsible Support Approval
5-89

Resources
(tasks, CPM, PERT) effectiveness)
1.0
2.1. Needs Responsibility
Assignment
1.2 1.3 1.4 3.1. Process 3.2. Resource Matrix
limit limit
4.1 Resource
1.1. Total 4.2. Work Authorization use
Scope work required
(project
scope)

Sue (HR) Steve (Marketing)
1.3.1.1 Developing criteria
for decision
1.3.1.2 Contacting winners
5-90

Scope Model B
(our Text)
The formal “go ahead” to begin work
Follows the scope management steps of:

1. scope definition
2. planning documents
3. management plans
4. contractual documents
5-91

Contractual Documentation
Most contracts contain:
Requirements
Valid consideration
Contracted terms
Contracts range from:

Lump Sum Cost Plus
also called
The profit is fixed, the
“Turnkey” responsibility is
minimal
5-92

Scope Model B
4. Scope Reporting
(our Text)
4. Scope Reporting
determines what types of information reported,
who receives copies, when, and how
information is acquired and disseminated.
Typical project reports contain

1. Cost status
2. Schedule status
3. Technical performance
5-93

Analyzing strategic
relevance for
Balanced Scorecard Business/PM success
Developing key
performance
indicators (KPIs)
Collecting data and

providing information
Scope Reporting Internal and external

communication and reporting of
PM performance
5-94

The economic cost and benefit of a project investment over time – four balanced
scorecard categories
cost reduction revenue expansion
Increase competitive
Reduce Increase profits advantage
asset costs
Financial
Increase
competence
Increase
Customer Customer
Satisfaction
Reduce total Reduce

transaction
Process cost of
costs
purchased
items
Reduce Improve
errors and risk mgt.
rework
Employee Reduce Increase Reduce Make better
decisions
Learning employee productivity labor cost
turnover
and Growth 3-95
5-95
Adapted from Keen and Digrius, 2003
The economic cost and benefit of a project investment over
time
(when considering investment in projects, both the benefits of cost
reduction and revenue expansion effects must be considered)
Project Benefits (e.g. revenue expansion)

Approval
Benefits (e.g. cost reduction)
Maintenance Cost
Time
Capital
Cost
Maximum Maximum
Effect of Effect of
Stable/Cap Sales
able Increase
Project System System
Completion Stabilized
We can use net present value methods to evaluate

projects 5-96
Sue (HR) Steve (Marketing)
1.3.1.1 Developing criteria

for decision
1.3.1.2 Contacting winners Resources
(tasks, CPM, PERT) The baseline effectiveness)
1.0
2.1. Needs Responsibility
Assignment
1.2 1.3 1.4 3.1. Process 3.2. Resource Matrix
limit limit
4.1. Resource
1.1. Total use
Scope work required Scope Reporting 4.2. Work Authorization
(project
scope) 1.2. 5.1. Feedback
Performance Performance
defined (time, quality,
The Statement of Work cost,…..)
5.2. Control Targets (time,

quality, cost,……)
2.2.
Risks/Concerns
5-97
Question 6. Develop an argument for scope reporting
mechanisms. At a minimum, what types of reports do you
consider necessary for document control of a project?
Why? (text, p.157)
• Two main concerns of project scope are seeing that the project
meets time and budget constraints. Without some sort of limits (i.e.
project scope), projects can quickly become expensive, long-term
investments of a company’s time and resources.
• Scope reporting can help reduce the risk of such runaway projects.
Reports that update on costs incurred using S-curves and variance
updates are important for keeping the project within budget
constraints.
• These reports may also serve as control mechanisms. If team
members know they will have to publish spending reports frequently
to other members in the organization, they may be less likely to
approve unscheduled expenditures.
• Reports related to adherence to the planned time schedule work in a
similar fashion. If the project begins to lag behind, team members
may have more incentive to look for the cause of the delays if they
are required to report variances from the planned time table.
5-98

Scope Model B
5. Control Systems
(our Text)
Planning + Execution + Control

Selected Planning
Stream of Upper
Projects
Possible Projects Level
Mgt.
WBS/OBS/RAM
Types of Control Systems
 Configuration Mgt.( this is the
The baseline
systematic mgt. and control of Work Authorization
and Release
project change)
 Design Data Collection
Control
 Trend monitoring
 Document Scope Reporting
 Acquisition
 Specification
5-99

The Project Management Body of
Knowledge (PMBoK) defines configuration
mgt as “a system of procedures that
monitors emerging project scope against
the scope baseline. It requires
documentation and management approval
on any change to the baseline.”
An example of configuration management for a project is shown in Figure

5.12 Text, p.155
The need to make project changes and

specification adjustments: (1) initial planning
errors, (2) additional knowledge of project or
environmental conditions, (3) client requests,
(4) uncontrollable mandates
5-100

Scope Model B
6. Project Closeout
(our Text)
6. Project Closeout
The job is not over until the paperwork is done…
Closeout documentation is used to:

Resolve disputes
Train project managers
Facilitate auditing
Closeout documentation includes:

Historical records
Post project analysis
Financial closeout
5-101

Question 8. What is the logic behind
developing a plan for project close-out prior
to even beginning the project? (text, p.157)
• Upon completion of the project, certain documentation
will be required by management and/or the client
involved. The documentation may be used for legal
purposes, as training material or in auditing procedures.
Therefore, it is important that the closeout information be
thorough and accurate.
• Creating a plan early on is important because proper
documentation may need to be performed as the project
progresses. By knowing what information will be required
at the end of the project, the team can keep proper
records at various stages as the project advances.
• Trying to create this documentation after the fact may be
difficult or inaccurate.
5-102

8. Conflict Resolution
5-103

• Scope changes on a project can occur regardless

of how well the project is planned and executed.
• Factors to consider for scope changes: changes

in technology, customers’ requirements, business
needs, ineffective pre-planning activities during
the planning stage
• One possible solution: clustering all scope

changes together to be accomplished later as an
enhancement project
5-104

8. Conflict Resolution
What is Conflict?
What is Conflict?
Conflict is the result of differing mental

models (perceptions, assumptions,
and/or values).
5-105

Thomas, K.W., and R.H. Kilmann. Thomas-Kilmann Conflict
Mode Instrument. Sterling Forest, NY: Xicom, Inc., 1974.
assertive, cooperative (enjoy

problem solving in engaged, interactive ways)
intermediate assertiveness and cooperativeness
unassertive, uncooperative (Adept at deferring & dodging confrontational aspects)
5-106

Methods for Resolving Conflict
Structured problem solving

Confronting conflict
Preventing Conflict
5-107

The Conflict Process
Conflict
Resolution
Potential
Opposition Behavior
Outcomes
Cognition
Time
5-108

Case Study 5.3 (pp.159-160)
5-109

Q1
• How would you begin redesigning
Dotcom.com’s PM processes to minimize the
problems they are experiencing with poor scope
management?
• Hint: Dr. Kuei’s Scope Model A
5-110

Q2
• If you were to hold a meeting with a potential
customer, what message would you want them
to clearly understand?
• Hint: the scope baseline
5-111

Q3
• How would you construct the scope statement

for the project in question ?
• Hint: Table 5.2 or Fishbone Diagrams
5-112
V. MS Project Exercise 1
Exercise 9.3
(text, p.287)
5-113
Creating a task list
1. Entering tasks
2. Entering a milestone
3. Documenting tasks
4. Organizing tasks into phases
Exercise 9.3
5-114

1.1 Entering tasks
• Enter the following task names/information:
Activity Duration Predecessors
1: Survey site 5 days _
2: Install sewer and 9 days 1

storm drainage
3: Install gas and 4 days 1
electric power lines
4: Excavate site for spec 2 days 2,3
house
5: Pour foundation 2 days 4
1.2 Linking tasks (e.g. click on Task 2, click on Task

Information, find Predecessors, select Task 1)
Save this as EX9.3 5-115

Exercise 9.3
(text, p.287)
5-116

2. Entering a milestone
• Click the name of task 2
• On the Insert menu, click New Task
• Type survey complete
• In the duration field, type 0 (milestones are
represented as tasks with zero duration)
• Press ‘Enter’
• Review the new chart
5-117

3. Documenting tasks
• Select the name of task 2, survey complete
• On the Project menu, click Task Notes
• In the Notes box, type this is a milestone
• Click OK
5-118

4.1. Organizing tasks into phases
• Select the ‘Install sewer and storm drainage’
task (original job 2), and the ‘Install gas and
electric power lines’ task (original job 3)
• On the Project menu, point to Outline, and then

click Indent
• Task 2 (survey complete) becomes a summary
task.
5-119

4.2. MS Project Exercise - Organizing
tasks into phases
• Text, p.161
• Remodeling an Appliance
• Using the information provided, organize tasks
into phases.
5-120

MS Project Exercise
Text, p.161
5-121

Using the information provided below, construct a simple WBS table for the project example.
Project Outline – Remodeling an Appliance
I Research Phase
A. Prepare product development proposal
1) Conduct competitive analysis
2) Review field sales reports
3) Conduct technological capabilities assessment
B. Develop focus group data
C. Conduct telephone surveys
D. Identify relevant specification improvements
II Design and Engineering Phase
A. Interface with Marketing staff
B. and so on
III Testing Phase
IV Manufacturing Phase
V Sales Phase
5-122

Your final output should resemble the following:
5-123

Example in Point Construction – single-
(Meeting 1) family residences
Tom is the owner of ABC
construction, a general Figure 1
contracting company that Source: Ragsdale, 2004, p.705
specializes in the
construction of single-
family residences and
small office buildings. Tom
has numerous
construction projects
going on at the same time
and needs a formal
procedure for planning,
monitoring, and controlling (Project) Activity: An element of work performed during the
each project. One of them course of a project. It has an expected duration, an
expected cost, and expected resource requirements.
is shown in Figure 1. 5-124

I. Preamble Ii. Force-Field Analysis Iii. Metamodel Iv. Textbook V. Ms Project Exercise 1

Caricato da

Informazioni sul documento

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

I. Preamble Ii. Force-Field Analysis Iii. Metamodel Iv. Textbook V. Ms Project Exercise 1

Caricato da

Copyright:

Formati disponibili

MGT 357 Project Management for

Selecting (The GE way, AHP,,…)

The Cynefin Framework

Project Demeter Technology X

Project Cairo Technology X

Based on your analysis, which project would you argue

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Project Cairo Technology X

Based on your analysis, which project would you argue

Analytic Hierarchy Process

Select the best Project

Technology Ease of TransitionProjected Cost Savings

Based on your analysis, which project would you argue

Project: A unique, goal-oriented, time-bound, and constrained

The World of Skyscraper

what are lessons learned?

Strategic Develop Architecture Evaluate

Test Run Review

Monitor/Operations Maintain Install and Implement

• Complex, one-time processes

• Developed to resolve a clear goal or set of

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Project: A unique, goal-oriented, time-bound, and constrained

• ERP is the short form for Enterprise Resource Planning

Cisco Systems, Inc.

In late 1993, a director in

Strong Best Scope Meeting 3

what are lessons learned?

Project Benefits (e.g. revenue expansion)

Soft skills in CISCO

Project: A unique, goal-oriented, time-bound, and constrained

Project: A unique, goal-oriented, time-bound, and constrained

Example in Point 2: Mon Trafic (Traffic) 1971

Pre- Production Post- Distribution Exhibition

Project Selection (Meeting 2)

Project Scope (Meeting 3) 5-20

Conceptualizati Planning Execution Termination

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Project Selection - Systems Thinking

• The efficient frontier would be a line running

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Select the best Project

Probability of Probability of Reward to Business Strategic

(Project Opportunity 1…Project Opportunity N)

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Script Storyboard Production Locatio

what are lessons learned?

The Wimpy Kid Movie Diary

It sounded good when we

In the initial weeks upon implementation, we often

• We have left things out of the plan,

• The most effective way to do it, is

• Sometimes things go wrong to

 List driving forces and opposing forces

wrong estimates (-5) Model-based decision tools (3)

Total: -14 Total: 22

Strategic Responses (from good

Trends in Today’s Project Environment

Trends in Today’s Project

Strategic Responses: from good to great

from good to great (our MetaModel)

(Project Success=budget, schedule, performance, client

Project Profile (pp.32-33)