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Discussion 5.1

What is the Model Builder? Explain. 
Provide the examples of the industries where it will it be the most useful.

Discussion 5.2

When will be useful to apply for Spatial Analyst extension? Give some examples. 

Minimum 110 words excluding references 

Case Study 6.1

Case Study 12.1 The Problems of Multitasking

How does multitasking confuse the resource availability of project team personnel?
“In modern organizations, it is impossible to eliminate multitasking for the average ­employee.” Do you agree or disagree with this statement? Why?
Because of the problems of multitasking, project managers must remember that there is a difference between an activity’s duration and the project calendar. In other words, 40 hours of work on a project task is not the same thing as one week on the baseline schedule. Please comment on this concept. Why does multitasking “decouple” activity duration estimates from the project schedule?

Writing Requirements

2-3 pages in length  (excluding cover page, abstract, and reference list)
APA 6th edition, Use the APA template located in the Student Resource Center to complete the assignment.
Please use the Case Study Guide as a reference point for writing your case study.

List of Cases by Chapter

Chapter 1
Development Projects in Lagos, Nigeria 2
“Throwing Good Money after Bad”: the BBC’s

Digital Media Initiative 10
MegaTech, Inc. 29
The IT Department at Hamelin Hospital 30
Disney’s Expedition Everest 31
Rescue of Chilean Miners 32

Chapter 2
Tesla’s $5 Billion Gamble 37
Electronic Arts and the Power of Strong Culture

in Design Teams 64
Rolls-Royce Corporation 67
Classic Case: Paradise Lost—The Xerox Alto 68
Project Task Estimation and the Culture of “Gotcha!” 69
Widgets ’R Us 70

Chapter 3
Project Selection Procedures: A Cross-Industry

Sampler 77
Project Selection and Screening at GE: The Tollgate

Process 97
Keflavik Paper Company 111
Project Selection at Nova Western, Inc. 112

Chapter 4
Leading by Example for the London Olympics—

Sir John Armitt 116
Dr. Elattuvalapil Sreedharan, India’s Project

Management Guru 126
The Challenge of Managing Internationally 133
In Search of Effective Project Managers 137
Finding the Emotional Intelligence to Be a Real Leader 137
Problems with John 138

Chapter 5
“We look like fools.”—Oregon’s Failed Rollout

of Its ObamacareWeb Site 145
Statements of Work: Then and Now 151
Defining a Project Work Package 163
Boeing’s Virtual Fence 172
California’s High-Speed Rail Project 173
Project Management at Dotcom.com 175
The Expeditionary Fighting Vehicle 176

Chapter 6
Engineers Without Borders: Project Teams Impacting

Lives 187
Tele-Immersion Technology Eases the Use of Virtual

Teams 203
Columbus Instruments 215
The Bean Counter and the Cowboy 216
Johnson & Rogers Software Engineering, Inc. 217

Chapter 7
The Building that Melted Cars 224
Bank of America Completely Misjudges Its Customers 230
Collapse of Shanghai Apartment Building 239
Classic Case: de Havilland’s Falling Comet 245
The Spanish Navy Pays Nearly $3 Billion for a Submarine

That Will Sink Like a Stone 248
Classic Case: Tacoma Narrows Suspension Bridge 249

Chapter 8
Sochi Olympics—What’s the Cost of National

Prestige? 257
The Hidden Costs of Infrastructure Projects—The Case

of Building Dams 286
Boston’s Central Artery/Tunnel Project 288

Chapter 9
After 20 Years and More Than $50 Billion, Oil is No Closer

to the Surface: The Caspian Kashagan Project 297

Chapter 10
Enlarging the Panama Canal 331
Project Scheduling at Blanque Cheque Construction (A) 360
Project Scheduling at Blanque Cheque Construction (B) 360

Chapter 11
Developing Projects Through Kickstarter—Do Delivery

Dates Mean Anything? 367
Eli Lilly Pharmaceuticals and Its Commitment to Critical

Chain Project Management 385
It’s an Agile World 396
Ramstein Products, Inc. 397

Chapter 12
Hong Kong Connects to the World’s Longest Natural

Gas Pipeline 401
The Problems of Multitasking 427

Chapter 13
New York City’s CityTime Project 432
Earned Value at Northrop Grumman 451
The IT Department at Kimble College 463
The Superconducting Supercollider 464
Boeing’s 787 Dreamliner: Failure to Launch 465

Chapter 14
Duke Energy and Its Cancelled Levy County Nuclear

Power Plant 478
Aftermath of a “Feeding Frenzy”: Dubai and Cancelled

Construction Projects 490
New Jersey Kills Hudson River Tunnel Project 497
The Project That Wouldn’t Die 499
The Navy Scraps Development of Its Showpiece

Warship—Until the Next Bad Idea 500

Project ManageMent
achieving coMPetitive advantage

Jeffrey K. Pinto
Pennsylvania State University

Boston Columbus Indianapolis New York San Francisco Hoboken Amsterdam
Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi

Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

F o u r t h E d i t i o n

To Mary Beth, my wife, with the most profound thanks and love for her unwavering
support. And, to our children, Emily, AJ, and Joseph—three “projects” that are definitely

over budget but that are performing far better than I could have hoped!

VP, Product Management: Donna Battista
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Field Marketing Manager: Lenny Raper
Strategic Marketing Manager: Erin Gardner
Project Manager Team Lead: Judy Leale
Project Manager: Nicole Suddeth
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Full-Service Project Management and Composition:
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Library of Congress Cataloging-in-Publication Data

Pinto, Jeffrey K.
Project management : achieving competitive advantage/Jeffrey K. Pinto.—Fourth edition.
pages cm
Includes index.
ISBN 978-0-13-379807-4 (alk. paper)—ISBN 0-13-379807-0 (alk. paper) 1. Project management. I. Title.
HD69.P75P5498 2016
658.4’04—dc23
2014036595

10 9 8 7 6 5 4 3 2 1

ISBN 10: 0-13-379807-0
ISBN 13: 978-0-13-379807-4

http://www.pearsoned.com/permissions/

iii

BrIEF COnTEnTS

Preface xiii

Chapter 1 Introduction: Why Project Management? 1

Chapter 2 The Organizational Context: Strategy, Structure, and Culture 36

Chapter 3 Project Selection and Portfolio Management 76

Chapter 4 Leadership and the Project Manager 115

Chapter 5 Scope Management 144

Chapter 6 Project Team Building, Conflict, and Negotiation 186

Chapter 7 Risk Management 223

Chapter 8 Cost Estimation and Budgeting 256

Chapter 9 Project Scheduling: Networks, Duration Estimation,
and Critical Path 296

Chapter 10 Project Scheduling: Lagging, Crashing, and Activity Networks 330

Chapter 11 Advanced Topics in Planning and Scheduling: Agile
and Critical Chain 366

Chapter 12 Resource Management 400

Chapter 13 Project Evaluation and Control 431

Chapter 14 Project Closeout and Termination 477

Appendix A The Cumulative Standard Normal Distribution 509

Appendix B Tutorial for MS Project 2013 510

Appendix C Project Plan Template 520

Glossary 524

Company Index 534

Name Index 535

Subject Index 538

iv

COnTEnTS

Preface xiii

Chapter 1 IntroduCtIon: Why ProjeCt ManageMent? 1
Project Profile: Development Projects in Lagos, Nigeria 2

Introduction 4

1.1 What Is a Project? 5
General Project Characteristics 6

1.2 Why Are Projects Important? 9
Project Profile: “Throwing Good Money after Bad”: the BBC’s Digital

Media Initiative 10

1.3 Project Life Cycles 13
◾ Box 1.1: Project Managers in Practice 15

1.4 Determinants of Project Success 16
◾ Box 1.2: Project Management Research in Brief 19

1.5 Developing Project Management Maturity 19

1.6 Project Elements and Text Organization 23
Summary  27  •  Key Terms  29  •  Discussion Questions  29
•  Case Study 1.1 MegaTech, Inc.  29  •  Case Study 1.2 The IT
 Department at Hamelin Hospital  30  •  Case Study 1.3 Disney’s Expedition
 Everest  31  •  Case Study 1.4 Rescue of Chilean Miners  32  •  Internet 
Exercises  33  •  PMP Certification Sample Questions  34  •  Notes  34

Chapter 2 the organIzatIonal Context: Strategy, StruCture,
and Culture 36

Project Profile: Tesla’s $5 Billion Gamble 37

Introduction 38

2.1 Projects and Organizational Strategy 39

2.2 Stakeholder Management 41
Identifying Project Stakeholders 42
Managing Stakeholders 45

2.3 Organizational Structure 47

2.4 Forms of Organizational Structure 48
Functional Organizations 48
Project Organizations 50
Matrix Organizations 53
Moving to Heavyweight Project Organizations 55

◾ Box 2.1: Project Management Research in Brief 56

2.5 Project Management Offices 57

2.6 Organizational Culture 59
How Do Cultures Form? 61
Organizational Culture and Project Management 63
Project Profile: Electronic Arts and the Power of Strong Culture in Design Teams 64

Summary  65  •  Key Terms  67  •  Discussion Questions  67  •  Case
Study 2.1 Rolls-Royce Corporation  67  •  Case Study 2.2 Classic Case:
Paradise Lost—The Xerox Alto  68  •  Case Study 2.3 Project Task Estimation
and the Culture of “Gotcha!”  69  •  Case Study 2.4 Widgets ’R Us 70
•  Internet Exercises  70  •  PMP Certification Sample Questions  70 
•  Integrated Project—Building Your Project Plan  72  •  Notes  74

Contents v

Chapter 3 ProjeCt SeleCtIon and PortfolIo ManageMent 76
Project Profile: Project Selection Procedures: A Cross-Industry Sampler 77

Introduction 78

3.1 Project Selection 78

3.2 Approaches to Project Screening and Selection 80
Method One: Checklist Model 80
Method Two: Simplified Scoring Models 82
Limitations of Scoring Models 84
Method Three: The Analytical Hierarchy Process 84
Method Four: Profile Models 88

3.3 Financial Models 90
Payback Period 90
Net Present Value 92
Discounted Payback 94
Internal Rate of Return 94
Choosing a Project Selection Approach 96
Project Profile: Project Selection and Screening at GE: The Tollgate Process 97

3.4 Project Portfolio Management 98
Objectives and Initiatives 99
Developing a Proactive Portfolio 100
Keys to Successful Project Portfolio Management 103
Problems in Implementing Portfolio Management 104

Summary  105  •  Key Terms  106  •  Solved Problems  107 
•  Discussion Questions  108  •  Problems  108  •  Case Study 3.1
Keflavik Paper Company  111  •  Case Study 3.2 Project Selection at Nova
Western, Inc.  112  •  Internet Exercises  113  •  Notes  113

Chapter 4 leaderShIP and the ProjeCt Manager 115
Project Profile: Leading by Example for the London Olympics—Sir John Armitt 116

Introduction 117

4.1 Leaders Versus Managers 118

4.2 How the Project Manager Leads 119
Acquiring Project Resources 119
Motivating and Building Teams 120
Having a Vision and Fighting Fires 121
Communicating 121

◾ Box 4.1: Project Management Research in Brief 124

4.3 Traits of Effective Project Leaders 125
Conclusions about Project Leaders 126
Project Profile: Dr. Elattuvalapil Sreedharan, India’s Project Management Guru 126

4.4 Project Champions 127
Champions—Who Are They? 128
What Do Champions Do? 129
How to Make a Champion 130

4.5 The New Project Leadership 131
◾ Box 4.2: Project Managers in Practice 132

Project Profile: The Challenge of Managing Internationally 133

4.6 Project Management Professionalism 134

vi Contents

Summary  135  •  Key Terms  136  •  Discussion Questions  136 
•  Case Study 4.1 In Search of Effective Project Managers 137
•  Case Study 4.2 Finding the Emotional Intelligence to Be a Real Leader 137
•  Case Study 4.3 Problems with John  138  •  Internet Exercises  141
•  PMP Certification Sample Questions  141  •  Notes  142

Chapter 5 SCoPe ManageMent 144
Project Profile: “We look like fools.”—Oregon’s Failed Rollout of Its Obamacare

Web Site 145

Introduction 146

5.1 Conceptual Development 148
The Statement of Work 150
The Project Charter 151
Project Profile: Statements of Work: Then and Now 151

5.2 The Scope Statement 153
The Work Breakdown Structure 153
Purposes of the Work Breakdown Structure 154
The Organization Breakdown Structure 159
The Responsibility Assignment Matrix 160

5.3 Work Authorization 161
Project Profile: Defining a Project Work Package 163

5.4 Scope Reporting 164
◾ Box 5.1: Project Management Research in Brief 165

5.5 Control Systems 167
Configuration Management 167

5.6 Project Closeout 169
Summary  170  •  Key Terms  171  •  Discussion Questions  171 
•  Problems  172  •  Case Study 5.1 Boeing’s Virtual Fence 172
•  Case Study 5.2 California’s High-Speed Rail Project  173  •  Case
Study 5.3 Project Management at Dotcom.com  175  •  Case Study 5.4
The Expeditionary Fighting Vehicle  176  •  Internet Exercises  178 
•  PMP Certification Sample Questions  178  •  MS Project Exercises  179 
•  Appendix 5.1: Sample Project Charter  180  •  Integrated Project—
Developing the Work Breakdown Structure  182  •  Notes  184

Chapter 6 ProjeCt teaM BuIldIng, ConflICt, and negotIatIon 186
Project Profile: Engineers Without Borders: Project Teams Impacting Lives 187

Introduction 188

6.1 Building the Project Team 189
Identify Necessary Skill Sets 189
Identify People Who Match the Skills 189
Talk to Potential Team Members and Negotiate with Functional Heads 189
Build in Fallback Positions 191
Assemble the Team 191

6.2 Characteristics of Effective Project Teams 192
A Clear Sense of Mission 192
A Productive Interdependency 192
Cohesiveness 193
Trust 193
Enthusiasm 193
Results Orientation 194

Contents vii

6.3 Reasons Why Teams Fail 194
Poorly Developed or Unclear Goals 194
Poorly Defined Project Team Roles and Interdependencies 194
Lack of Project Team Motivation 195
Poor Communication 195
Poor Leadership 195
Turnover Among Project Team Members 196
Dysfunctional Behavior 196

6.4 Stages in Group Development 196
Stage One: Forming 197
Stage Two: Storming 197
Stage Three: Norming 198
Stage Four: Performing 198
Stage Five: Adjourning 198
Punctuated Equilibrium 198

6.5 Achieving Cross-Functional Cooperation 199
Superordinate Goals 199
Rules and Procedures 200
Physical Proximity 201
Accessibility 201
Outcomes of Cooperation: Task and Psychosocial Results 201

6.6 Virtual Project Teams 202
Project Profile: Tele-Immersion Technology Eases the Use

of Virtual Teams 203

6.7  Conflict Management  204
What Is Conflict? 205
Sources of Conflict 206
Methods for Resolving Conflict 208

6.8 Negotiation 209
Questions to Ask Prior to the Negotiation 209
Principled Negotiation 210
Invent Options for Mutual Gain 212
Insist on Using Objective Criteria 213

Summary  214  •  Key Terms  214  •  Discussion Questions  215  •  Case
Study 6.1 Columbus Instruments  215  •  Case Study 6.2 The Bean Counter
and the Cowboy  216  •  Case Study 6.3 Johnson & Rogers Software
Engineering, Inc.  217  •  Exercise in Negotiation  219  •  Internet 
Exercises  220  •  PMP Certification Sample Questions  220  •  Notes  221

Chapter 7 rISk ManageMent 223
Project Profile: The Building that Melted Cars 224

Introduction 225
◾ Box 7.1: Project Managers in Practice 227

7.1 Risk Management: A Four-Stage Process 228
Risk Identification 228
Project Profile: Bank of America Completely Misjudges Its Customers 230

Risk Breakdown Structures 231
Analysis of Probability and Consequences 231
Risk Mitigation Strategies 234

viii Contents

Use of Contingency Reserves 236
Other Mitigation Strategies 237
Control and Documentation 237
Project Profile: Collapse of Shanghai Apartment Building 239

7.2 Project Risk Management: An Integrated Approach 241
Summary  243  •  Key Terms  244  •  Solved Problem  244  •  Discussion 
Questions  244  •  Problems  244  •  Case Study 7.1 Classic Case: de
Havilland’s Falling Comet  245  •  Case Study 7.2 The Spanish Navy Pays
Nearly $3 Billion for a Submarine That Will Sink Like a Stone  248  •  Case
Study 7.3 Classic Case: Tacoma Narrows Suspension Bridge  249  •  Internet 
Exercises  251  •  PMP Certification Sample Questions  251  •  Integrated 
Project—Project Risk Assessment  253  •  Notes  255

Chapter 8 CoSt eStIMatIon and BudgetIng 256
Project Profile: Sochi Olympics—What’s the Cost of National Prestige? 257

8.1 Cost Management 259
Direct Versus Indirect Costs 260
Recurring Versus Nonrecurring Costs 261
Fixed Versus Variable Costs 261
Normal Versus Expedited Costs 262

8.2 Cost Estimation 262
Learning Curves in Cost Estimation 266

◾ Box 8.1: Project Management Research in Brief 270
Problems with Cost Estimation 272

◾ Box 8.2: Project Management Research in Brief 274

8.3 Creating a Project Budget 275
Top-Down Budgeting 275
Bottom-Up Budgeting 276
Activity-Based Costing 276

8.4 Developing Budget Contingencies 278
Summary  280  •  Key Terms  281  •  Solved Problems  282 
•  Discussion Questions  283  •  Problems  284  •  Case Study 8.1 The
Hidden Costs of Infrastructure Projects—The Case of Building Dams 286
•  Case Study 8.2 Boston’s Central Artery/Tunnel Project  288  •  Internet 
Exercises  290  •  PMP Certification Sample Questions  290  •  Integrated 
Project—Developing the Cost Estimates and Budget  292  •  Notes  294

Chapter 9 ProjeCt SChedulIng: netWorkS, duratIon eStIMatIon,
and CrItICal Path 296

Project Profile: After 20 Years and More Than $50 Billion, Oil is No Closer to the Surface:
The Caspian Kashagan Project 297

Introduction 298

9.1 Project Scheduling 299

9.2  Key Scheduling Terminology  300

9.3 Developing a Network 302
Labeling Nodes 303
Serial Activities 303
Concurrent Activities 303
Merge Activities 304
Burst Activities 305

9.4 Duration Estimation 307

Contents ix

9.5 Constructing the Critical Path 311
Calculating the Network 311
The Forward Pass 312
The Backward Pass 314
Probability of Project Completion 316
Laddering Activities 318
Hammock Activities 319
Options for Reducing the Critical Path 320

◾ Box 9.1: Project Management Research in Brief 321
Summary  322  •  Key Terms  323  •  Solved Problems  323  • 
Discussion Questions  325  •  Problems  325  •  Internet 
Exercises  327  •  MS Project Exercises  328  •  PMP Certification 
Sample Questions  328  •  Notes  329

Chapter 10 ProjeCt SChedulIng: laggIng, CraShIng, and aCtIvIty
netWorkS 330

Project Profile: Enlarging the Panama Canal 331

Introduction 333

10.1 Lags in Precedence Relationships 333
Finish to Start 333
Finish to Finish 334
Start to Start 334
Start to Finish 335

10.2 Gantt Charts 335
Adding Resources to Gantt Charts 337
Incorporating Lags in Gantt Charts 338
◾ Box 10.1: Project Managers in Practice 338

10.3 Crashing Projects 340
Options for Accelerating Projects 340
Crashing the Project: Budget Effects 346

10.4 Activity-on-Arrow Networks 348
How Are They Different? 348
Dummy Activities 351
Forward and Backward Passes with AOA Networks 352
AOA Versus AON 353

10.5 Controversies in the Use of Networks 354
Conclusions 356
Summary  356  •  Key Terms  357  •  Solved Problems  357  •  Discussion 
Questions  358  •  Problems  358  •  Case Study 10.1 Project Scheduling
at Blanque Cheque Construction (A)  360  •  Case Study 10.2 Project
Scheduling at Blanque Cheque Construction (B)  360  •  MS Project 
Exercises  361  •  PMP Certification Sample Questions  361  •  Integrated 
Project—Developing the Project Schedule  363  •  Notes  365

Chapter 11 advanCed toPICS In PlannIng and SChedulIng: agIle
and CrItICal ChaIn 366

Project Profile: Developing Projects Through Kickstarter—Do Delivery Dates Mean
Anything? 367

Introduction 368

11.1 Agile Project Management 369
What Is Unique About Agile PM? 370

x Contents

Tasks Versus Stories 371
Key Terms in Agile PM 372
Steps in Agile 373
Sprint Planning 374
Daily Scrums 374
The Development Work 374
Sprint Reviews 375
Sprint Retrospective 376
Problems with Agile 376

◾ Box 11.1: Project Management Research in Brief 376

11.2 Extreme Programming (XP) 377

11.3 The Theory of Constraints and Critical Chain Project Scheduling 377
Theory of Constraints 378

11.4 The Critical Chain Solution to Project Scheduling 379
Developing the Critical Chain Activity Network 381
Critical Chain Solutions Versus Critical Path Solutions 383

Project Profile: Eli Lilly Pharmaceuticals and Its Commitment to Critical Chain Project
Management 385

11.5  Critical Chain Solutions to Resource Conflicts  386

11.6 Critical Chain Project Portfolio Management 387
◾ Box 11.2: Project Management Research in Brief 390

11.7 Critiques of CCPM 391
Summary  391  •  Key Terms  393  •  Solved Problem  393 
•  Discussion Questions  394  •  Problems  394  •  Case Study 11.1 It’s an
Agile World  396  •  Case Study 11.2 Ramstein Products, Inc. 397
•  Internet Exercises  398  •  Notes  398

Chapter 12 reSourCe ManageMent 400
Project Profile: Hong Kong Connects to the World’s Longest Natural

Gas Pipeline 401

Introduction 402

12.1 The Basics of Resource Constraints 402
Time and Resource Scarcity 403

12.2 Resource Loading 405

12.3 Resource Leveling 407
Step One: Develop the Resource-Loading Table 411
Step Two: Determine Activity Late Finish Dates 412
Step Three: Identify Resource Overallocation 412
Step Four: Level the Resource-Loading Table 412

12.4 Resource-Loading Charts 416
◾ Box 12.1: Project Managers in Practice 418

12.5 Managing Resources in Multiproject Environments 420
Schedule Slippage 420
Resource Utilization 420
In-Process Inventory 421
Resolving Resource Decisions in Multiproject Environments 421
Summary  423  •  Key Terms  424  •  Solved Problem  424  • 
Discussion Questions  425  •  Problems  425  •  Case Study 12.1 The
Problems of Multitasking  427  •  Internet Exercises  428  •  MS Project 
Exercises  428  •  PMP Certification Sample Questions  429  •  Integrated 
Project—Managing Your Project’s Resources  430  •  Notes  430

Contents xi

Chapter 13 ProjeCt evaluatIon and Control 431
Project Profile: New York City’s CityTime Project 432

Introduction 433

13.1 Control Cycles—A General Model 434

13.2 Monitoring Project Performance 435
The Project S-Curve: A Basic Tool 435
S-Curve Drawbacks 436
Milestone Analysis 437
Problems with Milestones 438
The Tracking Gantt Chart 439
Benefits and Drawbacks of Tracking Gantt Charts 440

13.3 Earned Value Management 440
Terminology for Earned Value 441
Creating Project Baselines 442
Why Use Earned Value? 443
Steps in Earned Value Management 444
Assessing a Project’s Earned Value 445

13.4 Using Earned Value to Manage a Portfolio of Projects 450
Project Profile: Earned Value at Northrop Grumman 451

13.5 Issues in the Effective Use of Earned Value Management 452

13.6 Human Factors in Project Evaluation and Control 454
Critical Success Factor Definitions 456
Conclusions 458
Summary  458  •  Key Terms  459  •  Solved Problem  459  • 
Discussion Questions  460  …

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