TEAMFLY Team-Fly ® Page iii Modern Project Management Successfully Integrating Project Management Knowledge Areas and Processes Norman R. Howes Page iv 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 Cataloging-in-Publication Data Howes, Norman R. Modern project management: successfully integrating project management knowledge areas and processes / Norman R. Howes. p. cm. Includes bibliographical references and index. ISBN 0 -8144-0632-7 1. Industrial project management. I. Title. 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 Subdivision of the Work 16 2.2 Quantification of the Work 23 2.3 Using Modern Project to Create a WBS 26 2.3.1 Entering WBS Information 27 2.3.2 The WBS Listing Report 32 2.3.3 Entering Task Data 34 2.3.4 The Task Budget Listing Report 37 2.4 Sequencing the Work 39 2.5 Budgeting (Estimating) the Work 43 2.5.1 Using the Cost Accounts Entry/Edit Tool 47 2.5.2 Budget Reports 50 2.6 Scheduling the Work 54 2.7 The Baseline Chart 62 Chapter 3. Project Monitoring 67 3.1 Collecting Actual Expenditures 68 3.2 Cost Reports 72 3.3 Progress Tracking 74 Page vi 3.4 Progress and Status Reports 83 3.5 Scientific Forecasting 84 Chapter 4. Project Performance Evaluation 105 4.1 How is performance evaluated? 106 4.2 Performance Evaluation Reports 110 4.3 Variance Analysis 114 4.3.1 Cost Variances 114 4.3.2 Schedule Variances 116 4.3.3 Variance Reporting 118 4.3.4 The Cost Performance Ratio 119 4.3.5 The Schedule Performance Ratio 122 Chapter 5. Productivity Measurement 125 5.1 Unit Rates 126 5.2 The Productivity Ratio 130 5.3 The Productivity Report 131 5.4 The Importance of Productivity Measurement 132 Chapter 6. Alternate Views 135 6.1 Expanding the Task List 136 6.2 The Expanded Cost Accounts 138 6.3 The Expanded Transaction Lists 142 6.3.1 New Cost Transactions 142 6.3.2 New Progress Transactions 145 6.3.3 New Variance Transactions 150 6.4 Expanded Budget and Cost Reports 150 6.5 The Organizational Breakdown Structure (OBS) 153 6.5.1 Building Alternate Hierarchies 155 6.5.2 Exporting Alternate Hierarchies into the Project Database 160 6.5.3 Hierarchy Maintenance 162 Chapter 7. Interfacing Scheduling Systems 167 7.1 Task Sequencing with Microsoft Project 167 7.1.1 Task - Naming Convention 168 Page vii 7.1.2 Task Sequencing 169 7.2 Resource Scheduling 179 7.2.1 Simple Scheduling 179 7.2.2 The Critical Path 185 7.2.3 Resource Scheduling 188 7.2.3.1 How Resources Are Communicated to the Scheduling System 190 7.2.3.2 Using Microsoft Project to Produce the Resource List 192 7.3 Pros and Cons of an Automated Interface 200 7.4 The Automated Interface to Microsoft Project 204 Chapter 8. Government Projects 211 8.1 Historical Perspective 211 8.2 Government Project Management Models 214 8.3 Government Project Management Vocabulary 217 8.3.1 Multibudgeting vs. the TAB 218 8.3.2 The Meaning of WBS 220 8.3.3 Government Performance Reporting 224 8.3.4 Additional Performance Measures 228 Chapter 9. Risk Management 231 9.1 Quantification of Risk 231 9.2 Contingency Draw - Down 234 9.3 Statusing Contingency Packages 240 9.4 Risk Management Summary 241 Chapter 10. Rescuing a Failing Project 243 10.1 Determining What Went Wrong 243 10.2 Project Definition 246 10.3 Translating a Definition into a Plan 248 10.4 Replanning 250 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- 7. 46 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 [...]... example project 120 Figure 4-6 Cost Performance Trend Chart (later data) for example project 122 Figure 4-7 Schedule Performance Trend Chart for example project 123 Figure 5-1 Example Productivity Report for example project 132 Figure 6-1 Additional tasks added to the example project database 138 Figure 6-2 Baseline Chart including new tasks 139 Figure 6-3 Additional cost accounts for example project. .. Report for example project 151 Figure 6-1 1 Updated Status Report for example project 152 Figure 6-1 2 OBS hierarchy for example project 154 Figure 6-1 3 Alternate hierarchies menu 156 Figure 6-1 4 Database window showing hierarchy tables 157 Figure 6-1 5 OBS table for example project 158 Figure 6-1 6 Save As window 158 Figure 6-1 7 Database window showing revised hierarchy tables 159 Figure 6-1 8 Save Table window... example project 197 Figure 7-1 3 Split screen for specifying man-hours by labor pool 199 Figure 7-1 4 Revised resource sheet view of labor pools 199 Figure 7-1 5 Entry table in Gantt chart view 205 Figure 7-1 6 File Save window 205 Figure 7-1 7 Export Format window 206 Figure 7-1 8 Import window 207 Figure 7-1 9 Import HTML Wizard 208 Figure 8-1 Abstract model of a government project 215 Figure 8-2 The Total... computer tools they use to do it Included with this book is a project management tool set called Modern Project that provides tools for doing all the project management tasks discussed in this book It can be installed on a personal computer and used to help you learn about project management or to manage real-world projects While project management is practiced as a sophisticated profession in some... practical aspects of project management To a large extent, modern project management theory and methodology (the practical aspect) take into consideration the Page 2 psychological and motivational aspects of project management and are designed to communicate the standards and measures that project management is using to the project workforce Also, several current books on project management deal extensively... rescuing a failing project If you are trying to learn about project management for a large project, you should take a look at that material as you read Chapter 2 or consult a book on requirements engineering In this book we differentiate between general management and project management While project management shares many of the concerns and methods of general management, project management is different... 174 Figure 7-5 Task list for example project 176 Figure 7-6 Task sequencing for example project 178 Figure 7-7 Gantt chart of example project schedule 184 Figure 7-8 Blank resource sheet screen 193 Figure 7-9 Resource sheet showing labor pools 194 Figure 7-1 0 Assign Resources window showing labor pools 196 Figure 7-1 1 Assign Resources window showing size of two labor pools 197 Figure 7-1 2 Updated Gantt... budgets 91 Figure 3-1 0a Variance descriptions for the example project 92 Figure 3-1 0b Variance quantity and labor-hour line items 92 Figure 3-1 0c Variance cost line items 93 Figure 3-1 1a Variance Descriptions Entry/Edit form 94 Figure 3-1 1b Variance Transactions (Qty/Mhrs) Entry/Edit form 95 Figure 3-1 1c Variance transactions (Costs) Entry/Edit form 96 Figure 3-1 2 WBS Listing 100 Figure 3-1 3 Qty/Mhr Variances... Variance Number 102 Figure 3-1 4 Qty/Mhr Variances by Work Package Number 103 Figure 4-1 Actual vs Earned labor-hours plotted against the Baseline 107 Figure 4-2 Earned Value Report (later data) for example project 111 Figure 4-3 Earned Value Report (earlier data) for example project 112 Page xi Figure 4-4 Cost and Schedule Variance Report for example project 119 Figure 4-5 Cost Performance Trend Chart...TE AM FL Y Figure 2-1 9 Start and end dates for Foundation control package Team-Fly® 59 Page x Figure 2-2 0a Step function spread curve 61 Figure 2-2 0b Linear approximation spread curve 61 Figure 2-2 0c Statistical or historical distribution spread curve 61 Figure 2-2 1 Time-phasing a summary-level control package 63 Figure 2-2 2 Example Baseline Chart (early data) 64 Figure 2-2 3 Example Baseline Chart . Modern project management: successfully integrating project management knowledge areas and processes / Norman R. Howes. p. cm. Includes bibliographical references and index. ISBN 0 -8 14 4-0 63 2-7 . bibliographical references and index. ISBN 0 -8 14 4-0 63 2-7 1. Industrial project management. I. Title. HD69.P75 H69— 2001 658.4'04 - dc21 00 - 045108 2001 Norman R. Howes. All rights reserved. Printed. 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.