KERZNER

Project Management

From the intricate framework of organizational behavior and structure
that can determine project success to the planning, scheduling, and
controlling processes vital to effective project management, the new
edition thoroughly covers every key component of the subject. This
Tenth Edition features:

■

More than twenty-five case studies, including a new case
on the Iridium Project covering all aspects of project
management

■

400 discussion questions

■

More than 125 multiple-choice questions

Other powerful tools by Harold Kerzner:
Project Management Workbook and PMP®/CAPM® Exam Study Guide, Tenth Edition
(978-0-470-27872-7)

Program and Portfolio
Management at
International Institute of

Learning, Inc. (IIL), a global
learning solutions company
that conducts training
for leading corporations
throughout the world.

A S YS T E M S A P P R OAC H
TO P L A N N I N G,
S C H E D U L I N G,

New sections on scope changes, exiting a project, collective
belief, and managing virtual teams

PH.D., is Senior Executive
Director for Project,

A N D CO N T R O L L I N G

■

HAROLD KERZNER,

PROJECT

N

ow in a Tenth Edition, this industry-leading project management
“bible” aligns its streamlined approach to the latest release of
the Project Management Institute’s Project Management Body of
Knowledge (PMI’s PMBOK® Guide), the new mandatory source of

training for the Project Management Professional (PMP®) Certification Exam. This outstanding edition gives students and professionals
a profound understanding of project management with insights from
one of the best-known and respected authorities on the subject.

M A NAGEMENT

THE LANDMARK PRO JECT MANAGEMENT
REFERENCE, NOW I N A NEW EDITION

T

E

N

T

H

E

D

I

T

I

O


N

PROJECT
MANAGEMENT
A S YS T E M S A P P R OAC H
TO P L A N N I N G, S C H E D U L I N G,
A N D CO N T R O L L I N G

Project Management Case Studies, Third Edition (978-0-470-27871-0)
T E N T H
E D I T I O N

HAROLD KERZNER, P H.D.


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Page i

PROJECT
MANAGEMENT


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Dr. Kerzner’s 16 Points to Project
Management Maturity
1. Adopt a project management methodology and use it consistently.
2. Implement a philosophy that drives the company toward project
management maturity and communicate it to everyone.
3. Commit to developing effective plans at the beginning of each project.
4. Minimize scope changes by committing to realistic objectives.
5. Recognize that cost and schedule management are inseparable.
6. Select the right person as the project manager.
7. Provide executives with project sponsor information, not project
management information.
8. Strengthen involvement and support of line management.
9. Focus on deliverables rather than resources.
10. Cultivate effective communication, cooperation, and trust to achieve
rapid project management maturity.

11. Share recognition for project success with the entire project team and
line management.
12. Eliminate nonproductive meetings.
13. Focus on identifying and solving problems early, quickly, and cost
effectively.
14. Measure progress periodically.
15. Use project management software as a tool—not as a substitute for
effective planning or interpersonal skills.
16. Institute an all-employee training program with periodic updates based
upon documented lessons learned.


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Page iii

PROJECT
MANAGEMENT
A Systems Approach to
Planning, Scheduling,
and Controlling

TENTH EDITION

HAROLD


KERZNER,

Ph.D.

Senior Executive Director for Project Managenment
The International Insitute for Learning New York,
New York

John Wiley & Sons, Inc.


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This book is printed on acid-free paper. ϱ
Copyright © 2009 by John Wiley & Sons, Inc. All rights reserved
Published by John Wiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada
No part of this publication may be reproduced, stored in a retrieval system or transmitted in any
form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise,
except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without
either the prior written permission of the Publisher, or authorization through payment of the
appropriate per-copy fee to the Copyright Clearance Center, 222 Rosewood Drive, Danvers, MA
01923, (978) 750-8400, fax (978) 646-8600, or on the web at www.copyright.com. Requests to the
Publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc.,

111 River Street, Hoboken, NJ 07030, (201) 748-6011, fax (201) 748-6008, or online at
/>Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts
in preparing this book, they make no representations or warranties with respect to the accuracy or
completeness of the contents of this book and specifically disclaim any implied warranties of merchantability
or fitness for a particular purpose. No warranty may be created or extended by sales representatives or
written sales materials. The advice and strategies contained herein may not be suitable for your situation.
You should consult with a professional where appropriate. Neither the publisher nor author shall be liable
for any loss of profit or any other commercial damages, including but not limited to special, incidental,
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For general information about our other products and services, please contact our Customer Care
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Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not
be available in electronic books. For more information about Wiley products, visit our web site at www.wiley.com.
Library of Congress Cataloging-in-Publication Data:
Kerzner, Harold.
Project management : a systems approach to planning, scheduling, and conrolling/Harold Kerzner.—10th ed.
p. cm.
Includes index.
ISBN 978-0-470-27870-3 (cloth : acid-free paper) 1. Project management. I. Title.
HD69.P75K47 2009
658.4Ј04—dc22
2008049907
Printed in the United States of America.
10

9

8


7

6

5

4

3

2

1


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To
Dr. Herman Krier,
my Friend and Guru,
who taught me well the
meaning of the word “persistence”



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Contents

Preface
1

xxi

OVERVIEW

1.0
1.1
1.2
1.3

1.4
1.5
1.6
1.7
1.8
1.9
1.10
1.11
1.12
1.13
1.14
1.15
1.16
1.17
1.18

1

Introduction 1
Understanding Project Management 2
Defining Project Success 7
The Project Manager–Line Manager Interface 8
Defining the Project Manager’s Role 12
Defining the Functional Manager’s Role 14
Defining the Functional Employee’s Role 17
Defining the Executive’s Role 17
Working with Executives 18
The Project Manager as the Planning Agent 19
Project Champions 20
The Downside of Project Management 21

Project-Driven versus Non–Project-Driven Organizations 22
Marketing in the Project-Driven Organization 24
Classification of Projects 26
Location of the Project Manager 27
Differing Views of Project Management 29
Concurrent Engineering: A Project Management Approach 30
Studying Tips for the PMI® Project Management Certification Exam

Problems

30

33

Case Study

Williams Machine Tool Company

35
vii


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2

PROJECT MANAGEMENT GROWTH: CONCEPTS AND
DEFINITIONS
37

2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
2.16
2.17
2.18
2.19


Introduction 37
General Systems Management 38
Project Management: 1945–1960 38
Project Management: 1960–1985 39
Project Management: 1985–2009 45
Resistance to Change 50
Systems, Programs, and Projects: A Definition 54
Product versus Project Management: A Definition 57
Maturity and Excellence: A Definition 58
Informal Project Management: A Definition 59
The Many Faces of Success 60
The Many Faces of Failure 63
The Stage-Gate Process 66
Project Life Cycles 68
Gate Review Meetings (Project Closure) 74
Project Management Methodologies: A Definition 74
Organizational Change Management and Corporate Cultures 76
Project Management Intellectual Property 81
Systems Thinking 82
Studying Tips for the PMI® Project Management Certification Exam

Problems

3

88

ORGANIZATIONAL STRUCTURES


3.0
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10
3.11
3.12
3.13
3.14
3.15

91

Introduction 91
Organizational Work Flow 94
Traditional (Classical) Organization 95
Developing Work Integration Positions 98
Line–Staff Organization (Project Coordinator) 102
Pure Product (Projectized) Organization 103
Matrix Organizational Form 106
Modification of Matrix Structures 113
The Strong, Weak, Balanced Matrix 117
Center for Project Management Expertise 117
Matrix Layering 118

Selecting the Organizational Form 119
Structuring the Small Company 125
Strategic Business Unit (SBU) Project Management 128
Transitional Management 129
Studying Tips for the PMI® Project Management Certification Exam

Problems

85

133

131


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Contents

Case Study

Jones and Shephard Accountants, Inc.


4

ORGANIZING AND STAFFING THE PROJECT OFFICE AND
TEAM
141

4.0
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13
4.14

Introduction 141
The Staffing Environment 142
Selecting the Project Manager: An Executive Decision 144
Skill Requirements for Project and Program Managers 148
Special Cases in Project Manager Selection 154
Selecting the Wrong Project Manager 154
Next Generation Project Managers 158

Duties and Job Descriptions 159
The Organizational Staffing Process 163
The Project Office 169
The Functional Team 174
The Project Organizational Chart 175
Special Problems 178
Selecting the Project Management Implementation Team 180
Studying Tips for the PMI® Project Management Certification Exam

Problems

5

138

185

MANAGEMENT FUNCTIONS

5.0
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
5.10

5.11
5.12
5.13
5.14
5.15
5.16
5.17

191

Introduction 191
Controlling 193
Directing 193
Project Authority 198
Interpersonal Influences
206
Barriers to Project Team Development 209
Suggestions for Handling the Newly Formed Team
Team Building as an Ongoing Process 216
Dysfunctions of a Team 217
Leadership in a Project Environment 220
Life-Cycle Leadership 221
Organizational Impact 225
Employee–Manager Problems 227
Management Pitfalls 230
Communications 233
Project Review Meetings 242
Project Management Bottlenecks 243
Communication Traps 244


212

183


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5.18
5.19
5.20
5.21

Proverbs and Laws 245
Human Behavior Education 248
Management Policies and Procedures 249
Studying Tips for the PMI® Project Management Certification Exam

Problems

249


254

Case Studies

The Trophy Project 264
Leadership Effectiveness (A) 266
Leadership Effectiveness (B) 271
Motivational Questionnaire 277

6

MANAGEMENT OF YOUR TIME AND STRESS

6.0
6.1
6.2
6.3
6.4
6.5
6.6

285

Introduction 285
Understanding Time Management 286
Time Robbers 286
Time Management Forms 288
Effective Time Management 289
Stress and Burnout 290

Studying Tips for the PMI® Project Management Certification Exam

Problems

292

293

Case Study

The Reluctant Workers

7

CONFLICTS

7.0
7.1
7.2
7.3
7.4
7.5
7.6
7.7

294

295

Introduction 295

Objectives 296
The Conflict Environment 297
Conflict Resolution 300
Understanding Superior, Subordinate, and Functional
Conflicts 301
The Management of Conflicts 303
Conflict Resolution Modes 304
Studying Tips for the PMI® Project Management Certification Exam

Problems

308

Case Studies

Facilities Scheduling at Mayer Manufacturing 311
Telestar International 312
Handling Conflict in Project Management 313

306


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Contents

8

SPECIAL TOPICS

8.0
8.1
8.2
8.3
8.4
8.5
8.6
8.7
8.8
8.9
8.10
8.11
8.12
8.13
8.14

Introduction 319
Performance Measurement 320
Financial Compensation and Rewards 327
Critical Issues with Rewarding Project Teams 333
Effective Project Management in the Small Business
Organization 336

Mega Projects 338
Morality, Ethics, and the Corporate Culture 339
Professional Responsibilities 342
Internal Partnerships 345
External Partnerships 346
Training and Education 348
Integrated Product/Project Teams 350
Virtual Project Teams 352
Breakthrough Projects 354
Studying Tips for the PMI® Project Management Certification Exam

Problems

9

383

Introduction 383
The Project Sponsor 384
Handling Disagreements with the Sponsor 393
The Collective Belief 394
The Exit Champion 395
The In-House Representatives 396
Studying Tips for the PMI® Project Management Certification Exam

Problems

380

381


WORKING WITH EXECUTIVES

10.0
10.1
10.2
10.3
10.4
10.5
10.6

365

Introduction 365
Predicting Project Success 366
Project Management Effectiveness 370
Expectations 371
Lessons Learned 372
Understanding Best Practices 373
Studying Tips for the PMI® Project Management Certification Exam

Problems

355

361

THE VARIABLES FOR SUCCESS

9.0

9.1
9.2
9.3
9.4
9.5
9.6

10

319

398

397


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Case Study


Corwin Corporation

11

PLANNING

11.0
11.1
11.2
11.3
11.4
11.5
11.6
11.7
11.8
11.9
11.10
11.11
11.12
11.13
11.14
11.15
11.16
11.17
11.18
11.19
11.20
11.21
11.22
11.23

11.24
11.25
11.26
11.27
11.28
11.29
11.30
11.31

411

Introduction 411
Validating the Assumptions 414
General Planning 415
Life-Cycle Phases 418
Proposal Preparation 421
Kickoff Meetings 421
Understanding Participants’ Roles 424
Project Planning 424
The Statement of Work 426
Project Specifications 431
Milestone Schedules 433
Work Breakdown Structure 434
WBS Decomposition Problems 440
Role of the Executive in Project Selection 444
Role of the Executive in Planning 449
The Planning Cycle 449
Work Planning Authorization 450
Why Do Plans Fail? 451
Stopping Projects 452

Handling Project Phaseouts and Transfers 453
Detailed Schedules and Charts 454
Master Production Scheduling 457
Project Plan 459
Total Project Planning 464
The Project Charter 468
Management Control 469
The Project Manager–Line Manager Interface 472
Fast-Tracking 474
Configuration Management 475
Enterprise Project Management Methodologies 476
Project Audits 479
Studying Tips for the PMI® Project Management Certification Exam

Problems

12

401

483

NETWORK SCHEDULING TECHNIQUES

12.0 Introduction 493
12.1 Network Fundamentals

495

493


480


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12.2
12.3
12.4
12.5
12.6
12.7
12.8
12.9
12.10
12.11
12.12
12.13
12.14
12.15

12.16
12.17
12.18
12.19
12.20
12.21

Graphical Evaluation and Review Technique (GERT) 500
Dependencies 501
Slack Time 502
Network Replanning 508
Estimating Activity Time 512
Estimating Total Project Time 513
Total PERT/CPM Planning 514
Crash Times 516
PERT/CPM Problem Areas 519
Alternative PERT/CPM Models 522
Precedence Networks 523
Lag 526
Scheduling Problems 528
The Myths of Schedule Compression 528
Understanding Project Management Software 530
Software Features Offered 530
Software Classification 532
Implementation Problems 533
Critical Chain 534
Studying Tips for the PMI® Project Management Certification Exam

Problems


536

539

Case Study

Crosby Manufacturing Corporation
13

PROJECT GRAPHICS

13.0
13.1
13.2
13.3
13.4
13.5

555

Introduction 555
Customer Reporting 556
Bar (Gantt) Chart 557
Other Conventional Presentation Techniques 564
Logic Diagrams/Networks 567
Studying Tips for the PMI® Project Management Certification Exam

Problems

14


569

PRICING AND ESTIMATING

14.0
14.1
14.2
14.3
14.4
14.5
14.6

552

571

Introduction 571
Global Pricing Strategies 572
Types of Estimates 573
Pricing Process 576
Organizational Input Requirements
Labor Distributions 580
Overhead Rates 584

578

568



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CONTENTS

14.7
14.8
14.9
14.10
14.11
14.12
14.13
14.14
14.15
14.16
14.17
14.18
14.19
14.20
14.21
14.22
14.23
14.24

14.25
14.26
14.27
14.28
14.29
14.30

Materials/Support Costs 586
Pricing Out the Work 589
Smoothing Out Department Man-Hours 590
The Pricing Review Procedure 592
Systems Pricing 594
Developing the Supporting/Backup Costs 595
The Low-Bidder Dilemma 599
Special Problems 599
Estimating Pitfalls 600
Estimating High-Risk Projects 601
Project Risks 602
The Disaster of Applying the 10 Percent Solution to Project Estimates 605
Life-Cycle Costing (LCC) 606
Logistics Support 613
Economic Project Selection Criteria: Capital Budgeting 614
Payback Period 614
The Time Value of Money 615
Net Present Value (NPV) 616
Internal Rate of Return (IRR) 617
Comparing IRR, NPV, and Payback 618
Risk Analysis 618
Capital Rationing 619
Project Financing 620

Studying Tips for the PMI® Project Management Certification Exam 622

Problems
15

624

COST CONTROL

15.0
15.1
15.2
15.3
15.4
15.5
15.6
15.7
15.8
15.9
15.10
15.11
15.12
15.13
15.14
15.15

629

Introduction 629
Understanding Control 633

The Operating Cycle 636
Cost Account Codes 637
Budgets 644
The Earned Value Measurement System (EVMS) 645
Variance and Earned Value 647
The Cost Baseline 666
Justifying the Costs 668
The Cost Overrun Dilemma 671
Recording Material Costs Using Earned Value Measurement
The Material Accounting Criterion 675
Material Variances: Price and Usage 676
Summary Variances 677
Status Reporting 678
Cost Control Problems 685

672


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15.16 Studying Tips for the PMI® Project Management Certification Exam
Problems

686

689

Case Studies

The Bathtub Period 708
Franklin Electronics 709
Trouble in Paradise 711

16

TRADE-OFF ANALYSIS IN A PROJECT ENVIRONMENT

16.0
16.1
16.2
16.3
16.4
16.5

17

Introduction 715
Methodology for Trade-off Analysis 718
Contracts: Their Influence on Projects 735
Industry Trade-off Preferences 736

Conclusion 739
Studying Tips for the PMI® Project Management Certification Exam

RISK MANAGEMENT

17.0
17.1
17.2
17.3
17.4
17.5
17.6
17.7
17.8
17.9
17.10
17.11
17.12
17.13
17.14
17.15
17.16
17.17
17.18
17.19

715

741


Introduction 741
Definition of Risk 743
Tolerance for Risk 745
Definition of Risk Management 746
Certainty, Risk, and Uncertainty 747
Risk Management Process 753
Plan Risk Management 753
Risk Identification 755
Risk Analysis 761
Qualitative Risk Analysis 766
Quantitative Risk Analysis 771
Probability Distributions and the Monte Carlo Process 772
Plan Risk Response 782
Monitoring and Control Risks 788
Some Implementation Considerations 788
The Use of Lessons Learned 790
Dependencies between Risks 793
The Impact of Risk Handling Measures 798
Risk and Concurrent Engineering 801
Studying Tips for the PMI® Project Management Certification Exam

Problems

808

Case Studies

Teloxy Engineering (A)
Teloxy Engineering (B)


739

815
815

804


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18

LEARNING CURVES

18.0
18.1
18.2
18.3
18.4
18.5

18.6
18.7
18.8
18.9
18.10
18.11
18.12
18.13
18.14
18.15

Introduction 817
General Theory 818
The Learning Curve Concept 818
Graphic Representation 820
Key Words Associated with Learning Curves 822
The Cumulative Average Curve 822
Sources of Experience 824
Developing Slope Measures 827
Unit Costs and Use of Midpoints 828
Selection of Learning Curves 829
Follow-on Orders 830
Manufacturing Breaks 830
Learning Curve Limitations 832
Prices and Experience 832
Competitive Weapon 835
Studying Tips for the PMI® Project Management Certification Exam

Problems


19

839

Introduction 839
Procurement 840
Plan Procurement 842
Conducting the Procurements 845
Conduct Procurements: Request Seller Responses 847
Conduct Procurements: Select Sellers 847
Types of Contracts 851
Incentive Contracts 855
Contract Type versus Risk 858
Contract Administration Cycle 859
Contract Closure 862
Using a Checklist 863
Proposal-Contractual Interaction 864
Summary 867
Studying Tips for the PMI® Project Management Certification Exam

QUALITY MANAGEMENT

20.0
20.1
20.2
20.3
20.4

835


836

CONTRACT MANAGEMENT

19.0
19.1
19.2
19.3
19.4
19.5
19.6
19.7
19.8
19.9
19.10
19.11
19.12
19.13
19.14

20

817

873

Introduction 874
Definition of Quality 875
The Quality Movement 877
Comparison of the Quality Pioneers

The Taguchi Approach 881

880

868


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20.5
20.6
20.7
20.8
20.9
20.10
20.11
20.12
20.13
20.14
20.15

20.16
20.17
20.18
20.19
21

MODERN DEVELOPMENTS PROJECT MANAGEMENT

21.0
21.1
21.2
21.3
21.4
21.5
21.6
21.7
21.8
22

949

Introduction 949
Need for Business Knowledge 951
Timing of Scope Changes 952
Business Need for a Scope Change 953
Rationale for Not Approving a Scope Change

THE PROJECT OFFICE

23.0

23.1
23.2
23.3
23.4
23.5
23.6
23.7

927

Introduction 927
The Project Management Maturity Model (PMMM) 928
Developing Effective Procedural Documentation 932
Project Management Methodologies 936
Continuous Improvement 937
Capacity Planning 942
Competency Models 943
Managing Multiple Projects 945
End-of-Phase Review Meetings 947

THE BUSINESS OF SCOPE CHANGES

22.0
22.1
22.2
22.3
22.4
23

The Malcolm Baldrige National Quality Award 884

ISO 9000 885
Quality Management Concepts 887
The Cost of Quality 890
The Seven Quality Control Tools 893
Process Capability (CP) 910
Acceptance Sampling 912
Implementing Six Sigma 912
Lean Six Sigma and DMAIC 914
Quality Leadership 915
Responsibility for Quality 916
Quality Circles 916
Just-in-Time Manufacturing (JIT) 917
Total Quality Management (TQM) 919
Studying Tips for the PMI® Project Management Certification Exam

954

955

Introduction 955
Present-Day Project Office 956
Implementation Risks 957
Types of Project Offices 958
Networking Project Management Offices 959
Project Management Information Systems 959
Dissemination of Information 961
Mentoring 962

923



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23.8
23.9
23.10
23.11
23.12
23.13
23.14
23.15
24

MANAGING CRISIS PROJECTS 971

24.0
24.1
24.2
24.3
24.4

24.5
24.6
24.7
24.8
24.9
24.10
24.11
24.12
25

Development of Standards and Templates 963
Project Management Benchmarking 963
Business Case Development 964
Customized Training (Related to Project Management)
Managing Stakeholders 966
Continuous Improvement 967
Capacity Planning 967
Risks of Using a Project Office 968

Introduction 971
Understanding Crisis Management 971
Ford versus Firetone 973
The Air France Concorde Crash 974
Intel and the Pentium Chip 975
The Russian Submarine Kursk 975
The Tylenol Poisonings 976
Nestlé’s Marketing of Infant Formula 979
The Space Shuttle Challenger Disaster 981
The Space Shuttle Columbia Disaster 982
Victims versus Villains 983

Life-Cycle Phases 984
Project Management Implications 985

THE RISE, FALL, AND RESURRECTION OF IRIDIUM:
A PROJECT MANAGEMENT PERSPECTIVE 987

25.0
25.1
25.2
25.3
25.4
25.5
25.6
25.7
25.8
25.9
25.10
25.11
25.12
25.13
25.14
25.15

Introduction 987
Naming the Project “Iridium” 989
Obtaining Executive Support 990
Launching the Venture 990
The Iridium System 992
The Terrestial and Space-Based Network 992
Project Initiation: Developing the Business Case 993

The “Hidden” Business Case 995
Risk Management 995
The Collective Belief 997
The Exit Champion 997
Iridium’s Infancy Years 999
Debt Financing 1001
The M-Star Project 1002
A New CEO 1003
Satellite Launches 1003

965


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25.16
25.17
25.18
25.19
25.20

25.21
25.22
25.23
25.24
25.25
25.26
25.27
25.28
25.29
25.30
25.31
25.32

An Initial Public Offering (IPO) 1004
Signing up Customers 1004
Iridium’s Rapid Ascent 1005
Iridium’s Rapid Descent 1007
The Iridium “Flu” 1012
Searching for a White Knight 1012
The Definition of Failure (October, 1999) 1012
The Satellite Deorbiting Plan 1013
Iridium Is Rescued for $25 Million 1014
Epilogue 1015
Shareholder Lawsuits 1015
The Bankruptcy Court Ruling 1016
Autopsy 1016
Financial Impact of the Bankruptcy 1018
What Really Went Wrong? 1018
Lessons Learned 1020
Conclusion 1023


Appendix A. Solutions to the Project Management Conflict Exercise 1025
Appendix B. Solution to Leadership Exercise 1031
Appendix C. Dorale Products Case Studies 1037
Appendix D. Solution to the Dorale Products Case Studies Answers 1049
Appendix E. Crosslisting of PMBOK® to the Text 1055
Author Index

1061

Subject Index

1065


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Preface

Project management has evolved from a management philosophy restricted to a
few functional areas and regarded as something nice to have to an enterprise project management system affecting every functional unit of the company. Simply
stated, project management has evolved into a business process rather than
merely a project management process. More and more companies are now
regarding project management as being mandatory for the survival of the firm.
Organizations that were opponents of project management are now advocates.
Management educators of the past, who preached that project management could
not work and would be just another fad, are now staunch supporters. Project management is here to stay. Colleges and universities are now offering graduate
degrees in project management.
The text discusses the principles of project management. Students who are
interested in advanced topics, such as some of the material in Chapters 21 to 24
of this text, may wish to read one of my other texts, Advanced Project
Management: Best Practices in Implementation (Hoboken, NJ: Wiley, 2004), and
Project Management Best Practices: Achieving Global Excellence (Hoboken, NJ:
Wiley, 2006). John Wiley & Sons will also be introducing a five-book series on
project management best practices, co-authored by Frank Saladis and Harold
Kerzner, to accompany the above two books.
This book is addressed not only to those undergraduate and graduate students
who wish to improve upon their project management skills but also to those functional managers and upper-level executives who serve as project sponsors and
must provide continuous support for projects. During the past several years, management's knowledge and understanding of project management has matured to
the point where almost every company is using project management in one form
or another. These companies have come to the realization that project management
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and productivity are related and that we are now managing our business as though
it is a series of projects. Project management coursework is now consuming more
of training budgets than ever before.
General reference is provided in the text to engineers. However, the reader
should not consider project management as strictly engineering related. The engineering examples are the result of the fact that project management first appeared
in the engineering disciplines, and we should be willing to learn from their mistakes. Project management now resides in every profession, including information systems, health care, consulting, pharmaceutical, banks, and government
agencies.
The text can be used for both undergraduate and graduate courses in business,
information systems, and engineering. The structure of the text is based upon my
belief that project management is much more behavioral than quantitative since
projects are managed by people rather than tools. The first five chapters are part
of the basic core of knowledge necessary to understand project management.
Chapters 6 through 8 deal with the support functions of managing your time effectively, conflicts, and other special topics. Chapters 9 and 10 describe factors for
predicting success and management support. It may seem strange that 10 chapters
on organizational behavior and structuring are needed prior to the “hard-core”
chapters of planning, scheduling, and controlling. These first 10 chapters are
needed to understand the cultural environment for all projects and systems. These
chapters are necessary for the reader to understand the difficulties in achieving
cross-functional cooperation on projects where team members are working on

multiple projects concurrently and why the people involved, all
of whom may have different backgrounds, cannot simply be forged into a cohesive work unit without friction. Chapters 11 through 20 are more of the quantitative chapters on planning, scheduling, cost control, estimating, procurement, and
quality. Chapters 21 through 24 are advanced topics and future trends. Chapter 25
is a capstone case study that can be related to almost all of the chapters in the text.
The changes that were made in the 10th edition include:
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A chapter on the business of scope changes
A chapter on managing crises projects
A chapter on the Iridium Project, which serves as a capstone case
An appendix on using the book to study for the PMP® exam
A section on understanding the collective belief on a project
A section on the need for an exit champion
A section on project financing
A section on managing virtual teams
A section on rewarding project teams
A section on the need for an enterprise project management system

A section on kickoff meeting
A section on breakthrough projects
A section on project audits
A section on managing intellectual property


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A section on the problems associated with project scheduling
A section on schedule compression myths
A section on human behavior education
A section on dysfunctional team behavior
A section on validating project assumptions

Existing sections from the 9th edition with expanded information
include: the new breed of project manager; additional scheduling problems; a discussion on the difference between active and passive involvement by the sponsor; the need for challenging the decisions of the
sponsor; information needed for effective estimating; managing stakeholder expectations; the project war room; power and authority; the management reserve; and Six Sigma. The chapters on risk management and
procurement were restructured to be in better alignment with the
PMBOK® Guide, 4th edition.

The text contains more than 25 case studies, more than 125 multiple choice
questions, and nearly 400 discussion questions. In addition, there is a supplemental workbook (Project Management Workbook to Accompany Project
Management, tenth edition) that contains more than 600 multiple choice questions, additional case studies, challenging problems, and crossword puzzles.
There is also a separate book of cases (Project Management Case Studies, third
edition) that provides additional real-world examples.
This text, the workbook, and the book of cases are ideal as self-study tools
for the Project Management Institute’s PMP® Certification exam. Because of this,
there are tables of cross references on each chapter’s opening page in the
textbook detailing the sections from the book of cases, the workbook, and
the Guide to the Project Management Body of Knowledge (PMBOK® Guide) that
apply to that chapter's content. The left-hand margin of the pages in the text has
side bars that identify the cross-listing of the material on that page to the appropriate section(s) of the PMBOK® Guide. At the end of most of the chapters is a
section on study tips for the PMP® exam, including more than 125 multiple
choice questions.
This textbook is currently used in the college market, in the reference market, and for studying for the PMP® Certification exam. Therefore, to satisfy the
needs of all markets, a compromise had to be reached on how much of the text
would be aligned to the PMBOK® Guide and how much new material would
be included without doubling the size of the text. Some colleges and universities
use the textbook to teach project management fundamentals without reference
to the PMBOK® Guide. The text does not contain all of the material necessary to
support each section of the PMBOK® Guide. Therefore, to study for the PMP®
Certification exam, the PMBOK® Guide must also be used together with this text.
The text covers material for almost all of the PMBOK® Guide knowledge areas
but not necessarily in the depth that appears in the PMBOK® Guide.

An instructor's manual is available only to college and university faculty
members by contacting your local Wiley sales representative or by visiting