CONTENTS
PREFACE ......................................................................................................... 6
1. INTRODUCTION TO PROJECT MANAGEMENT ........................... 8
1.1. Great projects from the past ................................................................. 8
1.2. Evolution of project management ........................................................ 9
1.3. Early literature on projects ................................................................. 10
1.4. Understanding project management................................................... 11
1.5. Types of projects ................................................................................ 14
1.6. Project organization ........................................................................... 15
Summary .......................................................................................................... 19
Review questions ............................................................................................. 19
Case study 1.1. Giza Pyramids ........................................................................ 20
Case study 1.2. Slovakia to get two new outlet centers ................................... 21
Case study 1.3. Pinhole Camera and Optics, Inc.: Why does the company
need a project manager?................................................................................... 24
BIBLIOGRAPHY ............................................................................................ 25
2. ASSOCIATIONS FOR PROJECT MANAGEMENT
AND PROJECT MANAGEMENT STANDARDS .............................. 27
2.1. Associations for project management at international and national level ...27
2.2. Project management standards ........................................................... 28
2.2.1. Comparison of project management standards ........................ 31
Summary .......................................................................................................... 32
Review questions ............................................................................................. 33
BIBLIOGRAPHY ............................................................................................ 33
3. INTERESTED PARTIES ....................................................................... 35
3.1. Definition of interested parties ........................................................... 35
3.2. Analysis of interested parties ............................................................. 38
3.3. Project manager and project team members ...................................... 41
3.3.1. Project manager ........................................................................ 41
3.3.2. Project team and team members............................................... 44
3.3.3. Project team leading, communication and motivation
of team members ................................................................................ 46
Summary .......................................................................................................... 49
Review questions ............................................................................................. 50
Case study 3.1. The Custom Woodworking Company — Woody 2000 Project...... 50
BIBLIOGRAPHY ............................................................................................ 57
4. PROJECT LIFE CYCLE ....................................................................... 59
4.1. Project definition and project planning .............................................. 61
4.1.1. Project definition ...................................................................... 61
4.1.2. Project planning........................................................................ 62
4.1.2.1. Planning methods ........................................................ 65
4.2. Project execution and control ............................................................. 68
3
4.2.1. Execution phase........................................................................ 68
4.2.2. Project control .......................................................................... 69
4.3. Project evaluation and closeout.......................................................... 71
4.3.1. Project evaluation ..................................................................... 72
4.3.2. Project closeout ........................................................................ 72
4.4. Project success or failure.................................................................... 72
Summary .......................................................................................................... 73
Review questions ............................................................................................. 73
Case study 4.1. Startrek Enterprises, Inc.: Project Plan ................................... 74
Case study 4.2. Estimated Tunnel Costs for the Chunnel Project.................... 74
Case study 4.3. West Coast University Medical Center................................... 75
BIBLIOGRAPHY ............................................................................................ 76
5. PROJECT RISK MANAGEMENT ...................................................... 78
5.1. Risks and risk management process................................................... 78
Summary .......................................................................................................... 82
Review questions ............................................................................................. 82
Case study 5.1. The Sydney Opera House ....................................................... 83
Case study 5.2. Infinity & Beyond, Inc............................................................ 84
BIBLIOGRAPHY ............................................................................................ 85
6. PROJECT DOCUMENTATION ........................................................... 86
6.1. Content and benefits of project documentation.................................. 86
6.2. Definition of selected types of project documents ............................. 89
6.2.1. Project proposal ........................................................................ 89
6.2.2. Feasibility study ....................................................................... 91
6.2.3. Project charter........................................................................... 92
6.2.4. Project definition report ............................................................ 93
6.2.5. Project plan ............................................................................... 93
6.2.6. Project status report .................................................................. 94
6.2.7. Project closure report................................................................ 95
6.3. Poorly managed project documents and best practices
in document management ......................................................................... 96
6.3.1. Poorly managed project documents ......................................... 96
6.3.2. Best practices in document management ................................. 98
Summary .......................................................................................................... 99
Review questions ........................................................................................... 100
Case study 6.1. The Custom Woodworking Company —
Woody 2000 Project ....................................................................................... 100
BIBLIOGRAPHY .......................................................................................... 101
7. PROJECT FINANCING ...................................................................... 103
7.1. Financial management of project ..................................................... 103
7.2. Project life cycle cost ....................................................................... 104
7.3. Financial resources, their selection, characteristics and financial
mechanisms ............................................................................................. 104
4
7.3.1. A brief characteristic of selected types of financial resources 106
7.3.2. Financing mechanisms ........................................................... 107
7.3.3. Alternative sources of project financing ................................. 108
7.4. Project estimate and budget ............................................................. 110
Summary ........................................................................................................ 113
Review questions ........................................................................................... 113
Case study 7.1. The Custom Woodworking Company — Woody 2000 Project.... 114
BIBLIOGRAPHY .......................................................................................... 115
8. PROJECT MANAGEMENT SOFTWARE.........................................116
8.1. MS Project........................................................................................ 117
8.2. Primavera ......................................................................................... 118
8.3. CAD Programs ................................................................................. 118
Summary ........................................................................................................ 120
Review questions ........................................................................................... 120
Case study 8.1. Life Technologies Corp. ....................................................... 120
BIBLIOGRAPHY .......................................................................................... 124
9. PROJECT MANAGEMENT TRENDS .............................................. 125
9.1. Future of project management ......................................................... 125
Summary ........................................................................................................ 128
Review questions ........................................................................................... 128
Case study 9.1. Project Management Trends ................................................. 128
Case study 9.2. Mozal Project – International Investment in
an Undeveloped Country ............................................................................... 134
BIBLIOGRAPHY .......................................................................................... 137
RESUMÉ ...................................................................................................... 138
APPENDIX A POSITIONS IN PROJECT TEAM ................................... 140
APPENDIX B TEAM ROLES DESCRIPTION ....................................... 143
APPENDIX C COMMUNICATION METHODS .................................... 144
5