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