Professional Documents
Culture Documents
Project
Management
International
Project
Management
A Focus on Value Engineering and
Project Value Improvement
Volume II
10 9 8 7 6 5 4 3 2 1
KeyWords
List of Figures ix
List of Tables xi
Introduction xiii
1 Project Time Management 1
1.1 Project Time Management Definition 1
1.2 Sequencing Project Activities 2
1.3 Some Essential, Float, Ethics, and Leadership 6
1.4 Leadership and Ethics 7
1.5 Developing a CPE Schedule 10
1.6 Organizational Schedule 11
1.7 Value Chain Schedule 12
1.8 Partner Schedule 18
1.9 CPE Schedule 22
1.10 Resources 24
2 Project Quality Management 27
2.1 Quality Management—Customer Satisfaction in IPM 27
2.2 Project Management Quality Standard 29
2.3 Project Management Quality Plan 30
2.4 Product Quality Aspects 36
2.5 Service Quality Aspects, CPE Quality 41
2.6 Collaborative Knowledge Management 48
2.7 Monitoring and Controlling Process Group 49
2.8 Resources 50
3 Value Engineering in IPM 51
3.1 Definition of Value Engineering in IPM 51
3.2 Benefits of Value Engineering Program 52
3.3 Elements of Value 53
3.4 Engineering Program Management Support 55
3.5 Value Engineering Policy 56
viii • Contents
When I was a child, I had lots of cars, trains, ships, and robot toys. I was
so interested in playing, taking apart and fixing them.
Besides this, while playing with my friends, I was the one who took
over the role of the story teller of the game who told the others the c ontent
of the play and managed to give the others their role. When growing up,
I chose Physics, Mathematics, and Informatics as my major subjects at High
School where I became the best pupil at class, school, and local region.
Afterwards, I chose to study Engineering in the field of Computer
Hardware. The undergraduate program at Shahid Beheshti University
(SBU) is a well-rounded program. It did not only help me to build a solid
foundation of Computer Engineering fundamentals, but also helped me to
develop an overall perspective of the vast field of Engineering.
I have striven to perform well in all courses. My Bachelor thesis topic
was “Designing an Intelligent Systems for Marketing of Oil Products for
Iran Petrochemical Commercial Company,” and I was interested in Neural
Nets, Genetic Algorithms, Modelling and Simulation, and I was interested
in Industries and Energy so, I chose the numerical simulation of activity
around a transportation system, Management, as my final thesis. Addition-
ally, I was the coordinator of a team, which developed Mathematics and
Statistical Modelling for Robocop.
From 1996 until 2000, I was researcher at the School of Cognitive
Sciences and again from 2011 until 2013 and from 2016 until now, at the
School of Computer Sciences at IPM (Institute for Research in Fundamen-
tal Sciences); IPM is one of the most famous research institute in the field
of Fundamental Sciences of Iran. Here, I was involved in various different
projects, such as Designing a system for Virtual Banking, International
Market Intelligence for Marketing, Branding and Commercializing the
Hyper Performance Computing (HPC) and Spin-Offs.
As I pursued the Bachelor because of being busy with so many
projects, I found it would be best to combine my Engineering background
xiv • Introduction
Define Estimate
project activities project activities
resources
Sequence
project activities
Estimate
project activities
duration
Develop Control
project schedule project schedule
Creation of the product or service comes about due to the work the
project team completes. The sum of the time of the work equates to when
the project is completed. In addition to the duration of activities, there are
other factors of time to consider, such as the following:
Now that the activity list has been created, the activities must be arranged
in a logical sequence. This process calls on the project manager and the
project team to identify the logical relationships between activities and the
preferred relationship between those activities. This can be accomplished
in a few different ways.
The precedence diagramming method (PDM) is the most common
method of arranging the project work visually. The PDM puts the activities
in boxes, called nodes, and connects the boxes with arrows. The arrows
represent the relationship and the dependencies of the work packages. The
following illustration shows a simple network diagram using PDM.
Relationships between activities in a PDM constitute one of four dif-
ferent types:
A B
C
D
Start
End
F H
E
Finish-to-start Start-to-start
M T W T F M T W T F
A A
B B
Finish-to-Finish Start-to-Finish
M T W T F M T W T F
A A
B B
Leads and lags are values added to work packages to slightly alter the
relationship between two or more work packages. Lead time is considered
a negative value because time is subtracted from the downstream activity
to bring successor activities closer to the start of the project.
4 • International Project Management
10/14 10/22
Task J
Du - 8 Slack - 2
10/23 10/25
Task K
Du - 3 Slack - 2
10/26 10/30
Task L
Du - 4 Slack - 2
Diminishing
returns
Effort
Yield
Duration
Average
Most likely
Optimistic Pessimistic
Activity duration estimates, like the activity list and the “work breakdown
structure”(WBS) don’t come from the project manager—they come from the
people completing the work. They may also undergo progressive elabora-
tion. In this section, we examine the approach to completing activity duration
estimates, the basis of estimates, and the allowance for activity list updates.
How confident can a project manager be when it comes to estimat-
ing? If the project work has been done before in past projects, the level
of confidence in the duration estimate is probably high. But if the work
has never been done before, there are lots of unknowns—and with that
comes risk. To mitigate the risk, the project manager can use a three-point
6 • International Project Management
It is better to describe Float here. The Float, also called as Slack, is the
amount of time that an activity can be delayed without causing project
delays or causing delays in other activities. There are three types of float.
Let’s review them one by one.
Total Float: Total Float is the amount of time an activity can be delayed
without delaying the project end date or an intermediary milestone.
Let’s consider that a project activity is not on the critical path. Since
it is not on the critical path, delay on this activity can be compen-
sated. But there is a limit here. If it is delayed too much, you will
exceed the critical path duration and this will cause project delay.
Float here helps you to see how long you can delay an activity, with-
out affecting the project duration.
Free float: Free float is the amount of time an activity can be delayed
without delaying the early start date. Early start date of an activity
shows the earliest data that an activity can be started; because, an activ-
ity will depend on other activities, constraints, and so on. Therefore, it
will have an early start date. And free float is the amount of time that an
activity can be delayed, without delaying the early start date.
Project Float: This is the amount of time an activity can be delayed
without delaying externally imposed project completion date.
ES EF FORWARD PASS
Activity A
BACKWARD PASS
LS LF
Float = LS –ES or LF – EF
Note that Critical path activities should have zero floats. This is because
the critical path activities show the longest path of the project to complete,
and therefore any activity on the critical path will have zero floats. Any
delay on a critical path activity will cause project delays respectively.
Project
Effective success
Building leadership
Ethical trust
behavior
Wise leaders understand that a shared and credible statement of the orga-
nization’s ethical standards must complement a shared recognition of the
leader’s ethical beliefs. Usually the organization’s ethical expectations of
itself and of its members are stated in its code of ethics and professional
conduct (PMI Code of Ethics and Professional Conduct 2006). If the
leader speaks and models the ethics code and expects those around him or
her to model the shared value within managers and employees who are put
on notice that the codes are an important part of the organizational culture
will be encouraged to follow suit.
Ethical decision making is key to building the levels of trust neces-
sary for project leaders with limited authority to motivate followers to
achieve project success. The PMI EDMF2 contains five steps with multi-
ple sub-questions that can be used as a guide for critical thinking through-
out the entire ethical decision-making process.
The annual membership survey conducted by PMI contains several
ethics-related questions; the responses for 2011 revealed that 83 percent
of PMI members and credential holders were aware of the PMI Code
of Ethics and Professional Conduct and 30 percent have looked at the
code to help resolve an ethical or professional conduct issue questions
(Scarborough 2012). That survey also revealed that 60 percent of PMI
members had viewed the ethics page on the PMI website looking for
Assessment
Make sure you have all the facts about the ethical dilemma
Alternatives
Consider your choices
Analysis
Identify your candidate decision and test its validity
Application
Apply ethical principles to your candidate decision
Action
Make a decision
Once the schedule is complete during develop schedule process, the sched-
ule network analysis can begin and may take one of the following forms:
1.6 Organizational Schedule
1.6.1 Organization for Major International
Project
Project manager
Engineering Procurement
Project controls Administration
manager manager
Engineering
manager, Logistics Planning Legal
Vancouver
Engineering
manager, Estimating Human
Contracts
Santiago resources
Engineering
Cost Accounting
manager,
reporting and taxes
Argentina
1.6.2 Key Takeaways
Full form or SAP SCM stands for (Supply Chain Management), an import-
ant part of the group of SAP customized solutions, boasts of the distinc-
tion of being one of the most impactful SCM software applications in the
market. It is specifically designed to maintain organization relationships
with customers and suppliers; streamline the processes of planning, distri-
bution, inventory and transportation; and effectively control and manage
the entire supply chain to address customer expectations and perform to
the optimum levels.
SAP SCM plays an important role in enabling an organization coordi-
nate its entire supply chain process in accordance to the dynamism in the
environment—thus helping customers, suppliers, manufactures, retailers,
business partners, and other global connections to stay connected and gen-
erate result-oriented solutions.
Project Time Management • 13
Business
Strategy & Value Application Support &
process
assessment engineering configuration optimization
consulting
Measuring ROI stems from a time when it was easy to base the
value of an enterprise on the value of its financial assets (like revenue,
real property, or equipment). The assumption is that for every dollar
invested, there is a directly correlated financial return attributable to
that investment.
Under this heading are included measures that deal specifically with
financial value, such as the following:
1.7.6 Organizational Context
and takes into account the organizational, strategic, and economic con-
texts. Although not always readily apparent, these variables are likely to
influence the results of the project management initiative in at least three
ways. First, if the project management initiative does not “fit” with the
organization or its strategic or competitive environment, it is unlikely to
deliver desired results (Kimberly and Evanisko 1981). Second, something
else going on in the organization may weaken, jeopardize, or overstate
the potential benefits from the project management initiative (Damanpour
1987, 1996). Finally, we need to account for the lag between the time the
project management initiatives are undertaken and the time the benefits
occur (Damanpour and Evan 1984). Without understanding the context, it
is impossible to know what other organizational or environmental activi-
ties may be influencing resulting value.
1.8.1 Partnership Management
Your team will have developed most of its partnerships in the early
define and design phase of the WWF Standards (Steps 1 and 2). A key
input in identifying your partners is your stakeholder analysis, devel-
oped in Step 1.4. Your partners will likely be drawn from this larger pool
of stakeholders, but they differ from stakeholders in that they represent
a smaller pool of individuals and institutions that need to be directly
engaged in the planning and implementation of your project. Over time,
however, your project, the context in which it takes place, and/or the
partnerships themselves will evolve. Thus, it is important to revisit your
partnerships and stakeholder analysis at various points in the planning
PROJECT MANAGEMENT
CONSTRUCTS
Project management
implementation
FIT
Value of
Process criteria project management Outcome criteria
VALUE CONSTRUCTS
and implementation process to ensure all key partners are involved and
engaged and that it is clear to all involved what is expected of each
partner. With this in mind, the WWF Standards include attention to part-
nerships in Step 3 (Implement).
How your team cultivates and manages its partnerships will vary greatly
by the type of partner and the relationship between your team and that
partner. In general, however, cultivating and maintaining partnerships
involves three main steps:
By including key partners in your project team and in all steps of the
planning process, you will help to create a framework for guidance and
leadership to implement your project, and you will create a sound basis for
managing (and monitoring) a partnership of equals that ensures all stake-
holders’ opinions and needs are respected. The successful e ngagement and
management of partners in your project’s implementation can yield great
results, but it is a challenging effort. The following are some guiding prin-
ciples drawn from effective partnerships across the WWF Network:
ways and are not just sources of revenue; for example, no conser-
vation NGOs or aid agencies that carry out projects and activities to
help meet project objectives and goals.
• Minimize transaction costs: Consider that engaging partners and
stakeholders often increases the time it takes to plan or carry out
work—in developing a common vision and goals, keeping every-
one organized, on task and delivering results toward your common
vision and goals. Successful implementation requires finding the
right balance of good decision making and management among
partners without burdening the project with unnecessary structure
and bureaucracy.
• Create multiple roles: It is often important to have individuals from
each of the major stakeholder groups involved in implementation at
some level, but it is not necessary to give each the same role. Each
partner has its own interests and agenda, and its role in implemen-
tation will vary. Partnership management systems need to provide
the means to engage each partner at an appropriate and effective
level—ranging from simply receiving communications, to an advi-
sory role, to a fully engaged leadership and management role.
• Plan for transition: Often leadership shifts during a long-term
project, which will be reflected in governance and management of
partners. Typically, WWF leads or shares leadership during p roject
development. However, WWF’s role often shifts into more of a
background role during implementation, as leadership transitions
to a government agency or other strategic partner that carries the
project forward.
To the extent possible, you should try to make sure some of your
partners are what WWF calls “Strategic Conservation Partners”—those
partners that exert a major direct or indirect influence on a conservation
area or problem, and that through their own behavior or by influencing
other key actors can help the project reach its conservation goals. Some
practitioners consider the engagement of one or more strategic conser-
vation partners as essential for good conservation design (see WWF-NL
Strategic Principles. Strategic conservation partners typically have some
or all of the following characteristics):
Your team should make clear what the technical management structure
will look like. In general terms, this means identifying roles and responsi-
bilities and reporting lines.
It is also important not only to lay out roles and responsibilities but
also to specify how different team members relate to one another—report-
ing and consultation lines. An organogram, like the one, can be a useful
visual tool for depicting those relationships.
• Ready
• Assigned
• Terminated
• Expired
• Forwarded
• Started
• Finished
• Verified
• Failed
Terminated
Cancelled
Inactive Delegated
Ready Assigned Forwarded Completed
Rejected
Finished
Failed
1.10 Resources
Akker, L., L. Heres, K. Lasthuizen, and F. Six. 2009. “Ethical Leadership and
Trust: It’s All About Meeting Expectations.” International Journal of Leader-
ship Studies 5, no. 2, pp. 102–22. Retrieved March 4, 2013 from https://regent.
edu/acad/global/publications/ijls/new/vol5iss2/IJLS_vol5_iss2_akker_ethi-
cal_leadership.pdf
Bennis, W., and B. Nanus. 1985. Leaders: The Strategies for Taking Control. New
York, NY: Harper and Row.
Brown, M., L. Trevino, and D. Harrison. 2005. “Ethical Leadership: A Social
Learning Perspective for Construct Development and Testing.” Organiza-
tional Behavior and Human Decision Processes 97, no. 2, pp. 117–34.
Covey, S. 2006. The Speed of Trust: The One Thing that Changes Everything. New
York, NY: Free Press.
Ennis, R. 2003. “Critical Thinking Assessment.” Critical Thinking and Reason-
ing: Current Research, Theory, and Practice. New York, NY: Hampton Press.
Facione, P. 2011. Critical Thinking: What It is and Why it Counts. Millbrae, CA:
The California Academic Press.
Fukuyama, F. 1996. Trust: The Social Virtues and the Creation of Prosperity. New
York, NY: Free Press.
Hosmer, L. 1985. “Trust: The Connecting Link Between Organizational The-
ory and Philosophical Ethics.” Academy of Management Review 20, no. 2,
pp. 379–403.
Johnson, K. 2003. “The Role of Leadership in Organizational Integrity and Five
Modes of Ethical Leadership.” Retrieved from http://ethics.org/resource/
role-leadership-organizational-integrity-and-five-modes-ethicalleadership
Juli, T. 2011. Leadership Principles for Project Success. Boca Raton, FL: CRC
Press.
Kouzes, J., and B. Posner. 2008. The Leadership Challenge. San Francisco, CA:
Jossey-Bass.
Kurt, E. n.d. “Time, Cost & Quality Management.” http://wdb.fh-sm.de/PmTime-
CostQuality
PDM & ADM belong to CPM. March 19, 2014. Published in: Education. https://
slideshare.net/phantai24/pdm-precedence-diagram-method
PMI Code of Ethics and Professional Conduct. 2006. “Project Management Insti-
tute.” Retrieved from http://pmi.org/About-Us/Ethics/Ethics-Resources.aspx
PMI Ethical Decision-Making Framework. 2013. “Project Management Institute.”
Retrieved from http://pmi.org/About-Us/Ethics/Ethics-Resources.aspx
Scarborough, W. August 12, 2012. “Email Communication.”
This material has been reproduced with the permission of the copyright owner.
Unauthorized reproduction of this material is strictly prohibited. For permis-
sion to reproduce this material, please contact PMI or any listed author.
© 2012 Ethics MAG
Originally published as part of the 2012 PMI Global Congress Proceedings.
Vancouver, Canada.
Project Time Management • 25
A structure, 78–81
Activity duration estimation, 5–6 security primary program
Adapting, 89 roles, 79–81
Adopting, 89 security program core
structure, 78–79
B vision of 21st century society,
Business and international project 84–88
management Critical chain method, 11
adapting, 89 Critical path method, 11
adopting, 89 Customer focus, 29–30
exploring, 89 Customer satisfaction, 27–29
ignoring, 88–89
standardizing, 89 D
Digital technology, 77
C Disrupting capital projects, 77
Change management, 36 Dixon’s integrated model, 42–44
Collaborative knowledge
management, 48–49 E
Collaborative project management EFQM. See European Foundation
architecture, 45 for Quality Management
Collaborative support levels, 46 Enterprise project leadership,
Communications management, 35 85–87
Concerted collaborative level, 47 Ethical decision making, 9
Continual improvement, 30 Ethics
Coordinated collaborative level, 47 codes and frameworks, 9–10
Cost management, 35, 43 leadership connected to, 7–8
Cost of quality, 29 trust and, 8
CPE European Foundation for Quality
business and international project Management (EFQM), 16
management, 88–89 Exploring, 89
iterative development, 77
project management information F
system, 81–84 Factual approach to decision
schedule, 10–11, 22–23 making, 30
94 • Index