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Project Management: The Managerial Process, 7th Edition Solution Manual

Project Management: The Managerial Process, 7th Edition Solution Manual breaks down difficult topics into simple, easy-to-follow explanations.

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    Project Management: The Managerial Process 1 of 9 Chapter 1 Modern Project Management Chapter Outline 1. What Is a Project? A. What a Project Is Not B. The Project Life Cycle C. The Project Manager D. Being Part of a Project Team 2. Current Drivers of Project Management A. Compression of the Product Life Cycle B. Knowledge Explosion C. Triple Bottom Line ( Planet, People, Profit ) D. Increased Customer Focus E. Small Projects Represent Big Problems 3. Project Governance A. Alignment of Projects with Organizational Strategy 4. Project Management Today: A Socio - Technical Approach 5. Summary 6. Text Overview 7. Key Terms 8. Review Questions 9. Exercises 10. Case 1.1 : A Day in the Life 11. Case 1.2 : The Hokie Lunch Group

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    Project Management: The Managerial Process 2 of 9 Chapter Learning Objectives After reading this chapter you should be able to: LO 1 - 1 Understand why project management is crucial in today’s world. LO 1 - 2 Distinguish a project from routine operations. LO 1 - 3 Identify the different stages of project life cycle. LO 1 - 4 Understand the importance of projects in implementing organization strategy. LO 1 - 5 Understand that managing projects involves balancing the technical and sociocultural dimensions of the project.

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    Project Management: The Managerial Process 3 of 9 Review Questions 1. Define a project. What are five characteristics which help differentiate projects from other functions carried out in the daily operations of the organization? A project is a complex, non - routine, one - time effort limited by time, budget, resource, and specifications. Differentiating characteristics of projects from routine, repetitive daily work are below: a. A defined life span b. A well - defined objective c. Typically involves people from several disciplines d. A project life cycle e. Specific time, cost, and performance requirements. 2. What are some of the key environmental forces that have changed the way projects are managed? What has been the effect of these forces on the management of projects? Some environmental forces that have changed the way we manage projects are the product life cycle, knowledge growth, global competition, organization downsizing, technology changes, time - to - market. The impact of these forces is more projects per organizati on, project teams responsible for implementing projects, accountability, changing organization structures, need for rapid completion of projects, linking projects to organization strategy and customers, prioritizing projects to conserve organization resour ces, alliances w ith external organizations, and so on. 3. Why is the implementation of projects important to strategic planning and the project manager? Strategic plans are implemented primarily through projects — e.g., a new product, a new information system, a new plant for a new product. The project manager is the key person responsible for completing the project on time, on budget, and within specificati ons so the project’s customer is satisfied. If the project is not linked to the strategic plan of the organization, resources devoted to the project are wasted and a customer need is not met. This lack of connectivity occurs more in practice than most woul d believe. 4. The technical and sociocultural dimensions of project management are two sides to the same coin. Explain. The system and sociocultural dimensions of project management are two sides of the same coin because successful project managers are skillful in both areas. The point is successful project managers need to be very comfortable and skillful in both areas.

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    Project Management: The Managerial Process 4 of 9 5. What is the impact of governance to managing an individual project? Why is this approach important in today’s environment? Governance signals to the project manager that decisions at a higher level can impact management of an individual project. Reviews (called “Gating”) during project implementation assess current performance and priorities and decide to continue, halt, hold, or revised the project. Governance is most frequently used to balance resources and risk over all organizational resources. It is also used to enforce or alter priorities and to ensure project align with organizational strategies and goals. In today’s fast - paced world priorities can change quickly and can impact in process projects.

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    Project Management: The Managerial Process 5 of 9 Ex e rcises 1. Review the front page of your local newspaper, and try to identify all the projects contained in the articles. How many were you able to find? It is nearly impossible to open a newspaper and not find articles relating to projects. Sunday editions are especially good for this exercise. Even experienced project managers find the number of projects far greater than they would have predicted. Each one is managed by a project manager! This is a good illustration of the important role projects play in our daily lives. 2. Individually identify what you consider to be the greatest achievements accomplished by mankind in the last five decades. Now share your list with three to five other students in the class, and come up with an expanded list. Review these accomplishments in terms of the definition of a project. What does your review suggest about the importance of project management? Typical responses center on technology, medical advances, space exploration — e.g., computer advances, laser operations and new drugs, building the space station. Often you have to point out that many of these projects are really programs. We usually select two or three student suggestions of projects (there will be plenty!) and ask the students to identify the kinds of problems the project manager of the project may have had to deal with. Again, once the students get into the exercise, the problems they can envision are many. These problems are placed on the board. After the board is near filled and most students have participated, we try to show or classify on the board the problems by the content of the text chapters. The intent is to demo nstrate to the class the course and text will address many of the problems suggested by the students. 3. Individually identify projects assigned in previous terms. Were both sociocultural and technical elements factors in the success or difficulties in the projects? Students will naturally focus on sociocultural aspects in part because they are more familiar with concepts such as leadership, problem - solving, and teamwork than scope, WBS, and baseline budgets. Furthermore interpersonal friction is often a source of consternation on student projects. The instructor may have to point out that interpersonal conflicts o ften arise from ill - defined scopes, uneven work schedules, and poor planning.

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    Project Management: The Managerial Process 6 of 9 4. Check out the Project Management Institute’s home page at www.pmi.org . a. Review general information about PMI as well as membership information. Answers will vary. The PMI website undergoes periodic updates. b. See if there is a PMI chapter in your state. If not, where is the closest one? Answers will vary depending on your location. c. Use the search function at the PMI home page to find information on Project Management Body of Knowledge (PMBOK). What are the major knowledge areas of PMBOK? This search turns up a very wide variety of information including books the student can purchase, how to articles, and tools and templates. It will take some searching but the student can find that the ten knowledge areas are as follows: 1. Project Integration Management 2. Project Scope Management 3. Project Time Management 4. Project Cost Management 5. Project Quality Management 6. Project Human Resource Management 7. Project Communications Management 8. Project Risk Management 9. Project Procurement Management 10. Project Stakeholder Management d. Explore other links that PMI provides. What do these links tell you about the nature and future of project management?

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    Project Management: The Managerial Process 7 of 9 Case 1.1 A Day in the Life Rachel, the project manager of a large information systems project, arrives at her office early to get caught up with work before her co - workers and project team arrive. However, as she enters the office she meets Neil, one of her fellow project managers, who also wants to get an early start on the day. Neil has just completed a project overseas. They spend 10 minutes socializing and catching up on personal news. (Rest of case not shown due to length.) This case shows a glimpse of what it is like to be a project manager. It also underscores that being a project manager is more social than technical and that project managers spend the majority of their time interacting with various people who impact a pro ject. Note: This case can either be used up front in the course or towards the end when the sociocultural aspects of project management have been covered. 1. How effectively do you think Rachel spent her day? Students will be divided in their evaluation of Rachel. Some will argue that she is inefficient and does not have control over her time. Others will argue that this is the nature of the job, and is to be expected. They will point out that she is appropriat ely spending her time managing relations and keeping on top of things that affect the project. We tend to observe that students with little work experience are much more critical than those with work experience. Note : International students often take exception to Rachel devoting lunch time to gossiping and taking time to relax and listen to music. They feel these are inappropriate behaviors. When used towards the end of the course the case can stimulate a lively disc ussion between international and American students. 2. What does the case tell you about what it is like to be a project manager? Rachel’s day underscores three key functions project managers spend their time performing: a. Building and sustaining interpersonal relations . Project managers have to network and develop good working relations with team members and other project stakeholders. b. Information gathering and dissemination. Project managers are the information hub for their projects. They are in constant communication with various stakeholders, collecting information from various sources, and sending it to those who have a need to know. c. Decision - making. Project managers consult with various people to make decisions necessary to complete the project.

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    Project Management: The Managerial Process 8 of 9 Case 1.2 The Hokie Lunch Group Fatma settled down for lunch at the Yank Sing Chinese restaurant. She was early and took the time to catch up on her e - mail. Soon she would be joined by Jasper and Viktoria, two fellow 2014 grads from Virginia Tech in Blacksburg, Virginia. (Rest of case not shown due to length.) This case is designed to provide students a glimpse of what it is like to work on projects. Over the course of monthly lunch meetings students are exposed to a variety of management issues as well as the different phases of the project life cycle. 1. For each part (A, B, C) what phase of the project lifecycle is each project in? Part A Viktoria and Jasper’s projects are in the Executing phase with PAX2 entering a critical testing stage. Fatma’s project appears to be in the Defining phase where she is working on defining the scope of the project. Part B Viktoria and Jasper’s projects continue to be in the Executing phase with Jasper feeling intense pressure after missing a second milestone. Fatma’s project appears to be in the planning phase since she is involved in scheduling work. Part C Viktoria is wrapping up her successful project during the Closing phase. Jasper’s project, on the other hand, has been canceled and he is now looking for work. Fatma’ renovation project is now in the Executing phase. 2. What are two important things you learned about working on projects from the case? Why are they important? This is an open ended question and responses will vary depending upon level of experience and exposure to project management. The case involves a number of key project management issues: Part A How projects vary in the degree that scope can be defined up front, and how difficult it can be to define the score of software projects.

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    Project Management: The Managerial Process 9 of 9 The creation of a global tag team whereby people can be working on the project around the clock. The importance of establishing project priorities up front. Part B The importance of risk management and utilizing what was learned from previous projects. The pressure of working on urgent projects that are behind schedule. The political side of project management and how people try to influence each other on projects. Part C The risks and rewards of working on projects. The importance of conducting project retrospective during the Closing phase of the project. The sometimes boring nature of the Closing phase

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    Project Management: The Managerial Process 1 of 20 Chapter 2 Organization Strategy and Project Selection Chapter Outline 1. The Strategic Management Process: An Overview A. Four Activities of the Strategic Management Process i. Analyze and Formulate Strategies ii. Set Objectives to Achieve Strategies iii. Implement Strategies through Projects 2. The Need for a Project Priority System A. Problem 1: The Implementation Gap B. Problem 2: Organizational Politics C. Problem 3: Resource Conflicts and Multitasking 3. A Portfolio Management System A. Classification of the Project 4. Selection Criteria A. Financial Criteria i. Financial Models B. Nonfinancial Criteria i. Two Multi - Criteria Selection Models 5. Applying a Selection Model A. Project Classification i. Selecting a Model B . Sources and S olicitation of P roject P roposals C . Ranking Proposals and S election of P rojects i. Responsibility for Prioritizing 6 . Managing the P ortfolio System A. Senior Management Input B. The Governance Team Responsibilities C . Balancing the Portfolio for R isks and T ypes of P rojects

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    Project Management: The Managerial Process 2 of 20 7 . Summary 8 . Key T erms 9 . Review Questions 10. Exercises 11. Case 2.1 : Hector Gaming Company 12. Case 2.2 : Film Prioritization 13. Case 2.3 : Fund Raising Project Selection

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    Project Management: The Managerial Process 3 of 20 Chapter Learning Objectives After reading this chapter you should be able to: LO 2 - 1 Explain why it is important for project managers to understand their organization's strategy. LO 2 - 2 To identify the significant role projects contribute to the strategic direction of the organization. LO 2 - 3 To understand the need for a project priority system. LO 2 - 4 Apply financial and nonfinancial criteria to assess the value of projects. LO 2 - 5 Understand how multi - criteria models can be used to select projects. LO 2 - 6 Apply an objective priority system to project selection. L0 2 - 7 Understand the need to manage the project portfolio.

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    Project Management: The Managerial Process 4 of 20 Review Questions 1. Describe the major components of the strategic management process. The strategic management process involves assessing what we are, what we want to become, and how we are going to get there. The major generic components of the process include the following: a . D efining the mission of the organization b . A nalysis of the external and internal environments c. Se tting objectives d. Fo rmulating strategies to reach objectives e . I mplementing strategies through projects . 2. Explain the role projects play in the strategic management process. Strategy is implemented primarily through projects. Successful implementation of projects means reaching the goals of the organization and thus meeting the needs of its customers. Projects that do not contribute to the strategic plan waste critical organization resources. 3. How are projects linked to the strategic plan? Projects are linked to the strategic plan because projects represent how a strategy is to be implemented. Since some projects are more important than others, the best way to maximize the organization’s scarce resources is through a priority scheme which allocates resources to a portfolio of projects which balance risk and contribute the most to the strategic p lan. 4. The portfolio of projects is typically represented by compliance, strategic, and operations projects. What impact can this classificat ion have on project selection? By carefully aligning your project proposal with one classification, you may increase the chances of it being selected. Remember, senior management typically allots budgets for each category independent of actual project selection. Knowledge of funds available, risk portfolio, senior management bias, etc. may cause some to attempt to move their project proposal to a different classification to improve the chances of the project being selected.

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    Project Management: The Managerial Process 5 of 20 5. Why does the priority system described in this chapter require that it be open and published? Does the process encourage bottom - up initiation of projects? Does it discourage some projects? Why? An open, published priority system ensures projects are selected on the basis of their contribution to the organization. If the priority system is not open, squeaky wheels, strong people, and key departments all get their projects selected for the wrong reasons. Bottom - up evaluation is encouraged because every organization member can self - evaluate their project idea against priorities – and so can everyone else in the organization. To some, this approach may look intimidating but it rarely is in practice; however, it does discourage projects that clearly will not make positive, signific ant contributio ns to the organization vision. 6. Why should an organization not rely only on ROI to select projects? Financial criteria, like ROI alone, will not ensure that selected projects contribute to the mission and strategy of a firm. Other considerations such as developing new technology, public image, brand loyalty, ethical position, and maintaining core competencies should be considered. Furthermore, it is difficult or next to impossible to assess ROI for many important projects (e . g., projects to develop new technologies ). While ROI is likely to be a key consideration for many organizations, multiple screening criteria are recommended for selec ting and prioritizing projects. 7. Discuss the pros and cons of the checklist versus the weighted factor methods of selecting projects. Checklist Model  Flexible  Applies over a wide range of different types of projects, divisions , and locations  Impossible to rigorously compare and rank project by priority  Politics, power, and manipulation of project selection is very possible . Weighted Factor Model  Allows comparison and ranking of potential projects  Open system  Allows for self - eva l uation of proposed proj e ct  Power and politic games are exposed .

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    Project Management: The Managerial Process 6 of 20 Exercises 1. You manage a hotel resort located on the South Beach on the Island of Kau a i in Hawaii. You are shifting the focus of your resort from a traditional fun - in - the - sun destination to eco - tourism. (Eco - tourism focuses on environmental awareness and education.) How would you classify the following projects in terms of compliance, strategic, and operational? a. Convert the pool heating system from electrical to solar power. b. Build a 4 - mile nature hiking trail. c. Renovate the horse barn. d. Launch a new promotional campaign with Hawaii Airlines. e . Convert 12 adjacent acres into a wildlife preserve. f . Update all the bathrooms in condos that are 10 years or older. g . Change hotel brochures to reflect eco - tourism image. h . Test and revise disaster response plan. i . Introduce wireless I nternet service in café and lounge areas. How easy was it to classify these projects? What made some projects more difficult than others? Most students classify the projects as follows: Compliance: f. , h. Operational: a. , c. , i. Strategic: b. , d., e. , g. Most students claim it was not too difficult to classify the projects other than they had to make judgment calls given the limited information. In real life they would have such information. Debates occur around whether converting the heating system to solar polar was an operational necessity or to fit the eco - friendly image. Likewise, launching the promotional campaign with Hawaii Airlines would be considered strategic if it promoted the eco - tourism theme , otherwise it could be consider operational. What do you think you now know that would be useful for managing projects at the ho tel? By classifying the projects, prioritizing is more easily done. Different selection criteria can be used for selecting strategic versus operational projects. Financially, senior management would have more information to divide the total money pie allocated to projects.

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