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International

Project
Management
International
Project
Management
A Focus on Value Engineering and
Project Value Improvement

Volume II

Hamid Doost Mohammadian

MOMENTUM PRESS, LLC, NEW YORK


International Project Management: A Focus on Value Engineering and
Project Value Improvement, Volume II

Copyright © Momentum Press®, LLC, 2019.

All rights reserved. No part of this publication may be reproduced, stored


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Abstract

PVI (Project Value Improvement) began in the 1950s as “value engi-


neering,” where an engineering department’s technical solution aligned
­seamlessly with the economic realities of the business case. With both
working in concert, efficiencies were achieved.
Value engineering next evolved into the Stage Gate Process (SGP),
a systematic implementation of rigor into the extraction, processing, and
other capital-intensive industries between the 1990s and early 2000s. The
SGP improved the predictability of project performance in terms of both
capital expenditure and delivery timeliness.
Today, two entrenched cultural mind-sets continue to frustrate
attempts to improve performance.
First, PVI is commonly viewed or performed as a one-time exercise
applied only at the final investment decision of a project. Most owners do
not, however, view it as a rigorous, ongoing process that must be applied
throughout a project’s lifecycle. When PVI is relegated to later project
stages, it is often left undone or only partially complete, abandoned in lieu
of scheduling considerations.
Second, after two decades of industry history where PVI practices
have been scarcely applied, there now exists limited organizational ­talent
and a lack of institutional knowledge about the implementation and
rewards of PVI.

PVI Integration Could Recover Trillions


over Time

PVI is a systematic method used to improve a project’s financial value or


cash flow. This process involves reducing its capital or operating expen-
diture. The crux of PVI lies in a comprehensive, “no stone left unturned”
approach to identifying and evaluating creative alternatives to a project’s
economics, with the goal of achieving a higher project return.
vi  •   Abstract

KeyWords

Project Management; International Project Management; PVI (Project


Value Improvement); VE (value engineering); Systematic Implementation
Contents

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

3.6   VE Program Manager 57


3.7   Sustaining the Program with the TRIZ Method 58
3.8   Continuous Improvement and Process Linkages 59
3.9   Engineering for Projects 60
3.10 Development/Recommendation Phase 60
3.11 Assess Project Goals, Background and Develop
Cost ­Baseline 62
3.12  VE Study Timing 63
3.13  Scope of the VE Study 63
3.14  VE Team Member 64
3.15 Constraints and Controlling Decisions Stakeholder
Concerns66
3.16 Why Should Function Analysis be Performed? 67
3.17  Investigation Observations 67
3.18 Information Provided to the VE Team 71
3.19  Project Analysis 72
3.20 Function Analysis System Technique (FAST) 74
3.21 Resources 75
4  CPEs in the Future in IPM 77
4.1   CPEs in the Future in IPM 77
4.2   Project, Program, CPE 78
4.3   CPE Structure 78
4.4   Project Management Information System 81
4.5   Vision of 21st Century Society 84
4.6   Business and International Project Management 88
4.7  Resources 90
About the Author 91
Index 93
List of Figures

Figure 1.1.  Time management process. 1


Figure 1.2.  Assign the best time. 2
Figure 1.3.  Relationships between activities. 3
Figure 1.4.  Values added to work packages. 3
Figure 1.5.  Activities sequencing. 4
Figure 1.6.  Project duration of estimating. 5
Figure 1.7.  Three-key point estimating. 5
Figure 1.8.  Calculating of float. 6
Figure 1.9.  Ethical importance. 8
Figure 1.10.  PMI EDMF steps. 9
Figure 1.11.  PMI EDMF Sub-questions. 10
Figure 1.12.  Organization for major international project. 11
Figure 1.13.  SAP SCM (Supply Chain Management). 14
Figure 1.14.  Conceptual model of Thomas and Mulley. 19
Figure 1.15.  Task life cycle. 23
Figure 2.1.  The ISO approach to quality management. 28
Figure 2.2.  Deming cycle. 28
Figure 2.3.  Management principles. 30
Figure 2.4.  Measure of quality. 31
Figure 2.5.  Quality management plan template. 31
Figure 2.6.  Manage plan of quality. 32
Figure 2.7.  Description of project management plan. 34
Figure 2.8.  The CORA model. 37
Figure 2.9.  Aspects of product quality. 41
Figure 2.10.  Service quality. 42
x  •   List of Figures

Figure 2.11.  Dixon’s integrated model for PM. 43


Figure 2.12.  Maurer’s project coordination architecture. 44
Figure 2.13.  Collaborative project management architecture. 45
Figure 3.1.  Project management process groups. 51
Figure 3.2. The three pillars of sustainability define the
complete sustainability problem. 52
Figure 3.3.  The five capitals of sustainability. 53
Figure 3.4.  Program management. 55
Figure 3.5. The promoters’ quadruple characteristic to large
enterprises (developed after). 58
Figure 3.6. Project value improvement optimizes across all stages
of project life cycle. 60
Figure 3.7.  Definition of value engineering (VE). 62
Figure 3.8.  Potential saving from VE applications. 63
Figure 3.9.  Teamwork in construction value engineering. 64
Figure 3.10.  F12-Decision. 65
Figure 3.11.  Investigation observation. 68
Figure 3.12.  Kano model. 69
Figure 3.13.  Benefits of value engineering. 71
Figure 3.14.  Value engineering/value model. 72
Figure 3.15.  A template of performance attribute matrix. 74
Figure 3.16.  FAST diagram. 75
Figure 4.1.  The security program core structure. 78
Figure 4.2.  Shared services. 79
Figure 4.3. A collective model of the holistic 4×4 security
organization.80
Figure 4.4.  Analysis of interviews with CEOs. 81
Figure 4.5. “Sustainable development in the 21st century”
(SD21).83
Figure 4.6.  Industry 4.0 solutions by business function. 84
Figure 4.7.  21st Century project success model. 86
Figure 4.8.  The enterprise role with many variants. 86
Figure 4.9.  The enterprise role specialties. 87
Figure 4.10.  Industry 4.0 characteristics based on maturity level. 88
List of Tables

Table 2.1.  Project management vs knowledge management 49


Table 3.1.  Performance attribute’s table 73
Introduction

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

with Management skills. Therefore, I chose to become an Industrial Engi-


neer with Major in Productivity and System Management.
Due to my studies, I became familiar with well-known people such
as Professor Michael Porter, Pierre Omidyar, Frederick Winslow Taylor,
Elvin Toffler, and Peter Drucker who had a great impact on me.
I got a scholarship from the Iranian Ministry of Interior and have
started my master in Socio-Economic Systems Engineering. My research
topic was about A Study of Tehran’s Potential Earthquake Effects on
Histo Eco Geo Socio Political factors with Security Approach and Giving
an Appropriate Strategic Planning Model. That time I was IT manager
and consultant for the Vice-Interior Minister in the field of logistics and
planning and could feel I need to have more skills in the field of Project
Management.
In Iran, the requirement for entering the field of Management as an
Engineer is to have at least three years of experience in Management of
Industrial and Administration units. I had six years of experience in Opti-
mization Management (OP) of logistics and transportation. During my
Master studies, I specialized in System Management, Strategy, Numeri-
cal Simulation, Modelling, HRM, Productivity Measurement, EFQM and
Optimization by passing related courses. My second Master thesis subject
was in energy sector: A Study of Models for Productivity Measurement
and Selection of an appropriate model for Pars Oil and Gas Company
(P.O.G.C). That time I was working for one of the most famous and big-
gest Gas and Oil companies of Iran and worldwide: Pars Oil and Gas
Company (P.O.G.C.), which coordinates a big percentage of the entire
world gas resources. My position at P.O.G.C. was Manager of Logistics
and Procurement of all Plans, Phases and Projects and Executive Adviser
of the CEO. During my time at P.O.G.C. I optimized the plan for sea trans-
portation, shipping, maritime and helicopter transport via real time service
and maintenance of these logistics at the Persian Gulf and the mission
areas, which also was a great experience as a logistics project manager
with value engineering approach on international level during the sanc-
tions against Iran.
From 2008 until 2012, I was consultant at the Ministry of Industry,
Mine and Trade with several project duties in the field of status quo in
green industrial parks and cities, industrial waste management, green
technology and green business with IT approach.
Besides many articles, since 2008 I have published more than 17 sci-
entific books and many articles in Iran.
From 2009 to 2012 I awarded a doctorate in Business Strategy. During
the time of my education in Iran, I have participated in some energy projects
such as fossil, solar, wind, and biomass projects. For instance, I ­cooperated
Introduction   •   xv

in fixing and reoperation of the NRI solar concentrated Stirling dish. In


another project, I was responsible for performing the development activi-
ties of the project of biogas extraction from Shiraz landfill in Iran.
After that, my interest to work on an international level has grown.
Therefore, I decided to move to Denmark in summer 2012. Ever since,
I have collected various practical experiences in different Danish compa-
nies that are working on international projects like Sustainable Platforms.
Nowadays, I still have partner projects running with Danish companies,
especially, one company (Sustainable Platforms) in renewable energy,
waste and wastewater management.
In September 2015, I moved to Germany where I have started
my career at University of Applied Sciences-Fachhochschule des
­Mittelstands (FHM) as a lecturer and researcher. Presently, in August
2018, I have received the PROFESSOR title in the field of International
Management. Besides this, in January 2016 I founded my own Inter-
national Bridging Businesses Management Company named “DOOST
INTERNATIONAL.” During May and June 2016, I was entrusted rep-
resentative of the German Federal State Mecklenburg-Vorpommern as a
consultant of the Minister of Energy, Infrastructure and State Develop-
ment, for their delegation visit in Iran. Since 2016, I am an International
Business Developer and Consultant for various Danish, Iranian, and
German companies in the field of renewable (green) energy, waste and
waste water management, sustainability, wind turbine and water desali-
nation plants.
Since December 2016 I have started my project about Sustainable
Management with a Danish company in Copenhagen that I have intro-
duced Sustainable Platforms about renewable energy, waste and waste-
water management.
Furthermore, since April 2017, I am an external professor at TU
Berlin for the Master program in Sustainability Building and Energy
Management.
Finally since 1st of August 2017 I have started a research develop-
ing Erasmus + project called Internet of Energy/Education-Qualification
(IoE/E-Q) at University of Applied Sciences-FHM as an academic project
leader. Furthermore, I have been included in the International Program
Committee for the international Internet of Thing (IoT) conference in
Santa Cruz, Canary Islands, and Spain in April 2018 and international
EDUCON2019—IEEE Global Engineering Education conference in
American University in Dubai, Dubai, UAE April, 2019.
Besides this, I am external examiner and supervisor for PhD/DBA
participants at two English state Universities (Worcester University and
University of Gloucestershire).
xvi  •   Introduction

On a self-employed base, I was consultant for the Minister of Energy


and Infrastructure in Mecklenburg federal state of Germany and presently
for some Danish and German companies.
Also, at the moment I am board member and vice-CEO of the NICC
(Norwegian Iranian Chamber of Commerce).
As a Director for International Management, Iran Representative and
Consultant of CEO at University of Applied Sciences-FHM, on August
21–23, I was Conference Manager for the International Conference in
“Future of SMEs for Iran and Germany” in Berlin and that was a success-
ful international project for me.
Having published several books in Persian language, before, how-
ever, this is my fourth book in English language named International
Project Management: A Focus on Project Value Improvement and Value
Engineering-Volume 2 and shall open the doors to an international, sus-
tainable (business) world.
At the end, I would like to say special thanks to my first boss
Dr. ­Gholamhossein Bolandian because of his motivation and guidance
and my current colleagues and boss, Prof. Dr. Habil Richard Merk and
Prof. Dr. Volker Wittberg because of their strong motivation and my PhD
student Ms. Leyla Hakami who helped me so much in this project.

Prof. Dr. Hamid Doost Mohammadian


February 2019, Berlin, Germany
CHAPTER 1

Project Time Management

1.1  Project Time Management Definition

Projects are temporary undertakings to create a unique product or service.


The idea of time is inherent to the very definition of a project in that all
projects are temporary. Even though they may seem to last forever, sooner
or later they must end. Adequate planning of the temporary project can
predict when a project will end. Within this short, limited time, the project
manager must create something: a product or a service. The creation is
about change—and change, as you may have guessed, takes time.
Time management relies on several inputs to monitor and control the
project schedule.

Project time management

Define Estimate
project activities project activities
resources

Sequence
project activities
Estimate
project activities
duration

Develop Control
project schedule project schedule

Figure 1.1.  Time management process.


Source: http://wdb.fh-sm.de/PmTimeCostQuality
2  •   International Project Management

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:

• Project management activities


• Planning processes
• The sequence of activities
• Procurement
• Reliance on internal and external events
• Known and unknown events affecting the project

1.2 Sequencing Project Activities

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:

Finish-to-start (FS) This relationship means Task A must be com-


pleted before Task B can begin.
Start-to-start (SS) This relationship means Task A must start before
Task B can start. This relationship allows both activities to happen
in tandem.

A B
C
D
Start
End
F H
E

Figure 1.2.  Assign the best time.


Source: http://wdb.fh-sm.de/PmTimeCostQuality
Project Time Management   •  3

Finish-to-start Start-to-start
M T W T F M T W T F
A A
B B

Task A must finish before Task A must start before


Task B can start Task B can start

Finish-to-Finish Start-to-Finish
M T W T F M T W T F

A A
B B

Task A must finish before Task A must start before


Task B can finish Task B can finish

Figure 1.3.  Relationships between activities.


Source: http://wdb.fh-sm.de/PmTimeCostQuality

Task A Task B Task C

Lag adds time Lead removes time

Figure 1.4.  Values added to work packages.


Source: http://wdb.fh-sm.de/PmTimeCostQuality

Finish-to-finish (FF) this relationship means Task A must complete


before Task B does. Ideally, two tasks must finish at exactly the
same time, but this is not always the case.
Start-to-finish (SF) This relationship is unusual and is rarely used. It
requires that Task A to start so that Task B may finish.

1.2.1  Considering Leads and Lags

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

Figure 1.5.  Activities sequencing.


Source: http://wdb.fh-sm.de/PmTimeCostQuality

1.2.2 Examining the Sequencing Outputs

There are many approaches to using activity sequencing: a project man-


ager and the project team can use software programs, the approach can be
done manually, or the team can manually do the scheduling and then trans-
fer the schedule into a PMIS.1 Whichever method is selected, the project
manager must remember four things.

• Only the required work should be scheduled.


• Finish-to-start relationships are the most common and preferred.
• Activity sequencing is not the same as a schedule.
• Scheduling comes after activity sequencing.

A project network diagram (PND) illustrates the flow of the proj-


ect work and the relationship between the work packages. PNDs are
­typically “activity on node” (AON), and most PMIS packages use the
PDM method. The following illustration is a typical example of a n­ etwork
diagram.

1.2.3  Considering the Resource Requirements

The identified resource requirements will affect the project schedule.


Remember the difference between duration and effort? Duration is how
long the activity will take, while effort is the labor applied to the task.

  Project Management Information System.


1
Project Time Management   •  5

Diminishing
returns

Effort

Yield
Duration

Figure 1.6.  Project duration of estimating.


Source: http://wdb.fh-sm.de/PmTimeCostQuality

Average

Most likely

Optimistic Pessimistic

Figure 1.7.  Three-key point estimating.


Source: http://wdb.fh-sm.de/PmTimeCostQuality

1.2.4 Estimating Activity Durations

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

estimate. A three-point estimate requires that for each activity, optimistic,


most likely, and pessimistic time estimates be created.
(Optimistic time + (4 × Most likely time) + Pessimistic time) / 6

1.3 Some Essential, Float, Ethics, and


Leadership
1.3.1 Float

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.

Precedence diagram’s notation


How to calculate float?

ES EF FORWARD PASS
Activity A
BACKWARD PASS
LS LF

Float = LS –ES or LF – EF

Figure 1.8.  Calculating of float.


Source: https://slideshare.net/phantai24/pdm-precedence-­
diagram-method
Project Time Management   •  7

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.

1.3.2 How Does the Float of an Activity


Calculated?

Float of an activity can be calculated in two ways. Either Early Start is


subtracted from the late start, or early finish is subtracted from the late
finish. How do we calculate the Early Start, Early Finish, Late Start, and
Late Finish of an activity? Figure 1.8 gives us a way to do this calculation.
It is no wonder that Academy Leadership’s foundational leadership
development programs include time management. The title shows the
importance of this topic: Setting Leadership Priorities. It is indeed the
effectiveness of your activities in each hour of your day—not necessarily
the number of hours you work—that determines the result you and your
team will accomplish. Setting leadership priorities improves the quality of
life in the workplace. It helps diminish the hurry, stress, and frustration of
the crisis management atmosphere that plagues so many organizations. It
also provides proper intervals for coaching, conflict resolution, goal set-
ting, and other important topics.
When you organize your time well, you help keep everyone in your
work group on track toward their goals. These improved results can bring
a great sense of accomplishment and satisfaction at the end of the day
and the work week. Ultimately, honing your time management skills will
allow for better time spent the work place.
“Invest your time in activities, work, hobbies, and relationships that
have maximum meaning for you!”

1.4 Leadership and Ethics

1.4.1  Leadership Connected to Ethics

Although ethics and leadership are intuitively perceived as strongly con-


nected, the concept of ethical leadership has been redefined recently in
its strong relation with the concept of followership (Brown, Trevino, and
Harrison 2005, p. 120).

Ethical leadership is the demonstration of normatively appropriate


conduct through personal actions and interpersonal relationships,
8  •   International Project Management

and the promotion of such conduct to followers through two-way


communication, reinforcement, and decision making.

Ken Johnson has focused on this connection to identify four tightly


interrelated components (Johnson 2003, p. 1) of ethical leadership:

• Purpose—the ethical leader inquires reasons and acts with organi-


zation purposes firmly in mind.
• Knowledge—the ethical leader has knowledge to inquire, judge,
and act prudently.
• Authority—the ethical leader has the power to ask questions,
make decisions and act, but also recognize that all those involved
and affected must have the authority to contribute what they have
toward shared purposes.
• Trust—the ethical leader inspires, and is beneficiary of, trust
throughout the organization and its environment.
All four of these elements are critical in an environment, such
as project management, where authority is limited by the temporary
nature of the project and by the all-to-common matrix relationship
between the project manager and project team members.

1.4.2 Trust Requires Ethics

Trust, however important, can only be established if the conditions are


just right. And those conditions must remain; they cannot be a one-time
occurrence. Those conditions require, above all, openly ethical behav-
ior by the leader (Kouzes 2008, p. 15): Exemplary leaders know that if
they want to gain commitment and achieve the highest standards, they
must be models of the behavior they expect of others. Leaders model
the way.

Project
Effective success
Building leadership
Ethical trust
behavior

Figure 1.9.  Ethical importance.


Source: https://pmi.org/learning/library/ethical-decision-­
making-trend-5788
Project Time Management   •  9

1.4.3 Ethics Codes and Frameworks

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

Figure 1.10.  PMI EDMF steps.


Source: https://pmi.org/learning/library/ethical-decision-making-­
trend-5788

  PMI Ethical Decision-Making Framework 2012.


2
10  •   International Project Management

ethics-related resources. Trending of the ethics-related survey q­ uestions


during the preceding six years shows a pattern of increased ethics aware-
ness. This trend of increasing ethics awareness, when examined in light of
the EDMF circulation draft survey results, where v­ irtually all responded
most favorably, is suggestive of a time in the PMI ­organization where
structured ethical decision making increasingly will be performed as part
of an important linkage to leadership and project success.

1.5 Developing a CPE Schedule

1.5.1 What Happens After Develop Schedule


Process?

Figure 1.11.  PMI EDMF Sub-questions.


Source: https://www.pmi.org/learning/library/ethical-decision-making-­
trend-5788
Project Time Management   •  11

Once the schedule is complete during develop schedule process, the sched-
ule network analysis can begin and may take one of the following forms:

• Critical Path—Critical path method is the most important sched-


ule network analysis technique. It shows the shortest duration that
a project can be completed.
• Schedule Compression—Schedule compression will help you to com-
press the project activities and complete the project in a shorter duration.
• What-if Scenario Analysis—What-if Scenario analysis helps to
simulate what could happen based on some parameters and gener-
ally simulated by computer programs.
• Resource Leveling—Resource leveling is used to produce a
resource-limited schedule. Although some activities in the project
are not technically related to others, you might need to wait to start
a new activity since there is not any available resource. Resource
leveling will help to optimize resource usage in a project and com-
plete the project in the shortest time.
• Critical Chain Method—It is another method in which a network
diagram is created, the resource dependencies are added and finally
the buffers are added to critical tasks.

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

Figure 1.12.  Organization for major international project.


Source: https://pm4id.org/chapter/3-2-project-phases-and-organization/
12  •   International Project Management

1.6.2 Key Takeaways

• Key functions on a project include sponsor, project manager, con-


trols, procurement, technical, quality, and administration.
• The project sponsor has the organizational authority to provide
guidance and resources and can overcome barriers for the project.
• The project manager is the project leader with broad responsibili-
ties for all phases of the project and for meeting project goals and
client expectations.
• The project controls manager is responsible for controlling the
­project processes, including cost estimating and tracking, devel-
oping schedules, tracking progress against schedules, managing
changes to the schedule or budget, and analyzing trends.
• The procurement manager is responsible for obtaining the services
and materials needed to complete the project. This is accomplished
by purchasing commodities, managing contractors who provide
services and products, and working with partners.
• The technical manager deals with the issues related to the technol-
ogy of the project.
• The quality manager monitors the project’s processes—not the
quality of the product of the project—and takes steps to assure they
are done correctly and meet specifications.
• Project administration manages accounting, legal, property, and
human resources.

1.7  Value Chain Schedule

1.7.1 Definition or Meaning—What Is SAP SCM?

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

1.7.2  the Components of SAP SCM Are

• SC Collaboration—helps in making collaborative forecasts and


agreements.
• SC Planning—generates tactical and operational plans on the basis
of current, relevant data.
• SC Coordination—coordinates through the exchange of data and
information between departments.
• SC Execution—ensures that well-conceived plans are executed to
cater to customer orders in the best possible manner.

1.7.3 SAP SCM Primary Applications are


Segregated As

• General areas of SAP


• SAP Extended Warehouse
• SAP Transportation Management
• Advanced Planning and Optimization
• Supply chain management
• SAP supply network collaboration
• Forecasting and Replenishment

Across the world, organizations are facing enormous pressures


for reducing costs while improving customer services and increasing
innovation as well as responsiveness. SAP SCM enables the planning,
­collaboration, execution, and coordination of the supply network, and
empowers them to adopt smarter supply chain processes and deal with
their ever-changing competitive environment.

1.7.4 the Benefits of Integrating this Module


Include

• Smarter planning and execution of SAP supply chain solutions for


meeting customer demands.
• Effective streamlining of internal departments with their external
partners, total control of Business Processes and smoother oper-
ations for more efficient and profitable running or organizations.
• Competent forecasting and handling of sudden changes in demand
and supply.
• Provision of vital business.
• Information to all key stakeholders located across the network.
14  •   International Project Management

Business
Strategy & Value Application Support &
process
assessment engineering configuration optimization
consulting

• SAP/supply • Packaged • Supply chain • SAP • Remote support


chain MSCG transformation enablement
• Upgrades
workshop jumpstart • Program/project • Technical &
• System offerings management • Solution
infrastructure
evaluation consulting enhancement
• Change and re-design
• Business case management • Custom
development development
• Best practice
• Solution adoption
roadmapping

Figure 1.13.  SAP SCM (Supply Chain Management).


Source: https://stechies.com/scm-sap-supply-chain-management/

• Improved collaboration and better management of multiple lines


of business.
• Real-time decision making for early execution across the supply
chain.
• Central management and optimization of Inventory, order fulfill-
ment, and shipping.
• Proper handling of supply chain disruptions and maintenance of the
supply chain’s integrity and so on.

Organizations investing in project management need to be assured


of a concrete return. Without the ability to clearly define its value, proj-
ect management joins the long line of initiatives (i.e., TQM, information
systems, training, and human resources) struggling to prove their worth to
organizations. However, demonstrating a concrete value in organizations
has been illusive and even paradoxical.

1.7.5 Measuring of Organizational Value

Efforts to determine the value of organizational activities have been a


longstanding pursuit in a number of disciplines (Lepak, Smith, and Taylor
2007). The conceptual approaches to the value question can be roughly
categorized as follows:

• Return on investment (ROI) approaches


• Balanced scorecard (BSC) metrics
• Organizational competency approaches
Project Time Management   •  15

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:

• Cost Benefit Ratio


B/C Ratio = $Benefits/$Costs
• ROI
ROI = ($Benefits − $Costs) / $Costs × 100
The biggest challenges of conducting ROI evaluations relate to:
ensuring credible, valid results in a reasonable time frame;
• Maturity Based ROI Metrics
PM/ROI = [(Predicted Profit Margin – Current Profit Margin)
× Annual Project Revenues]/Annualized Project Management
Expenditures

There is no question that bottom-line results are important for all


types of organizations regardless of their profit orientation. All organi-
zations need to pay attention to revenue and costs to remain financially
viable. However, not everything that an organization does can be trans-
lated into monetary terms. For instance, the link between employee
satisfaction and corporate performance is difficult if not impossible to
establish. However, many organizations believe that keeping employ-
ees satisfied is an important corporate goal. In not-for-profit or gov-
ernment organizations, measuring objectives in financial terms is even
more problematic. Translating employee or customer satisfaction into
a dollar value or evaluating outcomes in financial terms is very dif-
ficult to calculate in any valid or credible way. Thus, in spite of the
perceived desire for an ROI calculation for such organizational inter-
ventions, most executives are often wary to accept those calculations
that are presented.
Given the difficulties and constraints of using ROI to measure value
in an organizational setting, many researchers have sought to develop
more sophisticated measures.
BSC metrics try to evaluate organizational performance using a vari-
ety of financial and nonfinancial measures including the following:
16  •   International Project Management

• Learning and growth


• Internal measure
• Customer perspectives
• Financial perspectives (such as ROI)

In particular, this approach attempts to measure the knowledge-based


and intangible benefits associated with organizational effectiveness today.
BSC metrics have the theoretical advantage of attempting to evaluate all
the benefits and costs of each organizational action in the context of the
specific organization’s strategy. The selection of appropriate metrics is
therefore key to the success of this approach.
In Europe, a similar model has been developed based on this approach
in combination with quality perspectives. This model, developed by the
European Foundation for Quality Management (EFQM), seeks also to
evaluate organizational performance based on a wider variety of potential
measures.
Valuing organizational initiatives is a difficult activity fraught with
challenges (see Thomas and Mullaly 2005 for a review). Voepel et al.
(2006) further asserted that “All of the traditional business performance
measures suffer to some degree because of the underlying and increasingly
invalid assumptions rooted in the industrial economy.” They suggested
that what is missing in these measures is a contextual understanding of the
complex web of interrelated factors, relationships, and activities that need
to be taken into account in a holistic manner in order to assess an organi-
zation’s performance in the knowledge economy.
In reviewing the ROI research in IT, TQM, expert systems, and
human resources, it becomes clear that the conceptual model underlying
this research must incorporate appropriate measures of what has been
implemented in each organization, the process and outcome impacts of
this implementation, the fit between what was implemented, and the busi-
ness orientation and environment within which the organization func-
tions, and appropriate measures of the benefits and costs of the project
management implementation (extrapolated from Hackman and Wageman
1995). In preliminary work (Thomas and Mullaly 2005), the authors iden-
tified the relationships that can occur between the components of project
management and the accrued benefit to the stakeholder(s). Different attri-
butes can provide a starting point for the identification and elaboration of
the relationships and variables that need to be measured and statistically
explored in this research.
Distinguishing between the rhetoric and the actuality of what has
been implemented is also essential, as is the assessment of the fit ­bet­ween
Project Time Management   •  17

these initiatives and the organizational and business e­nvironment.


The choice of what will have been implemented (the project manage-
ment i­mplementation in the context of any one organization) will be
influenced by the business orientation of the organization—its focus,
strategic direction, and vision of itself as an entity—and the environment
within which the organization operates—which will be influenced by
its industry, ­customers, economic context, and the types of projects the
organization typically manages.
In understanding the impact of project management to a specific orga-
nization, there are three direct influences that will govern whether value is
actually being realized:

• First, the fit of what has actually been implemented needs to be


understood in the context of the business orientation and the envi-
ronment; in other words, to what degree did the organization “get
it right” in establishing a context of project management that is
appropriate for them and the types of projects they manage?
• Second, the process impacts of what has been implemented must
be assessed and measured—in other words, to what degree does
this framework better influence the delivery of projects? Are the
processes more efficient, more effective, or more capable of deliv-
ering projects more reliably? Has the project management process
improvement allowed the organization to improve market focus or
differentiate its market services?
• Third, the tangible business outcomes resulting from using what
has been implemented must be evaluated—in other words, to what
degree do these project management capabilities actually deliver a
bottom-line impact in terms of reduced costs, optimized efficiency,
or increased revenue? What is the return to the organization for
investing in the project management capabilities it has established?

1.7.6 Organizational Context

Bruner (1990) asserted that it is impossible to understand the metrics and


reference system of a company without first understanding the situated,
contextual interpretations embedded within the management practices of
the company. The conceptual model defined first recognizes that there is
an external context that influences the managerial practices within each
organization and ultimately determines the success of any organizational
initiative. This is the context within which the initiative is being launched
18  •   International Project Management

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  Partner Schedule

1.8.1 Partnership Management

It is the process of following up on and maintaining effective, productive,


and harmonious relationships with partners. It can be as informal as phone
calls, e-mails, and social visits or as formal as written, signed agreements
that partners review periodically. What is most important is that you invest
the time and resources needed to maintain partnerships, you communicate
regularly with your partners and you both have the opportunity to assess
how things are going.

1.8.2 Why Are Partnerships and Partnership


Management Important?

On its own, what WWF—or any organization—can achieve is limited.


Working with partners lends WWF projects greater credibility and broad-
ens the scope of what the projects can achieve. In good, effective part-
nerships, the partnership itself will represent more than the sum of the
individual partners. This is particularly important in an organization like
WWF, where we often play a leadership role in defining ­conservation
needs and strategies but we may take more of a “background leadership”
or “leadership support” role in the implementation process. It is also
important in situations where WWF is just one of several players at the
table and your team is seeking to have WWF’s viewpoints and your proj-
ect goals incorporated into the broader agenda.
Project Time Management   •  19

Maintaining effective partnerships is important to ensure that a


project stays on track. The success or failure of a conservation project
is often not related to its complexity or the strengths and weaknesses of
its ­participants. The success or failure is more often determined by how
partners handle project challenges and opportunities. How you manage
partners will help you navigate through complex, changing, and often
unfamiliar terrain.

1.8.3 When to Cultivate Partnerships and Work


on 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

Business ORGANIZATIONAL Environment


orientation CONTEXT

FIT

Value of
Process criteria project management Outcome criteria

VALUE CONSTRUCTS

Figure 1.14.  Conceptual model of Thomas and Mulley.


Source: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.846.1030
&rep=rep1&type=pdf
20  •   International Project Management

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).

1.8.4 How to Cultivate Partnerships and Work


on Partnership Management

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:

1. Establish and review partnerships;


2. Determine governance;
3. Formalize partnerships; and
4. Maintain strong relationships with partners.

Although we present these steps separately, they are often occurring


in tandem. Because of the evolving nature of partnerships, it is also likely
that you will have to revisit these steps several times over the course of
your project.

1.8.5 Elements of Effective Partner


Management

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:

• Maximize diversity: Draw your partners from a diverse mix of


entities that may include conservation NGOs, other NGOs, small
grassroots organizations, local community members, aid agencies,
donors, government agencies, and corporations. Consider partners
that multiply your resources, capacity, and effectiveness in various
Project Time Management   •  21

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):

• Shares a similar long-term vision as WWF;


• An influential player that is or can become part of the solution,
either by itself or by influencing other actors in the sector based on
their own interests;
22  •   International Project Management

• Often from a sector—private or public—that constitutes a major


direct threat (or associated with an indirect threat) to conservation;
• Willing to take responsibilities and contribute own resources;
• Willing to sign a formal and long-term relationship with WWF;
• Reliable, transparent, and accountable, even if the partner has been
part of the problem.

1.8.6 Technical Management Structure

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.

1.9  CPE Schedule

Task management is the process of managing a task through its life


cycle. It involves planning, testing, tracking, and reporting. Task man-
agement can help either individual achieve goals, or groups of indi-
viduals collaborate and share knowledge for the accomplishment of
collective goals. Tasks are also differentiated by complexity, from low
to high.
Effective task management requires managing all aspects of a task,
including its status, priority, time, human and financial resources assign-
ments, recurrence, dependency, notifications, and so on. These can be
lumped together broadly into the basic activities of task management.
Managing multiple individuals or team tasks may be assisted by spe-
cialized software, for example, workflow or project management software.
In fact, many people believe that task management should serve as a foun-
dation for project management activities.
Task management may form part of project management and ­process
management and can serve as the foundation for efficient workflow in an
organization. Project managers adhering to task-oriented management
have a detailed and up-to-date project schedule, and are usually good at
directing team members and moving the project forward.
Project Time Management   •  23

1.9.1 Task Life Cycle

The status of tasks can be described by the following states:

• Ready
• Assigned
• Terminated
• Expired
• Forwarded
• Started
• Finished
• Verified
• Failed

The following state machine diagram describes different states of a


task over its life cycle. This diagram is referenced from IBM. A more
up-to-date task’s state machine diagram applicable to the new continuous
delivery method could be found here.

Terminated
Cancelled

Timed out Expired

Inactive Delegated
Ready Assigned Forwarded Completed
Rejected

Finished

Failed

Figure 1.15.  Task life cycle.


Source: https://en.wikipedia.org/wiki/Task_management
24  •   International Project Management

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

© 2013, Project Management Institute


Originally published as part of 2013 PMI® Global Congress Proceedings. ­Istanbul,
Turkey.
Conference Paper Decision Making, Ethics 2012.
O’Brochta, Michael | Meloni, Giusi | Raghupathy, Shobhna | Pfeiffer, Peter |
­Taylor, Marty.
Wiley, et al. n.d. “3.2 Project Phases and Organization.” is Licensed Under a Cre-
ative Commons Attribution-NonCommercial-ShareAlike 4.0 International
License, Except Where Otherwise Noted. https://pm4id.org/chapter/3-2-proj-
ect-phases-and-organization/
Index

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

FAST. See Function analysis O


system technique Organizational schedule, 11–12
FF. See Finish-to-finish
Financial capital, 54 P
Finish-to-finish (FF), 3 Partner schedule
Float activity, 6–7 cultivating partnerships and
Free float, 6 work, 19–20
Function analysis system elements of effective
technique (FAST), 74–75 management, 20–22
partnership management, 18
H reasons for partnership, 18–19
Human capital, 54 technical management structure,
Human resources (HR) 22
management, 35 PDM. See Precedence
diagramming method
I Performance attribute matrix,
Ignoring, 88–89 73–74
International Standard for Quality Performance attributes, 73
management (ISO 9001), Plan-Do-Check-Act cycle, 27–28
29–30 Precedence diagramming method
Iterative development, 77 (PDM), 2
Process approach, 30
K Project cycle, 47–48
Knowledge management, Project float, 6–7
collaborative, 48–49 Project management approach,
Knowledge transfer, 81–84 34–35
Project management information
L system, 81–84
Leadership Project Management Institute’s
connected to ethics, 7–8 (PMI) standards, 55–56
in quality management, 30 Project management quality plan,
Leads and lags, 3–4 30–36
Project management
M transformation, 85
Manufactured capital, 54 Project success model, 85
Maurer’s project coordination
architecture, 44–45 Q
Monitoring and controlling Quality management
process group, 49–50 collaborative knowledge
Mutually beneficial supplier management, 48–49
relationships, 30 customer satisfaction
continuous improvement,
N 27–28
Natural capital, 54 cost of quality, 29
Index   •   95

management responsibility, Scope management, 35


29 Security primary program roles,
prevention over inspection, 79–81
27 Security program core structure,
definition of, 35–36 78–79
monitoring and controlling Sequencing project activities
process group, 49–50 activity duration estimation, 5–6
product quality examining outputs, 4
checklists, 41 leads and lags, 3–4
evaluation criteria, 38–39 overview of, 2–3
five aspects of, 41 resource requirements, 4–5
scenarios, 39–40 Service quality
system qualities, 36–38 collaborative project
project plan, 30–36 management architecture, 45
service quality collaborative support levels, 46
collaborative project collected work, 46
management architecture, concerted collaborative level, 47
45 coordinated collaborative level,
collaborative support levels, 47
46 definition of, 41–42
collected work, 46 Dixon’s integrated model, 42–44
concerted collaborative level, Maurer’s project coordination
47 architecture, 44–45
coordinated collaborative project cycle, 47–48
level, 47 project presence, 46
definition of, 41–42 SF. See Start-to-finish
Dixon’s integrated model, Social capital, 54
42–44 Standardizing, 89
Maurer’s project coordination Start-to-finish (SF), 3
architecture, 44–45 Strategic conservation partners, 21
project cycle, 47–48 Supplier and contract
project presence, 46 management, 36
standards, 29–30 Sustainable development, 84
System approach to management,
R 29–30
Resource leveling, 11
Resource management, 43 T
Risk management, 36 Task life cycle, 23
Task management, 22
S Time management
SAP SCM (supply chain CPE schedule, 10–11, 22–23
management), 12 definition of, 1–2
Schedule compression, 11 ethics
Schedule management, 35 codes and frameworks, 9–10
96  •   Index

leadership connected to, 7–8 measuring of organizational


trust and, 8 value, 14–17
float activity, 6–7 organizational context, 17–18
organizational schedule, 11–12 SAP SCM primary applications,
partner schedule 13
cultivating partnerships and Value engineering
work, 19–20 benefits of, 52–53
elements of effective constraints and controlling
management, 20–22 decisions stakeholder concerns,
partnership management, 18 66–67
reasons for partnership, continuous improvement and
18–19 process linkages, 59–60
technical management definition of, 51–52
structure, 22 development/recommendation
process of, 1 phase, 60–61
sequencing project activities elements of
activity duration estimation, five types of capital, 54–55
5–6 triple bottom line, 54
examining outputs, 4 function analysis performance,
leads and lags, 3–4 67
overview of, 2–3 function analysis system
resource requirements, 4–5 technique, 74–75
task life cycle, 23 goals, background and cost
task management, 22 baseline, 62–63
value chain schedule information phase, 71–72
benefits of integration, 13–14 investigation observations,
components of SAP SCM, 13 67–71
definition of, 12 policies
measuring of organizational purpose, 56–57
value, 14–17 value improvement, 57
organizational context, 17–18 program management support,
SAP SCM primary 55–56
applications, 13 program manager, 57–58
Total float, 6 project analysis
Transfer of knowledge, 81–84 overview of, 72–73
Triple bottom line, 54 performance attribute matrix,
TRIZ method, 58–59 73–74
Trust and ethics, 8 performance attributes, 73
for projects, 60
V scope of, 63–64
Value chain schedule study timing, 63
benefits of integration, 13–14 sustaining with TRIZ method,
components of SAP SCM, 13 58–59
definition of, 12 team member, 64
Index   •   97

Vision of 21st century society project success model, 85


enterprise project leadership, sustainable development, 84
85–87
project management W
transformation, 85 What-if Scenario analysis, 11