Project Management

Systems, Principles, and Applications

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Series: Industrial Innovation Series.

As organizations realize the benefits of PM, the need to develop effective management tools rises with the increasing complexity of new technologies and processes. Taking a systems approach to accomplishing goals and objectives, Project Management: Systems, Principles, and Applications covers contemporary tools and techniques of PM from an established pedagogical perspective.

A project can be simple or complex. In each case, proven PM processes must be followed with a world systems view of the project environment. While on-the-job training is possible for many of the PM requirements, rigorous and formal training must be used. Consequently, PM resources are of high utility. This text fills the void that exists in the availability of PM resources. Although individual books dealing with management principles, optimization models, and computer tools are available, there are few guidelines for the integration of these three areas for PM purposes.

This book integrates these areas into a comprehensive guide to PM. It introduces the triad approach to improve the effectiveness of PM with respect to schedule, cost, and performance constraints within the context of systems modeling. It provides details on an integrated systems PM approach that can help diminish the adverse impacts of these issues through good project planning, organizing, scheduling, and control.

Table of Contents

Systems Principles for Project Management

Lessons from Classical Control Systems

Improved Organizational Performance

Definition of Systems Engineering

Project Systems Logistics

Systems Constraints

Systems Influence Philosophy

Systems Value Modeling

Example of Value Vector Modeling

Management by Project

Integrated Systems Implementation

Critical Factors for Systems Success

Early Systems Engineering

DODAF Systems Architecture for Project Management

Grand Challenges for Engineering

Systems View of the Grand Challenges

Body of Knowledge Methodology

Components of the Knowledge Areas

Project Systems Structure

Project Systems Implementation Outline

Systems Decision Analysis

Group Systems Decision-Making Models

Systems Hierarchy

D-E-J-I Model for Project Execution

Design Stage of D-E-J-I

State Transformation

Evaluation Stage of D-E-J-I

Half-Life Computation for Learning Curves

Justification Stage of D-E-J-I

Integration Stage of D-E-J-I

Exercises

References

Systems-Wide Project Planning

Project Planning Objectives

Time–Cost–Performance Criteria for Planning

Systems Levels of Planning

Components of a Plan

Motivating the Project Team

Axiom of Theory X

Axiom of Theory Y

Maslow’s Hierarchy of Needs

Hygiene Factors and Motivators

Management by Objective

Management by Exception

Project Feasibility Study

Scope of Feasibility Analysis

Contents of Project Proposals

Budget Planning

Project Work Breakdown Structure

Legal Systems Considerations

Systems Information Flow

Cost and Value of Information

Triple C Model

Resolving Project Conflicts with Triple C

Classical Abilene Paradox

Exercises

Reference

Project Systems Organization

Environmental Factors in Project Organization

Issues in Social and Cognitive Domains

Organizational Breakdown Structure

Formal and Informal Structures

Functional Organization

Product Organization

Matrix Organization Structure

Mixed Organization Structure

Alternate Organization Structures

Organizing Multinational Projects

Exercises

Project Scheduling

Fundamentals of Network Analysis

Critical Path Method

CPM Calculation Example

Determination of Critical Activities

Gantt Charts

PERT Network Analysis

Precedence Diagramming Method

Formulation of Project Graph

Exercises

Systematic Resource Allocation

Resource Allocation and Management

Resource-Constrained Scheduling

Resource Allocation Examples

Resource Allocation Heuristics

Quantitative Modeling of Worker Assignment

Takt Time for Activity Planning

Resource Work Rate

Work Rate Examples

Resource-Constrained PDM Network

Critical Resource Diagram

Resource Schedule Chart

Resource Loading and Leveling

Probabilistic Resource Utilization

Learning Curve Analysis

Interruption of Learning

Learning Curves in Health-Care Projects

Exercises

References

Project Control System

Elements of Project Control

Information for Project Control

Control Charts

Statistical Analysis for Project Control

Probabilistic Decision Analysis

Decision Trees

Project Control through Rescheduling

Experimental Analysis for Project Control

Control through Termination

Exercises

Project Systems Modeling and Optimization

Project Modeling

General Project Scheduling Formulation

Linear Programming Formulation

Activity Planning Example

Resource Combination Example

Resource Requirements Analysis

LP Formulation

Integer Programming Approach for Resource Scheduling

Time–Cost Trade-Off Model

Goal Programming

Exercises

References

Cost Systems Analysis

Economic Analysis Process

Simple and Compound Interest Rates

Investment Life for Multiple Returns

Nominal and Effective Interest Rates

Cash-Flow Patterns and Equivalence

Compound Amount Factor

Present Worth Factor

Uniform Series Present Worth Factor

Uniform Series Capital Recovery Factor

Uniform Series Compound Amount Factor

Uniform Series Sinking Fund Factor

Capitalized Cost Formula

Permanent Investments Formula

Arithmetic Gradient Series

Increasing Geometric Series Cash Flow

Decreasing Geometric Series Cash Flow

Internal Rate of Return

Benefit–Cost Ratio

Simple Payback Period

Discounted Payback Period

Fixed and Variable Interest Rates

Amortization of Capitals

Equity Break-Even Point

Analysis of Tent Cash Flows

Special Application of Arithmetic Gradient Series

Design and Analysis of Tent Cash-Flow Profiles

Derivation of General Tent Equation

Multi-Attribute Project Selection

Utility Models

Additive Utility Model

Multiplicative Utility Model

Fitting a Utility Function

Polar Plots

Analytic Hierarchy Process

Cost Benchmarking

Exercises

References

Advanced Topics in Project Planning and Control

Forecasting Techniques

Classical Inventory Management

Calculation of Total Relevant Cost

Seasonal Pattern Modeling

Exercises

Advanced Techniques for Multiresource Scheduling

Notations Used in the Methodology

Analysis of Project Resources

Resource Modeling Background

Multiresource Methodology

Modeling of Resource Characteristics

Resource Mapper

Activity Scheduler

Model Implementation and Graphical Illustrations

References

Case Examples and Applications

Case Example: Project Systems View of World Economy

Global Systems View of the World

Economic Interdependence Model

Hybridization of Cultures

Market Integration as a Factor of Deterrent

Pursuit of Global Awareness for the Sake of Deterrent

Questions for Overseas Economic Engagement

Questions for Assessing Local Conditions

Questions for Economic–Cultural Nuances

Questions for Geographic Awareness

Questions for General Assessment

Labor as a Vehicle of Mutual Development

Awareness of Overseas Workforce Constraints

Hierarchy of National Needs

Prevention Is Better than Correction

Empathy, Sympathy, and Compassion Instead of Apathy

Sustainability of Global Alliances

Summary of the Case Example

References

Case Application: Coordination of Multinational Projects

Appendix A: Project Formulas

Appendix B: Project Management Acronyms

Appendix C: Project Terms and Definitions

Index

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