Management Question

‫المملكة العربية السعودية‬
‫وزارة التعليم‬
‫الجامعة السعودية اإللكترونية‬

Kingdom of Saudi Arabia
Ministry of Education
Saudi Electronic University

Department of Business Administration

College of Administrative and Financial Sciences

Assignment 3
Due Date: 6th Dec 2025 @ 23:59
Course Name: Project Management

Student’s Name:

Course Code: MGT 323

Student’s ID Number:

Semester: 1st

CRN:
Academic Year: 2025-26

For Instructor’s Use only
Instructor’s Name: Nouf Alhajri
Students’ Grade: Marks Obtained/Out of 10

Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY
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•
•
•
•
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The Assignment must be submitted on Blackboard (WORD format only) via allocated
folder.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented; marks may be reduced
for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answer.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or
other resources without proper referencing will result in ZERO marks. No exceptions.
All answered must be typed using Times New Roman (size 12, double-spaced) font.
No pictures containing text will be accepted and will be considered plagiarism).
Submissions without this cover page will NOT be accepted.

Assignment Workload:
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This Assignment comprise of a Case Study and Discussion questions.
Assignment is to be submitted by each student individually.

Assignment Purposes/Learning Outcomes:
After completion of Assignment-3 students will able to understand the
1. Defining the concepts, theories and approaches of project management. (L.O-1.1)
2. Analyze to work effectively and efficiently as a team member for project related cases.
(L.O-3.1)
3. Evaluate to monitor and control the project. (L.O-3.2)

Assignment-3: Case Study & Discussion questions
Assignment Question:

(Marks 10)

Please read the Case-8.3 “Tham Luang Cave Rescue.” from Chapter 8 “Scheduling Resources
and Costs” given in your textbook – Project Management: The Managerial Process 8th edition
by Larson and Gray page no: 304-307 also refer to specific concepts you have learned from
the chapter to support your answers. Answer the following questions for Part-1, Part-2.

Part-1: Case study questions

1. How did the physical environment of the cave affect the rescue plan?
Explain in 250 words (3 Marks).
2. How did the rescue team respond to the risks of the project? Explain
in 250 words (3 Marks).
3. Some have called the rescue a miracle and that luck was the decisive
factor. Do you agree? Explain in 150 words (2 Marks)
Part-2: Discussion questions

Please read Chapter 8 Pg-No. 279 & 281 carefully and then give your answers
on the basis of your understanding.
4. Why would people resist a multi project resource scheduling system?
(1 Mark) (100 words)
5. What do you think would have happened if the Washington Forest
Service did not assess the impact of resources on their two-year plan? (1
Mark) (100 words).

Answers:
1.
2.
3.
4.
5.

Answers
Case Study
1. Answer Q12. Answer Q23. Answer Q3-

Critical thinking

4. Answer Q15. Answer Q2-

What criteria should he consider? What should be the sequence for
selecting and assigning people to projects?
Case 8.3

Tham Luang Cave Rescue
On June 23, 2018, in Thailand, a group of 12 boys aged between 11 and 17
from the local football team, named the Wild Boars, and their 23-year-old
assistant coach entered the Tham Luang cave. Tham Luang is a large cave
complex in northern Thailand along the border with Myanmar. The cavern
was popular with locals and the boys had visited Tham Luang before. Tham
Luang cave is isolated—there is no GPS, Wi-Fi, or cell phone service. The
last known survey was conducted in the 1980s by a French caving society,
but many of the deeper recesses remain unmapped.
The boys had little difficulty getting fairly far into the cave, crawling
through a couple of choke points to open spaces. They did not anticipate
any problems getting back. The monsoon rains weren’t expected until the
next week, and the year before, the cave did not begin to flood until the
middle of July. The team took no food with them, because this was going to
be a brief field trip. They planned to stay for perhaps an hour, then return
home to their parents.
However, nature had different plans. Heavy monsoon rain began to fall.
The Wild Boars didn’t know about the rain at first. There was a thousand
feet of rock above them and they were more than a mile from the open
forest. Heavy rains gathered in streams that disappeared into sinks, rushing
through limestone into the cavern. Water rose suddenly and quickly, forcing
the team to retreat farther and farther into the cave. The interior of the cave
is not level but rather rises and falls as it burrows into the mountain. The
team scrambled for higher ground as the water continued to rise. Finally,
they settled on a mud slope and waited to see if the water would continue to
rise. It didn’t.

A mother of one of the boys contacted the police when her child failed
to come home. A teammate who had missed practice that day told people
that the team had planned to visit the cave after practice. Parents rushed to
the cave, only to find their children’s bikes and cleats at the entrance and
the cave flooded.
A contingent of Thai Navy SEAL divers arrived the next day and began
pushing their way into the flooded cave. This was no easy task. The Thai
frogmen were accustomed to tropical open water, not the dark, cold currents
page 304
racing through the cave. They lacked equipment, much less
expertise needed for caves, where divers cannot just rise to the
surface if something goes wrong.
The plight of the Wild Boars drew international attention overnight.
Soon skilled cave divers from around the world, including Finland, Britain,
China, Australia, and the United States, volunteered their services. At first
the foreign divers were not met with open arms by the Thai military in
charge of the rescue. Many of the SEAL divers bristled at the idea of
needing foreign assistance. The divers were not even allowed into the cave.
After much political haggling, the Thai Ministry of Foreign Affairs told the
military chiefs to let the foreign divers go.
Even the experienced cave divers found the conditions extremely
difficult. “It was like walking into a strong waterfall and feeling the water
rushing at you,” one diver said. “It was a horizontal climb against water
with every move.”
The divers painstakingly penetrated the cave, securing guidelines
needed to ensure safety. Visibility at times was negligible. “If you put your
hand in front of you, it just disappeared,” said one diver. “You couldn’t see
anything.”
Meanwhile, on the surface, policemen with sniffer dogs searched for
shaft openings that could provide an alternative entrance to the cave system.
The search was augmented by hundreds of volunteers dressed in lemonyellow shirts and sky-blue caps, searching for hidden cracks in the
limestone that might reveal an opening to the cave. Drones were also used,
but no technology existed to scan for humans deep underground. Local holy
men created a shrine at the mouth of the cave, where they chanted and
communed with the spirit of the cave, “Jao Mae Tham.” Several times the
search had to be suspended due to heavy rains.

After the team had spent 10 days of captivity without real food or water,
there was little hope among the rescuers of discovering the boys alive.
In the cave, a pair of British divers working to extend the guide ropes
popped up near a narrow ledge. First they smelled, and then they saw, 13
emaciated people perched in the dark. The Wild Boars had run out of food
and light but had survived by sipping the condensation from the cave walls.
Later it was reported that the assistant coach, a Buddhist, had led the boys
in meditation to relax and conserve energy. The ledge where they were
found was about 2.5 miles from the cave mouth.
The next day Thai SEALs ferried food, water, and blankets to the Wild
Boars. Four divers, including a doctor, would stay with them until their
rescue. Thai officials reported that the rescuers were providing health
checks, keeping the boys entertained, and none of the boys were in serious
condition.
Thai officials released a video made by the rescuers and shared to the
world. The video showed all 12 boys and their coach introducing
themselves and stating their ages. Wrapped in emergency blankets and
appearing frail, each boy said hello to the outside world, “Sawasdee khrap,”
with his palms together in wai, the traditional Thai greeting. The video went
viral. Soon all the major newscasts across the world were covering the
story. The big question then became, now that the boys had been found,
how could they be gotten out alive?
A rescue camp was set up at the cave entrance, accommodating the
volunteers and journalists in addition to the rescue workers. The camp was
divided into zones: restricted areas for the Thai Navy SEALs, other military
personnel, and civilian rescuers; an area for relatives to wait in privacy; and
areas for the press and general public.
An estimated 10,000 people contributed to the rescue effort, including
more than 100 divers, 900 police officers, 2,000 soldiers, and numerous
volunteers. Equipment included 10 police helicopters, seven ambulances,
and more than 700 diving cylinders, of which more than 500 were in the
cave at any time while another 200 were in queue to be refilled.
page 305

The plight of the Wild Boars caught the attention of Elon Musk of Tesla
and Space X fame. He tasked engineers to build a kid-size submarine that

could be used to transport the boys out of the cave. Within days an actual
submarine was sent to Tham Luang. Thai officials praised the effort but
concluded it was not practical, given the narrow passages in the cavern.
The journey through the cave to the team took six hours against current
and five hours to exit with the current. The route had several flooded
sections, some with strong currents and zero visibility, and some extremely
narrow parts, the smallest measuring only 15 by 28 inches. The boys were
perched on a ledge 400 yards from Pattaya beach chamber, named after an
above-ground beach in Thailand. Chamber 3, which was dry, would be used
as rescue base.
Pumps were brought in to remove water from the cave. Although not a
solution, efforts at draining the cave began to produce results. Crags and
outcroppings emerged from the murk. The most challenging passage, which
had taken five hours to navigate early on, could now be traversed in two
hours with the help of guide ropes.
As the crisis unfolded, rescuers considered several different methods to
save the team. The principal options included
Wait until the end of the monsoon season, with divers providing food and
water.
Find an alternative entrance to the cave that would allow for an easier
escape.
Drill a rescue shaft.
Teach the group basic diving skills and have them swim out with the
divers.
Waiting until the monsoons ended in November and the water drained was
the simplest solution. The boys could walk out on their own. However, the
logistics did not make sense. Feeding 13 people, three times a day, for even
60 days is more than 2,750 meals. Every meal would have to be ferried in
by a team of divers, flirting with death each time they went under.
This was a growing concern. Four days after the boys were found,
retired Navy SEAL diver Saman Kunan lost consciousness while returning
from dropping off three air tanks. His dive buddy attempted CPR without
success. Kunan had left his airport security job to volunteer for the rescue
mission. Before that fatality, three divers were lost for over three hours in
the dark cave, and rescue efforts had to be redirected to find them.

From the beginning hundreds of volunteers crawled over the hillside in
search of hidden openings. People knew the odds were slim to none, given
the depth of the cave, but it was worth a try.
Drilling through a couple thousand feet of rock would require extensive
infrastructure work and take too long. Besides, there was significant
uncertainty as to where to drill.
That left the fourth option. None of the boys or the coach knew how to
dive. Even if they could master the basics, cave diving is not the same as a
practice run at a resort swimming pool. A weakened child submerged in
darkness and breathing unnaturally through a regulator is likely to panic.
Yet through long stretches of the cave, he wouldn’t be able to surface and
regain his composure—he would be in a flooded tunnel.
Privately experts thought maybe half the boys would survive the
journey. But pulling it off 13 times in a row would take a miracle.
While plans were being developed, two alarming events occurred. First,
the oxygen levels in the cave began to drop faster than anticipated. This
raised fears that the boys could develop hypoxia if they remained for a
prolonged time. By July 7 the oxygen level was measured to be 15 percent.
page 306
The level needed to maintain normal functions for humans is
between 19.5 percent and 23.5 percent. Thai engineers’
attempts to install an air supply line to the boys failed.
The second development was the weather forecast. Monsoon rains were
predicted for later in the week, which could flood the cave until November.
The Thai Navy SEALs, with the support of U.S. Air Force rescue
experts, devised a plan approved by the Thai Minister of the Interior.
Rescuers initially wanted to teach the boys basic diving skills to enable
them to make the journey. Organizers even built a mockup of a tight
passage with chairs and had divers practice with local boys in a nearby
school swimming pool. Eventually it was decided that the boys were too
weak to swim, and the plan was revised to have divers bring the boys out.
On July 8 the rescue attempt was initiated. For the first part of the
mission, 18 divers were sent into the caves to retrieve the boys, with 1 diver
to accompany each boy on the dive out. The boys were dressed in a wetsuit,
a buoyancy jacket, and a harness. Instead of sticking a regulator in each
boy’s mouth, they were given a full face mask that allowed them to breathe
naturally. An oxygen cylinder was clipped to their front, a handle was

attached to their back, and they were tethered to a diver in case they were
lost in poor visibility.
Panic was a chief concern. The SEAL doctor administered an anesthetic
to the boys before the journey, rendering them unconscious to prevent them
from panicking on the escape and risking the lives of their rescuers.1 The
anesthetic lasted about 50 minutes, requiring the divers, whom the doctor
had trained, to re-sedate their bodies during the three-hour-plus journey.
There was discussion about which boy should go first—the weakest, the
youngest, the strongest—but in the end it came to a boy who volunteered.
The boys were maneuvered out by the divers holding on to their back or
chest, with each boy on the left or right depending upon the guideline. In
very narrow spots, the divers had to push the boys from behind. The divers
kept their heads higher than the boys so that in poor visibility the divers
would hit their heads first against the rocks. After a short dive to a dry
section of cave, the divers and boys were met by three divers, and the boys’
dive gear was removed. A drag stretcher was used to transport the boys up
over a 200-meter stretch of rocks and sandy hills. The dive gear was put
back on before entering the next submerged section.
After being delivered by the divers into the rescue base in chamber 3,
the boys were then passed along a “daisy chain” of hundreds of workers
stationed along the treacherous path out of the cave. The boys were
alternately carried, slid, and zip-lined over a complex network of pulleys
installed by rock climbers. The path out of the chamber contained many
areas still partially submerged, and the boys had to be transported over
slippery rocks and through muddy waters. The journey out of chamber 3
took about four to five hours initially, less later as a result of drainage.
Soon after 7 p.m. local officials announced that two boys had been
rescued. Shortly later, two more boys appeared out of the cave. On July 9,
four more boys were rescued. On July 10, the last four boys and their coach
were rescued.
The four Thai Navy SEALs, including the doctor who had stayed with
the boys the entire time, were the last to dive out. When they got to
chamber 3, a water pipe burst, and the main pump stopped working. All of a
sudden, the water began to rise rapidly. This forced the SEALs and 100 of
the rescuers still a mile inside the cave to abandon the rescue equipment and
scramble out of the cave.

page 307

Upon reaching the surface the boys were quarantined while health
workers determined whether they had caught any infectious diseases. The
boys were on a fixed rice porridge diet for the first 10 days. Parents initially
visited their children looking through a window, but once the laboratory
results proved negative, they were allowed to visit in person while wearing
a medical gown, face mask, and hair cap.
After the rescue, the boys’ families, officials, and thousands of
volunteers gathered at the cave entrance. The group gave thanks for the
lives saved and asked forgiveness from the cave goddess, “Jao Mae Tham,”
for the intrusion of pumps, ropes, and people during the rescue.
The world rejoiced with the news of the successful rescue. The head of
the rescue mission said that the cave system would eventually be turned
into a living museum to highlight how the operation unfolded. As a result of
the incident, Thailand’s Navy SEALs will include cave diving in their
training programs.
On September 7, 2018, the Royal Thai government hosted a reception
for all Thai and foreign officials and personnel involved in the rescue. His
Majesty the King granted a royal decoration, The Most Admirable Order of
the Direkgunabhorn, to those who were involved in the rescue of the
football team—114 foreigners and 74 Thais. The order is bestowed upon
those who render devotional service to the Kingdom of Thailand. The title
Direkgunabhorn roughly translates as “Noble order of abundance and
quality.”
Three months after being rescued, the entire Wild Boar team and coach
appeared on the U.S. day-time talk show Ellen. Speaking through a
translator, the team revealed that four of the boys had had birthdays while
trapped in the cave. The team and coach were stunned when their football
hero, Zlatan Ibrahimović, who now plays for the LA Galaxy, made a
surprise appearance on the show to meet them. The Swedish star high-fived
each member. “These kids, this team is braver than me and they showed
their collective teamwork and had patience, faith,” Ibrahimović said. “This
is probably the best team in the world.”
1. How did the physical environment of the cave affect the rescue plan?
2. How did the rescue team respond to the risks of the project?

3. Some have called the rescue a miracle and that luck was the decisive
factor. Do you agree?
Sources
ABC News, “It Was Utter Chaos: Inside the Thai Cave Rescue That
Nearly Didn’t Happen,” December 1, 2018. www.abc.net.au. Accessed
2/8/19.
ABC News, “Thai Cave Rescue: Elon Musk Hits Out at Mission Chief
Who Turned Down Mini-submarine Offer,” July 11, 2018.
www.abc.net.au. Accessed 2/8/19.
Beech, H., R. C. Paddock, and M. Suhartono, “Still Can’t Believe It
Worked: The Story of the Thailand Cave Rescue,” New York Times, July
12, 2018. www.nytimes.com. Accessed 2/9/2019.
Ellis-Petersen, H., “Thai Cave Rescue Boys Meet Hero Zlatan during
Ellen Interview,” The Guardian, October 17, 2018.
www.theguardian.com. Accessed 2/12/19.
Flynn, S., “Miracle at Tham Luang,” GQ, December 3, 2018.
www.gq.com. Accessed 2/10/19.
1 The Thai government provided the SEAL doctor with diplomatic immunity if something
went wrong.
page 308

Appendix 8.1
The Critical-Chain Approach
LEARNING OBJECTIVES
After reading this appendix you should be able to:

page i
page ii

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page iii

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page iv

The McGraw-Hill Series Operations and Decision
Sciences
SUPPLY CHAIN MANAGEMENT
Benton
Purchasing and Supply Chain Management
Third Edition
Bowersox, Closs, Cooper, and Bowersox
Supply Chain Logistics Management
Fifth Edition
Burt, Petcavage, and Pinkerton
Supply Management
Eighth Edition
Johnson
Purchasing and Supply Management
Sixteenth Edition
Simchi-Levi, Kaminsky, and Simchi-Levi
Designing and Managing the Supply Chain: Concepts, Strategies, Case Studies
Third Edition
Stock and Manrodt
Fundamentals of Supply Chain Management
PROJECT MANAGEMENT
Brown and Hyer
Managing Projects: A Team-Based Approach
Larson
Project Management: The Managerial Process
Eighth Edition
SERVICE OPERATIONS MANAGEMENT
Bordoloi, Fitzsimmons, and Fitzsimmons
Service Management: Operations, Strategy, Information Technology
Ninth Edition
MANAGEMENT SCIENCE

Hillier and Hillier
Introduction to Management Science: A Modeling and Case Studies Approach with
Spreadsheets
Sixth Edition
BUSINESS RESEARCH METHODS
Schindler
Business Research Methods
Thirteenth Edition
BUSINESS FORECASTING
Keating and Wilson
Forecasting and Predictive Analytics
Seventh Edition
LINEAR STATISTICS AND REGRESSION
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Applied Linear Regression Models
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BUSINESS SYSTEMS DYNAMICS
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Business Dynamics: Systems Thinking and Modeling for a Complex World
OPERATIONS MANAGEMENT
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Operations Management
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Matching Supply with Demand: An Introduction to Operations Management
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Operations and Supply Chain Management
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Operations and Supply Chain Management: The Core
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Math for Business and Finance: An Algebraic Approach
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page v

Project Management
The Managerial
Process

Eighth Edition

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W.
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Clif
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F.
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n

S
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page vi

PROJECT MANAGEMENT: THE MANAGERIAL PROCESS, EIGHTH EDITION
Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2021 by
McGraw-Hill Education. All rights reserved. Printed in the United States of America. Previous
editions © 2018, 2014, and 2011. No part of this publication may be reproduced or distributed in any
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McGraw-Hill Education, including, but not limited to, in any network or other electronic storage or
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Some ancillaries, including electronic and print components, may not be available to customers
outside the United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 LWI 24 23 22 21 20 19
ISBN 978-1-260-23886-0 (bound edition)
MHID 1-260-23886-5 (bound edition)
ISBN 978-1-260-73615-1 (loose-leaf edition)
MHID 1-260-73615-6 (loose-leaf edition)
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Library of Congress Cataloging-in-Publication Data
Names: Gray, Clifford F., author. | Larson, Erik W., 1952- author.
Title: Project management : the managerial process / Erik W. Larson,

Clifford F. Gray, Oregon State University.
Description: Eighth edition. | New York, NY : McGraw-Hill Education, [2021]
| Clifford F. Gray appears as the first named author in earlier
editions. | Includes bibliographical references and index. | Summary:
“Our motivation in writing this text continues to be to provide a
realistic, socio-technical view of project management. In the past,
textbooks on project management focused almost exclusively on the tools
and processes used to manage projects and not the human dimension”–
Provided by publisher.
Identifiers: LCCN 2019028390 (print) | LCCN 2019028391 (ebook) |
ISBN 9781260238860 (paperback) | ISBN 1260238865 (paperback) |
ISBN 9781260242379 (ebook)
Subjects: LCSH: Project management. | Time management. | Risk management.
Classification: LCC HD69.P75 G72 2021 (print) | LCC HD69.P75 (ebook) |
DDC 658.4/04–dc23
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mheducation.com/highered

page vii

About the Authors
Erik W. Larson
ERIK W. LARSON is professor emeritus of project management at the
College of Business, Oregon State University. He teaches executive,
graduate, and undergraduate courses on project management and leadership.
His research and consulting activities focus on project management. He has
published numerous articles on matrix management, product development,
and project partnering. He has been honored with teaching awards from
both the Oregon State University MBA program and the University of
Oregon Executive MBA program. He has been a member of the Project
Management Institute since 1984. In 1995 he worked as a Fulbright scholar
with faculty at the Krakow Academy of Economics on modernizing Polish
business education. He was a visiting professor at Chulalongkorn
University in Bangkok, Thailand, and at Baden-Wuerttemberg Cooperative
State University in Bad Mergentheim, Germany. He received a B.A. in
psychology from Claremont McKenna College and a Ph.D. in management
from State University of New York at Buffalo. He is a certified Project
Management Professional (PMP) and Scrum master.

Clifford F. Gray
CLIFFORD F. GRAY is professor emeritus of management at the College
of Business, Oregon State University. He has personally taught more than
100 executive development seminars and workshops. Cliff has been a
member of the Project Management Institute since 1976 and was one of the
founders of the Portland, Oregon, chapter. He was a visiting professor at
Kasetsart University in Bangkok, Thailand, in 2005. He was the president
of Project Management International, Inc. (a training and consulting firm
specializing in project management) 1977–2005. He received his B.A. in
economics and management from Millikin University, M.B.A. from Indiana

University, and doctorate in operations management from the College of
Business, University of Oregon. He is a certified Scrum master.

page viii

“Man’s mind, once stretched by a new idea,
never regains its original dimensions.”
Oliver Wendell Holmes, Jr.
To my family, who have always encircled me
with love and encouragement—my parents
(Samuel and Charlotte), my wife (Mary), my
sons and their wives (Kevin and Dawn, Robert
and Sally), and their children (Ryan, Carly,
Connor and Lauren).
C.F.G.
“The reasonable man adapts himself to the
world; the unreasonable one persists in trying to
adapt the world to himself. Therefore all
progress depends on the unreasonable man.”
Bernard Shaw, Man and Superman
To Ann, whose love and support have brought
out the best in me. To our girls Mary, Rachel,
and Tor-Tor for the joy and pride they give me.
And to our grandkids, Mr. B, Livvy, Jasper

Jones!, Baby Ya Ya, Juniper Berry, and Callie,
whose future depends upon effective project
management. Finally, to my muse, Neil—walk
on!
E.W.L

page ix

Preface
Our motivation in writing this text continues to be to provide a realistic,
socio-technical view of project management. In the past, textbooks on
project management focused almost exclusively on the tools and processes
used to manage projects and not the human dimension. This baffled us,
since people, not tools, complete projects! While we firmly believe that
mastering tools and processes is essential to successful project
management, we also believe that the effectiveness of these tools and
methods is shaped and determined by the prevailing culture of the
organization and interpersonal dynamics of the people involved. Thus, we
try to provide a holistic view that focuses on both the technical and social
dimensions and how they interact to determine the fate of projects.

Audience
This text is written for a wide audience. It covers concepts and skills that
are used by managers to propose, plan, secure resources, budget, and lead
project teams to successful completions of their projects. The text should
prove useful to students and prospective project managers in helping them
understand why organizations have developed a formal project management
process to gain a competitive advantage. Readers will find the concepts and
techniques discussed in enough detail to be immediately useful in newproject situations. Practicing project managers will find the text to be a
valuable guide and reference when dealing with typical problems that arise
in the course of a project. Managers will also find the text useful in
understanding the role of projects in the missions of their organizations.
Analysts will find the text useful in helping to explain the data needed for

project implementation as well as the operations of inherited or purchased
software.
Members of the Project Management Institute will find the text is well
structured to meet the needs of those wishing to prepare for PMP (Project
Management Professional) or CAPM (Certified Associate in Project
Management) certification exams. The text has in-depth coverage of the
most critical topics found in PMI’s Project Management Body of
Knowledge (PMBOK). People at all levels in the organization assigned to
work on projects will find the text useful not only in providing them with a
rationale for the use of project management processes but also because of
the insights they will gain into how to enhance their contributions to project
success.
Our emphasis is not only on how the management process works but
also, and more importantly, on why it works. The concepts, principles, and
techniques are universally applicable. That is, the text does not specialize
by industry type or project scope. Instead, the text is written for the
individual who will be required to manage a variety of projects in a variety
of organizational settings. In the case of some small projects, a few of the
steps of the techniques can be omitted, but the conceptual framework
applies to all organizations in which projects are important to survival. The
approach can be used in pure project organizations such as construction,
research organizations, and engineering consultancy firms. At the same
time, this approach will benefit organizations that carry out many small
projects while the daily effort of delivering products or services continues.
page x

Content
In this and other editions we continue to try to resist the forces that
engender scope creep and focus only on essential tools and concepts that
are being used in the real world. We have been guided by feedback from
reviewers, practitioners, teachers, and students. Some changes are minor
and incremental, designed to clarify and reduce confusion. Other changes
are significant. They represent new developments in the field or better ways

of teaching project management principles. Below are major changes to the
eighth edition.
All material has been reviewed and revised based on the latest edition of
Project Management Body of Knowledge (PMBOK), Sixth Edition, 2017.
Discussion questions for most Snapshots from Practice are now at the
end of each chapter.
Many of the Snapshots from Practice have been expanded to more fully
cover the examples.
Agile Project Management is introduced in Chapter 1 and discussed
when appropriate in subsequent chapters, with Chapter 15 providing a
more complete coverage of the methodology.
A new set of exercises have been developed for Chapter 5.
New student exercises and cases have been added to chapters.
The Snapshot from Practice boxes feature a number of new examples of
project management in action.
The Instructor’s Manual contains a listing of current YouTube videos that
correspond to key concepts and Snapshots from Practice.
Overall the text addresses the major questions and challenges the
authors have encountered over their 60 combined years of teaching project
management and consulting with practicing project managers in domestic
and foreign environments. These questions include the following: How
should projects be prioritized? What factors contribute to project failure or
success? How do project managers orchestrate the complex network of
relationships involving vendors, subcontractors, project team members,
senior management, functional managers, and customers that affect project
success? What project management system can be set up to gain some
measure of control? How are projects managed when the customers are not
sure what they want? How do project managers work with people from
foreign cultures?
Project managers must deal with all these concerns to be effective. All
of these issues and problems represent linkages to a socio-technical project
management perspective. The chapter content of the text has been placed
within an overall framework that integrates these topics in a holistic
manner. Cases and snapshots are included from the experiences of

practicing managers. The future for project managers is exciting. Careers
will be built on successfully managing projects.

Student Learning Aids
Student resources include study outlines, online quizzes, PowerPoint slides,
videos, Microsoft Project Video Tutorials, and web links. These can be
found in Connect.
page xi

Acknowledgments
We would like to thank Scott Bailey for building the end-of-chapter
exercises for Connect; Pinyarat Sirisomboonsuk for revising the
PowerPoint slides; Ronny Richardson for updating the Instructor’s Manual;
Angelo Serra for updating the Test Bank; and Pinyarat Sirisomboonsuk for
providing new Snapshot from Practice questions.
Next, it is important to note that the text includes contributions from
numerous students, colleagues, friends, and managers gleaned from
professional conversations. We want them to know we sincerely appreciate
their counsel and suggestions. Almost every exercise, case, and example in
the text is drawn from a real-world project. Special thanks to managers who
graciously shared their current project as ideas for exercises, subjects for
cases, and examples for the text. John A. Drexler, Jim Moran, John Sloan,
Pat Taylor, and John Wold, whose work is printed, are gratefully
acknowledged. Special gratitude is due Robert Breitbarth of Interact
Management, who shared invaluable insights on prioritizing projects.
University students and managers deserve special accolades for identifying
problems with earlier drafts of the text and exercises.
We are indebted to the reviewers of past editions who shared our
commitment to elevating the instruction of project management. We thank
you for your many thoughtful suggestions and for making our book better.
Of course, we accept responsibility for the final version of the text.

Paul S. Allen, Rice University
Victor Allen, Lawrence Technological University
Kwasi Amoako-Gyampah, University of North Carolina–Greensboro
Gregory Anderson, Weber State University
Mark Angolia, East Carolina University
Brian M. Ashford, North Carolina State University
Dana Bachman, Colorado Christian University
Robin Bagent, College of Southern Idaho
Scott Bailey, Troy University
Nabil Bedewi, Georgetown University
Anandhi Bharadwaj, Emory University
James Blair, Washington University–St. Louis
Mary Jean Blink, Mount St. Joseph University
S. Narayan Bodapati, Southern Illinois University at Edwardsville
Warren J. Boe, University of Iowa
Thomas Calderon, University of Akron
Alan Cannon, University of Texas–Arlington
Susan Cholette, San Francisco State
Denis F. Cioffi, George Washington University
Robert Cope, Southeastern Louisiana University
Kenneth DaRin, Clarkson University
Ron Darnell, Amberton University
Burton Dean, San Jose State University
Joseph D. DeVoss, DeVry University
David Duby, Liberty University
Michael Ensby, Clarkson University
Charles Franz, University of Missouri, Columbia
Larry Frazier, City University of Seattle
Raouf Ghattas, DeVry University
Edward J. Glantz, Pennsylvania State University
Michael Godfrey, University of Wisconsin–Oshkosh
Jay Goldberg, Marquette University

Robert Groff, Westwood College
Raffael Guidone, New York City College of Technology
Brian Gurney, Montana State University–Billings
Owen P. Hall, Pepperdine University
Chaodong Han, Towson University
Bruce C. Hartman, University of Arizona
Mark Huber, University of Georgia
Richard Irving, York University
Marshall Issen, Clarkson University
page xii

Robert T. Jones, DePaul University
Susan Kendall, Arapahoe Community College
George Kenyon, Lamar University
Robert Key, University of Phoenix
Elias Konwufine, Keiser University
Dennis Krumwiede, Idaho State University
Rafael Landaeta, Old Dominion University
Eldon Larsen, Marshall University
Eric T. Larson, Rutgers University
Philip Lee, Lone Star College–University Park
Charles Lesko, East Carolina University
Richard L. Luebbe, Miami University of Ohio
Linh Luong, City University of Seattle
Steve Machon, DeVry University–Tinley Park
Andrew Manikas, University of Louisville
William Matthews, William Patterson University
Lacey McNeely, Oregon State University
Carol Miller, Community College of Denver
William Moylan, Lawrence Technological College of Business
Ravi Narayanaswamy, University of South Carolina–Aiken
Muhammad Obeidat, Southern Polytechnic State University

Edward Pascal, University of Ottawa
James H. Patterson, Indiana University
Steve Peng, California State University–East Bay
Nicholas C. Petruzzi, University of Illinois–Urbana/Champaign
Abirami Radhakrishnan, Morgan State University
Emad Rahim, Bellevue University
Tom Robbins, East Carolina University
Art Rogers, City University
Linda Rose, Westwood College
Pauline Schilpzand, Oregon State University
Teresa Shaft, University of Oklahoma
Russell T. Shaver, Kennesaw State University
William R. Sherrard, San Diego State University
Erin Sims, DeVry University–Pomona
Donald Smith, Texas A&M University
Kenneth Solheim, DeVry University–Federal Way
Christy Strbiak, U.S. Air Force Academy
Peter Sutanto, Prairie View A&M University
Jon Tomlinson, University of Northwestern Ohio
Oya Tukel, Cleveland State University
David A. Vaughan, City University
Mahmoud Watad, William Paterson University
Fen Wang, Central Washington University
Cynthia Wessel, Lindenwood University
Larry R. White, Eastern Illinois University
Ronald W. Witzel, Keller Graduate School of Management
G. Peter Zhang, Georgia State University
In addition, we would like to thank our colleagues in the College of
Business at Oregon State University for their support and help in
completing this project. In particular, we recognize Lacey McNeely, Prem
Mathew, and Jeewon Chou for their helpful advice and suggestions. We
also wish to thank the many students who helped us at different stages of

this project, most notably Neil Young, Saajan Patel, Katherine Knox, Dat
Nguyen, and David Dempsey. Mary Gray deserves special credit for editing
and working under tight deadlines on earlier editions. Special thanks go to
Pinyarat (“Minkster”) Sirisomboonsuk for her help in preparing the last five
editions.
Finally, we want to extend our thanks to all the people at McGraw-Hill
Education for their efforts and support. First, we would like to thank Noelle
Bathurst and Sarah Wood, for providing editorial direction, guidance, and
management of the book’s development for the eighth edition. And we
would also like to thank Sandy Wille, Sandy Ludovissy, Egzon Shaqiri,
Beth Cray, and Angela Norris for managing the final production, design,
supplement, and media phases of the eighth edition.
Erik W. Larson
Clifford F. Gray

page xiii

Guided Tour
Established Learning Objectives
Learning objectives are listed both at the beginning of each chapter and are
called out as marginal elements throughout the narrative in each chapter.

End-of-Chapter Content
Both static and algorithmic end-of-chapter content, including Review
Questions and Exercises, are assignable in Connect.
SmartBook
The SmartBook has been updated with new highlights and probes for
optimal student learning.
Snapshots

The Snapshot from Practice boxes have been updated to include a number
of new examples of project management in action. New discussion
questions based on the Snapshots have been added to the end-of-chapter
material and are assignable in Connect.

New and Updated Cases
Included at the end of each chapter are between one and five cases that
demonstrate key ideas from the text and help students understand how
project management comes into play in the real world. Cases have been
reviewed and updated across the eighth edition.
Instructor and Student Resources
Instructors and students can access all of the supplementary resources for
the eighth edition within Connect or directly at www.mhhe.com/larson8e.

page xiv

Note to Student
You will find the content of this text highly practical, relevant, and current.
The concepts discussed are relatively simple and intuitive. As you study
each chapter we suggest you try to grasp not only how things work but also
why things work. You are encouraged to use the text as a handbook as you
move through the three levels of competency:
I know.
I can do.
I can adapt to new situations.
The field of project management is growing in importance and at an
exponential rate. It is nearly impossible to imagine a future management
career that does not include management of projects. Resumes of managers
will soon be primarily a description of their participation in and
contributions to projects.
Good luck on your journey through the text and on your future projects.

Chapter-by-Chapter Revisions for the Eighth
Edition
Chapter 1: Modern Project Management
New Snapshot: Project Management in Action 2019.
New Snapshot: London Calling: Seattle Seahawks versus Oakland
Raiders.
New case: A Day in the Life—2019.

New section on Agile Project Management.
Chapter 2: Organization Strategy and Project Selection
Chapter text refined and streamlined.
New section describing the phase gate model for selecting projects.
Chapter 3: Organization: Structure and Culture
New section on project management offices (PMOs).
New Snapshot: 2018 PMO of the Year.
Chapter 4: Defining the Project
Consistent with PMBOK 6th edition, the scope checklist includes
product scope description, justification/business case, and acceptance
criteria.
Discussion of scope creep expanded.
New case: Celebration of Color 5K.
page xv

Chapter 5: Estimating Project Times and Costs
Snapshot from Practice on reducing estimating errors incorporated in the
text.
Snapshot from Practice: London 2012 Olympics expanded.
A new set of six exercises.
Chapter 6: Developing a Project Schedule
Chapter 6 retitled Developing a Project Schedule to better reflect content.
New case: Ventura Baseball Stadium.
Chapter 7: Managing Risk
New Snapshot: Terminal Five—London Heathrow Airport.
Consistent with PMBOK 6e, “escalate” added to risk and opportunity
responses and “budget” reserves replaced by “contingency” reserves.

Chapter 8 Scheduling Resources and Costs
Two new exercises.
New case: Tham Luang Cave Rescue.
Chapter 9: Reducing Project Duration
Snapshot 9.1: Smartphone Wars updated.
New case: Ventura Baseball Stadium (B).
Chapter 10: Being an Effective Project Manager
Effective Communicator has replaced Skillful Politician as one of the 8
traits associated with being an effective project manager.
Research Highlight 10.1: Give and Take expanded.
Chapter 11: Managing Project Teams
A new review question and exercises added.
Chapter 12: Outsourcing: Managing Interorganizational
Relations
Snapshot 12.4: U.S. Department of Defense Value Engineering Awards
updated.
New exercise added.
Chapter 13 Progress and Performance Measurement and
Evaluation
Expanded discussion of the need for earned value management.
New case: Ventura Stadium Status Report.
Chapter 14: Project Closure
New case: Halo for Heroes II.
page xvi

Chapter 15: Agile Project Management

Chapter revised to include discussions of Extreme programming,
Kanban, and hybrid models.
New Snapshot: League of Legends.
New case: Graham Nash.
Chapter 16: International Projects
Snapshots from Practice: The Filming of Apocalypse Now and River of
Doubt expanded.
New case: Mr. Wui Goes to America.
MCGRAW-HILL CUSTOMER CARE CONTACT INFORMATION
At McGraw-Hill, we understand that getting the most from new technology
can be challenging. That’s why our services don’t stop after you purchase
our products. You can e-mail our Product Specialists 24 hours a day to get
product-training online. Or you can search our knowledge bank of
Frequently Asked Questions on our support website. For Customer Support,
call 800-331-5094 or visit www.mhhe.com/support. One of our Technical
Support Analysts will be able to assist you in a timely fashion.

page xvii

Brief Contents
Preface

ix

1.

Modern Project Management

2

2.

Organization Strategy and Project Selection

3.

Organization: Structure and Culture

4.

Defining the Project

5.

Estimating Project Times and Costs

6.

Developing a Project Schedule

7.

Managing Risk

8.

Scheduling Resources and Costs

9.

Reducing Project Duration

10.

Being an Effective Project Manager

11.

Managing Project Teams 390

12.

Outsourcing: Managing Interorganizational Relations

13.

Progress and Performance Measurement and Evaluation 474

14.

Project Closure

15.

Agile Project Management

16.

International Projects

28

68

104
134

168

212

318

532

590

258

562

354

434

APPENDIX
One Solutions to Selected Exercises
Two Computer Project Exercises
GLOSSARY

626

639

656

ACRONYMS 663
PROJECT MANAGEMENT EQUATIONS 664
CROSS REFERENCE OF PROJECT MANAGEMENT
665
SOCIO-TECHNICAL APPROACH TO PROJECT
MANAGEMENT 666
INDEX 667

page xviii

Contents
Preface

ix

Chapter 1
Modern Project Management
1.1

What Is a Project?
What a Project Is Not

2

6
7

Program versus Project

7

The Project Life Cycle

9

The Project Manager

10

Being Part of a Project Team

11

1.2

Agile Project Management

12

1.3

Current Drivers of Project Management
Compression of the Product Life Cycle
Knowledge Explosion

15

15

Triple Bottom Line (Planet, People, Profit)
Increased Customer Focus

15

15

Small Projects Represent Big Problems

1.4

15

16

Project Management Today: A Socio-Technical Approach

Summary

18

Chapter 2
Organization Strategy and Project Selection

28

2.1

Why Project Managers Need to Understand Strategy

2.2

The Strategic Management Process: An Overview

30
31

17

2.3

Four Activities of the Strategic Management Process

31

The Need for a Project Priority System

36

Problem 1: The Implementation Gap
Problem 2: Organization Politics

36

37

Problem 3: Resource Conflicts and Multitasking

2.4

Project Classification

2.5

Phase Gate Model

39

2.6

Selection Criteria

41

Financial Criteria

43

Two Multi-Criteria Selection Models

43

Applying a Selection Model

46

Project Classification

2.8

38

41

Nonfinancial Criteria

2.7

38

46

Sources and Solicitation of Project Proposals

47

Ranking Proposals and Selection of Projects

49

Managing the Portfolio System
Senior Management Input

52

52

Governance Team Responsibilities

52

Balancing the Portfolio for Risks and Types of Projects

Summary

52

54

Chapter 3
Organization: Structure and Culture

68

3.1

70

Project Management Structures

Organizing Projects within the Functional Organization
Organizing Projects as Dedicated Teams

73

Organizing Projects within a Matrix Arrangement
Different Matrix Forms

70

77

78

3.2

Project Management Office (PMO)

3.3

What Is the Right Project Management Structure?
Organization Considerations
Project Considerations

83

83

81
83

3.4

Organizational Culture

84

What Is Organizational Culture?

85

Identifying Cultural Characteristics

3.5

Implications of Organizational Culture for Organizing Projects

Summary

89

92

Chapter 4
Defining the Project
4.1

87

104

Step 1: Defining the Project Scope
Employing a Project Scope Checklist

106

107

4.2

Step 2: Establishing Project Priorities

4.3

Step 3: Creating the Work Breakdown Structure
Major Groupings in a WBS

113

113

How a WBS Helps the Project Manager
A Simple WBS Development

111

113

114

4.4

Step 4: Integrating the WBS with the Organization

4.5

Step 5: Coding the WBS for the Information System

4.6

Process Breakdown Structure

118
118

121
page xix

4.7

Responsibility Matrices

4.8

Project Communication Plan

Summary

122
124

126

Chapter 5
Estimating Project Times and Costs
5.1

134

Factors Influencing the Quality of Estimates
Planning Horizon

136

Project Complexity

136

People

136

Project Structure and Organization

137

136

Padding Estimates

137

Organizational Culture
Other Factors

137

137

5.2

Estimating Guidelines for Times, Costs, and Resources

5.3

Top-Down versus Bottom-Up Estimating

5.4

Methods for Estimating Project Times and Costs

139
142

Top-Down Approaches for Estimating Project Times and Costs

142

Bottom-Up Approaches for Estimating Project Times and Costs

146

A Hybrid: Phase Estimating

5.5

Level of Detail

149

5.6

Types of Costs

150

Direct Costs

147

151

Direct Project Overhead Costs

151

General and Administrative (G&A) Overhead Costs

5.7

Refining Estimates

5.8

Creating a Database for Estimating

5.9

Mega Projects: A Special Case

152
154

155

Summary 158
Appendix 5.1: Learning Curves for Estimating
Chapter 6
Developing a Project Schedule

164

168

6.1

Developing the Project Network

169

6.2

From Work Package to Network

170

6.3

Constructing a Project Network

172

Terminology

151

172

Basic Rules to Follow in Developing Project Networks

172

6.4

Activity-on-Node (AON) Fundamentals

173

6.5

Network Computation Process
Forward Pass—Earliest Times

177

176

138

Backward Pass—Latest Times

179

Determining Slack (or Float)

180

6.6

Using the Forward and Backward Pass Information

6.7

Level of Detail for Activities

6.8

Practical Considerations
Network Logic Errors
Activity Numbering

184

184

184
184

Use of Computers to Develop Networks
Calendar Dates

185

185

Multiple Starts and Multiple Projects

6.9

183

185

Extended Network Techniques to Come Closer to Reality
Laddering

188

Use of Lags to Reduce Schedule Detail and Project Duration

188

An Example Using Lag Relationships—the Forward and Backward Pass
Hammock Activities

Summary

193

194

Chapter 7
Managing Risk

212

7.1

Risk Management Process

214

7.2

Step 1: Risk Identification

216

7.3

Step 2: Risk Assessment

219

Probability Analysis

7.4

222

Step 3: Risk Response Development
Mitigating Risk

223

Avoiding Risk

225

Transferring Risk

7.5

188

225

Escalating Risk

225

Retaining Risk

225

Contingency Planning
Technical Risks

227

Schedule Risks

229

226

223

192

Cost Risks

229

Funding Risks

229

7.6

Opportunity Management

7.7

Contingency Funding and Time Buffers
Contingency Reserves

231

Management Reserves

232

Time Buffers

230
231

232

7.8

Step 4: Risk Response Control

233

7.9

Change Control Management

234

Summary 237
Appendix 7.1: PERT and PERT Simulation

248
page xx

Chapter 8
Scheduling Resources and Costs

258

8.1

Overview of the Resource Scheduling Problem

8.2

Types of Resource Constraints

8.3

Classification of a Scheduling Problem

8.4

Resource Allocation Methods
Assumptions

262
263

263

263

Time-Constrained Projects: Smoothing Resource Demand
Resource-Constrained Projects

8.5

260

264

265

Computer Demonstration of Resource-Constrained Scheduling
270
The Impacts of Resource-Constrained Scheduling

8.6

Splitting Activities

8.7

Benefits of Scheduling Resources

8.8

Assigning Project Work

8.9

Multiproject Resource Schedules

274

277
278

279
280

8.10

Using the Resource Schedule to Develop a Project Cost Baseline
281
Why a Time-Phased Budget Baseline Is Needed
Creating a Time-Phased Budget

282

Summary 287
Appendix 8.1: The Critical-Chain Approach
Chapter 9
Reducing Project Duration

281

308

318

9.1

Rationale for Reducing Project Duration

9.2

Options for Accelerating Project Completion
Options When Resources Are Not Constrained
Options When Resources Are Constrained

9.3

Project Cost-Duration Graph
Explanation of Project Costs

9.4

324

327

330

Practical Considerations
Crash Times

332
332

333

Linearity Assumption

333

Choice of Activities to Crash Revisited

333

Time Reduction Decisions and Sensitivity

334

What If Cost, Not Time, Is the Issue?
Reduce Project Scope

335

336

Have Owner Take on More Responsibility

336

Outsource Project Activities or Even the Entire Project
Brainstorm Cost Savings Options

Summary

337

Chapter 10

328

328

Using the Project Cost-Duration Graph

9.6

322

Constructing a Project Cost-Duration Graph
A Simplified Example

321

327

Determining the Activities to Shorten

9.5

320

336

336

Being an Effective Project Manager

354

10.1

Managing versus Leading a Project

10.2

Engaging Project Stakeholders

10.3

Influence as Exchange
Task-Related Currencies

357

361

362

Position-Related Currencies

363

Inspiration-Related Currencies

363

Relationship-Related Currencies

363

Personal-Related Currencies

10.4

364

Social Network Building

364

Mapping Stakeholder Dependencies

364

Management by Wandering Around (MBWA)
Managing Upward Relations
Leading by Example

356

366

367

369

10.5

Ethics and Project Management

10.6

Building Trust: The Key to Exercising Influence

10.7

Qualities of an Effective Project Manager

Summary

372
373

375

378

Chapter 11
Managing Project Teams

390

11.1

The Five-Stage Team Development Model

11.2

Situational Factors Affecting Team Development

11.3

Building High-Performance Project Teams
Recruiting Project Members

397

Conducting Project Meetings

399

Establishing Team Norms

401

Establishing a Team Identity
Creating a Shared Vision

403

404

Managing Project Reward Systems

406

Orchestrating the Decision-Making Process
Managing Conflict within the Project

410

408

393
397

395

Rejuvenating the Project Team

413

11.4

Managing Virtual Project Teams

11.5

Project Team Pitfalls
Groupthink

419

419

Bureaucratic Bypass Syndrome

419

Team Spirit Becomes Team Infatuation

Summary

415

419

421

Chapter 12
Outsourcing: Managing Interorganizational Relations
12.1

Outsourcing Project Work

434

436
page xxi

12.2

Request for Proposal (RFP)

440

Selection of Contractor from Bid Proposals

12.3

441

Best Practices in Outsourcing Project Work
Well-Defined Requirements and Procedures

442

442

Extensive Training and Team-Building Activities

444

Well-Established Conflict Management Processes in Place
Frequent Review and Status Updates
Co-location When Needed

447

448

Fair and Incentive-Laden Contracts

449

Long-Term Outsourcing Relationships

12.4

The Art of Negotiating

449

450

1. Separate the People from the Problem
2. Focus on Interests, Not Positions

452

3. Invent Options for Mutual Gain

453

4. When Possible, Use Objective Criteria
Dealing with Unreasonable People

12.5

445

451

454

454

A Note on Managing Customer Relations

Summary 458
Appendix 12.1: Contract Management

467

455

Chapter 13
Progress and Performance Measurement and Evaluation

474

13.1

476

Structure of a Project Monitoring Information System
What Data Are Collected?

476

Collecting Data and Analysis
Reports and Reporting

13.2

476

476

The Project Control Process
Step 1: Setting a Baseline Plan

477

477

Step 2: Measuring Progress and Performance
Step 3: Comparing Plan against Actual
Step 4: Taking Action

13.3

Control Chart

478

478

478

479

Milestone Schedules

13.4

477

Monitoring Time Performance
Tracking Gantt Chart

479

Earned Value Management (EVM)
The Need for Earned Value Management
Percent Complete Rule

Methods of Variance Analysis

480
484

485

Developing a Status Report: A Hypothetical Example
Assumptions

487

Baseline Development

487

Development of the Status Report

13.6

480

484

What Costs Are Included in Baselines?

13.5

477

488

Indexes to Monitor Progress
Performance Indexes

492

493

Project Percent Complete Indexes

494

Software for Project Cost/Schedule Systems
Additional Earned Value Rules

494

495

13.7

Forecasting Final Project Cost

13.8

Other Control Issues

496

498

Technical Performance Measurement

498

487

Scope Creep

500

Baseline Changes

500

The Costs and Problems of Data Acquisition

502

Summary 503
Appendix 13.1: The Application of Additional Earned Value Rules 522
Appendix 13.2: Obtaining Project Performance Information from MS
Project 2010 or 2016 528
Chapter 14
Project Closure

532

14.1

Types of Project Closure

14.2

Wrap-up Closure Activities

14.3

Project Audits

Project Retrospectives

540

543

Project Audits: The Big Picture
Level 1: Ad Hoc Project Management

14.5

536

539

The Project Audit Process

14.4

534

543
546

Level 2: Formal Application of Project Management

546

Level 3: Institutionalization of Project Management

547

Level 4: Management of Project Management System

547

Level 5: Optimization of Project Management System

548

Post-implementation Evaluation
Team Evaluation

548

548

Individual, Team Member, and Project Manager Performance Reviews

Summary 552
Appendix 14.1: Project Closeout Checklist
Chapter 15
Agile Project Management

555

562

15.1

Traditional versus Agile Methods

15.2

Agile PM

15.3

Agile PM in Action: Scrum

566
569

564

550

Roles and Responsibilities
Scrum Meetings

570

572

Product and Sprint Backlogs

573

Sprint and Release Burndown Charts

575
page xxii

15.4

Extreme Programming and Kanban
Kanban

577

15.5

Applying Agile PM to Large Projects

15.6

Limitations and Concerns

15.7

Hybrid Models

Summary

576
578

580

580

581

Chapter 16
International Projects
16.1

590

Environmental Factors
Legal/Political Factors
Security

593

593

Geography

594

Economic Factors
Infrastructure
Culture

592

594

596

597

16.2

Project Site Selection

16.3

Cross-Cultural Considerations: A Closer Look
Adjustments

599

601

Working in Mexico

602

Working in France

605

Working in Saudi Arabia
Working in China

606

608

Working in the United States

609

Summary Comments about Working in Different Cultures
Culture Shock

16.4

600

611

611

Selection and Training for International Projects

614

Summary

617

Appendix One: Solutions to Selected Exercises
Appendix Two: Computer Project Exercises

Glossary

656

Acronyms

663

Project Management Equations

639

664

Cross Reference of Project Management

665

Socio-Technical Approach to Project Management
Index

667

626

666

page xxiii

Project Management
The Managerial Process

page 2

CHAPTER

ONE

1
Modern Project Management
LEARNING OBJECTIVES
After reading this chapter you should be able to:
1-1

Understand why project management (PM) is crucial in today’s world.

1-2

Distinguish a project from routine operations.

1-3

Identify the different stages of a project life cycle.

1-4

Describe how Agile PM is different from traditional PM.

1-5

Understand that managing projects involves balancing the technical and
sociocultural dimensions of the project.

OUTLINE
1.1

What Is a Project?

1.2

Agile Project Management

1.3

Current Drivers of Project Management

1.4

Project Management Today: A Socio-Technical Approach

Summary

Text Overview

page 3

All of mankind’s greatest accomplishments—from building
the great pyramids to discovering a cure for polio to putting
a man on the moon—began as a project.

LO 1-1
Understand why project management (PM) is crucial in today’s world.

This is a good time to be reading a book about project management.
Business leaders and experts have recognized that project management is
critical to sustainable economic growth. New jobs and competitive
advantage are achieved by constant innovation, developing new products
and services, and improving both productivity and quality of work. This is
the world of project management. Project management provides people
with a powerful set of tools that improves their ability to plan, implement,

and manage activities to accomplish specific objectives. But project
management is more than just a set of tools; it is a results-oriented
management style that places a premium on building collaborative
relationships among a diverse cast of characters. Exciting opportunities
await people skilled in project management.
The project approach has long been the style of doing business in the
construction industry, U.S. Department of Defense contracts, and
Hollywood, as well as big consulting firms. Now project management has
page 4
spread to all avenues of work. Today, project teams carry out
everything from port expansions to hospital restructuring to
upgrading information systems. They are creating next-generation fuelefficient vehicles, developing sustainable sources of energy, and exploring
the farthest reaches of outer space. The impact of project management is
most profound in high-tech industries, where the new folk heroes are young
professionals whose Herculean efforts lead to the constant flow of new
hardware and software products.
Project management is not limited to the private sector. Project
management is also a vehicle for doing good deeds and solving social
problems. Endeavors such as providing emergency aid to areas hit by
natural disasters, devising a strategy for reducing crime and drug abuse
within a city, or organizing a community effort to renovate a public
playground would and do benefit from the application of modern project
management techniques.
Perhaps the best indicator of demand for project management can be
seen in the rapid expansion of the Project Management Institute (PMI), a
professional organization for project managers. PMI membership has grown
from 93,000 in 2002 to more than 565,000 in 2019. See Snapshot from
Practice 1.1: The Project Management Institute for information regarding
professional certification in project management.
It’s nearly impossible to pick up a newspaper or business periodical and
not find something about projects. This is no surprise! Approximately $2.5
trillion (about 25 percent of the U.S. gross national product) is spent on
projects each year in the United States alone. Other countries are
increasingly spending more on projects. Millions of people around the
world consider project management the major task in their profession.

SNAPSHOT FROM PRACTICE 1.1
The Project Management Institute*
The Project Management Institute (PMI) was founded in 1969 as an
international society for project managers. Today PMI has members from
more than 180 countries and more than 565,000 members. PMI
professionals come from virtually every major industry, including
aerospace, automotive, business management, construction, engineering, financial
services, information technology, pharmaceuticals, healthcare, and telecommunications.
PMI provides certification as a Project Management Professional (PMP)—
someone who has documented sufficient project experience, agreed to follow the PMI
code of professional conduct, and demonstrated mastery of the field of project
management by passing a comprehensive examination based on the Project
Management Body of Knowledge (PMBOK), which is in its 6th edition. The number of
people earning PMP status has grown dramatically in recent years. In 1996 there were
fewer than 3,000 certified Project Management Professionals. By 2019 there were more
than 910,000 PMPs.
Just as the CPA exam is a standard for accountants, passing the PMP exam may
become the standard for project managers. Some companies are requiring that all their
project managers be PMP certified. Moreover, many job postings are restricted to PMPs.
Job seekers, in general, are finding that being PMP certified is an advantage in the
marketplace.
PMI added a certification as a Certified Associate in Project Management (CAPM).
CAPM is designed for project team members and entry-level project managers, as well
as qualified undergraduate and graduate students who want a credential to recognize
their mastery of the project management body of knowledge. CAPM does not require the
extensive project management experience associated with the PMP. In fact, students
often qualify for taking the CAPM exam by taking a course on project management. For
more details on PMP and CAPM, google PMI to find the current website for the Project
Management Institute.
This text provides a solid foundation for passing either exam. However, we personally
found it necessary to study a good PMP/CAPM exam “prep book” to pass the exam. This
is recommended, given the format and nature of the exam.
*

PMI Today, March 2019, p. 4.
page 5

Most of the people who excel at managing projects never have the title
of project manager. They include accountants, lawyers, administrators,
scientists, contractors, coaches, public health officials, teachers, and

community advocates whose success depends upon being able to lead and
manage project work. For some, the very nature of their work is project
driven. Projects may be cases for lawyers, audits for accountants, events for
artists, and renovations for contractors. For others, projects may be a small
but critical part of their work. For example, a high school teacher who
teaches four classes a day is responsible for coaching a group of students to
compete in a national debate competition. A store manager who oversees
daily operations is charged with developing an employee retention program.
A sales account executive is given the additional assignment of team lead to
launch daily deals into a new city. A public health official who manages a
clinic is also responsible for organizing a Homeless Youth Connect event.
For these and others, project management is not a title but a critical job
requirement. It is hard to think of a profession or a career path that would
not benefit from being good at managing projects.
Not only is project management critical to most careers, but also the
skill set is transferable across most businesses and professions. Project
management fundamentals are universal. The same project management
methodology that is used to develop a new product can be adapted to create
new services, organize events, refurbish aging operations, and so forth. In a
world where it is estimated that each person is likely to experience three to
four career changes, managing projects is a talent worthy of development.
The significance of project management can also be seen in the
classroom. Twenty years ago major universities offered one or two classes
in project management, primarily for engineers. Today most universities
page 6
offer multiple sections of project management classes, with the
core group of engineers being supplemented by business
students majoring in marketing, management information systems (MIS),
and finance, as well as students from other disciplines such as
oceanography, health sciences, computer sciences, and liberal arts. These
students are finding that their exposure to project management is providing
them with distinct advantages when it comes time to look for jobs. More
and more employers are looking for graduates with project management
skills. See Snapshot from Practice 1.2: A Dozen Examples of Projects
Given to Recent College Graduates for examples of projects given to recent
college graduates. The logical starting point for developing these skills is
understanding the uniqueness of a project and of project managers.

SNAPSHOT FROM PRACTICE 1.2
A Dozen Examples of Projects Given to Recent College
Graduates
1. Business information: Join a project team charged with installing a
new data security system.
2. Physical education: Design and develop a new fitness program for
senior citizens that combines principles of yoga and aerobics.
3. Marketing: Execute a sales program for a new home air purifier.
4. Industrial engineering: Manage a team to create a value chain report for every
aspect of a key product from design to customer delivery.
5. Chemistry: Develop a quality control program for an organization’s drug
production facilities.
6. Management: Implement a new store layout design.
7. Pre-med neurology student: Join a project team linking mind mapping to an
imbedded prosthetic that will allow blind people to function near normally.
8. Sports communication: Join the athletics staff at Montana State University to
promote women’s basketball.
9. Systems engineer: Become a project team member of a project to develop data
mining of medical papers and studies related to drug efficacy.
10. Accounting: Work on an audit of a major client.
11. Public health: Research and design a medical marijuana educational program.
12. English: Create a web-based user manual for a new electronics product.

John Fedele/Blend Images LLC

1.1 What Is a Project?
LO 1-2
Distinguish a project from routine operations.

What do the following headlines have in common?
Millions Watch World Cup Finals
Citywide WiFi System Set to Go Live
Hospitals Respond to New Healthcare Reforms
Apple’s New iPhone Hits the Market
City Receives Stimulus Funds to Expand Light Rail System
All of these events are projects.

The Project Management Institute provides the following definition of a
project:
A project is a temporary endeavor undertaken to create a unique product, service, or result.
page 7

Like most organizational efforts, the major goal of a project is to satisfy a
customer’s need. Beyond this fundamental similarity, the characteristics of
a project help differentiate it from other endeavors of the organization. The
major characteristics of a project are as follows:
1.
2.
3.
4.
5.

An established objective.
A defined lifespan with a beginning and an end.
Usually, the involvement of several departments and professionals.
Typically, doing something that has never been done before.
Specific time, cost, and performance requirements.

First, projects have a defined objective—whether it is constructing a 12story apartment complex by January 1 or releasing version 2.0 of a specific
software package as quickly as possible. This singular purpose is often
lacking in daily organizational life in which workers perform repetitive
operations each day.
Second, because there is a specified objective, projects have a defined
endpoint, which is contrary to the ongoing duties and responsibilities of
traditional jobs. Instead of staying in one job, individuals often move from
project to project, working with different groups of people. For example,
after helping to install a security system, an IT engineer may be assigned to
develop a database for a different client.
Third, unlike much organizational work that is segmented according to
functional specialty, projects typically require the combined efforts of a
variety of specialists. Instead of working in separate offices under separate
managers, project participants, whether they be engineers, financial
analysts, marketing professionals, or quality control specialists, work
together under the guidance of a project manager to complete a project.
The fourth characteristic of a project is that it is nonroutine and has
some unique elements. This is not an either/or issue but a matter of degree.
Obviously, accomplishing something that has never been done before, such
as building an electric automobile or landing two mechanical rovers on
Mars, requires solving previously unsolved problems and using
breakthrough technology. On the other hand, even basic construction
projects that involve established sets of routines and procedures require
some degree of customization that makes them unique. See Snapshot from
Practice 1.3: London Calling: Seattle Seahawks versus Oakland Raiders for
an unusual change in routine.
Finally, specific time, cost, and performance requirements bind projects.
Projects are evaluated according to accomplishment, cost, and time spent.
These triple constraints impose a higher degree of accountability than
typically found in most jobs. These three also highlight one of the primary
functions of project management, which is balancing the trade-offs among
time, cost, and performance while ultimately satisfying the customer.

What a Project Is Not

Projects should not be confused with everyday work. A project is not
routine, repetitive work! Ordinary daily work typically requires doing the
same or similar work over and over, while a project is done only once; a
new product or service exists when the project is completed. Examine the
list in Table 1.1 that compares routine, repetitive work and projects.
Recognizing the difference is important because too often resources can be
used up on daily operations, which may not contribute to longer-range
organization strategies that require innovative new products.
TABLE 1.1

Comparison of Routine Work with Projects

Routine, Repetitive Work
Taking class notes

Projects
Writing a term paper

Daily entering sales receipts into Setting up a sales kiosk for a professional accounting
the accounting ledger
meeting
Responding to a supply-chain
request

Developing a supply-chain information system

Practicing scales on the piano

Writing a new piano piece

Routine manufacture of an AppleDesigning an iPod that is approximately 2 × 4 inches,
iPod
interfaces with PC, and stores 10,000 songs
Attaching tags on a manufacturedWire-tag projects for GE and Walmart
product

Program versus Project
In practice the terms project and program cause confusion. They are often
used synonymously. A program is a group of related projects designed to
accomplish a common goal over an extended period of time. Each page 8
project within a program has a project manager. The major
differences lie in scale and time span.

SNAPSHOT FROM PRACTICE 1.3
London Calling: Seattle Seahawks versus Oakland
Raiders*

On October 7, 2018, the National Football League (NFL) Seattle Seahawks
walked off the field having played their best game of the season, only to fall
short to the undefeated Los Angeles Rams, 33–31. Next on the schedule
was an away game with the Oakland Raiders. Instead of heading about
670 miles south to Oakland, California, however, the Seahawks flew nearly 5,000 miles
to London, England, eight time zones away, to spread the gospel of the NFL.
Sending an NFL team overseas during the season is no easy task. Advanced
planning is critical. Players need passports. Accommodations have to be found and
transportation arranged. The equipment staff sends supplies months in advance. All
total, the Seahawks ended up shipping 21,000 pounds of gear and products, including
1,150 rolls of athletic tape, 2 tons of medical supplies, 350 power adapters, and 500
pairs of shoes!
Two of the biggest challenges the “Hawks” faced were jet lag and distractions. Many
of the players and staff had never been overseas. London would be a strange, exciting
experience. With this in mind, head coach Pete Carroll decided to fly early to London on
Wednesday, October 10. This would allow players to better adjust their sleep patterns
while providing some free time to explore London.
WEDNESDAY, OCTOBER 10
The Seahawks boarded a chartered jet that included 45 sleeping pods in first class for
the veteran players. Coach Carroll and his staff sat in the first row of business class.
Rookies and members of the practice squad sat behind them. Regardless of class,
everyone got the same menu: beef filet, Cajun chicken, or herb-roasted salmon.
Typically, on flights to the east, Sam Ramsden, the team’s director of health and
player performance, tells players to stay awake so they will be tired and sleep well when
they arrive. For the London trip, though, Ramsden reversed the program: he told players
to sleep as much as possible on the flight so when they arrived in London on Thursday
afternoon, they would have enough energy to stay up until 9 or 10 p.m. and then get a
full night’s rest. “We try to protect their circadian rhythms as much as possible,”
Ramsden said. Circadian rhythm (also known as body clock) is a natural, internal system
that’s designed to regulate feelings of sleepiness and wakefulness over a 24-hour
period.
Ramsden’s staff gave each player special sleep kits that included blackout eye
masks. Some players took melatonin or Ambien, while others used headphones that
played the sounds of wind and rushing water to induce sleep.
THURSDAY, OCTOBER 11
The Seahawks landed on Thursday about 1:30 p.m. (5:30 a.m. Seattle time). Buses took
them to a golf course resort north of London.
At night, the players let off some steam at a Topgolf facility. Here organized into
groups of four, they tried to hit golf balls into giant holes to score points. Jeers rang out
every time they were wildly off target.
FRIDAY, OCTOBER 12
After several hours of meetings and a practice, players were free to explore London.
They scattered to the various corners of London. On returning to the resort before the
11:00 p.m. curfew, a few of the players complained about the warm English beer.
The Oakland Raiders arrived in London at 1:00 p.m., 53 hours before game time.

SATURDAY, OCTOBER 13
Coach Carroll likes to take his players to the stadium the day before a road game so they
can visualize conditions ahead of time. At 1:30 p.m., the Seahawks drove to Wembley,
where they saw their fully Seahawk-equipped locker room and the field, the most famous
soccer pitch in England. The field appeared slick, so the equipment manager had longer
screw-in cleats available for the players. The Hawks returned to their resort for their
normal pregame evening routine.
GAMEDAY, OCTOBER 14
During the course of the game, the TV announcers commented several times that the
Raiders seemed sluggish, while the Seahawks were sharp and focused. The Seahawks
dominated the game, winning 27–3.

David Lee/Shutterstock
*

Bell, G., “Seahawks Arrive in London. Why Twins Shaquill and Shaquem Griffin Did Not
Travel Here Equally,” thenewstribune.com, October 11, 2018. Belson, K., “Four
Thousand Miles for the W,” nytimes.com, October 20, 2018; Accessed 10/22/18.
page 9

Program management is the process of managing a group of ongoing,
interdependent, related projects in a coordinated way to achieve strategic
objectives. For example, a pharmaceutical organization could have a
program for curing cancer. The cancer program includes and coordinates all
cancer projects that continue over an extended time horizon (Gray, 2011).
Coordinating all cancer projects under the oversight of a cancer team
provides benefits not available from managing them individually. This
cancer team also oversees the selection and prioritizing of cancer projects
that are included in their special “Cancer” portfolio. Although each project
retains its own goals and scope, the project manager and team are also

motivated by the higher program goal. Program goals are closely related to
broad strategic organization goals.

The Project Life Cycle

LO 1-3
Identify the different stages of a project life cycle.

Another way of illustrating the unique nature of project work is in terms of
the project life cycle. The life cycle recognizes that projects have a limited
lifespan and that there are predictable changes in level of effort and focus
over the life of the project. There are a number of different life-cycle
models in project management literature. Many are unique to a specific
industry or type of project. For example, a new-software development
project may consist of five phases: definition, design, code, integration/test,
and maintenance. A generic cycle is depicted in Figure 1.1.
FIGURE 1.1
Project Life Cycle

The project life cycle typically passes sequentially through four stages:
defining, planning, executing, and closing. The starting point begins the
moment the project is given the go-ahead. Project effort starts slowly, builds
to a peak, and then declines to delivery of the project to the customer.
1. Defining stage. Specifications of the project are defined; project
objectives are established; teams are formed; major responsibilities are
assigned.
2. Planning stage. The level of effort increases, and plans are developed to
determine what the project will entail, when it will be scheduled, whom it
will benefit, what quality level should be maintained, and what the
budget will be.
3. Executing stage. A major portion of the project work takes place—both
physical and mental. The physical product is produced (e.g., a bridge, a
report, a software program). Time, cost, and specification measures are
used for control. Is the project on schedule, on budget, and meeting
specifications? What are the forecasts of each of these measures? What
revisions/changes are necessary?
4. Closing stage. Closing includes three activities: delivering the project
product to the customer, redeploying project resources, and conducting a
post-project review. Delivery of the project might include page 10
customer training and transferring documents. Redeployment
usually involves releasing project equipment/materials to other projects
and finding new assignments for team members. Post-project reviews
include not only assessing performance but also capturing lessons
learned.
In practice, the project life cycle is used by some project groups to
depict the timing of major tasks over the life of the project. For example,
the design team might plan a major commitment of resources in the
defining stage, while the quality team would expect their major effort to
increase in the latter stages of the project life cycle. Because most
organizations have a portfolio of projects going on concurrently, each at a
different stage of each project’s life cycle, careful planning and
management at the organization and project levels are imperative.

The Project Manager

At first glance project managers perform the same functions as other
managers. That is, they plan, schedule, motivate, and control. However,
what makes them unique is that they manage temporary, nonrepetitive
activities to complete a fixed-life project. Unlike functional managers, who
take over existing operations, project managers create a project team and
organization where none existed before. They must decide what and how
things should be done instead of simply managing set processes. They must
meet the challenges of each phase of the project life cycle and even oversee
the dissolution of their operation when the project is completed.
Project managers must work with a diverse troupe of characters to
complete projects. They are typically the direct link to the customer and
must manage the tension between customer expectations and what is
page 11
feasible and reasonable. Project managers provide direction,
coordination, and integration to the project team, which is often
made up of part-time participants loyal to their functional departments.
They often must work with a cadre of outsiders—vendors, suppliers, and
subcontractors—who do not necessarily share their project allegience.
Project managers are ultimately responsible for performance (frequently
with too little authority). They must ensure that appropriate trade-offs are
made among the time, cost, and performance requirements of the project.
At the same time, unlike their functional counterparts, project managers
often possess only rudimentary technical knowledge to make such
decisions. Instead, they must orchestrate the completion of the project by
inducing the right people, at the right time, to address the right issues and
make the right decisions.
While project management is not for the timid, working on projects can
be an extremely rewarding experience. Life on projects is rarely boring;
each day is different from the last. Since most projects are directed at
solving some tangible problem or pursuing some useful opportunity, project
managers find their work personally meaningful and satisfying. They enjoy
the act of creating something new and innovative. Project managers and
team members can feel immense pride in their accomplishment, whether it
is a new bridge, a new product, or a needed service. Project managers are
often stars in their organization and well compensated.
Good project managers are always in demand. Every industry is looking
for effective people who can get the right things done on time. See Snapshot
from Practice 1.4: Ron Parker for an example of someone who leveraged

his ability to manage projects to build a successful career in the glass
products industry. Clearly project management is a challenging and exciting
profession. This text is intended to provide the necessary knowledge,
perspective, and tools to enable students to accept the challenge.

Being Part of a Project Team
Most people’s first exposure to project management occurs while working
as part of a team assigned to complete a specific project. Sometimes this
work is full time, but in most cases people work part time on one or more
projects. They must learn how to juggle their day-to-day commitments with
additional project responsibilities. They may join a team with a long history
of working together, in which case roles and norms are firmly established.
Alternatively their team may consist of strangers from different departments
and organizations. As such, they endure the growing pains of a group
evolving into a team. They need to be a positive force in helping the team
coalesce into an effective project team.
Not only are there people issues, but project members are also expected
to use project management tools and concepts. They develop or are given a
project charter or scope statement that defines the objectives and parameters
of the project. They work with others to create a project schedule and
budget that will guide project execution. They need to understand project
priorities so they can make independent decisions. They must know how to
monitor and report project progress. Although much of this book is written
from the perspective of a project manager, the tools, concepts, and methods
are critical to everyone working on a project. Project members need to
know how to avoid the dangers of scope creep, manage the critical path,
engage in timely risk management, negotiate, and utilize virtual tools to
communicate.
page 12

SNAPSHOT FROM PRACTICE 1.4
Ron Parker

1986

BS Business Administration—Oregon State University

1986–1990

Food Products Manufacturing

1990–1994

Wood Products Manufacturing

1994–Current Glass Products Manufacturing
Upon completion of my business degree at Oregon State University, I was recruited by a
Fortune 100 food products company for a first-line production supervisor position. In that
role, an opportunity came up for me to manage a project that involved rolling out a new
statistical package-weight-control program throughout the factory. Successfully
completing that project was instrumental in accelerating my career within the company,
advancing from supervisor to product manager in less than three years.
After four years in food products I accepted an offer to join a wood products
manufacturing company. Initially my role in this company was human resource manager.
My HR responsibilities included managing several projects to improve safety and
employee retention. Successful completion of these projects led to a promotion to plant
manager. In the plant manager role, I was tasked with building and managing a new
wood door manufacturing factory. After successfully taking that factory to full production,
I was promoted again, to corporate manager of continuous improvement. This “culture
change” project involved implementing total quality management throughout 13 different
manufacturing factories as well as all the indirect and support functions within the
corporation. Shortly after we successfully ingrained this new culture in the company, the
owner passed away, leading me to look for other employment.
I was able to leverage my previous experience and success to convince the owner of
a struggling glass fabrication company to hire me. In this new role as general manager, I
was tasked with turning the company around. This was my largest project yet. Turning a
company around involves a myriad of smaller improvement projects spanning from
facilities and equipment improvements to product line additions and deletions to sales
and marketing strategy and everything in between. In four years we successfully turned
the company around to the extent that the owner was able to sell the company and
comfortably retire.
Successfully turning that glass company around got the attention of a much larger
competitor of ours, resulting in an offer of employment. This new offer involved the startup of a $30M high-tech glass manufacturing facility in another state. We were able to
take that facility from a dirt field to the highest-volume manufacturing facility of its kind in
the world in just three years. After building and operating this factory at a world-class
benchmark level for eight years, I came across a new and exciting opportunity to help
expand a strong glass fabrication company in Canada. I spent four years successfully
transitioning this Canadian company from a medium-sized glass fabrication facility to one
of the largest and most successful of its kind in North America.
After tiring of the “Great White North,” I found an opportunity to tackle the largest and
most impactful project of my career. I’m currently VP of operations in a venture-funded,
high-tech, start-up company. In this role, I’m overseeing the construction and start-up of
the first full-scale, high-volume electrochromic glass fabrication factory in the world. This
new project involves building a company from the ground up and taking an exciting new
technology from the lab to full-scale commercialization. Success in this role, although still
far from being certain, will eventually revolutionize the glass industry through the
introduction of a product that dramatically improves the energy efficiency and occupant
comfort of buildings around the world.
Looking back on my career, it is apparent that my degree of success has largely been
the result of taking on and successfully completing successively larger and increasingly
impactful projects.

There’s a saying that’s always resonated with me: “If your only tool is a hammer, all
your problems look like nails.” Good tools are hard to come by and heavy to carry
around. I like my tool bag filled with generalist tools: things like communication skills,
leadership, common sense, judgment, reasoning, logic, and a strong sense of urgency. I
often wonder how much more I could have accomplished, had I actually studied project
management and had more of that toolset in my bag. With a bag full of strong generalist
tools, you can tackle any problem in any business. Project management is clearly one of
those skills where the better you are at it, the higher your chances of success in any
business environment. Having the tools is only part of the equation, though. To be
successful, you must also be willing to run at problems/opportunities when everyone else
is running away from them.

©Ron Parker

1.2 Agile Project Management
LO 1-4
Describe how Agile PM is different from traditional PM.

Traditional project management focuses on thorough planning up front.
Planning requires predictability. For plans to be effective, managers have to
have a good understanding of what is to be accomplished and how to do it.
For example, when it comes to building a bridge, engineers can draw upon

proven technology and design principles to plan and build the bridge. Not
all projects enjoy such predictability. Figure 1.2 speaks to this issue.
FIGURE 1.2
Project Uncertainty

Project uncertainty varies according to the extent the project scope is
known and stable and the technology to be used is known and proven.
Many projects, like the bridge project, product extensions, events,
marketing campaigns, and so forth have well-established scopes and use
proven technology, which provide the predictability for effective planning.
However, when the project scope and/or technology is not fully known,
things become much less predictable and plan-driven methods suffer. Such
was the case for software development projects where it was estimated that
in 1995 American firms and agencies spent $81 billion for canceled
software projects (The Standish Group, 1995).
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Enter Agile project management (Agile PM). Agile methodologies
emerged out of frustration with using traditional project management
processes to develop software. Software projects are notorious for having
unstable scopes in which end user requirements are discovered not defined

up front. Agile PM is now being used across industries to manage projects
with high levels of uncertainty. Examples of people encountering highuncertainty work include software systems engineers, product designers,
explorers, doctors, lawyers, and many problem-solving engineers.1
Fundamentally, Agile PM employs an incremental, iterative process
sometimes referred to as a “rolling wave” approach to complete projects
(see Figure 1.3). Instead of trying to plan for everything up front, the scope
of the project evolves. That is, the final project design/outcome is not
known in great detail and is continuously developed through a series of
incremental iterations (waves). Iterations typically last from one to four
weeks. The goal of each iteration is to make tangible progress such as
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define a key requirement, solve a technical problem, or create
desired features to demonstrate to the customer. At the end of
each iteration, progress is reviewed, adjustments are made, and a different
iterative cycle begins. Each new iteration subsumes the work of the
previous iterations until the project is completed and the customer is
satisfied.
FIGURE 1.3
Rolling Wave Development

Agile PM focuses on active collaboration between the project team and
customer representatives, breaking projects into small functional pieces,
and adapting to changing requirements.
It is not simply a question of either/or. Agile methods are often used up
front in the defining phase to establish specifications and requirements, and
then traditional methods are used to plan, execute, and close the project.
Agile methods may be used to address certain technical issues on a project
while most of the project work is being managed in the traditional way.
The internal dynamics on Agile projects is quite different from the
traditional PM approach. Agile works best in small teams of four to eight
members. Instead of directing and integrating the work of others, the project

manager serves as a facilitator and coach. The team manages itself,
deciding who should do what…
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