Nicholas project mgt 4 business and engineering

Project Management
for Business
and Engineering


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Project Management
for Business
and Engineering
Principles and Practice
2 N D

E D I T I O N

John M. Nicholas
Loyola University Chicago

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London New York
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Oxford
Tokyo


Elsevier Butterworth–Heinemann

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To Sharry, Julia, Joshua, and Abigail

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CONTENTS

Preface

xv

CHAPTER 1 Introduction
1
1.1 In the Beginning . . .
1
1.2 What Is a Project?
4
1.3 Project Management: The Need
7
1.4 Response to a Changing Environment
9
1.5 Systems Approach to Management
9
1.6 Project Goals
10
1.7 Project Management: The Person, the Team, the System
1.8 About This Book
12
Study Project Assignment
15

MS Project
15
Review Questions
15
Endnotes
16

PART I: PHILOSOPHY AND CONCEPTS

11

17

CHAPTER 2 What Is Project Management?
19
2.1 Functions and Viewpoints of Management
19
2.2 Project Viewpoint versus Traditional Management
21
2.3 Evolution of Project Management
24
2.4 Where Is Project Management Appropriate?
27
2.5 Project Management: A Common Approach in Everyday Business
2.6 Different Forms of Project Management
31
2.7 Project Environments
35
2.8 Project Management in Industrial Settings
36

2.9 Project Management in the Service Sector
40
2.10 Project and Program Management in Government
42
2.11 Summary
45
Review Questions
46
Questions About the Study Project
47
Case 2-1
47
Case 2-2
49
Endnotes
50

29

vii


CHAPTER 3 Systems, Organizations, and System Methodologies
3.1 Systems Thinking
51
3.2 Definition of System
52
3.3 Systems Concepts and Principles
53
3.4 Human Organizations

58
3.5 Systems Approach
64
3.6 Systems Analysis
68
3.7 Systems Engineering
74
3.8 Systems Management
76
3.9 Summary
77
Review Questions
79
Questions About the Study Project
80
Case 3-1
81
Endnotes
82

PART II: SYSTEMS DEVELOPMENT CYCLE

51

85

CHAPTER 4 Systems Development Cycle: Early Stages
87
4.1 Systems Life Cycles
88

4.2 Systems Development Cycle
89
4.3 Systems Development Cycle, Systems Engineering, and Project Management
4.4 Constraints in Systems Development
94
4.5 Phase A: Conception
95
4.6 The Project Proposal
106
4.7 Project Contracting
111
4.8 Summary
115
Review Questions
116
Questions About the Study Project
117
Case 4-1
117
Case 4-2
118
Endnotes
118
CHAPTER 5 Systems Development Cycle: Middle and Later Stages
120
5.1 Phase B: Definition
120
5.2 Phase C: Execution
132
5.3 Production/Build Stage

138
5.4 Implementation Stage
141
5.5 Phase D: Operation
143
5.6 Systems Development in Industrial and Service Organizations
144
5.7 Systems Development in Large Government Programs
148
5.8 Summary
151
Review Questions
152
Questions About the Study Project
153
Case 5-1
153
viii

Contents

93


Case 5-2
Case 5-3
Endnotes

154
155

156

Part III: SYSTEMS AND PROCEDURES

157

Chapter 6
6.1
6.2
6.3
6.4
6.5
6.6
6.7
6.8

Planning Fundamentals
159
Planning Steps
160
The Project Master Plan
161
Scope and Work Definition
164
Project Organization Structure and Responsibilities
Project Management System
177
Scheduling
177
Planning and Scheduling Charts

179
Summary
184
Review Questions
188
Questions About the Study Project
189
Case 6-1
190
Case 6-2
191
Endnotes
191

Chapter 7
7.1
7.2
7.3
7.4
7.5
7.6

Network Scheduling and PDM
193
Logic Diagrams and Networks
193
The Critical Path
205
Calendar Scheduling and Time-Based Networks
Management Schedule Reserve

217
PDM Networks
217
Summary
222
Review Questions and Problems
224
Questions About the Study Project
228
Endnotes
228

Chapter 8
8.1
8.2
8.3
8.4
8.5

PERT, CPM, Resource Allocation, and GERT
229
Program Evaluation and Review Technique (PERT)
230
Critical Path Method (CPM)
238
Scheduling with Resource Constraints
244
GERT
253
Discussion and Summary

258
Review Questions and Problems
260
Questions About the Study Project
262
Case 8-1
263
Endnotes
266

Chapter 9 Cost Estimating and Budgeting
9.1 Cost Estimating
269
9.2 Cost Escalation
269
Contents

173

213

268

ix


9.3 Cost Estimating and the Systems Development Cycle
9.4 Cost Estimating Process
274

273

9.5 Elements of Budgets and Estimates
281
9.6 Project Cost Accounting and Management Information Systems
9.7 Budgeting Using Cost Accounts
286
9.8 Cost Summaries
288
9.9 Cost Schedules and Forecasts
293
9.10 Summary
300
Review Questions and Problems
Questions About the Study Project
Case 9-1
Endnotes
Chapter 10
10.1
10.2
10.3
10.4
10.5
10.6
10.7

Chapter 11
11.1
11.2
11.3

11.4
11.5
11.6
11.7
11.8
11.9
11.10
11.11
11.12
11.13
11.14
11.15
x

301
304

304
305

Managing Risks in Projects
Risk Concepts
307
Risk Identification
307
Risk Assessment
312

306

Risk Response Planning
319
Project Management Is Risk Management
323
Summary
326
Supplement: Risk Analysis Methods
327
Review Questions and Problems
333
Questions About the Study Project
336
Case 10-1
336
Case 10-2
337
Endnotes
338
Project Control
340
The Control Process
340
Information Monitoring
341
Internal and External Project Control
342
Traditional Cost Control
342
Cost Accounting Systems for Project Control
343

Project Control Process
345
Project Control Emphasis
349
Performance Analysis
356
Forecasting “To Complete” and “At Completion”
365
Performance Index Monitoring
369
Variance Limits
370
Controlling Changes
371
Contract Administration
375
Control Problems
376
Summary
377

Contents

284


Review Questions and Problems
Questions About the Study Project
Case 11-1
381

Endnotes
382

378
380

Chapter 12 Project Management Information Systems
12.1 Functions of the PMIS
385
12.2 Computer-Based Tools
385
12.3 Computer-Based PMI Systems
386
12.4 Representative Computer-Based PMISs

384

389

12.5 Web-Based Project Management
405
12.6 Applying Computer-Based Project Management Systems
12.7 Summary
411
Review Questions
411
Questions About the Study Project
Endnotes
412
Chapter 13

13.1
13.2
13.3
13.4
13.5
13.6
13.7
13.8
13.9

412

Project Evaluation, Reporting, and Termination
Project Evaluation
414
Project Review Meetings
415
Reporting
419
Terminating the Project
420
Termination Responsibilities
422
Closing the Contract
423
Project Extensions
424
Project Summary Evaluation
424
Summary

427
Review Questions
428
Questions About the Study Project
428
Endnotes
429

PART IV: ORGANIZATION BEHAVIOR
Chapter 14
14.1
14.2
14.3
14.4
14.5
14.6
14.7
14.8
14.9
14.10
Contents

407

413

431

Project Organization Structure and Integration
433

Formal Organization Structure
434
Organization Design by Differentiation and Integration
Requirements of Project Organizations
438
Integration of Subunits in Projects
438
Liaison Roles, Task Forces, and Teams
439
Project Expeditors and Coordinators
440
Pure Project Organizations
442
Matrix Organization
444
Selecting a Project Form
447
Project Office
450

434

xi


14.11
14.12
14.13
14.14
14.15

The Informal Organization
451
Integration in Large-Scale Projects
452
Integration in Systems Development Projects
Concurrent Engineering
458
Quality Function Deployment
463

14.16 Summary
470
Review Questions

471

Questions about the Study Project
Case 14-1
473
Case 14-2
474
Endnotes
Chapter 15
15.1
15.2
15.3
15.4

472

475

Project Roles, Responsibility, and Authority
The Project Manager
478
Project Management Authority
483
Selecting the Project Manager
486
Ways of Filling the Project Management Role

477

490

15.5
15.6
15.7
15.8

Roles in the Project Team
491
Roles Outside the Project Team
494
Relationships Among Project and Functional Roles
Summary
496
Review Questions
498

Questions About the Study Project
499
Case 15-1
500
Case 15-2
500
Endnotes
501

Chapter 16
16.1
16.2
16.3
16.4
16.5

Managing Participation, Teamwork, and Conflict
Leadership in Project Management
504
Participative Management
506
Teams in Project Management
507
The Team Building Approach
510
Improving Ongoing Work Teams
512

16.6 Building New Teams
513

16.7 Intergroup Problem Solving
16.8 Origins of Conflict
518

515

16.9 Consequences of Conflict
520
16.10 Managing Conflict
521
16.11 Team Methods for Resolving Conflict
16.12 Emotional Stress
525
16.13 Stress Management
526
xii

456

Contents

523

496

503


16.14 Summary
528

Review Questions

529

Questions About the Study Project
Case 16-1
531
Endnotes

530

532

Chapter 17 Project Failure, Success, and Lessons Learned

534

17.1 Project Failure
535
17.2 Project Management Causes of Project Failure

537

17.3 Project Success
542
17.4 Project Management Causes of Project Success

543

17.5 A Model and Procedure for Analyzing Project Performance

17.6 Epilogue
550
Review Questions
551
Questions About the Study Project
553
Endnotes
553
Appendix A Systems Engineering Process
555
Stage 0: Indentification of Need
555
Stage 1: System Concept
557
Stage 2: System Definition and Preliminary Design
Stage 3: Detailed Design and System Development
Stage 4: System Construction and/or Production
Stage 5: System Operation and Support
560
Throughout: System Evaluation
561
Endnotes
562
Appendix B Types of Contracts
Fixed Price Contracts
564
Cost-Plus Contracts
565
Incentive Contracts
566

Endnotes
569

557
559
560

563

Appendix C Logistical On-Line System Project Master Plan
Author Index

591

Subject Index

594

Contents

548

570

xiii


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PREFACE

When people see something impressive—a bridge arching high over a canyon, a
space probe touching down on a distant planet, a graceful curlicue ramp on a freeway, a motion picture such as Titanic (so real you think you’re there!), or a nifty
computer the size of your hand—they wonder, “how did they do that?” By they, of
course, they are referring to the creators, designers, and builders, the people who
thought up and actually made those things. Rarely do they mean the managers, the
people who organized and lead the effort that brought those wondrous things from a
concept or idea into reality.
This book is about the managers—project managers—and what they do and how
they do it. Project managers are the mostly unsung heroes of business and technology,
people who, in most cases, stand outside the public eye but without whose talent,
skills, and hard work most neat ideas would never amount to anything. Certainly the
project manager is but one of the many people who help shape the products, systems,
and artifacts of modern life, those things we take for granted as well as those we
marvel at. Nonetheless, the project manager is the one who gets all of the others involved, and then organizes and directs them so their combined efforts will come
out right. (Sometimes, though rarely, the manager and the creator happen to be the
same. Woody Allen, Kelly Johnson, and Gutzon Borglum are examples. Their life
work—in motion pictures, supersonic airplanes, and Mount Rushmore, respectively—represent not only creative or technological genius, but leadership and managerial talent as well.)
The pace of change in business and technology is accelerating. The last few
decades have seen business be transformed from domestic, nationalistic enterprises
and markets into multinational enterprises and a single global market. As a result, no
matter what your perspective there is more of everything to contend with—more
ideas, competitors, resources, constraints, and, certainly, more people doing and
wanting things. The accelerated rate of change in technology means that products or
processes are evolving at a more rapid pace, and as a result the life cycles of the things
we use and rely on are getting shorter. This accelerated rate of change has a direct impact on the frequency and conduct of projects—whether projects to develop products,
systems, or processes that compete in local, domestic, and international markets; projects to create and implement new ways of meeting demand for energy, recreation,
housing, communication, transportation, and food; or projects to answer basic questions in science or to resolve problems such as hunger, disease, and pollution. All of
this project activity has spurred a growing interest in ways to plan and control projects, and to organize and lead people and groups to meet the needs of customers,

markets, and society within the bounds of limited time and resources.
Associated with the growing interest in project management is the growing need
to train project managers. In the past and still today, project managers were largely
xv


persons who had demonstrated some exceptional capability, though not necessarily
as a manager. If you were a good engineer, programmer, systems analyst, architect, or
accountant, eventually you would become a project manager. Then, presumably, you
would pick up the necessary management skills somewhere along the way. The flaw
in this approach is that project management encompasses a broad range of skills—
managerial, leadership, interpersonal—that are much different than the skills associated with the technology of the particular project. There is no compelling reason to
presume that the project environment alone will provide the opportunity for someone to “pick up” the skills necessary for project management.
As a text and handbook, this book is about the “right” way to manage projects. It
is intended for advanced undergraduate and graduate university students, and for
practicing managers in business and technology. As the title says, it is a book about
principles and practice, meaning that the topics in it are meant to be applied. It covers
the big picture of project management—origins, applications, and philosophy, as
well as the nitty-gritty, how-to steps. It describes the usual project management topics of networks, schedules, budgets, and controls as well as the human side of project
management.
Why a book on business and technology? In my experience, technical specialists
such as engineers, programmers, architects, chemists, and so on, often have little
or no management training. This book, which includes many technology project examples, provides somewhat broad exposure to relevant business concepts and management specifics to help them get started as project managers.
What about those people involved in product-development, marketing, processimprovement, and related projects commonly thought of as “business projects”? Just
as students of technology seldom get management training as part of their formal
education, students of business seldom get training about the conduct of projects in
technology. For students of business this book reveals not only how “business” projects are conducted, but what happens in a wide variety of engineering, construction,
and other kinds of “technical” projects.
Of course, technical projects are also business projects because they involve business issues such as customer satisfaction, resource utilization, cost, profits, and so on.
Although engineering and development projects may appear different from

nonengineering projects, both types are similar in the way they are managed. This
book conceptualizes all projects using a single framework called the Systems Development Cycle. This framework serves as a general scheme for illustrating commonalities and differences among projects.
This book is an outgrowth of more than a decade of teaching project management
at Loyola University Chicago, preceded by several years of practical experience in
business and technology projects, including design and flight test work in the aircraft
industry, and software applications development and process improvement projects
in banking. From this practical experience I developed an appreciation not only for the
business-management side of project management—systems and procedures for
planning, scheduling, budgeting, and control—but for the human and organizational
side as well. I saw the benefits of good communication, trust, and teamwork on project outcomes, as well as the costs of emotional stress and group conflict. I observed that
the most successful projects usually were those where trust, good communications,
and teamwork flourished, regardless of the formal planning and control systems in
place. This book largely reflects these personal experiences and learnings. Of course,
the book reflects much more than my own personal experience. To cover project management in a more general, comprehensive sense, I had to rely on the published works
of many other authors, and on the suggestions of colleagues and reviewers.
xvi

Preface


In this second edition I have revised and added substantial new material to incorporate current examples and reviewers’ suggestions, and to take advantage of the
growing body of literature in project management. Every chapter has been revised
and updated. The most significant changes are as follows: Chapters 1 and 2 have
many new examples and case studies of projects and project managers. Chapters 4
and 5 have increased coverage of important front-end topics such as preparation of
RFPs and proposals, and definition of user needs, project objectives, requirements,
and specifications. Chapter 7 has been revised to cover activity-oriented (rather
than event-oriented) scheduling. Chapter 8 has expanded coverage of constrainedresource scheduling and multiple-project scheduling. Chapter 9 includes a new section on the various methods of cost estimating. Chapter 10 is a new chapter that
addresses models and practices for assessing and managing project risk. Chapter 11
is expanded to address multiple aspects of project control: scope, quality, schedule,

performance, and change control. Chapter 12 is completely revised and covers current software applications and Web-based project management. Chapter 14 is expanded and discusses not only project organization, but mechanisms for project
integration including integrated product development teams, concurrent engineering, and quality function deployment. To every chapter I have added new examples
and end-of-chapter case studies.
My goal in writing this book has been to provide students and practicing managers of projects the most practical, current, and interesting text possible. I appreciate
hearing your comments and suggestions. Please send them to

Acknowledgments
Writing a book is a project and, like most projects, reflects the contributions of many
people. Here I want to acknowledge and give special thanks to those who contributed
the most. First, thanks to my research assistants. In general, research assistants do a
lot of work—academic research as well as gofer work, and without their toiling efforts
most professors would accomplish far less. I have been fortunate to have had the assistance of two such bright and capable people, Elisa Denney, who reviewed much of
the book, helped draft most of Chapter 12, and served as a constant source of energy;
and Hollyce James, who helped with revisions and provided editorial competency.
Also thanks to Cary Morgan and Louis Schwartzman, my research assistants for the
first edition.
I want to express appreciation to Dr. Enrique Venta for reviews and assistance in
portions of this and the first edition. Others who deserve special mention and thanks
are Dr. Harold Dyck, Dr. Samuel Ramenofsky, Dr. Donald Meyer, Elaine Strnad, Paul
Flugel, John Edison, Sharon Tylus, and Debbie Gillespie. I also want to acknowledge
the influence of three of my professors, Charles Thompson and Gustave Rath at
Northwestern University, and Dick Evans at the University of Illinois, whose philosophy and teachings helped shaped this book.
My appreciation to the following who served as reviewers and provided dozens
of helpful suggestions: Thomas B. Clark of Georgia State University; Frank Deromedi
of Golden Gate University; Bruce Hartman of the University of Arizona; Joseph L.
Orsini of California State University, Sacramento; Peter Papantos of DeVry Institute;
and Thomas Tice of California State Polytechnic University, Pomona.
My wife Sharry also gets special thanks. She read the draft for the first edition,
provided numerous suggestions, and helped reduce the amount of “techno-jargon”
in the book. She also managed the home front, allowed me the time to pursue and

complete this project, and was a steadfast source of support.
Preface

xvii


Thanks also to Tom Tucker, and to the folks at Butterworth-Heinemann, especially to Maggie Smith for her support of this publication.
There are other colleagues, students, and friends, some mentioned in endnotes
elsewhere throughout the book, who provided support, encouragement, and reference materials; to them I say thank you. Despite the assistance of so many people and
my own best efforts, there are still likely to be omissions or errors. I had final say, and
I accept responsibility for them.
John M. Nicholas

xviii

Preface


ABOUT

THE

AUTHOR

JOHN NICHOLAS is professor of information systems and operations management,
and former associate dean of the Graduate School of Business, Loyola University
Chicago. He is an active teacher, writer, and researcher in project management and
manufacturing management, and has written extensively about performance issues of
teams working in confined, hazardous, stressful environments. He conducts executive
seminars and has been a consultant on project management and process improvement.

John is the author of numerous academic and technical publications, including
two textbooks, Managing Business and Engineering Projects (1990) and Competitive
Manufacturing Management (1998). He has held the positions of engineer and team
leader on aircraft development projects at Lockheed-Martin Corporation, business
systems analyst on bank operations at BankAmerica, and research associate on
energy-environmental research projects at Argonne National Laboratory. He has a
B.S. in aeronautical and astronautical engineering and an M.B.A. in operations research from the University of Illinois, Urbana-Champaign, and a Ph.D. in industrial
engineering and applied behavioral science from Northwestern University.

xix


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Chapter
Introduction

1

project (praj’ ekt, ikt) n. a proposal of something to be done; plan;
scheme 2. an organized undertaking; specif., a) a special unit of
work, research, etc., as in school, a laboratory, etc., b) an extensive
public undertaking, as in conservation, construction, etc.
—Webster’s New World Dictionary

1.1

IN THE BEGINNING . . .
Sometime during the third millennium b.c., workers on the Great Pyramid of

Cheops set the last stone in place. Certainly they must have felt jubilant, for this
event represented a milestone of sorts in one of humanity’s grandest undertakings. Although much of the ancient Egyptians’ technology is still a mystery,
the enormity and quality of the finished product remains a marvel. Despite the
lack of sophisticated machinery, they were able to raise and fit some 2,300,000
stone blocks, weighing 2 to 70 tons apiece, into a structure the height of a modern
40-story building. Each facing stone was set against the next with an accuracy of
.04 inch, and the base, which covers 13 acres, deviates less than 1 inch from level
(Figure 1-1).1
Equally as staggering was the number of workers involved. To quarry the
stones and transport them down the Nile, about 100,000 laborers were levied. In
addition, 40,000 skilled masons and attendants were employed in preparing and
laying the blocks and erecting or dismantling the ramps. Public works were essential to keep the working population employed and fed, and it is estimated that
no less than 150,000 women and children also had to be housed and fed.2

1


Figure 1-1
The Great Pyramid of Cheops, an early (circa 2500 b.c.) large-scale project.
[Photo courtesy of Arab Information Center.]
But just as mind-boggling was the managerial ability of the Egyptians—the planning, organizing, and controlling that were exercised throughout the 20-year duration
of the pyramid construction. Francis Barber, a nineteenth century American naval attaché and pyramid scholar, concluded that:
it must have taken the organizational capacity of a genius to plan all the
work, to lay it out, to provide for emergencies and accidents, to see that the
men in the quarries, on the boats and sleds, and in the mason’s and
smithies shops were all continuously and usefully employed, that the
means of transportation was ample, . . . that the water supply was
ample, . . . and that the sick reliefs were on hand.3
Building the Great Pyramid is what we today would call a large-scale project. It
stands as evidence of numerous such projects from early recorded history that required

massive human works and managerial competency. The Bible provides many accounts
of projects that required orchestration of thousands of people and the transport and utilization of enormous quantities of materials. Worthy of note are the managerial and leadership accomplishments of Moses. The scriptural account of the exodus of the Hebrews
from the bondage of the Egyptians gives some perspective on the preparation, organization, and execution of this tremendous undertaking. Supposedly, Moses did a magnificent job of personnel selection, training, organization, and delegation of authority.4
The famed ruler Solomon, among other accomplishments, was the “manager” of numerous great construction projects. He transformed the battered ruins of many ancient
cities and crude shanty towns into powerful fortifications. With his wealth and the help
of Phoenician artisans, Solomon built the Temple in Jerusalem. Seven years went into
the construction of the Temple, and after that Solomon built a palace for himself which
took 13 more years to complete. He employed a workforce of 30,000 Israelites to fell trees
and import timber from the forests of Lebanon.5 That was almost 3,000 years ago.
2

Chapter 1

Introduction


With later civilizations, most notably the Greeks and Romans, the number of activities requiring extensive planning and organizing escalated. These societies undertook extensive municipal and government works programs such as street paving,
water supply, and sewers. To facilitate their military campaigns and commercial interests, the Romans constructed networks of highways and roads throughout Europe,
Asia Minor, Palestine, and northern Africa so that all roads would “lead to Rome.”
The civilizations of renaissance Europe and the Far East undertook river engineering,
construction of canals, dams, locks, and port and harbor facilities. With the spread of
modern religions, construction of churches, temples, monasteries, mosques, and massive urban cathedrals was added to the list of projects. The remains of aqueducts,
bridges, temples, palaces, fortifications, and other large structures throughout the
Mediterranean and China testify to the ancients’ occupation with large-scale projects.
With the advent of industrialization and electricity, the projects of humankind
took on increasing complexity. Projects for the construction of railroads, electrical and
hydroelectrical power facilities and infrastructures, subways, and factories became
commonplace. In recent times, research and installation of large systems for communications, defense, transportation, and information technology have spurred different, more complex kinds of project activity.
As long as humankind does things, there will be projects. Many projects of the future will be similar to those in the past. Others will be vastly different either in terms
of increased scale of effort or more advanced technology. Representative of the latter

are two recent projects, the English Channel tunnel (Chunnel) and the international
space station. The Chunnel required tremendous resources and took a decade to complete. The international space station (Figure 1-2) will require new technologies, some
that have yet to be developed.

Figure 1-2
The international space station, a modern large-scale project.
[Photo courtesy of NASA/Johnson Space Center.]

Chapter 1

Introduction

3


1.2

WHAT IS A PROJECT?
From these few examples it is clear that humankind has been involved in project activities for a long time. But why are these works considered “projects” while other human activities, such as planting and harvesting a crop, stocking a warehouse, issuing
payroll checks, or manufacturing a product, are not?
What is a project? This is a question we will cover in much detail later. As an introduction though, some characteristics will be listed that warrant classifying an activity as a project. They center on the purpose, complexity, uniqueness, unfamiliarity,
stake, impermanence, and life cycle of the activity:6
1. A project involves a single, definable purpose, end-item, or result, usually specified in terms of cost, schedule, and performance requirements.
2. Every project is unique in that it requires doing something different than was
done previously. Even in “routine” projects such as home construction, variables such as terrain, access, zoning laws, labor market, public services, and
local utilities make each project different. A project is a one-time activity,
never to be exactly repeated again.
3. Projects are temporary activities. An ad hoc organization of personnel, material,
and facilities is assembled to accomplish a goal, usually within a scheduled
time frame; once the goal is achieved, the organization is disbanded or reconfigured to begin work on a new goal.

4. Projects cut across organizational lines because they need the skills and talents
from multiple professions and organizations. Project complexity often arises
from the complexity of advanced technology, which creates task interdependencies that may introduce new and unique problems.
5. Given that a project differs from what was previously done, it also involves unfamiliarity. It may encompass new technology and, for the organization undertaking the project, possess significant elements of uncertainty and risk.
6. The organization usually has something at stake when doing a project. The activity may call for special scrutiny or effort because failure would jeopardize the
organization or its goals.
7. Finally, a project is the process of working to achieve a goal; during the process,
projects pass through several distinct phases, called the project life cycle. The
tasks, people, organizations, and other resources change as the project moves
from one phase to the next. The organization structure and resource expenditures slowly build with each succeeding phase; peak; and then decline as the
project nears completion.
The examples described earlier are for familiar kinds of projects such as construction (pyramids), development (transportation and information technology), or a
combination of both (space station). In general, the list of activities that qualify as projects is long and includes many that are commonplace. Weddings, remodeling a home,
and moving to another house are certainly projects for the families involved. Company audits, major litigations, corporate relocations, and mergers are also projects, as
are new product development and system implementation efforts. Military campaigns also meet the criteria of projects; they are temporary, unique efforts directed
toward a specific goal. The Normandy Invasion during WWII on June 6, 1944, is a
good (perhaps the ultimate) example:

4

Chapter 1

Introduction