An introduction to project management, sixth edition

An Introduction to Project
Management, Sixth Edition
With a Brief Guide to Microsoft Project
Professional 2016

By
Kathy Schwalbe
Professor Emeritus, Augsburg College
Department of Business Administration
Minneapolis, Minnesota


An Introduction to
Project Management, Sixth Edition
Cover Photo: Dan Schwalbe
©2017 Schwalbe Publishing
ISBN-13: 978-1544701899
ISBN-10: 1544701896
ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced,
transmitted, stored, or used in any form or by any means graphic, electronic, or mechanical, including
but not limited to photocopying, recording, scanning, digitizing, taping, Web distribution, information
networks, or information storage and retrieval systems, except as permitted under Section 107 or 108 of
the 1976 United States Copyright Act, without the prior written permission of the author.
Materials from Kathy Schwalbe’s Information Technology Project Management are used with
permission from Cengage Learning.
Microsoft and the Office logo are either registered trademarks or trademarks of Microsoft Corporation
in the United States and/or other countries. All screenshots from Microsoft products are used with
permission from Microsoft.
Information and screenshots from MindView are used with permission from MatchWare. Information
and screenshots from Basecamp are used with permission from Basecamp.

Some of the product names and company names used in this book have been used for identification
purposes only and may be trademarks or registered trademarks of their respective manufacturers and
sellers.
This publication is a derivative work of A Guide to the Project Management Body of Knowledge
(PMBOK® Guide) – Sixth Edition, which is copyrighted material of and owned by, Project
Management Institute, Inc. (PMI), Copyright 2017. This publication has been developed and
reproduced with the permission of PMI. Unauthorized reproduction of this material is strictly
prohibited. The derivative work is the copyrighted material of and owned by, Schwalbe Publishing,
Copyright 2017.
PMI, PMP, CAPM, OPM3, and PMBOK are registered marks of the Project Management Institute, Inc.
Published by Schwalbe Publishing in Minneapolis, MN, September 2017.
Free companion website at www.intropm.com.


Visit www.pmtexts.com or www.kathyschwalbe.com for more information on this and other books by
Kathy Schwalbe.


For Dan, Anne, Bobby, and Scott
My husband and children continue to be my inspiration.
My son-in-law, Jeremy, and grandson, Freddie,
are welcome additions to our family!


BRIEF TABLE OF CONTENTS
Chapter 1

An Introduction to Project, Program, and Portfolio
Management

Chapter 2

Project, Program, and Portfolio Selection

Chapter 3

Initiating Projects

Chapter 4

Planning Projects, Part 1 (Project Integration and
Scope Management)

Chapter 5

Planning Projects, Part 2 (Project Time and Cost
Management)

Chapter 6

Planning Projects, Part 3 (Project Quality, Resource,
Communications, Stakeholder, Risk, and
Procurement Management)

Chapter 7

Executing Projects

Chapter 8

Monitoring and Controlling Projects

Chapter 9

Closing Projects

Chapter 10

Best Practices in Project Management

Appendix A Brief Guide to Microsoft Project 2016
Appendix B Resources
Appendix C Case Studies
Glossary


DETAILED TABLE OF
CONTENTS
Chapter 1: An Introduction To Project, Program, And Portfolio
Management
Introduction
What Is A Project?
Examples Of Projects
Project Attributes
Project Constraints
What Is Project Management?
Project Stakeholders
Project Management Process Groups And Knowledge Areas
Project Management Tools And Techniques
Project Success

Program And Project Portfolio Management
Programs
Project Portfolio Management
The Project Management Profession
Suggested Skills For Project, Program, And Portfolio Managers
PMI Talent Triangle And The Importance Of Leadership Skills
Project Management Certification
Ethics In Project Management
Project Management Careers
Project Management Software
Chapter Summary
Quick Quiz
Quick Quiz Answers
Discussion Questions
Exercises
Team Projects
Key Terms


End Notes
Chapter 2: Project, Program, And Portfolio Selection
Aligning Projects With Business Strategy
Strategic Planning
Swot Analysis
Traditional And Agile Approaches To Project Planning
Traditional Project Planning Process
Agile Approach To Project Planning
Methods For Selecting Projects
Focusing On Competitive Strategy And Broad Organizational Needs
Performing Financial Projections

Net Present Value Analysis
Return On Investment
Payback Analysis
Using A Weighted Scoring Model
Implementing A Balanced Scorecard
Addressing Problems, Opportunities, And Directives
Project Time Frame
Project Priority
Program Selection
Focusing On Coordination And Benefits
Approaches To Creating Programs
Project Portfolio Selection
Sample Approach For Creating A Project Portfolio
Five Levels Of Project Portfolio Management
Chapter Summary
Quick Quiz
Quick Quiz Answers
Discussion Questions
Exercises
Key Terms
End Notes
Chapter 3: Initiating Projects
Project Management Process Groups
Project Life Cycle
Mapping The Process Groups To The Knowledge Areas
Developing A Project Management Methodology


Agile Project Management
The Importance Of Top Management Commitment

The Need For Organizational Standards
Pre-Initiating And Initiating Global Construction’s Just-In-Time Training
Project
Pre-Initiating Processes And Outputs
Preparing A Business Case
Contents Of A Business Case
Sample Business Case
Initiating Processes And Outputs
Identifying Stakeholders
Sample Stakeholder Register And Stakeholder Analysis
Creating A Project Charter And Assumptions Log
Contents Of A Project Charter
Sample Project Charter
Contents Of An Assumption Log
Sample Assumption Log
Holding A Project Kick-Off Meeting
Sample Kick-Off Meeting Agenda
Chapter Summary
Quick Quiz
Quick Quiz Answers
Discussion Questions
Exercises
Team Projects
Key Terms
End Notes
Chapter 4: Planning Projects, Part 1 (Project Integration and Scope
Management)
Project Planning Should Guide Project Execution
Summary Of Planning Processes And Outputs For Integration And Scope
Project Integration Management

Project Management Plans
Sample Project Management Plan
Project Scope Management
Planning Scope Management
Sample Requirements Management Plan


Collecting Requirements
Sample Requirements Traceability Matrix
Defining Scope
Sample Scope Statement
Creating The Work Breakdown Structure
Example Wbss
Approaches To Developing Work Breakdown Structures
Using Guidelines or Templates
The Analogy Approach
The Top-Down Approach
The Bottom-Up Approach
Mind Mapping
Sample Wbs
Creating The Wbs Dictionary
Sample Wbs Dictionary Entry
Chapter Summary
Quick Quiz
Quick Quiz Answers
Discussion Questions
Exercises
Team Projects
Key Terms
End Notes

Chapter 5: Planning Projects, Part 2 (Project Time and Cost
Management)
Introduction
Summary Of Planning Processes And Outputs
Project Schedule Management
Planning Schedule Management
Defining Activities
Creating The Activity List And Attributes
Sample Activity List And Attributes
Creating A Milestone List
Sample Milestone List
Sequencing Activities
Project Schedule Network Diagrams
Estimating Activity Duration


Sample Activity Duration Estimates
Developing The Project Schedule
Critical Path Analysis
Calculating The Critical Path
Growing Grass Can Be On The Critical Path
Using Critical Path Analysis To Make Schedule Trade-Offs
Importance Of Updating Critical Path Data
Critical Chain Scheduling
Sample Project Schedule
Sample Project Calendar
Project Cost Management
Planning Cost Management
Estimating Costs
Cost Estimation Tools And Techniques

Sample Cost Estimate
Cost Budgeting
Sample Cost Baseline
Chapter Summary
Quick Quiz
Quick Quiz Answers
Discussion Questions
Exercises
Key Terms
End Notes
Chapter 6: Planning Projects, Part 3 (Project Quality, Resource,
Communications, Stakeholder, Risk, and Procurement Management)
Introduction
Summary Of Planning Processes And Outputs
Project Quality Management
Planning Quality Management
Sample Quality Management Plan
Quality Metrics
Sample Project Dashboard And Quality Metrics Description
Project Resource Management
Project Organizational Charts
Sample Project Organizational Chart
Responsibility Assignment Matrices


Sample Responsibility Assignment Matrix
Resource Histograms
Sample Resource Histogram
Staffing Management Plans
Sample Staffing Management Plan

Team Charter
Sample Team Charter
Estimating Activity Resources
Sample Activity Resource Requirements
Project Communications Management
Communications Management Plans
Sample Communications Management Plan
Project Websites
Sample Project Website
Project Stakeholder Management
Stakeholder Engagement Plans
Project Risk Management
Planning Risk Management
Sample Risk Management Plan
Identifying Risks
Performing Qualitative Risk Analysis
Sample Probability/Impact Matrix
Performing Quantitative Risk Analysis
Planning Risk Responses
Risk Registers
Sample Risk Register
Risk-Related Contract Decisions
Sample Risk-Related Contract Decisions
Project Procurement Management
Make-Or-Buy Decisions
Sample Make-Or-Buy Decision
Procurement Management Plans
Types Of Contracts
Sample Procurement Management Plan
Bid Documents: Requests For Information, Proposals, Or Quotes

Sample Requests For Proposal
Procurement Statements Of Work


Sample Procurement Statement Of Work
Source Selection Criteria And Supplier Evaluation Matrices
Sample Supplier Evaluation Matrix
Chapter Summary
Quick Quiz
Quick Quiz Answers
Discussion Questions
Exercises
Team Projects
Key Terms
End Notes
Chapter 7: Executing Projects
Introduction
Summary Of Executing Processes And Outputs
Project Integration Management
Deliverables
Sample Deliverables
Work Performance Data
Sample Work Performance Data
Issue Logs
Sample Issue Log
Change Requests
Sample Change Request
Sample Implemented Solutions To Problems
Issues With Competence And Motivation
Poor Conflict Management

Managing Project Knowledge
Lessons Learned Register
Sample Lessons Learned Register
Managing Quality
Quality Improvement Tools And Techniques
Sample Kanban Board
Sample Cause And Effect Diagram
Project Resource Management
Motivation
Maslow’s Hierarchy Of Needs
Herzberg’s Motivation-Hygiene Theory


Mcclelland’s Acquired-Needs Theory
Mcgregor’s Theory X And Theory Y
Thamhain And Wilemon’s Influence Bases
Covey’s Effectiveness Research
Acquiring Resources
Resource Loading And Leveling
Sample Project Team Assignments
Developing The Project Team
Training
Team-Building Activities
Reward And Recognition Systems
Sample Team Performance Assessment
Managing The Project Team
Project Communications Management
Important Project Communications Concepts
Formal And Informal Communications
Nonverbal Communications

Using The Appropriate Communications Medium
Understanding Individual And Group Communication Needs
The Impact Of Team Size On Project Communications
Project Communications And Updating Business Processes
Sample Updates To Business Processes
Project Stakeholder Management
Managing Stakeholder Engagement
Project Risk Management
Implementing Risk Responses
Project Procurement Management
Conducting Procurements
Sample Qualified Seller List
Sample Agreement Or Contract
Chapter Summary
Quick Quiz
Quick Quiz Answers
Discussion Questions
Exercises
Team Projects
Key Terms


End Notes
Chapter 8: Monitoring and Controlling Projects
Introduction
Summary Of Monitoring And Controlling Processes And Outputs
Project Integration Management
Monitoring And Controlling Project Work
Forecasting With Earned Value Management
Sample Forecast Using An Earned Value Chart

Performance Reports
Sample Performance Report
Integrated Change Control
Project Scope Management
Validating Scope
Sample Of Accepted And Unaccepted Deliverables
Controlling Scope
Project Schedule Management
Sample Work Performance Information
Project Cost Management
Project Quality Management
Sample Quality-Control Tools
Project Resource Management
Project Communications Management
Project Stakeholder Management
Project Risk Management
Sample Risk Register Updates
Project Procurement Management
Sample Written Notice Of A Closed Contract
Chapter Summary
Quick Quiz
Quick Quiz Answers
Discussion Questions
Exercises
Team Projects
Key Terms
End Notes
Chapter 9: Closing Projects
Introduction

Summary Of Closing Outputs
Project Integration Management
Sample Customer Acceptance/Project Completion Form
Sample Final Report
Sample Transition Plan
Lessons Learned Purpose And Objectives
Lessons Learned Questions
Project Close-Out Meeting And Knowledge Transfer
Advice On Closing Projects
Chapter Summary
Quick Quiz
Quick Quiz Answers
Discussion Questions
Exercises
Team Projects
Key Terms
End Notes
Chapter 10: Best Practices in Project Management
Introduction
Defining Project Management Best Practices
The Project Management Institute’s Definition Of Best Practices
Ultimate Business Library Best Practices
Best Practices Of Individual Project Managers
Project Management Maturity
Capability Maturity Model Integration
Project Management Maturity Models
Research On Project Management Maturity
PMI’s Pulse Of The Profession® Reports
PM Solutions Research

Ibbs’ The Value Of Project Management Research
Thomas And Mullaly Research On Project Management Value
Crawford And Cook-Davies Study On Best Industry Outcomes
Pricewaterhousecoopers’ Study On Boosting Business Performance
Summary Of Best Practices Mentioned In This Text
Final Advice On Project Management
Chapter Summary
Quick Quiz


Quick Quiz Answers
Discussion Questions
Exercises
Key Terms
End Notes
Appendix A: Brief Guide to Microsoft Project 2016
Introduction
Project Management Software
Basic Features Of Project Management Software
What’s New In Project Professional 2016
Before You Begin
Using The 60-Day Trial Of Project Professional 2016:
Overview Of Project Professional 2016
Getting Started And Finding Help
Understanding The Main Screen Elements
Exploring Project Professional 2016 Using A Template File
Project Professional 2016 Views
Project Professional 2016 Reports
Project Professional 2016 Filters
Creating A New File And Entering Tasks In A Work Breakdown Structure

Creating A New Project File
Creating A Work Breakdown Structure Hierarchy
Creating Summary Tasks
Numbering Tasks
Saving Project Files Without A Baseline
Developing The Schedule
Calendars
Entering Task Durations
Manual And Automatic Scheduling
Duration Units And Guidelines For Entering Durations
Entering Task Durations
Establishing Task Dependencies
Gantt Charts, Network Diagrams, And Critical Path Analysis
Project Cost And Resource Management
Entering Fixed And Variable Cost Estimates
Entering Fixed Costs In The Cost Table
Entering Resource Information And Cost Estimates


Using The Team Planner Feature
Using The New Resource Engagement Feature
Entering Baseline Plans, Actual Costs, And Actual Times
Viewing Earned Value Management Data
Integrating Project Professional 2016 With Other Applications And Apps For
Office
Copying Information Between Applications
Creating Hyperlinks To Other Files
Using Project Professional 2016 Apps
Synching With Project Server And Project Online
Discussion Questions

Exercises
End Notes
Appendix B: Resources
Introduction
Companion Websites
For Students (www.intropm.com Or www.pmtexts.com)
For Instructors
Template Files
Mindview Software
Basecamp Project Management Software
Appendix C: Case Studies:
Introduction
Case Study 1: Real Projects
Individual Homework: Project Proposal (100 Points)
Individual Homework: Self-Assessment (100 Points)
Syllabus Description Of Team Projects
Case Study 2: New Business Venture
Part 1: Initiating
Part 2: Planning
Part 3: Executing
Part 4: Monitoring And Controlling
Part 5: Closing
Case 3: Fixer Upper
Part 1: Initiating
Part 2: Planning
Part 3: Executing


Part 4: Monitoring And Controlling
Part 5: Closing

Glossary


PREFACE
The rapidly changing world has made organizations appreciate the need for
good project, program, and portfolio management skills more than ever.
Many organizations, including corporations, government agencies, non-profit
organizations, colleges, and universities have responded to this need by
establishing courses and programs in project management. Hundreds of
books are now available on this topic.
After publishing the first two editions of this book, my publisher,
Course Technology, now a branch of Cengage Learning, decided not to
update it. They publish other books with higher sales, including my
Information Technology Project Management book, now in its eighth edition.
I personally used this text, An Introduction to Project Management, in my
project management courses at Augsburg College since 2001 because most of
my students were not majoring in information technology (IT) fields. I thank
Cengage Learning for giving me the rights to self-publish the third and
subsequent editions and permission to use some of the content from my IT
book. I am also thankful for learning how to self-publish. I also selfpublished Healthcare Project Management in 2013 (after several people
asked me to do so) with co-author Dan Furlong. I hope to keep writing books
for years to come. If you have suggestions, let me know!
What makes this book different from other project management
books? First of all, people actually enjoy reading it. I get emails every week
from readers like you who appreciate my straight-forward, organized writing
style. They like the way that I explain concepts and then provide realistic
examples to help them learn to apply those concepts. Since I use this text in
my own classes, I get a lot of feedback from students and see first-hand what
works and does not work in a classroom setting. Several people have
commented that they like the cartoons, Jeopardy games on the companion

website, and my honest, sometimes humorous style. Project management can
be a boring subject, but I think it’s one of the most exciting topics and
careers, especially if you want to change the world for the better.


This text addresses the need for people in all majors and industries
to understand and apply good project, program, and portfolio management. It
includes many real-world examples in the “What Went Right,” “What Went
Wrong,” “Media Snapshot,” “Best Practice,” and “Video Highlights”
segments. People like to read about and watch videos about real projects to
learn from the successes and failures of others. They also realize that there
are projects in all aspects of life, from remodeling a house to running a
political campaign to developing a new software application.
I’m most excited about the fact that this book provides
comprehensive samples of applying various tools and techniques to a realistic
project. Many people learn best by example, so I’ve provided detailed
examples of applying project management to a project everyone can relate to.
I have never come across a textbook that presents project management
concepts and then brings them to life in a fully developed sample project. I
also provide template files for creating the sample documents. I believe this
approach helps many people truly understand and apply good project
management.

NEW TO THE SIXTH EDITION
Building on the success of the previous editions, An Introduction to
Project Management, Sixth Edition introduces a uniquely effective
combination of features. The main changes include the following:
The entire text has been updated to align with PMI’s A Guide to
the Project Management Body of Knowledge (PMBOK® Guide) –
Sixth Edition.

Chapter 1 includes a new section on the PMI Talent Triangle and
the importance of leadership skills.
Chapter 2 includes a new section on using an agile approach to
project planning
Updated examples and references are provided throughout the
text, and user feedback is incorporated.
The free book website has been updated. New information will be
added to the site as needed, and the Links tab will be continuously
updated to provide links to recent articles and sites.


APPROACH
This text provides up-to-date information on how good project,
program, and portfolio management can help you achieve
organizational as well as individual success. Distinct features of this text
include its:
relationship to the Project Management Body of Knowledge as a
derivative work
instructions on using Microsoft Project 2016 and other resources
use of MindView software
comprehensive samples of applying tools and techniques to a
realistic project
inclusion of templates and seamless integration of various
software applications
robust and free companion website

PMBOK® Guide Framework
The Project Management Institute (PMI) created A Guide to the Project
Management Body of Knowledge (the PMBOK® Guide) as a framework
for understanding project management. The PMBOK® Guide is,

however, just that—a guide. This text uses the PMBOK® Guide – Sixth
Edition as a foundation, but goes beyond it by providing more details,
highlighting additional topics, and providing a real-world context for
project, program, and portfolio management.

Instructions for using Microsoft Project 2016 and
other resources
Appendix A of the text includes basic information on project
management software and detailed, step-by-step instructions on using
the number one stand-alone product, Microsoft Project 2016. You do
not need to buy a separate book to learn how to use Project 2016
effectively. Appendix B provides information on other resources,
including companion websites, templates, and other project
management tools. Appendix C provides detailed information


instructors can use for assigning case studies, real and fictitious, as part
of their classes.

Examples of using MindView and Basecamp software
Many people like to create mind maps to perform a SWOT analysis,
create a WBS, and perform other creative activities. This text includes
examples of using MindView software by MatchWare, Inc. and access
to a free trial of this software. It also includes a brief user guide for
using Basecamp, a totally online project management tool.

Comprehensive Samples of Applying Tools and
Techniques to a Realistic Project
After explaining basic concepts, tools, and techniques, this text shows
the reader how an organization selected, initiated, planned, executed,

monitored and controlled, and closed a realistic project, called the JustIn-Time Training project. It provides over 50 sample project
management deliverables such as a business case, stakeholder register,
project charter, project management plan, work breakdown structure,
Gantt chart, cost baseline, Pareto chart, resource histogram,
performance report, risk register, contract, lessons-learned report, and
so on for this project. You can also access the template files used to
create them from the free companion website for this text or from the
author’s personal website. As one reviewer stated:
It comprehensively communicates what it really takes to manage a
large project, including required deliverables, work products, and
documentation. I haven’t seen either a text or documentation in
industry which communicates this subject this comprehensively or
this accurately. (Gilbert S. Leonard, Adjunct Professor and retired
project manager, Exxon Mobil Corporation)

Provides Templates and Seamless Integration of
Various Software Applications
You do not have to reinvent the wheel when it comes to much of the


documentation required for managing projects. This text uses over 50
free template files for creating various documents, spreadsheets,
diagrams, and charts. Various software applications are used throughout
the text in a seamless fashion. I purposely created the templates in a
simple format. Feel free to modify them to meet your needs.

Includes a Free Companion Website
(www.intropm.com)
A companion website provides you with a one-stop location to access
informative links and tools to enhance your learning. This site will be a

valuable resource as you access links mentioned in the text, take online
quizzes, and download templates and files for Project 2016. Instructors
can access a protected instructor site, which includes the same
information plus copyrighted lecture slides, solution files, sample
syllabi, and other information. Instructors can also share information on
how they use this text in their classes

ORGANIZATION AND CONTENT
An Introduction to Project Management, Sixth Edition, is organized into
ten chapters and three appendices. The first two chapters introduce
project, program, and portfolio management and discuss different
approaches for their selection. You’ll read about Global Construction,
Inc. and how they decided to pursue the Just-In-Time Training project.
The next seven chapters follow the five process groups of project
management: initiating, planning (broken down into three chapters),
executing, monitoring and controlling, and closing. These seven
chapters apply various tools and techniques in each of these process
groups to the Just-In-Time Training project. Chapter ten describes
recent information and research on best practices. Appendix A provides
general information on project management software and a step-by-step
guide to using Microsoft Project Professional 2016. Appendix B
includes resource information, and Appendix C provides several
running case studies students can use to apply what they have learned to
real or fictitious projects.


PEDAGOGICAL FEATURES
Several pedagogical features are included in this text to enhance
presentation of the materials so that you can more easily understand the
concepts and apply them. Throughout the text, emphasis is placed on

applying concepts to up-to-date, real-world project management.

Learning Objectives, Chapter Summaries, Quick
Quizzes, Discussion Questions, Exercises, Team
Projects, and Case Studies
Learning Objectives, Chapter Summaries, Quick Quizzes, Discussion
Questions, Exercises, Team Projects, and Case Studies are designed to
function as integrated study tools. Learning Objectives reflect what you
should be able to accomplish after completing each chapter. Chapter
Summaries highlight key concepts you should master. The Quick
Quizzes help reinforce your understanding of important concepts in
each chapter. The Discussion Questions help guide critical thinking
about those key concepts. Exercises provide opportunities to practice
important techniques, as do the Team Projects. The Case Studies in
Appendix C provide a robust means to apply what you have learned
from the text to realistic case studies, similar to the example used
throughout the text.

Opening Case and Case Wrap-Up
To set the stage, each chapter begins with an opening case related to the
materials in that chapter. These scenarios spark interest and introduce
important concepts in a real-world context. As project management
concepts and techniques are discussed, they are applied to the opening
case and other similar scenarios. Each chapter then closes with a Case
Wrap-Up—some problems are overcome and some problems require
more effort—to further illustrate the real world of project management.

What Went Right? and What Went Wrong?