Nicholas project mgt 4 business, engineering and technology 3rd ed

Project Management for Business,
Engineering, and Technology


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Project Management
for Business, Engineering,
and Technology
Principles and Practice
3 R D

E D I T I O N

John M. Nicholas
Loyola University Chicago

Herman Steyn
University of Pretoria

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To Sharry, Julia, Joshua, and Abigail
John M. Nicholas
To Karen and Janine
Herman Steyn


BRIEF CONTENTS

Introduction

PART I:
1
2

PHILOSOPHY AND CONCEPTS

What is Project Management?
3
Systems Approach and Systems Engineering

PART II:
3
4

xxiii

1

32

SYSTEMS DEVELOPMENT CYCLE

Systems Development Cycle and Project Conception
Project and System Definition
118

PART III:

73

75

SYSTEMS AND PROCEDURES

155

5 Planning Fundamentals
157
6 Project Time Planning and Networks
196
7 Advanced Project Network Analyses and Scheduling
240
8 Cost Estimating and Budgeting
289
9 Project Quality Management
332
10 Managing Risks in Projects
362
11 Project Execution and Control
404
12 Project Evaluation, Communication, Implementation, and
Closeout
452

PART IV:
13
14
15

ORGANIZATION BEHAVIOR

479

Project Organization Structure and Integration
481

Project Roles, Responsibility, and Authority
517
Managing Participation, Teamwork, and Conflict
545

PART V: PROJECT MANAGEMENT IN THE
CORPORATE CONTEXT
575
16 The Management of Project Management
577
17 Project Selection and Portfolio Management
604
18 International Project Management
628
Author Index
691
Subject Index
694
vi


CONTENTS

Preface
xvii
Acknowledgments
xx
About the Authors
xxi
Introduction

xxiii
I.1 In the Beginning
xxiii
I.2 What Is a Project?
xxvi
I.3 Project Management: The Need
xxviii
I.4 Response to a Changing Environment
xxx
I.5 Systems Approach to Management
xxx
I.6 Project Goal and Project Management Benefits
I.7 Project Management: The Person, the Team,
the Methodology
xxxii
I.8 About This Book
xxxiii
I.9 PMBOK
xxxv
I.10 Study Project Assignment
xxxvi
Review Questions
xxxvii
Endnotes
xxxviii

PART I:

xxxi

PHILOSOPHY AND CONCEPTS

1

CHAPTER 1 What Is Project Management?
3
1.1 Functions and Viewpoints of Management
3
1.2 Project Viewpoint versus Traditional Management
5
1.3 Evolution of Project Management
8
1.4 Where Is Project Management Appropriate?
10
1.5 Management by Project: A Common Approach
13
1.6 Different Forms of Project Management
14
1.7 Project Environments
17
1.8 Project Management in Industrial Settings
18
1.9 Project Management in the Service Sector
21
1.10 Project and Program Management in Government and the Public
Sector
23
1.11 Summary
26
Review Questions

27
vii


Questions About the Study Project
Case 1-1
28
Case 1-2
29
Endnotes
30

28

CHAPTER 2 Systems Approach and Systems Engineering
32
2.1 Systems Thinking
33
2.2 Definition of System
33
2.3 Systems Concepts and Principles
34
2.4 Human Organizations
39
2.5 Systems Approach
43
2.6 Systems Engineering
47
2.7 Relevancy of the Systems Approach to Project Management
2.8 Summary

52
Appendix: Stages of Systems Engineering
53
Stage 1: Needs Identification and Conceptual Design
54
Stage 2: Preliminary Design
59
Stage 3: Detailed Design and System Development
64
Stage 4: System Construction and/or Production
66
Stage 5: System Operation and Support
67
Review Questions
68
Questions About the Study Project
69
Case 2-1
70
Endnotes
71

PART II:

SYSTEMS DEVELOPMENT CYCLE

CHAPTER 3 Systems Development Cycle and Project Conception
3.1 Systems Life Cycle
76
3.2 Systems Development Cycle

77
3.3 Phase A: Conception
82
3.4 Project Feasibility
83
3.5 Project Charter
93
3.6 The Project Proposal
94
3.7 Project Contracting
100
3.8 Summary
106
Appendix: Kinds of Contracts
107
Fixed Price Contracts
108
Cost-Plus Contracts
109
Incentive Contracts
110
Review Questions
113
viii

Contents

51

73

75


Questions About the Study Project
Case 3-1
114
Case 3-2
115
Case 3-3
115
Endnotes
116

114

CHAPTER 4 Project and System Definition
118
4.1 Phase B: Definition
118
4.2 Project Definition
121
4.3 System Definition
125
4.4 Concurrent Engineering
135
4.5 Systems Development in Industry and Government
4.6 Summary
142
Appendix: Quality Function Deployment
143

Review Questions
147
Questions About the Study Project
148
Case 4-1
149
Case 4-2
149
Case 4-3
151
Case 4-4
151
Endnotes
153

PART III:

SYSTEMS AND PROCEDURES FOR
PLANNING AND CONTROL
155

CHAPTER 5 Planning Fundamentals
157
5.1 Planning Steps
157
5.2 The Project Master Plan
159
5.3 Scope and Statement of Work
161
5.4 Work Definition

163
5.5 Project Organization and Responsibilities
5.6 Scheduling
176
5.7 Planning and Scheduling Charts
177
5.8 Line of Balance
183
5.9 Procurement Management
187
5.10 Summary
190
Review Questions
190
Questions About the Study Project
192
Case 5-1
193
Case 5-2
194
Endnotes
194
Contents

136

173

ix

CHAPTER 6 Project Time Planning and Networks
196
6.1 Networks Diagrams
197
6.2 The Critical Path
202
6.3 Gantt Charts and Calendar Schedules
210
6.4 Management Schedule Reserve
211
6.5 Precedence Diagramming Method
212
6.6 Scheduling with Resource Constraints
217
6.7 Criticisms of Network Methods
225
6.8 Summary
225
Appendix: AOA Diagrams and Time-Scaled Networks
Review Questions and Problems
231
Questions About the Study Project
238
Endnotes
239

227

CHAPTER 7 Advanced Project Network Analyses and Scheduling

240
7.1 CPM and Time–Cost Tradeoff
240
7.2 Variability of Activity Duration
247
7.3 PERT
249
7.4 Theory of Constraints and Critical Chain Method
259
7.5 Allocating Resources and Multiple Project Scheduling
266
7.6 TOC Method for Allocating Resources to Multiple Projects
269
7.7 GERT
272
7.8 Discussion and Summary
275
Appendix: The Central Limit Theorem and Its Implications
278
Review Questions and Problems
280
Questions About the Study Project
284
Case 7-1
285
Endnotes
287

CHAPTER 8 Cost Estimating and Budgeting
289

8.1 Cost Estimating
290
8.2 Cost Escalation
290
8.3 Cost Estimating and the Systems Development Cycle
8.4 Life Cycle Costs
297
8.5 Cost Estimating Process
299
8.6 Elements of Budgets and Estimates
306
8.7 Project Cost Accounting Systems
310
8.8 Budgeting Using Control (Cost) Accounts
312
8.9 Cost Summaries
315
8.10 Cost Schedules and Forecasts
317
8.11 Summary
325
x

Contents

295


Review Questions and Problems
Questions About the Study Project

Case 8-1
330
Case 8-2
330
Endnotes
331

326
329

CHAPTER 9 Project Quality Management
332
9.1 The Concept of Quality
332
9.2 The Processes of Project Quality Management
336
9.3 Techniques for Quality Assurance during System Development
9.4 Processes and Techniques for Quality Control
351
9.5 Summary
357
Review Questions
357
Questions and Assignments Regarding the Study Project
358
Case 9-1
359
Endnotes
360
CHAPTER 10 Managing Risks in Projects

362
10.1 Risk Concepts
363
10.2 Risk Identification
364
10.3 Risk Assessment
369
10.4 Risk Response Planning
378
10.5 Risk Tracking and Response
383
10.6 Project Management is Risk Management
10.7 Summary
387
Appendix: Risk Analysis Methods
388
Review Questions and Problems
394
Questions About the Study Project
397
Case 10-1
398
Case 10-2
399
Case 10-3
400
Endnotes
402
CHAPTER 11 Project Execution and Control
11.1 Phase C: Execution

405
11.2 Design Stage
405
11.3 Production/Build Stage
409
11.4 The Control Process
411
11.5 Project Monitoring
412
11.6 Internal and External Project Control
11.7 Traditional Cost Control
413
Contents

341

383

404

412

xi


11.8
11.9
11.10
11.11
11.12

11.13
11.14
11.15
11.16
11.17

Cost-Accounting Systems for Project Control
413
Work-Package and Control (Cost) Accounts
414
Project Control Emphasis
417
Performance Analysis
423
Forecasting “To Complete” and “At Completion”
431
Monitoring Performance Indexes and Variances
436
Controlling Changes
438
Contract Administration
441
Control Problems
442
Summary
443
Review Questions and Problems
444
Questions About the Study Project
448

Case 11-1
448
Case 11-2
449
Endnotes
450

CHAPTER 12
12.1
12.2
12.3
12.4
12.5
12.6
12.7
12.8
12.9
12.10
12.11
12.12
12.13
12.14

Project Evaluation, Communication, Implementation, and
Closeout
452
Project Evaluation
453
Communication Plan
454

Project Review Meetings
455
Reporting
458
Project Management Information Systems
459
Web-Enabled Project Management
461
PMIS in the Project Life Cycle
463
Informal Communication
465
Implementation Stage
465
Project Terminating and Closeout
468
Closing the Contract
470
Project Summary Evaluation
471
After the Project—Phase D: Operation
474
Summary
475
Review Questions
476
Questions About the Study Project
477
Endnotes
477

PART IV: ORGANIZATION BEHAVIOR

479

CHAPTER 13 Project Organization Structure and Integration
481
13.1 Formal Organization Structure
482
13.2 Organizational Design by Differentiation and Integration
483
13.3 Requirements of Project Organizations
485
xii

Contents


13.4 Integration of Subunits in Projects
486
13.5 Liaison Roles, Task Forces, and Teams
487
13.6 Project Expeditors and Coordinators
488
13.7 Pure Project Organizations
490
13.8 Matrix Organizations
493
13.9 Selecting an Organization Form for Projects
496

13.10 Project Office
499
13.11 Integration in LSPs
501
13.12 Integration in Systems Development Projects
505
13.13 Concurrent Engineering
507
13.14 Summary
511
Review Questions
512
Questions About the Study Project
513
Case 13-1
513
Case 13-2
514
Endnotes
515
CHAPTER 14 Project Roles, Responsibility, and Authority
517
14.1 The Project Manager
518
14.2 Project Management Authority
522
14.3 Selecting the Project Manager
526
14.4 Ways of Filling the Project Management Role
530

14.5 Roles in the Project Team
531
14.6 Roles Outside the Project Team
534
14.7 Summary
538
Review Questions
539
Questions About the Study Project
540
Case 14-1
541
Case 14-2
541
Case 14-3
542
Endnotes
543
CHAPTER 15 Managing Participation, Teamwork, and Conflict
15.1 Leadership in Project Management
546
15.2 Participative Management
548
15.3 Teams in Project Management
549
15.4 The Team Building Approach
552
15.5 Improving Ongoing Work Teams
553
15.6 Building New Teams

555
15.7 Intergroup Problem Solving
557
15.8 Origins of Conflict
559
15.9 Consequences of Conflict
562
Contents

545

xiii


15.10 Managing Conflict
563
15.11 Team Methods for Resolving Conflict
564
15.12 Emotional Stress
566
15.13 Stress Management
568
15.14 Summary
569
Review Questions
570
Questions About the Study Project
571
Case 15-1
572

Endnotes
572

PART V: PROJECT MANAGEMENT IN THE
CORPORATE CONTEXT
575
CHAPTER 16 The Management of Project Management
577
16.1 Project Management Methodology
578
16.2 Project Management Maturity and Maturity Models
584
16.3 Knowledge Management in Project Management
587
16.4 Project Management Office
593
16.5 Summary
598
Review Questions
599
Questions About the Study Project
600
Case 16-1
600
Endnotes
602
CHAPTER 17 Project Selection and Portfolio Management
604
17.1 Project Portfolio Management
605

17.2 Framework for Project Selection and Portfolio Management
17.3 Methods for Individual Project Analysis
610
17.4 Methods for Comparing and Selecting Projects
613
17.5 Periodic Project Review and Assessment
621
17.6 Integrating the Gating Process with Portfolio Management
17.7 Summary and Discussion
621
Review Questions and Problems
622
Question About the Study Project
625
Case 17-1
625
Endnotes
626
CHAPTER 18 International Project Management
18.1 International Projects
629
18.2 Problems Managing International Projects
18.3 Local Institutions and Culture
631
18.4 Local Stakeholders
635
18.5 Geo-National Issues
636
xiv

Contents

628
630

607

621


18.6
18.7
18.8
18.9
18.10
18.11
18.12
18.13
18.14

Project Manager
638
Local Representative
640
Top Management, Committees, and PMO
Team and Relationship Building
642
Project Definition
642
Project Monitoring

648
Communication
648
Risks and Contingencies
649
Summary
650
Review Questions
651
Questions About the Study Project
653
Case 18-1
653
Endnotes
656

640

Appendix A RFP for Midwest Parcel Distribution Company
Introduction
659
Section 1: Background
659
Section 2: Statement of Work
660
Section 3: Proposal Content and Format
660
Section 4: Proposal Submittal
661
Section 5: Selection Date and Criteria

661
Section 6: Technical Information
662
Appendix B

659

Proposal from Iron Butterfly Company to Midwest Parcel
Distribution Company
663
1 Cover Sheet
663
2 Executive Summary
664
3 Statement of Work
665
4 Budget and Price (Project Price: $14,413,905)
669
5 Project Organization and Management Plan
669
6 Qualifications and Key Personnel
670
7 Attachments
671

Appendix C Project Master Plan for Logistical Online System
672
Contents
672
Logistical Online System Project Summary Plan

675
I Management Summary
675
II Project Description
675
III Organization Section
678
IV Technical Section
683
Author Index
Subject Index
Contents

691
694
xv


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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 (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. Seldom do they wonder about the managers, the people
who organized and lead the efforts that brought those wondrous things from a concept or idea into reality and without whose talent, skills, and hard work most neat
ideas would never amount to anything. This book is about the managers—project

managers, the mostly unsung heroes of business and technology who stand outside
the public eye but are behind practically every collective effort to create, develop, or
produce something.
Although the project manager is but one of numerous people involved in the
shaping of each of society’s products, systems, and artifacts, he (or she) is usually
the one in the middle, the one who gets all of the others involved and then organizes
and directs their efforts so everything will come out right. Sometimes, though rarely,
the manager and the creator happen to be the same: Burt Rutan, Woody Allen, and
Gutzon Borglum are examples; their life work—in aerospace, motion pictures, and
monumental sculptures, respectively—represent not only creative or technological
genius, but leadership and managerial talent as well.
The last few decades have seen businesses transform 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 rate of technological change is accelerating
and products and processes are evolving at a more rapid pace; as a result, the life
cycles of most things society uses and relies upon are getting shorter. This “more
of everything” plus the accelerated rate of technological change has had a direct
impact on the conduct of projects—including 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; and projects to answer basic questions in
science and resolve problems such as hunger, disease, pollution, and climate change.
All of this project activity has spurred a growing interest in project management—in
ways to plan, organize, and control projects to better meet the needs of customers,
markets, and society within the bounds of limited time and resources.
Associated with this interest is the growing need to educate and train project
managers. In the past and still today, project managers were chosen for some
demonstrated exceptional capability, although not necessarily managerial. If you
were a good engineer, systems analyst, researcher, architect, or accountant, eventually you would become a project manager. Somewhere along the way, presumably,

you would pick up the “other” necessary skills. The flaw in this reasoning is that
project management encompasses a broad range of skills—managerial, leadership,
xvii


interpersonal—that are much different and independent of skills associated with
technological competency. And there is no reason to presume that the project environment alone will provide the opportunity for someone to “pick up” these other
necessary skills.
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, engineering, and technology. As the title says,
it is a book about principles and practice, meaning that the topics in it are practical
and 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 schedules, budgets, and controls, but also
the human side of project management, including leadership and conflict.
Why a book on business, engineering, and technology? In our experience, technical specialists such as engineers, programmers, architects, chemists, and so on, often
have little or no management training. This book, which includes many engineering
and technology project examples, provides somewhat broad exposure to relevant
business concepts and management specifics to help these specialists get started as
project managers.
What about those people involved in product-development, marketing,
process-improvement, and related projects commonly thought of as “business
projects”? Just as students of engineering and technology seldom receive formal
management training, rarely are business students exposed to common practices
in technology projects. This book reveals not only how “business” projects are conducted, but also concepts and necessary steps in the conception and execution of
engineering, construction, and other kinds of “technology” projects.
Of course, engineering and technology projects are also business projects: they
are conducted in a business context and involve business issues such as customer
satisfaction, resource utilization, deadlines, costs, profits, and so on. Virtually all

projects—engineering, technology, and business—are originated and conducted in
similar ways, conceptualized in this book using a methodology called the Systems
Development Cycle (SDC). The SDC serves as a general framework for discussing
the principles and practices of project management, and illustrating commonalities
and differences among a wide variety of projects.
This book is an outgrowth of the authors’ combined several decades of experience teaching project management at Loyola University Chicago and University of
Pretoria to business and engineering students, preceded by several years working
in business and technology projects, including design and flight test work in the aircraft industry, large-scale process facility construction projects, and software applications development and process improvement projects. From our practical experience
we developed an appreciation not only for the business-management side of project
management, but also for the human and organizational side as well. We have seen
the benefits of good communication, trust, and teamwork, as well as the costs of
poor leadership, emotional stress, and group conflict. In our experience, the most
successful projects are those where leadership, trust, communication, and teamwork
flourish, regardless of the formal planning and control systems in place; this book
largely reflects these personal experiences. Of course, comprehensive coverage of the
project management field required that we look much beyond our own experience
and draw upon the published works of many other authors and the suggestions of
colleagues and reviewers.
In this third edition we have revised and added substantial new material to
incorporate new topics of interest, current examples, and the growing body of
literature in project management. Every chapter has been revised and updated. The
xviii

Preface


most significant changes are as follows: Introduction includes a table showing locations in the book addressing PMBOK knowledge areas. Chapter 1 has new examples
and case studies of projects and project managers. Chapter 2 includes new material
and a new appendix on systems engineering. Chapters 3 and 4 have new coverage of
front-end topics such as preparation of RFPs, proposals, charters, and definition of user

needs, requirements, and specifications. Chapter 5 includes a new section on procurement management. Chapter 6 has been substantially revised to cover precedence
diagramming. In Chapter 7, coverage of constrained-resource scheduling, the criticalchain method, and multiple-project scheduling based on the Theory of Constraints has
been expanded. Chapter 9 is completely new and addresses methodologies and practices for project quality assurance. Chapter 11 is expanded and combines the topics
of project execution and control. Chapter 12 is completely revised and covers project
communications, review meetings, and system implementation and project closeout. Part V—Chapters 16 to 18—is completely new: Chapter 16 addresses 4 topics
of growing recent interest: project management methodology, maturity, and knowledge management, and the project management office; Chapter 17 deals with
methods for project selection and managing projects in a portfolio; and Chapter 18
covers the management of projects that are “international”, “global”, or “overseas.”
Numerous new examples and 11 new end-of-chapter case studies have been added
throughout the book.
Our goal in writing this book is to provide students and practicing managers
the most practical, current, and interesting text possible. We appreciate hearing your
comments and suggestions. Please send them to us at and herman.


Preface

xix


ACKNOWLEDGMENTS

Writing a book is a project and, like most projects, reflects the contributions of many
people. Here we want to acknowledge and give special thanks to those who contributed the most. First, thanks to our research assistants. Research assistants in general do
a lot of work—academic as well as gofer work, and without their toiling efforts most
professors would accomplish far less. We have been fortunate to have had the assistance of several such bright and capable people, particularly Elisa Denney, Hollyce
James, Miguel Velasco, Gaurav Monga, Cary Morgan, and Louis Schwartzman.
Special thanks to current and former colleagues at Loyola University Chicago
and the University of Pretoria. In Chicago, thanks to Dr Gezinus Hidding for his
enthusiasm, interest, and contributions to the field of project management; and to

Drs Enrique Venta, Harold Dyck, Samuel Ramenofsky, and Donald Meyer, and to
Carmen Santiago, Elaine Strnad, Paul Flugel, John Edison, Sharon Tylus, Lewis
Lancaster, and Debbie Gillespie for their support for this and earlier editions. In
Pretoria, thanks to Drs Calie Pistorius, Roelf Sandenbergh, Antonie de Klerk and
Tinus Pretorius for encouraging education and research in project management at
the Graduate School of Technology Management. I (Herman) also want to express
appreciation to Giel Bekker, Philip Viljoen, Dr Pieter Pretorius, Dr Krige Visser, and
Dr Michael Carruthers for their direct and indirect contributions to this book and
for all that I have learned from them. I (John) 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 philosophies and
teachings helped shaped this book.
Our wives Sharry and Karen also get special thanks. Sharry provided numerous
suggestions to the first edition and helped reduce the amount of “techno-jargon”
in the book; she managed the home front, was a steadfast source of support, and
freed up time so that I (John) could pursue and complete this project. Karen provided wifely support and encouragement; as in the case of so many other projects
I (Herman) have been involved in, had not it been for her support, my contribution
to this project would not have materialized.
Thanks also to the folks at Butterworth-Heinemann, and 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 that provided support, encouragement, and reference materials; to them we say thank you. Despite the assistance of so many people
and our own best efforts, there are still likely to be omissions or errors. We had final
say and accept responsibility for them.

John M. Nicholas
Herman Steyn

xx

ABOUT

THE

AUTHORS

JOHN NICHOLAS is professor of operations management and former associate
dean of the Graduate School of Business at Loyola University Chicago. He is an
active teacher, writer, and researcher in project management and manufacturing
management, and conducts executive seminars and has been a consultant on project
management and process improvement. John is the author of numerous academic
and technical publications, and five books including Competitive Manufacturing
Management (1998) and The Portal to Lean Production (2006). He has held the positions of engineer and team leader on aircraft development projects at LockheedMartin Corporation, business analyst on operations projects at Bank America, and
research associate on energy-environmental research projects at Argonne National
Laboratory. He has a BS in aeronautical and astronautical engineering and an MBA
in operations research from the University of Illinois, Urbana-Champaign, and a
PhD in industrial engineering and applied behavioral science from Northwestern
University.

HERMAN STEYN is professor of project management in the Graduate School of
Technology Management, University of Pretoria, South Africa. He has been involved
in project management in industry since 1975, has managed a variety of large and
small engineering projects (system, product, and process development) in the minerals, defense and nuclear industries, and has also managed project portfolios. In
1996, he was appointed to his current position at the University of Pretoria where he
initiated a masters’ program in project management and a comprehensive continuingeducation program in project management. Besides teaching graduate courses,
consulting, and conducting research in project management, over the last decade
Herman has conducted more than 80 seminars and workshops on project management. He has a bachelor’s degree and graduate diploma in metallurgical engineering, an MBA, and a PhD in engineering management.

xxi

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Introduction

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

I.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 remain 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 0.04 inch, and the base, which covers 13 acres,

deviates less than 1 inch from level (Figure I-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
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Figure I-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, and
stands representative of numerous projects from early recorded history that required
massive human works and managerial competency. The Bible provides accounts of
many 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 shantytowns 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, after which Solomon took 13 years more to build a
palace for himself. 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. About 600 years
later, Nehemiah completely rebuilt the wall around Jerusalem—in just 52 days.
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Introduction