Mastering Project Time Management, Cost Control, and Quality Management

Randal Wilson, MBA, PMP, serves as Visiting Professor of Project Management, Keller Graduate School of Management, at the Elk Grove, California DeVry University campus. His teaching style addresses Project Management concepts using not only academic course guidelines and text, but includes in-depth discussions in lectures using practical application from industry experience.   Mr. Wilson is currently Operations and Project Manager at Parker Hose and Fittings. He is responsible for five locations across Northern California and Nevada, as well as project management of redesigns and renovation of existing facilities and construction of new facilities.   Mr. Wilson was formally in the telecommunications industry as Senior New Product Introduction Engineer at REMEC, Inc., Senior New Product Introduction Engineer with Spectrian Corp., and Associate Design Engineer with American Microwave Technology. He also served as Senior Manufacturing Engineer at Hewlett Packard.   He is a certified Project Management Professional (PMP) of the Project Management Institute. He acquired an MBA with concentration in General Operations Management from Keller Graduate School of Management of DeVry University and a Bachelor of Science in Technical Management with concentration in Project Management from DeVry University in Fremont, California.

Introduction   1
The Triple Constraint   2
Managing Change Requirements   4
Managing Time, Cost, and Quality   7
Managing Project and Product Scope   7
Time Management   8
Cost Management   9
Quality Management   9
What Does the Customer Really Want?   10

Part I:  Project Time Management   13
Chapter 1  Planning Schedule Management   15
1.1 Introduction   15
1.2 Tools for Schedule Management Planning   16
Minimum Requirements   17
Plan Structures   18
Project Management Office (PMO)   23
1.3 Information Gathering for the Schedule Management Plan   24
Project Charter   24
Project Manager’s Experience   25
Organizational Past Projects   26
Subject Matter Experts   27
1.4 Schedule Management Plan Applications   28
Tactical Tool for Project Managers   28
Communications Tool for the Project Staff   29
Strategic Tool for the Organization   30
1.5 Summary   31
1.6 Review Questions   33
1.7 Key Terms   34
1.8 PMBOK Connections (Fifth Edition)   35
1.9 Case Study (Use for Part I, Chapters 1–7)   35
RE Construction—Custom Pebble Beach Home   35
1.10 Case Study Questions and Exercise   37
Questions   37
Exercise   38
Chapter 2  Project Activity Requirements   39
2.1 Introduction   39
2.2 Information-Gathering Guidelines   40
What Information Is to Be Gathered?   41
Who Is Gathering Information?   42
Reliability of Information   44
Information Accuracy   49
Information Sources   50
2.3 Activity Information Based on Project Structure   51
Linear (Traditional Sequential Process Development)   52
Incremental (Traditional Progressive Stage Development)   53
Iterative (Features Addition Development, Waterfall, Agile)   55
Adaptive (Learn and Build Development, Agile)   58
Extreme (Exploratory Development)   59
2.4 Define Activities   62
Project Deliverable Decomposition   63
Define Activity Requirements   65
Work Breakdown Structure (WBS)   68
2.5 Summary   71
2.6 Review Questions   72
2.7 Key Terms   73
2.8 PMBOK Connections (Fifth Edition)   73
2.9 Case Study Questions and Exercises (Use Case Study from Chapter 1)   74
Questions   74
Exercises   74
Chapter 3  Project Activity Sequencing   75
3.1 Introduction   75
3.2 Work Activity Definition   77
Conceptual Planning   77
Project Development   80
Testing and Validation   80
Reactive and Proactive Response   82
Customer/Project Team Evaluation   84
Project Closure   85
3.3 Work Activity Dependencies   87
Activity Information   88
Dependency Determination   94
3.4 Work Activity Sequencing Tools   96
Precedence Diagramming Method   97
3.5 Summary   108
3.6 Review Questions   109
3.7 Key Terms   110
3.8 PMBOK Connections (5th Ed.)   111
3.9 Case Study Questions and Exercises (Use Case Study from Chapter 1)   111
Questions   111
Exercises   111
Chapter 4  Resource Estimating   113
4.1 Introduction   113
4.2 Types of Resources   116
Direct and Indirect Resources   117
Project Resources   118
Contracted Resources   121
4.3 Resource Requirements   122
Organizational Resources   123
Project Resources   124
4.4 Resource Estimating Methods   128
Determinate Estimating   128
Alternatives Analysis   129
Delphi Method   129
Published Data Estimating   129
Resource Leveling   130
4.5 Resource Estimating by Project Structure   132
Linear and Incremental   132
Iterative and Adaptive   133
Extreme   134
4.6 Summary   135
4.7 Review Questions   136
4.8 Key Terms   137
4.9 PMBOK Connections (5th Ed.)   137
4.10 Case Study Questions and Exercise (Use Case Study from Chapter 1)   138
Questions   138
Exercise   138
Chapter 5  Project Activity Duration Analysis   139
5.1 Introduction   139
5.2 Duration Estimating Methods   140
Subject Matter Expert Estimating (Delphi)   140
Analogous Estimating   142
Parametric Estimating   143
Three-Point Estimating   144
Contingency Estimating (Reserve Analysis)   147
5.3 Summary   149
5.4 Review Questions   150
5.5 Key Terms   150
5.6 PMBOK Connections (Fifth Edition)   151
5.7 Case Study Questions and Exercise (Use Case Study from Chapter 1)   151
Questions   151
Exercise   151
Chapter 6  Develop the Project Schedule   153
6.1 Introduction   153
6.2 Information for Schedule Development   154
Project Charter   155
Project Deliverable Specifications   155
Work Breakdown Structure   156
Activity Information Checklist   156
Project Scope Statement   157
Organizational Influences   157
Customer Scheduling Requirements   159
External Factors   160
6.3 Schedule Structuring Techniques   161
Activity Disposition   162
Activity Hierarchy   163
Critical Path Method   164
Theory of Constraints   166
Critical Chain Method   167
Resource Loading   169
Scenario Analysis   171
6.4 Schedule Documentation Tools   173
Software Tools   173
Schedule Management   175
Schedule Communication   176
6.5 Summary   177
6.6 Review Questions   178
6.7 Key Terms   178
6.8 PMBOK Connections (5th Ed.)   179
6.9 Case Study Questions and Exercise (Use Case Study from Chapter 1)   179
Questions   179
Exercise   180
Chapter 7  Control Project Schedule   181
7.1 Introduction   181
7.2 Schedule Control Information   183
Schedule Baseline   183
Work Activity Monitoring   185
Earned Value Analysis   187
Milestone Analysis   192
7.3 Schedule Control Techniques   192
Contingency Control   193
Schedule Crashing   193
Resource Contracts   194
Change Control   195
Verify Control   196
7.4 Summary   197
7.5 Review Questions   199
7.6 Key Terms   199
7.7 PMBOK Connections (5th Ed.)   200
7.8 Case Study Questions and Exercise (Use Case Study from Chapter 1)   200
Questions   200
Exercise   200

Part II:  Project Cost Management   201
Chapter 8  Plan Cost Management   203
8.1 Introduction   203
8.2 Information for Planning Costs   205
Cost Definitions   205
Project Charter   209
Statement of Work   209
Project Manager’s Experience   210
Subject Matter Experts   210
Project Structures   211
8.3 Develop the Cost Management Plan   211
Components of the Plan   212
8.4 Cost Management Plan Applications   213
Organizational Strategic Planning   214
Tool for Manager’s Tactical Use   214
8.5 Summary   216
8.6 Review Questions   217
8.7 Key Terms   218
8.8 PMBOK Connections (5th Ed.)   218
8.9 Case Study (Use for Part II, Chapters 8–11)   218
Mass Brothers Automotive—IT Infrastructure Upgrade   218
8.10 Case Study Questions and Exercises   220
Questions   220
Exercises   220
Chapter 9  Estimate Project Costs   221
9.1 Introduction   221
9.2 Project Cost Requirements   223
Statement of Work   224
Work Breakdown Structure   224
Activity Information Checklist   225
Scope Statement   226
9.3 Cost Estimating Tools   227
Cost Management Plan   228
Cost Constraints   232
Analogous Cost Estimating   234
Parametric Cost Estimating   234
Rough Order-of-Magnitude Estimating   235
Subject Matter Experts   236
Three-Point Cost Estimating   236
Top-Down and Bottom-Up Estimating   239
Contingency Cost Estimating   240
9.4 Estimating Based on Project Structures   242
Linear and Incremental   242
Iterative and Adaptive   243
Extreme   244
9.5 Summary   245
9.6 Review Questions   246
9.7 Key Terms   247
9.8 PMBOK Connections (5th Ed.)   247
9.9 Case Study Questions and Exercises (Use Case Study from Chapter 8)   248
Questions   248
Exercises   248
Chapter 10  Develop a Project Budget   249
10.1 Introduction   249
10.2 Purpose of a Project Budget   250
Budget at Completion   251
Project Budget Baseline   252
Manage the Triple Constraint   252
Communicate Project Status   254
Organizational Planning   254
10.3 Budget Methods   255
Cost Aggregation Method   256
Time-Phased Method   256
Top-Down Budgeting   257
Analogous Budgeting   259
Funding Limit Reconciliation   260
10.4 Summary   261
10.5 Review Questions   262
10.6 Key Terms   263
10.7 PMBOK Connections (5th Ed.)   263
10.8 Case Study Questions and Exercises (Use Case Study from Chapter 8)   264
Questions   264
Exercises   264
Chapter 11  Control Project Costs   265
11.1 Introduction   265
11.2 Cost Control Data   266
Monitor Costs   267
Cost Analysis Tools   269
11.3 Cost Control Techniques   272
Integrated Change Control   272
Contingency Control   273
Contract Control   274
Procurement Review and Approval   276
Control Verification   276
11.4 Summary   277
11.5 Review Questions   279
11.6 Key Terms   280
11.7 PMBOK Connections (5th Ed.)   280
11.8 Case Study Questions and Exercises (Use Case Study from Chapter 8)   281
Questions   281
Exercises   281

Part III:  Project Quality Management   283
Chapter 12  Plan Quality Management   285
12.1 Introduction   285
12.2 Components of a Quality Management Plan   286
Establish Quality Monitoring   287
Determine Analysis Methodologies   288
Establish Quality Metrics   288
Plan Quality Assurance   289
Determine Cost of Quality   289
Integrate a Change Control Process   290
Determine Quality Controls   290
12.3 Tools for Quality Management Planning   291
Statistical Sampling   291
Design of Experiments   292
Benchmarking   292
Subject Matter Expert Meetings   293
Brainstorming   294
12.4 Summary   294
12.5 Review Questions   295
12.6 Key Terms   296
12.7 PMBOK Connections (5th Ed.)   296
12.8 Case Study (Use for Part III, Chapters 12–14)   297
Lewton Telecom—Engineering Prototype Project   297
12.9 Case Study Questions and Exercises   298
Questions   298
Exercises   299
Chapter 13  Conduct Quality Assurance   301
13.1 Introduction   301
13.2 Project Quality Assurance Data   302
Quality Management Plan   303
Organizational Quality Standards   303
Industry Quality Standards   305
Customer Quality Standards   305
Quality Metric   307
13.3 Quality Assurance Tools   307
Quality Audits   308
Process Analysis   308
13.4 Quality Assurance Results   312
Continuous Improvement   313
Process Capability   313
Change Requests   313
13.5 Summary   314
13.6 Review Questions   315
13.7 Key Terms   316
13.8 PMBOK Connections (5th Ed.)   316
13.9 Case Study Questions and Exercises (Use Case Study from Chapter 12)   316
Questions   316
Exercises   317
Chapter 14  Control Project Quality   319
14.1 Introduction   319
14.2 Establish What to Control   320
Statement of Work   321
Customer Specifications   321
Workmanship Performance Reports   322
Organizational Requirements   323
Project Risk Register   324
14.3 Quality Control Tools and Techniques   324
Inspections   325
Statistical Sampling   326
Design Review   327
Seven Basic Quality Tools   328
14.4 QC Results   334
Quality Improvements   335
Updates to Project Schedule and Budget   335
Verification of Deliverable Quality   336
Project Process Updates   336
Organizational Process Updates   337
14.5 Summary   337
14.6 Review Questions   340
14.7 Key Terms   340
14.8 PMBOK Connections (5th Ed.)   341
14.9 Case Study Questions and Exercises (Use Case Study from Chapter 12)   341
Questions   341
Exercises   341
Appendix A  Change Control Process   343
Bibliography   347
Index   349



 



The definitive guide to managing the "triple constraint" of time, cost, and quality in any project