Project Management ToolBox

RUSS J. MARTINELLI has served as a program manager at Intel, Loral, and Lockheed Martin, and is a founder of the Program Management Academy. He also provides training and consulting services to companies in both the for-profit and non-profit sectors. DRAGAN Z. MILOSEVIC, PHD, PMP, has been an Associate Professor of Engineering and Technology Management at Portland State University (Oregon), a consultant and trainer, and has conducted seminars in many parts of the world. He is the author of multiple books and dozens of papers on the subject of project management.

Preface xv

Acknowledgments xvii

Part I: The PM Toolbox 1

1 Introduction to the PM Toolbox 3

Enabling Business and Project Strategy 5

Project Management Methodologies and Processes 7

Constructing and Adapting a PM Toolbox 9

Secure Strategic Alignment 10

Customize the PM Toolbox 12

Continuously Improve the PM Toolbox 20

References 21

Part II: Project Initiation Tools 23

2 Project Selection 25

The Benefits Map 25

Enabling Benefits Management 26

Developing a Benefits Map 28

Using a Benefits Map 29

Variations 30

Benefits 31

Economic Methods 31

Payback Time 31

Net Present Value 31

Internal Rate of Return 33

Using Economic Methods 33

Benefits of Economic Methods 34

Scoring Models 34

Developing a Scoring Model 34

Using a Scoring Model 39

Benefits 40

Voting Models 40

Developing a Voting Model 41

Using the Voting Model 42

Benefits 45

Pairwise Ranking 46

Developing a Pairwise Ranking Tool 47

Using the Pairwise Ranking Matrix 48

Benefits 49

The Alignment Matrix 49

Developing the Alignment Matrix 50

Variations 51

Benefits 52

References 52

3 Project Initiation 55

Checklist Questions for Project Initiation 55

Developing Checklist Questions for Project Initiation 56

Using the Checklist Questions 57

The Goals Grid 57

Developing a Goals Grid 58

Using the Goals Grid 59

Benefits 60

Responsibility Matrix 60

Developing a Responsibility Matrix 61

Using the Responsibility Matrix 63

Benefits 64

Complexity Assessment 64

Developing the Complexity Assessment 65

Using the Complexity Assessment 67

Benefits 67

The Project Business Case 68

Developing the Project Business Case 68

Using the Project Business Case 70

Benefits 71

The Project Charter 71

Developing a Project Charter 71

Using a Project Charter 76

Variations 77

Benefits 77

References 78

Part III: Project Planning Tools 81

4 Project Requirements 83

The Elicitation Plan 84

Developing an Elicitation Plan 86

Using the Elicitation Plan 89

Benefits 90

Requirements Specification 91

Specifying a Requirement Using Planguage 91

Using the Requirements Specificiation 93

Benefits 96

The Product Requirements Document 96

Developing a Product Requirements Document 97

Using the PRD 101

Benefits 102

Requirements Ambiguity Checklist 102

Using the Requirements Ambiguity Checklist 104

Benefits 106

Requirements Baseline 106

Establishing a Requirements Baseline 107

Establish a Requirements Change Board 107

Benefits 108

References 109

5 Scope Planning 111

Project SWOT Analysis 111

Performing a Project SWOT Analysis 112

Using a Project SWOT Analysis 116

Benefits 117

The Scope Statement 118

Developing a Scope Statement 118

Using a Scope Statement 124

Variations 124

Benefits 125

The Work Breakdown Structure 126

Constructing a Project WBS: A Top-Down Approach 128

Establish the WBS Level of Detail 130

Constructing a Project WBS: A Bottom-Up Approach 134

Using the WBS 135

Benefits 136

The Product Breakdown Structure 137

Constructing a Product Breakdown Structure 137

Using the PBS 141

Benefits 141

References 142

6 Schedule Development 145

The Gantt Chart 146

Developing a Gantt Chart 146

Using the Gantt Chart 149

Benefits 149

The Milestone Chart 150

Developing a Milestone Chart 151

Using the Milestone Chart 153

Benefits 154

The Critical Path Method Diagram 154

Constructing a CPM Diagram 155

Using the CPM Diagram 160

Benefits 161

Variations 161

The Time-Scaled Arrow Diagram 162

Developing a TAD 162

Using a TAD 167

Benefits 168

The Critical Chain Schedule 168

Developing a Critical Chain Schedule 169

Using the Critical Chain Schedule 172

Benefits 173

The Hierarchical Schedule 173

Constructing a Hierarchical Schedule 174

Using a Hierarchical Schedule 176

Benefits 177

Line of Balance 177

Developing a Line-of-Balance Schedule 178

Using the LOB 180

Benefits 181

Choosing Your Scheduling Tools 181

References 183

7 Cost Planning 185

The Cost-Planning Map 185

Developing a Cost-Planning Map 186

Using the Cost-Planning Map 191

Benefits 191

Analogous Estimate 191

Developing an Analogous Estimate 192

Using an Analogous Estimate 193

Benefits 193

Parametric Estimate 194

Developing Parametric Estimates 194

Using Parametric Estimates 198

Benefits 198

Bottom-up Estimate 199

Developing Bottom-Up Estimates 200

Using Bottom-Up Estimates 202

Benefits 202

The Cost Baseline 203

Developing a Cost Baseline 203

Using the Cost Baseline 207

Benefits 208

Choosing a Cost-Planning Tool 211

References 211

Part IV: Project Implementation Tools 213

8 Scope Management 215

Project Scope Control System 217

Establishing a Project Scope Control System 217

Using the Project Scope Control System 220

Benefits 223

Project Change Request 223

Developing a Project Change Request 224

Using the Project Change Request 228

Benefits 229

The Project Change Log 229

Developing a Project Change Log 230

Using the Project Change Log 232

Benefits 233

The Scope Control Decision Checklist 233

Developing a Scope Control Decision Checklist 233

Using the Scope Control Decision Checklist 234

Benefits 235

References 235

9 Schedule Management 237

The Burn Down Chart 239

Developing the Burn Down Chart 239

Using the Burn Down Chart 240

Benefits 242

The Slip Chart 243

Developing the Slip Chart 244

Using the Slip Chart 246

Benefits 246

The Buffer Chart 247

Developing the Buffer Chart 248

Using the Buffer Chart 249

Benefits 250

The Jogging Line 251

Constructing a Jogging Line 252

Using the Jogging Line 255

Variations 256

Benefits 256

The Milestone Prediction Chart 257

Constructing the Milestone Prediction Chart 258

Using the Milestone Prediction Chart 260

Benefits 260

B-C-F Analysis 261

Performing the B-C-F Analysis 262

Using the B-C-F Analysis 264

Benefits 265

Schedule Crashing 265

Performing Schedule Crashing 265

Using Schedule Crashing 269

Benefits 269

Choosing Your Schedule Management Tools 269

References 270

10 Cost Management 273

Cost Management Plan 275

Developing the Cost Management Plan 275

Using the Cost Management Plan 276

The Budget Consumption Chart 276

Developing the Budget Consumption Chart 277

Using the Budget Consumption Chart 278

Variations 279

Benefits 279

Earned Value Analysis 280

Performing Earned Value Analysis 281

Using Earned Value Analysis 292

Variations 293

Benefits 293

Milestone Analysis 294

Performing a Milestone Analysis 295

Using the Milestone Analysis 297

Benefits 297

Choosing Your Cost Management Tools 297

References 298

11 Agile Project Execution 301

Contributed by Peerasit Patanakul, James Henry, Jeffrey A. Leach

Scrum Basics 302

Product Backlog and Sprint Backlog 304

Information on the Backlogs 304

Populating Backlogs 304

Benefits 306

Release Planning 307

The Release-Planning Event 308

Initial Draft Release Plan 309

Final Release Plans 309

HIP Sprint 310

Release Planning versus Sprint Planning 310

Benefits 311

The Daily Scrum Meeting 311

Organizing a Daily Scrum Meeting 312

Benefits 312

Sprint Task Board 313

Using the Sprint Task Board 313

Benefits 314

The Sprint Burn Down Chart 315

Developing a Sprint Burn Down Chart 315

Using a Sprint Burn Down Chart 316

Benefits 317

The Sprint Retrospective Meeting 317

Organizing a Sprint Retrospective Meeting 318

Using a Sprint Retrospective Meeting 318

Benefits 320

Concluding Remarks 320

References 321

Part V: Project Reporting and Closure Tools 323

12 Performance Reporting 325

Project Reporting Checklist 325

Developing the Project Reporting Checklist 326

Using the Project Reporting Checklist 326

Benefits 326

The Project Strike Zone 328

Developing the Project Strike Zone 328

Using the Project Strike Zone 330

Benefits 332

The Project Dashboard 332

Designing a Project Dashboard 334

Using the Project Dashboard 335

Benefits 336

The Summary Status Report 337

Developing a Summary Status Report 337

Using the Summary Status Report 342

Benefits 343

The Project Indicator 343

Developing the Project Indicator 345

Using the Project Indicator 346

Variations 346

Benefits 348

Choosing Your Reporting Tools 349

References 349

13 Project Closure 351

Contributed by Tim Rahschulte, PhD

Understanding Project Closure 351

Project Closing Activities 353

Project Closure Plan and Checklist 356

Developing the Plan and Checklist 358

Using the Closure Plan and Checklist 362

Benefits 362

The Project Closure Report 363

Developing the Project Closure Report 363

Using the Project Closure Report 365

Benefits 365

Postmortem Review 366

Conducting the Postmortem Review 366

Using the Postmortem Review 369

Variations 371

Benefits 372

Concluding Remarks 373

References 373

Part VI: Risk and Stakeholder Management Tools 375

14 Managing Project Risk 377

Risk Management Plan 378

Developing a Risk Management Plan 378

Using the Risk Management Plan 385

Benefits 386

The Risk Identification Checklist 387

Developing a Risk Identification Checklist 387

Using a Risk Identification Checklist 389

Benefits 389

The Risk Register 390

Creating a Risk Register 390

Using the Risk Register 393

Benefits 394

The Risk Assessment Matrix 394

Developing a Risk Assessment Matrix 395

Using the Risk Assessment Matrix 397

Variations 398

Benefits 398

Monte Carlo Analysis 399

Performing a Monte Carlo Analysis 400

Using the Monte Carlo Analysis 408

Benefits 409

The Decision Tree 409

Analyzing the Decision Tree 410

Using Decision Trees 413

Benefits 414

The Risk Dashboard 414

Developing the Risk Dashboard 414

Using the Risk Dashboard 418

Benefits 418

Choosing Your Risk Management Tools 420

References 420

15 Influencing Project Stakeholders 423

The Stakeholder Management Plan 423

Developing a Stakeholder Management Plan 424

Using the Stakeholder Management Plan 427

Benefits 427

The Stakeholder Map 428

Developing a Stakeholder Map 428

Using the Stakeholder Map 431

Benefits 431

The Stakeholder Analysis Table 431

Developing a Stakeholder Analysis Table 433

Using the Stakeholder Analysis Table 434

Benefits 435

The Stakeholder Evaluation Matrix 436

Developing a Stakeholder Evaluation Matrix 438

Using the Stakeholder Evaluation Matrix 439

Variations 441

Benefits 443

The Stakeholder Strategy Matrix 444

Developing a Stakeholder Strategy Matrix 444

Using the Stakeholder Strategy Matrix 446

Benefits 447

Choosing Your Stakeholder Management Tools 447

References 449

Final Thoughts on the PM Toolbox 449

Index 451