This Document Contains Chapters 1 to 2 CHAPTER 1: Project Management Concepts Chapter Concepts This chapter presents an overview of project management concepts. Based upon this chapter, students will become familiar with the • Definition of a project and its attributes • Key constraints within which a project must be managed • Life cycle of a project • Definition of project management • Elements of the project management process • Identification and engagement of stakeholders • Implications of global project management • Project Management Institute • Benefits of project management Learning Outcomes After studying this chapter, the learner should be able to: • Define what a project is • List and discuss the attributes of a project • Explain what is meant by project objective • Define what is meant by project deliverable • Provide examples of projects • Discuss project constraints • Describe the phases of the project life cycle • Define and apply project management • Discuss the steps of the planning process • Identify the three elements of the executing process • Create a stakeholder register • Discuss stakeholder engagement • Discuss some implications of global project management • Discuss the Project Management Institute • List benefits of project management techniques Project Management Knowledge Areas from PMBOK® Guide Concepts in this chapter support the following Project Management Knowledge Areas of A Guide to the Project Management Body of Knowledge (PMBOK® Guide): • Project Integration Management • Project Stakeholder Management Teaching Strategies 1. Let the students know that this course isn’t only for project managers. It is also for anyone involved in working on a project. 1. Stress to them that what makes projects successful are the people involved. In order for this class to be successful they must actively be involved. 2. Encourage all students to participate by asking them to identify projects they have been involved in during their life. 3. For each project ask them what the objective was, what the constraints were, what the schedule was, and what resources were used. 4. Ask them if they can identify any project managers in the real world. If they get stuck, give them some hints to think about, like sports or music. 5. Ask your students to discuss something they did during the past summer or winter break, such as take a vacation, go to a concert, or watch a play. 6. Ask them how those activities relate to project management. 7. The Internet exercises in this chapter are very important. They involve the investigation of the Project Management Institute’s website. Inform the class that since it was founded in 1969, the Project Management Institute (PMI) membership is approaching 500,000 members in nearly 200 countries and has about 270 chapters in more than 80 countries. The association has over 30 online communities of practice. Pennsylvania-based PMI is, by far, the leading nonprofit professional association in the area of project management. It establishes standards, sponsors seminars, develops educational programs, has a professional certification program, and publishes Project Management Journal and PM Network. It has an excellent website for project management. Students can have some fun with this site. Lecture Notes 1. Real-World Project Management Examples Vignette A: World Bank Success Factors Many World Bank project have failed in the past, nearly half. International development projects are complex. Critical success factors were found to lead to increased probability of success of international development projects. • International development projects are undertaken by the World Bank through partner organizations to prepare, implement, and evaluate complex projects. ○ Strict guidelines are overseen by the World Bank project supervisor and the national Project Management unit national project coordinator. ○ Day-to-day project management of the international development projects is the responsibility of the partner organization. ○ An independent evaluation group completes an assessment two years after a project is completed or aborted to determine the relevance, efficiency, and effectiveness of the terminated project. • Project success is measured by the relevance, efficiency, and effectiveness. ○ Relevance -- how well the project outcomes meet the priorities of the target group ○ Efficiency -- the use of the least costly resources to achieve the desired results indicated in the project plan ○ Effectiveness -- extent the project objectives, those proposed and those created through change management of the project during its implementation, are met • Other evaluation measures ○ Sustainability of the project ○ Project’s impact for making change for the target group • Causes for lack of successful projects ○ Managerial and organizational issues ○ Project design ○ Stakeholder management ○ Implementation delays ○ Cost overrun ○ Lack of coordination ○ Misunderstanding of the political, cultural, technical, and environmental conditions of the project location • Critical Success Factors ○ Monitoring -- well documented project progress and Stringent reporting and controlling the project’s performance ○ Coordination -- increased communication and level of involvement of the World Bank project supervisors and coordinators ○ Design -- develop increasingly rigorous project plans to emphasize results-based management ○ Training -- the complexity of the environment ○ Institutional environment Vignette B: Hoover Dam Generates Project Management Techniques in Addition to Hydroelectricity The Hoover Dam project is probably the largest infrastructure project in the U.S. The project finished 2 years ahead of schedule and $15 million below budget. Rigorous and aggressive scheduling and implementation of innovative technology under the guidance of an experienced project manager made the project successful. Many of the techniques developed for the Hoover Dam project are still in use for DOE projects today. • Issues related to flooding and silt accumulation in canals influenced the study and approval to complete the construction of the Hoover Dam in Black Canyon. ○ $165 million project finished two years ahead of schedule and $15 million under budget. ○ Collaboration of Six Companies, Inc. successfully balanced resources to manage the challenges of completing one of the largest infrastructure projects ever built in the United States. ○ The 1930s in the United States was experiencing a time of depression, limited project implementation, and reduced production of goods and services. • Why successful ○ Thorough analysis of the need ○ Development of the proposed solution to establish the feasibility ○ Strong oversight of the project performance ○ Innovative funding to secure adequate resources • Project details ○ Financial planning -- overbid the creation of the tunnels and the rock removal and a low bid for concrete installation allowed for increased cash income up front to fund the surety bond required for the project ○ Project planning -- 119 separate projects ○ Incentives -- $3,000 per day fine was imposed for any delays and incentive bonus for completing the project early and under budget ○ Workers’ -- salaries paid to the workers were greater than other skilled workers in the United States in the 1930s ○ Management - timesaving and efficient construction methods using workers and machinery, and outsourcing where appropriate • Lessons Learned ○ Project sponsors must know what they can afford ○ Project sponsors must have open communications, trust, and coordination with the contractor ○ Project leaders must be dedicated to the success of the project ○ Contract incentives must be clear and provide adequate compensation for risks and resources used These are great short stories that can get the class discussion moving forward. Each of these projects (successes or failures) should have included serious planning, scheduling, organization, teamwork, communications, and leadership—all of which will be discussed in detail in this course. 2. Project Attributes A. Definition of a Project A project is an endeavor to accomplish a specific objective through a unique set of interrelated activities and the effective utilization of resources. The following attributes help define a project: • A project has a clear objective that establishes what is to be accomplished. It is the tangible end product that the project team must produce and deliver. The project objective is usually defined in terms of end product or deliverable, schedule, and budget. Furthermore, it is expected that the work scope will be accomplished in a quality manner and to the customer’s satisfaction. • A project is carried out through a set of interdependent activities (also referred to as tasks) in a certain sequence in order to achieve the project objective. • A project utilizes various resources to carry out the activities. • A project has a specific time frame, or finite life span -- a start time and a date by which the objective must be accomplished. • A project may be a unique or one-time endeavor such as developing a new product, designing and building a space station, building a house, or planning a wedding. • A project has a sponsor or customer that provides the funds necessary to accomplish the project. In a business setting, the customer can be internal or external to your organization. • Finally, a project involves a degree of uncertainty based on certain assumptions and estimates the project budget, schedule, and work scope. B. Examples of Projects Get your students to list as many examples of real projects as they can. For each example listed, discuss some of the attributes listed above. Some examples are: • Staging a theatrical production • Developing and introducing a new product • Developing a set of Apps for mobile business transactions • Planning a wedding • Modernizing a factory • Designing and implementing a computer system • Converting a basement to a family room • Organizing and hosting a conference • Designing and producing a brochure • Executing an environmental cleanup of a contaminated site • Holding a high school reunion • Building a shopping mall • Performing a series of surgeries on an accident victim • Organizing a community festival • Consolidating two manufacturing plants • Rebuilding a town after a natural disaster • Hosting a dinner for 20 relatives • Designing a business internship program for high school students • Building a tree house 3. Balancing Project Constraints A. Project Constraints The successful accomplishment of the project objective is usually constrained by many factors, including scope, quality, schedule, budget, resources, risks, customer satisfaction, and stakeholder support. • Project scope is all the work that must be done in order to produce all the project deliverables (the tangible product or items to be provided), satisfy the customer that the deliverables meet the requirements or acceptance criteria, and accomplish the project objective. • Quality expectations must be defined from the onset of the project. The project work scope must be accomplished in a quality manner and meet specifications. • The schedule for a project is the timetable that specifies when each activity should start and finish. The project objective usually states the time by which the project scope must be completed in terms of a specific date agreed upon by the sponsor and the organization performing the project. • The budget of a project is the amount the sponsor or customer has agreed to pay for acceptable project deliverables. The project budget is based on estimated costs associated with the quantities of various resources that will be used to perform the project. • Various resources are needed to perform the project activities, produce the project deliverables, and accomplish the project objective. Resources include people, materials, equipment, facilities, and so forth. • Risks adversely affect accomplishing the project objective • Customer’s satisfaction goes beyond just completing the project scope within budget and on schedule or asking if the customer is satisfied at the end of the project. It means not only meeting the customer’s expectations but also developing and maintaining an excellent working relationship throughout the project. • The project manager and team need to build relationships with, and engage, the various stakeholders who may influence or may be affected by the project, in order to gain their support. During the project, it is sometimes challenging to balance or juggle these factors, which often constrain one another and could jeopardize accomplishing the project objective. See Figure 1.1. To help ensure the achievement of the project objective, the project team should develop a plan before starting the project work rather than jumping in and starting without a plan. Lack of a plan decreases the chances of successfully accomplishing the full project scope within budget and on schedule. B. Unforeseen Circumstances Once a project has started, unforeseen circumstances may jeopardize the achievement of the project objective with respect to scope, cost, or schedule. • Examples: ○ Some materials cost more than originally estimated. ○ Inclement weather causes a delay. ○ Additional redesign and modifications to a sophisticated new medical instrument are required to get it to meet the performance specifications and government testing requirements. ○ Delivery of a critical component for an aviation control system is delayed several months. ○ Environmental contaminants are discovered when excavating for a new building. ○ A key project team member with unique technical knowledge decides to retire, which creates a gap in critical expertise. • Actions by the project manager ○ Prevent, anticipate, and/or overcome such circumstances in order to complete the project scope on schedule, within budget, and to the customer’s satisfaction. ○ Have good planning and communication -- essential to prevent problems from occurring and to minimize their impact. ○ Be responsible for ensuring the customer is satisfied. This goes beyond just completing the project scope within budget and on schedule. It requires ongoing communication with the customer. 4. The Project Life Cycle A. Overview of a Project Life Cycle The generic project life cycle has four phases: initiating, planning, performing, and closing the project. See Figure 1.2 • The time span of each phase and the associated level of effort will vary depending on the specific project. • Project life cycles vary in length from a few weeks to several years, depending on the content, complexity, and magnitude of the project. B. Initiating Phase In the initiating phase, projects are identified and selected, and then authorized using a document referred to as a project charter. • First phase of the project life cycle • Involves the identification of a need, problem, or opportunity and can result in the sponsor’s authorizing a project to address the identified need or solve the problem ○ May take several months to identify the need, gather data, and define the project objective ○ Important to define the right need ○ Needs are often defined as part of an organization's strategic planning process • Organizations must have a project selection process to determine what projects to pursue • Project charter includes: ○ Rationale or justification for the project ○ Project objective and expected benefits ○ General requirements and conditions such as amount of funds authorized, required completion date, major deliverables, and required reviews and approvals, and key assumptions • If external resources will be used, organizations develop a request for proposals asking contractors to submit proposals describing how address need, associated costs, and schedule C. Planning Phase The planning phase includes defining the project scope, identifying resources, developing a schedule and budget, and identifying risks, all of which make up the baseline plan for doing the project work. • Second phase of the project life cycle • Show how the project scope will be accomplished within budget and on schedule • Plan the work and work the plan • Detailed plan results in a baseline plan ○ What needs to be done -- scope, deliverable ○ How it will get done -- activities, sequence ○ Who will do it -- resources, responsibilities ○ How long it will take -- durations, schedule ○ How much it will cost -- budget ○ What the risks are • Benchmark the baseline plan for comparison with actual progress • Include the people that will actually do the work in the planning process ○ They have knowledge of detailed activities to be done ○ Participation builds commitment D. Performing Phase In the performing phase, the project plan is executed and work activities are carried out to produce all the project deliverables and to accomplish the project objective. The project progress is monitored and controlled to ensure the work remains on schedule and within budget, the scope is fully completed according to specifications, and all deliverables meet acceptance criteria. Also, any changes need to be documented, approved, and incorporated into an updated baseline plan if necessary. • Third phase of the project life cycle • Project manager leads project team to complete project • Pace of the project increases as more and various resources are involved in the project • It is necessary to monitor and control the project's progress by comparing accomplishments to the baseline plan • Corrective actions are taken if a project is off track • Changes are managed and controlled through documentation, approval, and communication with agreement between the sponsor and the contractor ○ Some change is trivial ○ Several alternative actions may be evaluated to determine the best approach to bring the project back within the scope, schedule, and budget constraints ○ Determine whether any sacrifices to scope, budget, schedule, or quality are necessary to accomplish the project ○ The cost of change varies with the timing in the project -- generally, the later in the project that changes are identified, the greater their effect on accomplishing the project objective • The end of the phase, customer satisfaction, is achieved when the work and deliverables have been accepted by the customer and the project objective has been accomplished E. Closing Phase In the closing phase, project evaluations are conducted, lessons learned are identified and documented to help improve performance on future projects, and project documents are organized and archived. • The final phase of the project life cycle • Includes a variety of actions such as: ○ Collecting and making final payments ○ Recognizing and evaluating staff ○ Conducting a post project evaluation ○ Documenting lessons learned ○ Archiving project documents • Using a knowledge base to record lessons learned and post-project evaluation is helpful to retrieve the lessons and information that could support future business with the customer or other customers 5. Project Management Process Project management is planning, organizing, coordinating, leading, and controlling resources to accomplish the project objective. The project management process involves planning the work (establishing the plan) and then working the plan (executing that plan). A. Project Planning Process 1. Establish project objective -- get agreement from sponsor and contractor 2. Define scope -- include customer requirements, define major work activities, list deliverables and associated acceptance criteria 3. Create a work breakdown structure -- translate a hierarchical decomposition of the project scope into work elements to be executed by the project team and produce the project deliverables. See Figure 1.3. 4. Assign responsibility -- identify the person or organization responsible for each work item. See Figure 1.3. 5. Define specific activities -- develop a list of detailed activities needed to perform each work package and produce any required documents 6. Sequence activities -- create a network diagram that shows the necessary sequence and dependent relationships. See Figure 1.4. 7. Estimate activity resources -- determine the types of resources needed for each activity, these may include people, materials, or equipment that are internal or external to the contractor 8. Estimate activity durations -- make time estimates for how long each activity will take to be completed based on the estimate of resources available applied to each activity 9. Develop project schedule -- determine the start and finish times for each activity to complete the project by its required completion date. See Figure 1.5. 10. Estimate activity costs -- use the appropriate labor cost or unit cost rate for each type of resource to determine the cost of each activity 11. Determine budget -- aggregate the costs associated with each activity and each work package and add indirect costs and profits to determine the costs of completing the project. Allocate the costs over time to determine the time-phased budget as shown in Figure 1.6. B. Baseline Plan The result of the planning process is a baseline plan. Taking the time to develop a well thought out plan is critical to the successful accomplishment of any project. • Many projects overrun their budgets, missed their completion dates, or only partially met their requirements because there was no viable baseline plan before the project was started. • The baseline plan for a project can be displayed in graphical or tabular format for each time period (week, month) from the start of the project to its completion. ○ The start and completion dates for each activity ○ The amounts of the various resources that will be needed during each time period ○ The budget for each time period as well as the cumulative budget from the start of the project through each time period C. Executing the Project Plan Once a baseline plan has been established, the plan must be executed. The executing process involves performing the work according to the plan, monitoring and controlling the work, and managing changes so that the project scope is achieved within the budget and schedule, to the customer’s satisfaction. 1. Perform the work -- all activities are performed to produce the deliverables and meet their acceptance criteria with regular communication with stakeholders and the customer 2. Monitor and control progress -- monitor the progress to see whether it is going according to plan, measure actual progress, take corrective action if activities are behind schedule 3. Control changes -- changes to the work activities and to the project scope will occur for a variety of reasons and need to be agreed upon by the sponsor and the contractor 6. Stakeholder Engagement Project stakeholders are individuals and entities involved in, or who may influence, or may be affected by a project, such as the customer/sponsor; project team, including the project manager, subcontractors, and consultants; end users or consumers; and advocacy groups. • Stakeholders include ○ Customer/sponsor and the project team including subcontractors and suppliers ○ Organizations or groups of people who may be supportive or adversarial or may want to be kept informed about the project because of potential impact • Create a stakeholder register as potential stakeholders are identified and include key contact information, role or specific topics of interest, expectations, any known issues, and areas of potential influence for each stakeholder. • Maintain in issue log of specific issues or concerns or questions that various stakeholders identify so that the project manager, project team, or sponsor/customer can address them and make sure they are not forgotten or dismissed without an adequate follow up and response. 7. Global Project Management Globalization adds a unique dimension to managing projects. It changes the dynamics of the project and adds a layer of complexity that can adversely affect the project outcome if the project participants are not aware of what they might encounter regarding cultural differences and multinational economic transactions. • Factors can create a dynamic and perhaps unstable environment over the life of a project and include: ○ Currency fluctuations and exchange rates ○ Country-specific work codes and regulations, such as hours per day, holidays, and religious observances ○ Corporate joint ventures and partnerships creating entities with a presence and facilities in multiple countries ○ Political relations between countries ○ Availability of high-demand workforce skills • Competencies that are required or helpful for global project management success include: ○ Foreign language skills ○ Knowledge and understanding of other countries and cultures, geography, world history, and international economics ○ Awareness and understanding of cultures, customs, and etiquette ○ Awareness of the geopolitical environment ○ Technology adoption of translation software 8. Project Management Associations A. Project Management Institute (PMI) • The Project Management Institute (PMI) is a premier worldwide not-for-profit association for practitioners in the project management profession and individuals who want to learn more about the profession. ○ Founded in 1969, PMI is approaching 500,000 members in more than 170 countries and has about 270 chapters in more than 80 countries. ○ Has over 30 online communities of practice where peers can collaborate on specific topics of interest ○ Publishes A Guide to the Project Management Body of Knowledge (PMBOK® Guide), which provides a framework of processes and guidelines for the application of project management concepts, practices, and techniques ○ Created the PMI Code of Ethics and Professional Conduct, which sets standards and establishes expectations for professional behavior ○ Offers a certification program that provides the opportunity to earn credentials in various project management disciplines • Additional and current information about the Project Management Institute can be found at www.pmi.org. B. Project Management Associations around the Globe • Many other project management associations exist around the globe. • Appendix C provides a list of approximately 60 such associations. • Website addresses can be found on this book’s student companion website, www.cengagebrain.com, and through the link found by searching for the ISBN of Successful Project Management 6e (from the back cover of the book), using the search box at the top of the page 9. Benefits of Project Management The ultimate benefit of implementing project management techniques is having a satisfied customer—whether you are the customer of your own project, such as remodeling your basement, or a business (contractor) being paid by a customer to perform a project. • Completing the full project scope in a quality manner, on time, and within budget provides a great feeling of satisfaction and/or referrals for more business • Project managers have satisfaction, enhanced reputation, and expanded career opportunities • Project team members have contributed to the project's success, expanded knowledge, and enhanced skills • When projects are successful, everyone wins! 10. Critical Success Factors • Planning and communication are critical to successful project management. They prevent problems from occurring or minimize their impact on the achievement of the project objective when they do occur. • Taking the time to develop a well thought-out plan before the start of the project is critical to the successful accomplishment of any project. • A project must have a clear objective of what is to be accomplished and defined in terms of end product or deliverable, schedule, and budget, and agreed upon by the customer. • Involve the sponsor or customer as a partner in the successful outcome of the project through active participation during the project. • Achieving customer satisfaction requires ongoing communication with the customer to keep the customer informed and to determine whether expectations have changed. • The key to effective project control is measuring actual progress and comparing it to planned progress on a timely and regular basis and taking any needed corrective action immediately. • After the conclusion of a project, the project performance should be evaluated to learn what could be improved if a similar project were to be done in the future. Feedback should be obtained from the sponsor or customer and the project team. • Learning and understanding the culture and customs of other project participants will demonstrate respect, help build trust, and aid in developing an effective project team, and it is critical for successful global project management. 11. Summary • A project is an endeavor to accomplish a specific objective through a unique set of interrelated activities and the effective utilization of resources. • The successful accomplishment of the project objective could be constrained by many factors, including scope, quality, schedule, budget, resources, risks, customer satisfaction, and stakeholder support. • The project life cycle has four phases: initiating, planning, performing, and closing the project. • Project management is planning, organizing, coordinating, leading, and controlling resources to accomplish the project objective. The project management process involves two major functions: first establishing a plan and then executing that plan to accomplish the project objective. • Project stakeholders are individuals and entities involved in, or who may influence, or may be affected by a project. Stakeholder engagement and support is important to the successful performance of a project and accomplishment of the project objective. • Globalization changes the dynamics of a project and adds a layer of complexity that can adversely affect the project outcome if the project participants are not aware of what they might encounter regarding cultural differences and multinational economic transactions. • The Project Management Institute is a premier worldwide not-for-profit association for practitioners in the project management profession. • The ultimate benefit of implementing project management techniques is having a satisfied customer—whether you are the customer of your own project or a business (contractor) being paid by a customer to perform a project. Questions 1. Define project. A project is an endeavor to accomplish a specific objective through a unique set of interrelated activities and the effective utilization of resources. 2. Define the term project objective and give some examples. A project has a well-defined objective—an expected result or product. The objective of a project is usually defined in terms of scope, schedule, and cost. Furthermore, it is expected that the work scope will be accomplished in a quality manner and to the customer’s satisfaction. An example is to produce 5,000 two-page, marketing brochures by July 1 for a cost of $15,000. 3. List some examples of resources that are used on a project. People, equipment, money, materials, etc. 4. What role does a customer have during the project life cycle? Why is it important to satisfy the customer? The customer should be involved throughout the project life cycle. The customer is the one who is paying for the project. Unsatisfied customers have been known to withhold payments, never call you again for repeat business, and spread word of their dissatisfaction. On the other hand, a satisfied customer will do the opposite of those things. 5. What aspects of a project might involve some degree of uncertainty? Why? Many aspects can have some degree of uncertainty, such as the schedule or the budget. An unexpected snowstorm may delay a highway construction project and increased lumber prices may increase the cost of building a new home. Not everything in a project can be planned, scheduled, or budgeted. 6. Define scope, schedule, cost, and customer satisfaction. Why are these considered to be constraints? The scope of a project is all the work that must be done in order to satisfy the customer that the deliverables meet the requirements or acceptance criteria agreed upon at the onset of the project. The cost of a project is the amount the customer has agreed to pay for acceptable project deliverables. The project cost is based on a budget that includes an estimate of the costs associated with the various resources that will be used to accomplish the project. The schedule for a project is the timetable that specifies when each activity should start and finish. The project objective usually states the time by which the project scope must be completed in terms of a specific date agreed upon by the customer and the individual or organization performing the work. Customer Satisfaction is the level to which the customer is pleased with the end result of the project. The objective of any project is to complete the scope within budget by a certain time to the customer’s satisfaction. Any of these four factors can put limitations on the final product. 7. List and describe the main phases of the project life cycle. The first is the initiating phase, when projects are identified and selected. They are then authorized, using a document referred to as a project charter. The second phase of the project life cycle is the planning phase and includes defining the project scope, identifying resources, developing a schedule and budget, and identifying risks, all of which make up the baseline plan for doing the project work. In the third phase, the performing phase, the project plan is executed, and work activities are carried out to produce all the project deliverables and to accomplish the project objective. During this phase, the project progress is monitored and controlled to assure the work remains on schedule and within budget, the scope is fully completed according to specifications, and all deliverables meet acceptance criteria. Also, any changes need to be documented, approved, and incorporated into an updated baseline plan, if necessary. The final phase of the project life cycle is the closing phase. Project evaluations are conducted, lessons learned are identified and documented to help improve performance on future projects, and project documents are organized and archived. 8. List and describe the steps required to develop a baseline plan. 1. Establish project objective -- clearly define the project objective and have it agreed upon by the sponsor or customer. 2. Define scope -- include customer requirements, define the major work activities or elements, and provide a list of deliverables and associated acceptance criteria that can be used to verify that the work and deliverables meet specifications 3. Create a work breakdown structure -- divide and subdivide the project scope into pieces or work packages. 4. Assign responsibility -- identify the person or organization responsible for each work item in the work breakdown structure 5. Define the specific activities -- develop the list of detailed activities that need to be performed for each work package to produce any required deliverables. 6. Sequence activities -- graphically portray the activities in a network diagram to display the sequence and dependent relationships of the detailed activities. 7. Estimate activity resources -- determine which types and skills or expertise of resources and how many of each resource are needed for each activity with consideration of the availability of the resources. 8. Estimate activity durations -- make a time estimate for how long it will take to complete each activity, based on the estimate of the resources that will be applied. 9. Develop the project schedule -- develop the overall project schedule, including when each activity is expected to start and finish, as well as the latest times that each activity must start and finish in order to complete the project by the project required completion date. 10. Estimate activity costs -- determine the costs for the types and quantities of resources estimated for each activity using the appropriate labor cost rate or unit cost for each type of resource. 11. Determine budget -- aggregate the cost estimates for each activity. 9. Why must a manager monitor the progress of a project? What can be done if a project is not proceeding according to plan? A manager must monitor progress to ensure that everything is going according to plan. It is also necessary to measure actual progress and compare it to planned progress. If at any time during the project the comparison of actual to planned progress reveals that the project is behind schedule, overrunning the budget, or not meeting the technical specifications, corrective action must be taken to get the project back on track within the scope, schedule, and budget constraints of the project objective. These actions include adding or changing resources to make up time and get back on schedule. 10. Think of a project in which you were involved and identify the stakeholders and what “stake” each had in the project. Answers to this question will vary depending on the student. Check responses to be sure they include the individuals and entities involved in, or who may influence, or may be affected by a project and what stake each had in the project. In a community park development project, key stakeholders include: 1. Local Residents: Desire a safe space for recreation. 2. City Government: Aims to enhance community amenities and property values. 3. Environmental Groups: Focus on preserving green space and wildlife. 4. Contractors: Interested in profitable and timely project completion. 5. Local Businesses: Hope to attract more visitors for increased sales. 11. Describe how a global project can be more complex than a project performed within just one country. How might these elements affect the successful outcome of the global project? Global projects have several unique influencing factors such as currency fluctuations and exchange rates, country-specific work codes and regulations, corporate joint ventures and partnerships creating entities with a presence and facilities in multiple countries, political relations between countries, and availability of high-demand workforce skills. Globalization changes the dynamics of the project and adds a layer of complexity that can adversely affect the project outcome if the project participants are not aware of what they might encounter in the way of cultural differences and multinational economic transactions. 12. List some benefits of using project management techniques. • The ultimate benefit of implementing project management techniques is having a satisfied customer. • Completing the full project scope in a quality manner, on time, and within budget provides a great feeling of satisfaction. • It could lead to additional business. • Successful projects can expand career opportunities. • A feeling of satisfaction comes from being on a winning team. • Project management can expand knowledge, enhance skills, and make it easier to undertake more complicated projects. • When projects are successful, everybody wins! 13. Consider a project in which you are currently involved (or in which you have recently been involved). a. Describe the objectives, scope, schedule, cost, and any assumptions made. b. Where are you in the project life cycle? c. Does this project have a baseline plan? If yes, describe it. If not, create it. d. Are you or is anyone else monitoring the progress of the project? If so, how? If not, how could you do so? e. Describe some unexpected circumstances that could jeopardize the success of the project. f. Describe the anticipated benefits of the project. Answers to this question will vary depending on the student. Check responses to be sure they include the definition of a project, an endeavor to accomplish a specific objective through a unique set of interrelated activities and the effective utilization of resources. Project Overview a. Objectives, Scope, Schedule, Cost, Assumptions: • Objectives: Develop a community garden to promote local engagement and sustainability. • Scope: Design, build, and maintain the garden with community involvement. • Schedule: 6 months from planning to completion. • Cost: $20,000 funded by local grants and donations. • Assumptions: Adequate community interest and volunteer participation. b. Project Life Cycle Stage: Currently in the Execution phase, where construction is ongoing and community events are being planned. c. Baseline Plan: Yes, it includes a detailed timeline (Gantt chart), budget allocation, and resource assignments, ensuring clarity on deliverables and deadlines. d. Monitoring Progress: Progress is monitored through weekly meetings, updates on volunteer hours, and milestone tracking against the baseline plan. e. Unexpected Circumstances: • Weather delays affecting construction. • Volunteer availability fluctuating. • Potential budget shortfalls if donations are lower than expected. f. Anticipated Benefits: • Enhanced community engagement and cohesion. • Improved local biodiversity. • Educational opportunities about gardening and sustainability. Internet Exercises The Internet Exercises can be a very valuable part of this course. Assignment of these exercises to your students as homework or complete them with students in a computer lab reinforces the concepts in the chapter and exposes the students to additional resources that are available through the Internet. Examination of broad field of project management will reinforce the growth of the project management field. Many organizations are realizing the value of employees having project management training and certifications. Exploration of the project management information could motivate the students to seek additional education or certifications. Case Study #1 A Not-For-Profit Organization This case study involves a meeting of the officers of the student community service organization that collects, buys, and distributes food for the needy. Their funds are almost exhausted and the demand for service is growing. Answers to Case Questions 1. What are the needs that have been identified? The students need to find a way to get more funds. They need more volunteers. They need more space. Some students may point out that they don't have a project plan for how to spend their current funding and need a project plan for their current work. 2. What is the project objective? At this point they don’t all agree on the objective. 3. What assumptions, if any, should be made regarding the project to be undertaken? You must always be careful when making assumptions. However, the following statements are made in the case study. Some may or may not actually be true. • The service organization will run out of funds in two months. • The local government is not able to provide additional funds. • The demand for assistance is increasing. • The volunteers need more space and more volunteers. • They get some food donations, but maybe not on a regular basis. 4. What are the risks involved in the project? If the statements in the story are true, then the risk of not succeeding with this project is that the organization will have to shut down and members of the community in need of food will not have this student community service organization as a source of assistance. Group Activity Many community service organizations are facing the same issues as this student community service organization: need for additional funds for operation, need for more volunteers, and need for more donations. Having students learn about how not-for-profit organizations plan their projects and complete funding and donation requests will provide an rich learning opportunity and insight into project management that can only be learned through experience and direct observation. Case Study #2 E-Commerce for a Small Supermarket This case study involves a small supermarket in a rural town with a large and growing elderly population. The owners are discussing the possibility of putting their operation online. Answers to Case Questions 1. What are the needs that have been identified? The owners believe that putting their grocery store on-line will bring increased sales. They also need to repave the parking lot. 2. What is the project objective? At this point, Matt and Grace haven't decided. They have an idea to create an online ordering site or just have a page with a picture of themselves and the market. 3. What are some things Matt and Grace should do before they talk with the consultant? They must list and possibly test some of their assumptions. You must always be careful when making assumptions. However, the following statements are made in the case study. Some may or may not actually be true. • Matt and Grace can increase sales by putting their operation online. • There is a demand for online services. • The benefits of doing this will outweigh the costs. Matt and Grace also need to determine the motivations of the consultant. They need to find out whether the consultant is selling services for web development or is a technical assistance specialist who will provide well-informed suggestions. 4. What should the consultant tell Matt and Grace? An honest consultant would determine the feasibility of this project. It might very well not be feasible, but it is very possible that the consultant will just give them a price for building the system. Group Activity Have two students act out the parts of Matt and Grace. Then role-play the interaction with the consultant to let Matt and Grace ask questions. Be sure to have the students focus on the needs identification step of the potential project for the store. Optional Activity Have each course participant, or small groups, contact a business that went online and ask the business what led it to that decision and whether the project met its initial expectations. Optional Supplemental Activities 1. Contact a local not-for-profit organization in your community. Tell them that you are interested in learning about their operations. Ask them to describe a project they are currently working on. What is the objective? What are the constraints? The resources? The budget? The schedule? If possible, have each team contribute a few hours to the project. Through this process they will be helping someone in need and learning about a real-world project at the same time. Have each group prepare a report that summarizes the project and what they learned from this experience. Give them about three weeks for this effort. 2. Have a project manager be a guest lecturer in class to present the benefits of project management techniques. If the project manager has had international experience, have him or her discuss the complexity of managing an international project. CHAPTER 2: Identifying and Selecting Projects Chapter Concepts This chapter discusses the initiating phase of the project life cycle. Based upon this chapter, students will become familiar with: • How projects are identified and selected • A project charter • How to outsource projects using a request for proposal • The proposal solicitation process Learning Outcomes After studying this chapter, the learner should be able to: • Discuss how projects are identified • Explain how projects are prioritized and selected • Identify and describe at least eight elements of a project charter • Prepare a project charter • Prepare a request for proposal Project Management Knowledge Areas from PMBOK® Guide Concepts in this chapter support the following Project Management Knowledge Areas of A Guide to the Project Management Body of Knowledge (PMBOK® Guide): • Project Integration Management • Project Procurement Management. Teaching Strategies 1. The first vignette reinforces the need for a systematic approach to identify the project's needs and to evaluate data collected from sites. Project identification is the start of the project life cycle. Have students describe systematic processes they use for evaluation. 2. The second vignette reinforces that the need, problem, or opportunity for a project may not always be a product that is created; that service plans are a project with a defined end. The sponsor needs to have evaluation criteria for evaluation of the project. Have students describe when they have suggested a solution for a problem and how the organization or person evaluated their suggestions. 3. Have the students read the case studies in class and answer the questions in groups of three or four. Next, select five participants to act out the group activity. This is an excellent way to stimulate class discussion and interest. This is a good case study to do right before you lecture on this chapter and then again after you lecture on the chapter. The difference in responses “before” and “after” will reinforce the topics covered. 4. Ask your students whether they have ever seen an RFP or written an RFP. 5. Ask your students to identify situations in the real world that would require an RFP. Ask them to describe in detail what the RFP might look like. Lecture Notes 1. Real-World Project Management Examples Vignette A: Hornets' Nest Canada's military needs to replace its aging fleet of CF-18 Hornets. In the past, Canada has chosen fighters based on interoperability with allied forces. Stealth and aerial refueling were priorities. Concerns for pilot safety are influencing decisions to lean toward a less stealthy two engine fighter with less range and more easily spotted by opposition forces. A draft RFP is being prepared. • Background information about the project’s need ○ First CF-18 Hornet fighters were placed into service in October 1982. ○ Aging fleet has interoperability with the United States military fighters and other allied forces. ○ Stealth and aerial refueling capabilities have been crucial. • Potential risks and benefits ○ Survivability by a lone pilot in the northernmost regions of Canada in the case of emergency is a concern ○ Many potential problems that could cause engine failure ○ Planes with two engines and two seats have less range and less stealth ○ Second pilot could help with survival in the far north regions ○ Second engine in case of engine failure and the ability to limp back to safety ○ Financial position ○ Military priorities Have students discuss the risks and benefits to make a decision of to proceed with an RFP or not. Discuss the critical aspects of the RFP necessary to attract bidders to supply new planes if it is decided to create the RFP. Vignette B: To Outsource or Not to Outsource A fleet management department completed a number of projects to increase the productivity and decrease costs of operations. Consideration was given to outsourcing the parts room operations. The analysis and communication with stakeholders resulted in an RFP and vendor selection. Project monitoring revealed success with the project. • When Elizabeth Linck was hired as a manager for fleet operations ○ Everything was done manually. ○ Track 500 vehicles and pieces of equipment for all a town’s departments’—fire, police, public water, parks and recreation, education, and administration—repair, use, maintenance, and fueling. ○ An inventory of the parts room revealed over $300,000 of value. • Solution ○ Programs and systems for fleet maintenance, automated fueling, preventative care, and perpetual inventory were implemented as the first projects. ○ Other projects undertaken were purchasing hybrid vehicles, establishing car pools, constructing a truck washing facility, and complying with environmental rules and regulations. • Key objectives ○ Increased productivity for operations and technicians ○ Increased on demand availability of parts ○ Reduced downtime ○ Reduced paperwork ○ Improved monitoring ○ Reduced administration ○ Eliminated inventory and inventory control (especially obsolete parts) • The Implementation ○ Timelines for implementation and stakeholders were identified. ○ The team created a communication plan to inform the employees, departments, town officials, and other stakeholders of the project objectives. ○ Details related to the physical inventory, change over, projections and actual costs, emergency coverage, and personnel were the highest concerns for the stakeholders and addressed within the costs and benefits analysis. ○ Analysis and communication with stakeholders • The Result ○ Thousands of labor hours redirected to core functions ○ Reduction of administrative paperwork Have students discuss why there was such success. What could have happened to cause the project to fail? 2. Project Identification • The initiating phase of the project life cycle starts with recognizing a need, problem, or opportunity for which a project or projects will be identified to address the need. • Identified in various ways: ○ during an organization’s strategic planning, as part of its normal business operations, ○ in response to unexpected events, ○ or as a result of a group of individuals deciding to organize a project to address a particular need • It is important to clearly define the need. This may require gathering data about the need or opportunity to help determine whether it is worth pursuing. • Sometimes organizations identify several or many needs but have limited funds and people available to address all those needs. In such cases, the company must go through a decision-making process to prioritize and select those projects that will result in the greatest overall benefit. 3. Project Selection • Project selection involves evaluating various needs or opportunities, and then deciding which of those should move forward as projects to be implemented. • The benefits and consequences, advantages and disadvantages, plusses and minuses of each opportunity need to be considered and evaluated. These factors can be quantitative and qualitative, tangible and intangible. Each person's decision will be a combination of quantitative evaluation and "gut" feelings based upon experience. • The steps in project selection are to: ○ Develop a set of criteria against which the opportunity will be evaluated. For example: • Alignment with company goals • Anticipated sales volume • Increase in market share • Establishment of new markets • Anticipated retail price • Investment required • Estimated manufacturing cost per unit • Technology development required • Return on investment • Human resources impact • Public reaction • Competitors’ reaction • Expected time frame • Regulatory approval • Risks ○ List assumptions that will be used as the basis for each opportunity. • For example, if one opportunity is to build an on-site day care center for children and elderly relatives of company employees, one assumption might be that the company would be able to obtain a bank loan to build such a center. ○ Gather data and information for each opportunity to help ensure an intelligent decision regarding project selection. • For example, it may be necessary to gather some preliminary financial estimates associated with each opportunity, such as estimated revenue projections and implementation and operating costs. • In addition to gathering hard data, it may also be necessary to obtain other information such as responses from various stakeholders who would be affected by the opportunity. ○ Evaluate each opportunity against the criteria. • Once all the data and information has been collected, analyzed, and summarized for each opportunity, it should be given to all the individuals who are responsible for performing the evaluation. It is beneficial to have several individuals participating in the evaluation and selection decision in order to get various viewpoints. • Figure 2.1 depicts a project evaluation and selection form to evaluate three possible projects. Have students describe the positive and negatives of possible scenarios for a development project. 4. Project Charter • Once a project has been selected, it is formally authorized using a project charter, sometimes called a project authorization or project initiation document. ○ Provides sponsor approval to go forward with the project and commits the funding for the project ○ Summarizes the key conditions and parameters for the project and establishes the framework for developing a detailed baseline plan for performing the project ○ Includes many of the following elements • Project title • Purpose • Description • Objective • Success criteria or expected benefits • Funding • Major deliverables • Acceptance criteria • Milestone schedule • Key assumptions • Constraints • Major risks • Approval requirements • Project manager • Reporting requirements • Sponsor designee • Approval signature • Figure 2.2 depicts a project charter. The image here is only a section of the entire charter in the text. Have students review the parts of the project charter and comment on the completeness of the information and how it could be developed from the statements in an RFP and the evaluation criteria for the project. 5. Preparing a Request for Proposal • If an organization does not have the expertise or staff capacity to plan and perform the project or major portions of the project, outsourcing the work to an external resource (contractor) is a choice. A request for proposals helps the organization decide which contractor to use. • The purpose of preparing a request for proposal is to state, comprehensively and in detail, what is required, from the customer’s point of view, to address the identified need. • A good RFP allows contractors or a project team to understand what the customer expects so that they can prepare a thorough proposal that will satisfy the customer’s requirements at a realistic price. • In many situations a formal RFP might not be prepared; instead, the need is communicated informally—and sometimes orally rather than in writing. This is often the case when the project will be implemented by a firm's internal staff rather than by an external contractor. • Following are some guidelines for drafting a formal request for proposal to external contractors: ○ The RFP must state the project objective or purpose, including any rational or background information that may be helpful to contractors so that they can prepare thorough and responsive proposals. ○ An RFP must provide a statement of work (SOW). An SOW deals with the scope of the project, outlining the tasks or work items the customer wants the contractor or project team to perform. ○ The RFP must include the customer requirements, which define specifications and attributes. Requirements cover size, quantity, color, weight, speed, performance, and other physical or operational parameters the contractor’s proposed solution must satisfy. The customer may also use these requirements as acceptance criteria. ○ The RFP should state what deliverables, or tangible items, the customer expects the contractor to provide. They can include periodic progress reports or a final report as well as a final product. ○ The RFP should state the acceptance criteria the customer will use to determine whether the project deliverables have been completed according to the customer’s requirements. ○ The RFP should list any customer-supplied items. ○ The RFP might state the approvals required by the customer. ○ Some RFPs mention the type of contract the customer intends to use. It could be fixed price, in which case the customer will pay the contractor a fixed amount regardless of how much the work actually costs the contractor. (The contractor accepts the risk of taking a loss.) Or the contract might be for time and materials. In this case, the customer will pay the contractor whatever the actual costs are. ○ An RFP might state the payment terms the customer intends to use. The customer may specify progress payments or pay when the entire project is finished. ○ The RFP should state the required schedule for completion of the project and key milestones. It might state simply a required completion date or it might give a more detailed schedule. ○ The RFP should provide instructions for the format and content of the contractor proposals. Instructions might state the maximum number of pages, the number of details the customer wants the contractor to show regarding the costs, and other specifications. ○ The RFP should indicate the due date by which the customer expects potential contractors to submit proposals. ○ An RFP may include the evaluation criteria that will be used to evaluate proposals from competing contractors. Criteria might include the following: • the contractor’s experience with similar projects • the technical approach proposed by the contractor • the schedule • the costs ○ In rare cases an RFP will indicate the amount of money the customer has available to spend on the project. Contractors can then submit proposals appropriate to that level of funding. • Figure 2.3 depicts a request for proposal. The image here is a small section of the RFP in the text. Have students review the parts of the RFP and list any additional questions they would have. These are the types of questions that would be submitted in RFP clarification meetings. Have students suggest how they would respond to the RFP. 6. Soliciting Proposals • Once the RFP has been prepared, the customer solicits proposals by notifying potential contractors that the RFP is available. ○ One way for customers to notify potential bidders is by identifying a selected group of contractors in advance and sending each of them a copy of the RFP. ○ Another approach to soliciting proposals is to advertise in certain business newspapers and on websites that the RFP is available. For example, federal government organizations advertise their RFPs in Commerce Business Daily. • Business customers and contractors consider the RFP/proposal process to be a competitive situation. ○ Customers should be careful not to provide to any of the contractors information that is not provided to all. ○ Business or government customers may hold a bidders’ meeting to explain the RFP and answer questions from interested contractors. • Not all project life cycles include the preparation of a written RFP. Some bypass the proposal steps and move right into planning and performing the project. • There are other projects in which requirements are not written down in a formal RFP but are communicated verbally to several providers or suppliers (contractors). • Although projects can be businesslike or informal, they all start with the identification of a need, problem, or opportunity. 7. Critical Success Factors • The need must be clearly defined before preparing a request for proposal (RFP). • When selecting a project from among several needs or opportunities, management should base the decision on which project will provide the greatest overall benefits compared to its costs and possible consequences. • Having a well-understood evaluation and selection process and a well-rounded committee will increase the chances of making the best project selection decision. • Establish quantitative project success criteria or expected benefits. • A good RFP allows contractors to understand what the customer expects so that they can prepare a thorough proposal that addresses the customer’s needs and requirements. • A request for proposal should include a statement of work, customer requirements, expected deliverables, and the criteria by which the customer will evaluate proposals. • An RFP should provide instructions for the format and content of contractor proposals so that the customer will be able to make a consistent and fair comparison and evaluation of all the proposals. • Customers must be careful not to provide information to only some of the contractors because it would give these contractors an unfair competitive advantage in preparing their proposals. 8. Summary • The initiating phase of the project life cycle starts with recognizing a need, problem, or opportunity for which a project or projects are identified to address the need. • Sometimes organizations identify several or many needs but have limited funds and people available to pursue potential projects to address all of those needs. In such cases, the company must go through a decision-making process to prioritize and select those projects that will result in the greatest overall benefit. • Project selection involves evaluating potential projects and then deciding which of these should move forward to be implemented. • Once a project has been selected, it is formally authorized using a project charter, sometimes called a project authorization or project initiation document. • In some cases, an organization does not have the expertise or staff capacity to plan and perform the project or major portions of the project, and therefore decides to have the project done by an external resource (contractor) and prepares and RFP. • Once the RFP has been prepared, the customer solicits proposals by notifying potential contractors that the RFP is available. • Not all project life cycles include the preparation of a written request for proposal by a customer and subsequent submittal of proposals from contractors. Some endeavors move right from the initiating phase, where a project is identified and selected, into the planning and performing phases of the life cycle. Questions 1. Why is it important to do a thorough and detailed job of needs identification? It is important to thoroughly study the problem or opportunity in order to develop a quality RFP and/or quality solution. If the need isn’t clearly defined, you can’t expect the proposed solutions to be clearly defined either. 2. Describe a situation in your life in which you performed needs identification. Answers will vary from student to student but should contain a description of why the student identified the need, problem, or opportunity. In a group project for school, I noticed my teammates were struggling with different aspects of the assignment. I took the initiative to ask each person what they found challenging and what support they needed. This helped us identify that one teammate needed help with research, while another struggled with presentation design. By redistributing tasks based on these needs, we improved our efficiency and produced a stronger final project. 3. Why is it important to select the right project before you begin working? In reality too many projects are started that should never have been. It is wise to take the time to decide which plans to address identified needs, problems, or opportunities should go forward as a project before you start working. 4. Describe how a business selects which projects to work on when there are numerous projects that could be done. A four-step process is recommended: 1) Develop a set of criteria against which the opportunity will be evaluated. 2) List assumptions that will be used as the basis for each project. 3) Gather data and information for each project 4) Evaluate each opportunity against the criteria. 5. Which elements of a project charter would you use to help plan if you had a project that did not require a project charter? Why? Student responses will vary. Responses should include the elements of a project charter that describe the outcomes of the student's project with enough clarity for the contractor to deliver an approved product at the end of the project. Even without a formal project charter, I would focus on these key elements: 1. Project Purpose and Objectives: Clarifying the project's goals helps align the team and maintain focus. 2. Scope Statement: Defining what is included and excluded ensures everyone understands the boundaries of the project. 3. Stakeholders: Identifying key stakeholders helps in managing expectations and communication. 4. Timeline: Establishing a rough timeline aids in prioritizing tasks and setting deadlines. These elements provide structure and clarity, which are essential for effective planning and execution. 6. Give examples of situations in which a business might develop a request for proposal. There are many possible answers to this question. Some examples might include an RFP for a new billing system, an RFP for a comprehensive management training program, an RFP for a new heating system for a major office building, etc. Responses should include a description of an activity that cannot be completed by the organization or is better completed by an external resource or contractor. 7. Give examples of situations in which an individual might develop a request for proposal. There are many possible answers to this question. Some examples might include an RFP for a new in-ground pool, a new deck, or a new house. These may or may not be written. Responses should include a description of an activity that cannot be completed by the person or is better completed by an external resource or contractor. 8. Why is it important for a business to try to quantify the expected benefits of implementing a solution to a problem? If a business did not do this in advance, it might find that the costs of the solution exceed the benefits. In addition, because most businesses have limited resources, they must prioritize their projects based on the expected benefits. 9. What should be contained in a statement of work? A statement of work should define the scope of the project and outline the tasks or work items to be performed. The SOW should be very precise. 10. What is meant by customer requirements? Why must they be precise? The RFP must include the customer requirements, which define specifications and attributes. Requirements cover size, quantity, color, weight, speed, performance, and other physical or operational parameters the contractor’s proposed solution must satisfy. These requirements must be very precise because this is what the contractor will use as a guideline as he or she develops the proposal and/or solution, and the customer may also use it as acceptance criteria for the project. 11. Why would an RFP state the approvals that will be required during the project? Give some examples. It is important to state the approvals required during the project so the final solution matches what the customer expects. Examples include reviewing the design specifications for a house before construction begins, reviewing a prototype user interface for a new software system before coding begins, etc. Student examples will vary and should include projects that have a level of complexity where changes as the project advances could result in high costs. 12. Why would a customer give contractors instructions in the RFP to submit their proposals according to a standard format? This is done so all proposals have a standard form and are thus easier to evaluate. Otherwise, for example, one proposal might be 5 pages and another might be 50 pages. One might include technical specifications and another might not. 13. Develop an RFP for a real-world project such as landscaping the grounds surrounding a nearby business office, building a deck for your house, or holding a big graduation celebration. Be creative in specifying your needs. Feel free to come up with unique ideas for the RFP. Answers will vary from student to student. Responses should include the guideline elements as the elements are appropriate for the need, problem, or opportunity defined by the student. XYZ Business Office seeks innovative proposals for landscaping the surrounding grounds to create an inviting, eco-friendly environment that enhances employee well-being and supports outdoor meetings. Key features include native plant gardens, walking paths, and a multi-functional event area with seating for up to 50 guests. Proposals should integrate sustainable practices, low-maintenance elements, and an aesthetic that reflects our corporate values. Please include a timeline, budget estimates, and examples of previous work. Submissions are due by [insert date]. Internet Exercises The Internet Exercises can be a very valuable part of this course. You should assign these exercises to your students as homework or complete them with them in a computer lab. The Web exercises in this chapter involve investigating and evaluating a Request for Proposal found on the Web. Examination of RFPs found on the Internet could inform students about how to develop their own RFP and help to reinforce the elements of a clearly written RFP. Case Study # 1 A Midsize Pharmaceutical Company This case study involves an owner and Chief Executive Officer of a midsize global pharmaceutical company who states that profits for the year are expected to be $2,000,000 more than anticipated. She asks her three key managers to get together to develop a prioritized list of potential projects and then to meet with her to “sell” her on their ideas. A fourth manager also has some ideas for how to use this extra money. Answers to Case Questions 1. How should Jennifer go about making her decision? She has identified an opportunity. She has $2,000,000 of unexpected profits that she would like reinvest in the company. In this case, she is soliciting proposals from her internal managers. She should state comprehensively, and in detail, what she expects in the proposals including several of those items discussed in this chapter (due date for proposals, format required, evaluation criteria to be used, etc.). In this case, the RFP may or may not be in written form. She should then evaluate each proposal submitted based on the stated criteria. 2. What kind of additional data or information should she collect? Among other things, information on cost and benefits should be collected. Costs should include one-time and on-going expenses. Additional data such as specific tasks and timeframes is also needed. 3. What exactly should Jennifer require the others to submit in the way of proposals? Each proposal should include the cost and anticipated benefits of the project. At a minimum, it should also include the tasks to be performed, the resources used, and a schedule. 4. What do you think Jennifer should do with the $2,000,000? In explaining your answer, address the concerns and positions of Julie, Tyler, Jeff, and Joe. At this point it is too early to tell. Jennifer must evaluate each of the proposals based on the established criteria and then select the proposal or proposals that provide the greatest benefit to the company. Responses should include a description of each person's position and additional information that Jennifer would need to evaluate their response. The responses should include why or why not Jennifer would fund the projects based upon the student's experiences and interpretation of the projects. Group Activity This is an excellent way to stimulate class discussion and interest. Take a few minutes and have some students act it out in class. • Select five course participants to play the roles of Jennifer, Julie, Tyler, Jeff, and Joe. After Jennifer and Joe leave the room, have Julie, Tyler, and Jeff role-play (preferably in front of the remaining course participants) a meeting in which they discuss their proposed projects and develop a prioritized list to “sell” to Jennifer. • After Jennifer and Joe re-enter the room, have all five participants role-play (preferably in front of the class) a meeting with Jennifer in which Julie, Tyler, and Jeff try to sell her on the prioritized list of projects and Joe promotes his agenda. • Discuss what took place. What positions did the players take? How was the final decision made? What was the final decision? Case Study # 2 Transportation Improvements This case involves a large, mostly sparsely populated county that has a fairly mountainous terrain. Various road projects are being discussed. Answers to Case Questions 1. What criteria should Zachary use to evaluate the projects? Various options can be used as discussed in this chapter. The criteria should be defined in advance of evaluating the projects. Encourage students to explain why they chose particular criteria to evaluate the projects. 2. What assumptions should he make? Zachary has to make assumptions regarding the safety to the entrance outside of Big John’s superstore, the need to widen and repair Elk Mountain Road, and the condition of County Route 1045 and the bridge. Each of Zachary's assumptions needs to be evaluated. 3. What data and information should he gather and how should he go about gathering the data and information? Surveys and various types of research methods could be used to gather data related to the assumptions in the case study. 4. After he has evaluated each project against the evaluation criteria, how should he decide the priority of the three projects? This is a great opportunity to get the class to walk through the four-step project selection process. Split the class into groups and have the students compare the outcomes and suggestions developed in each group with the others. Group Activity Ask each course participant to individually answer the first case question. Then, divide the course participants into groups of three or four to discuss the case questions. Each group must select a spokesperson to present its answers to the entire class. Optional Supplemental Activities 1. This is a good time to get your students to start reading some of PMI’s publications—either online or printed. These articles are typically very readable and might relate to something that interests your students. Have each student read one such article and prepare a one-page summary. If time permits, have each student discuss his or her article in class. 2. Have students find a Request for Proposal on the Web and evaluate it against the guidelines in this book. 3. Have a certified Project Management Professional make a presentation to the class and answer questions about the value of certification. 4. Show the class a copy of A Guide to the Project Management Body of Knowledge (PMBOK® Guide). Have students examine the sections on project integration management and project procurement management. Instructor Manual for Successful Project Management Jack Gido, Jim Clements 9781285068374
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