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- 5. Project Management for Engineering, Business and Technology There is an ever-growing need for better project management within the disciplines of engineering, business, and technology and this new edition is a direct response to that need. By emphasizing practical applications, this book targets the ultimate purpose of project management: to unify and integrate the interests, resources, and work efforts of many stake- holders to accomplish the overall project goal. The book encompasses the essential background material required, from philosophy to methodology, before presenting concepts and techniques for practical application on topics including: • Project initiation and proposals • Scope and task definition • Scheduling • Budgeting • Risk analysis The new edition has been updated to provide closer alignment with PMBOK terms and defini- tions for more ease of use alongside PMI qualifications and covers the latest developments in project management methodologies. Supplemented by brand new case studies from engineering and technology projects, as well as improved instructor support materials, this text is an ideal resource and reference for anyone studying or practicing project management within business or engineering environments. John M. Nicholas is Professor of Operations and Project Management and former Associate Dean of the Graduate School of Business at Loyola University, Chicago, USA. He is an active teacher, writer, and researcher in project management and manufacturing management, con- ducting executive seminars and consults on project management and process improvement. He has authored numerous academic and technical publications and led or worked on projects for companies such as Lockheed-Martin Corporation, Bank America, and Argonne National Laboratory. Herman Steyn is Professor at the Graduate School of Technology Management, University of Pretoria, South Africa where he specializes in project management, initiating currently the only master’s program in Project Management on the African continent that is accredited by the PMI (USA). He has been involved in project management in industry since 1975 and has managed a variety of engineering projects (system, product, and process development) in the minerals, defence, and nuclear industries. He has also managed product portfolios.
- 6. Project Management for Engineering, Business and Technology F O U R T H E D I T I O N John M. Nicholas Loyola University Chicago Herman Steyn University of Pretoria
- 7. Fourth edition published 2012 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN Simultaneously published in the USA and Canada by Routledge 711 Third Avenue, New York, NY 10017 Routledge is an imprint of the Taylor & Francis Group, an informa business © 2012 Routledge The right of John M. Nicholas and Herman Steyn to be identified as the authors of this work has been asserted by them in accordance with sections 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any information storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. Third edition published by Elsevier Inc. 2008 British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data Nicholas, John M., 1945- Project management for engineering, business and technology / John M. Nicholas and Herman Steyn. -- 4th ed. p. cm. Rev. ed. of: Project management for business, engineering, and technology : principles and practice. 3rd ed. c2008. Includes bibliographical references and index. 1. Project management. I. Steyn, Herman. II. Nicholas, John M., 1945– Project management for business, engineering, and technology. III. Title. HD69.P75N53 2012 658.4’04—dc23 2011036837 ISBN: 978–0–08–096704–2 (pbk) ISBN: 978–0–08–096705–9 (ebk) Typeset in Palatino by Swales & Willis Ltd, Exeter, Devon
- 8. To Sharry, Julia, Joshua, Abigail, and Wilma J.M.N. To Karen and Janine H.S.
- 9. xvii PREFACE When people see something impressive—a bridge arching high over a canyon, a space probe touching down on a distant planet, a curlicue ramp on a freeway, a motion pic- ture so realistic you think you’re there, or a nifty computer the size of your hand—they sometimes wonder, “How did they do that?” By they, of course, they are referring to the creators, designers, and builders, the people who thought up and actually made those things. Seldom do they wonder about the managers, the people who organized and led the efforts that brought those astounding things from a concept or idea to reality, and without whose talent, skills, and hard work most neat ideas would never amount to anything. This book is about the managers—project managers, the mostly unsung heroes of engineering, business, and technology who stand outside the public eye but are behind practically every collective effort to create, develop, or produce something. Although the project manager is but one of many people involved in the creation of each of society’s products, systems, and artifacts, he or she is usually the one who gets all of the others involved and then organizes and directs their efforts so every- thing will come out right. Sometimes, though rarely, the manager and the creator happen to be the same: Burt Rutan, Woody Allen, and Gutzon Borglum are examples; their life work—in aerospace, motion pictures, and monumental sculptures, respec- tively—represents not only creative or technological genius, but leadership and man- agerial talent as well. The past few decades have seen businesses expand from domestic, nationalis- tic enterprises and markets into multinational, global enterprises and markets. As a result, no matter what your perspective, there is more of everything to contend with—more ideas, competitors, resources, constraints, and, certainly, more people doing and wanting things. The rate of technological change is accelerating, and prod- ucts and processes are evolving at a more rapid pace; as a result, the life cycles of most things society desires or relies upon are getting shorter. This “more of everything” has had a direct impact on the conduct of projects—including projects to develop products, systems, or processes that compete in local, domestic, and international markets; projects to create and implement new ways of meeting demand for energy, recreation, housing, communication, transportation, and food; and projects to answer basic questions in science and resolve problems such as hunger, disease, pollution, and the consequences of natural disasters. All of this project activity has spurred a growing interest in project management and ways to plan, organize, and control proj- ects to better meet the needs of customers, markets, and society within the bounds of limited time and resources. Associated with this interest is the growing need to educate and train project managers. In the past, project managers were chosen for some demonstrated excep- tional capability, although not necessarily managerial—and this is still the case today. If you were a good engineer, systems analyst, researcher, architect, or accountant, eventually you would become a project manager. Somewhere along the way, presum- ably, you would pick up the “other” necessary skills. The flaw in this reasoning is that project management encompasses a broad range of skills—managerial, leadership, interpersonal—that are much different than and independent of skills associated with
- 10. xviii Preface technological competency. And there is no reason to presume that the project envi- ronment alone will provide the opportunity for someone to “pick up” these other necessary skills. As a text and handbook, this book is about the “right” way to manage projects. It is intended for advanced undergraduate and graduate university students, and for practicing managers in engineering, business, and technology. As the title says, it is a book about principles and practice, meaning that the topics in it are practical and meant to be applied. It covers the big picture of project management—origins, appli- cations, and philosophy—as well as the nitty-gritty, how-to steps. It describes the usual project management topics of schedules, budgets, and controls, but also the human side of project management, including leadership and conflict. Why a book on project management in engineering, business, and technology? In our experience, technical specialists such as engineers, programmers, architects, chemists, and so on, often have little or no management training. This book, which includes many engineering and technology project examples, provides somewhat broad exposure to relevant business concepts and management specifics to help these specialists get started as managers. What about those people involved in product development, marketing, process improvement, and related projects commonly thought of as “business projects”? Just as students of engineering and technology seldom receive formal management train- ing, business students are rarely exposed to common practices in technology projects. This book reveals not only how “business” projects are conducted, but also concepts and necessary steps in the conception and execution of engineering, product devel- opment, construction, and other “technology” projects. Of course, engineering and technology projects are also business projects; they are conducted in a business con- text, and involve business issues such as customer satisfaction, resource utilization, deadlines, costs, profits, and so on. Virtually all projects—engineering, technology, and business—are originated and conducted in similar ways, conceptualized in this book using a methodology called the Systems Development Cycle (SDC). The SDC serves as a general framework for discussing the principles and practices of project management, and illustrating commonalities and differences among a wide variety of projects. This book is an outgrowth of our combined several decades of experience teach- ing project management at Loyola University Chicago and the University of Pretoria to business and engineering students, preceded by several years working in busi- ness and technology projects, including aircraft design and flight-test projects, large- scale process facility construction projects, and software applications development and process improvement projects. From our practical experience, we developed an appreciation not only for the business management side of project management but also for the human and organizational side. We have seen the benefits of good com- munication, trust, and teamwork, as well as the costs of poor leadership, emotional stress, and group conflict. In our experience, the most successful projects are those where leadership, trust, communication, and teamwork flourish, regardless of the formal planning and control systems in place; this book largely reflects these personal experiences. Of course, comprehensive coverage of the project management field required that we look much beyond our own experience and draw upon the pub- lished works of many other authors and the suggestions of colleagues and reviewers. In this fourth edition we have revised and added material to incorporate new topics of interest, current examples, and the growing body of literature in project management. To ensure compatibility with modern software, the activity-on-node method is used in all scheduling examples, though the activity-on-arrow method is discussed in an appendix to Chapter 6. New material includes additional coverage of
- 11. xix Preface procurement management and the topic of agile project management, as well as 13 new end-of-chapter case studies. Books tend to grow in size with each new edition; to combat that, every chapter has been rewritten to make everything more readable and more concise. Despite the inclusion of new material, this book has fewer pages than the previous edition. Our goal in writing this book is to provide students and practicing managers with the most practical, current, and interesting text possible. We appreciate hearing your comments and suggestions. Please send them to us at jnichol@luc.edu and herman. steyn@up.ac.za.
- 12. xxi ACKNOWLEDGEMENTS Writing a book is a project and, like most projects, reflects the contributions of many people. We want to acknowledge and give special thanks to those who contributed the most. First, thanks to our research assistants. Research assistants in general do a lot of work—academic as well as gofer work—and without their toiling efforts, most professors would accomplish far less. We have been fortunate to have had the assis- tance of several bright and capable people, particularly Elisa Denney, Hollyce James, Diane Petrozzo, Miguel Velasco, Gaurav Monga, Cary Morgan, Louis Schwartzman, and Brian Whelan. Special thanks to current and former colleagues at Loyola University Chicago and the University of Pretoria. In Chicago, thanks to Dr Gezinus Hidding for his enthusiasm, interest, and contributions to the field of project management; and to Drs Enrique Venta, Harold Dyck, Samuel Ramenofsky, and Donald Meyer, and to Elaine Strnad, Paul Flugel, John Edison, Sharon Tylus, and Debbie Gillespie for their suggestions and support for this and earlier editions. In Pretoria, thanks to Drs Roelf Sandenbergh, Antonie de Klerk, and Tinus Pretorius for encouraging education and research in project management at the Graduate School of Technology Management. I (Herman) also want to express appreciation to Dr Giel Bekker, Philip Viljoen, Dr Pieter Pretorius, Dr Krige Visser, Corro van Waveren, Dr Siebert Benade, Ad Sparrius, Michael Carruthers, and Drs Andre Buys, Leon Pretorius, and Les Labuschagne for their direct and indirect contributions to this book, and for all that I have learned from them. I (John) want to acknowledge the influence of three of my professors, Charles Thompson and Gustave Rath at Northwestern University, and Dick Evans at the Uni- versity of Illinois, whose philosophies and teachings helped shape this book. Our wives Sharry and Karen also get special thanks. Sharry provided numerous suggestions to the first edition, and helped reduce the amount of “techno-jargon” in the book; she managed the home front, was a steadfast source of support, and freed up time so that I (John) could pursue and complete this project. Karen provided wifely support and encouragement; as in the case of so many other projects I (Her- man) have been involved in, had not it been for her support my contribution to this project would not have materialized. Thanks to the folks at Butterworth-Heinemann, especially to Hayley Salter, Lisa Jones, Fiona Geraghty, Joe Hayton, and Mike Joyce, and the folks associated with Taylor & Francis, Jackie Day, Richard Willis, Amy Laurens, and Caroline Watson. There are other colleagues, students, and friends, some mentioned in the end- notes elsewhere throughout the book, that provided support, encouragement, and reference materials; to them also we say thank you. Despite the assistance of so many people and our own best efforts, there are still likely to be omissions or errors. We had final say, and accept responsibility for them. John M. Nicholas Herman Steyn
- 13. xxiii ABOUT THE AUTHORS JOHN NICHOLAS is Professor of Operations Management and Project Management and former Associate Dean of the Graduate School of Business at Loyola University Chicago. He is an active teacher, writer, and researcher in project management and manufacturing management, and conducts executive seminars and has been a consul- tant on project management and process improvement. John is the author of numer- ous academic and technical publications, and five books including Lean Production for Competitive Advantage (2011) and The Portal to Lean Production (2006). He has held the positions of engineer and team leader on aircraft development projects at Lockheed- Martin Corporation, business analyst on operations projects at Bank America, and research associate on energy-environmental research projects at Argonne National Laboratory. He has a BS in aeronautical and astronautical engineering and an MBA in operations research from the University of Illinois, Urbana-Champaign, and a PhD in industrial engineering and applied behavioral science from Northwestern University. HERMAN STEYN is Professor of Project Management in the Graduate School of Technology Management, University of Pretoria, South Africa. He has been involved in project management in industry since 1975, has managed a variety of large and small engineering projects (system, product, and process development) in the min- erals, defense, and nuclear industries, and has also managed project portfolios. In 1996 he was appointed to his current position at the University of Pretoria, where he initiated a master’s program in project management and a comprehensive continuing- education program in project management. Besides teaching graduate courses, con- sulting, and conducting and supervising research in project management, over the past decade Herman has conducted more than 100 seminars and workshops on proj- ect management. He has a bachelor’s degree and graduate diploma in metallurgical engineering, an MBA, and a PhD in engineering management.
- 14. 1 I.1 IN THE BEGINNING . . . Sometime during the third millennium bc, workers on the Great Pyramid of Cheops set the last stone in place. They must have felt jubilant, for this event represented a milestone of sorts in one of humanity’s grandest undertakings. Although much of the ancient Egyptians’ technology is still a mystery, the enormity and quality of the finished product remains a marvel. Despite the lack of sophisticated machinery, they were able to raise and fit some 2,300,000 stone blocks, weighing 2 to 70 tons apiece, into a structure the height of a modern 40-story building. Each facing stone was set against the next with an accuracy of 0.04 inch, and the base, which covers 13 acres, deviates less than 1 inch from level (Figure I.1).1 Equally as staggering was the number of workers involved. To quarry the stones and transport them down the Nile, about 100,000 laborers were levied. In addition, 40,000 skilled masons and attendants were employed in preparing and laying the blocks, and erecting or dismantling the ramps. Pub- lic works were essential to keep the working population employed and fed, Project (praj’ ekt, ikt) n. a proposal of something to be done; plan; scheme. 2. an organized undertaking; specif., a) a special unit of work, research, etc., as in school, a laboratory, etc., b) an extensive public undertaking, as in conservation, construction, etc. —Webster’s New World Dictionary Introduction
- 15. Introduction 2 and it is estimated that no less than 150,000 women and children also had to be housed and fed.2 Just as mind-boggling was the managerial ability of the Egyptians—the planning, organizing, and controlling that were exercised throughout the 20-year duration of the pyramid construction. Francis Barber, a nineteenth-century American naval atta- ché and pyramid scholar, concluded that: it must have taken the organizational capacity of a genius to plan all the work, to lay it out, to provide for emergencies and accidents, to see that the men in the quarries, on the boats and sleds, and in the mason’s and smithies shops were all continuously and usefully employed, that the means of transportation was ample, . . . that the water supply was ample, . . . and that the sick reliefs were on hand.3 Building the Great Pyramid was what we today would call a large-scale proj- ect. It stands among numerous projects from early recorded history that required massive human works and managerial competency. The Bible provides accounts of many projects that required orchestration of thousands of people, and the transport and utilization of enormous quantities of materials. Worthy of note are the manage- rial and leadership accomplishments of Moses. The scriptural account of the exodus of the Hebrews from the bondage of the Egyptians gives some perspective on the preparation, organization, and execution of this tremendous undertaking. Suppos- edly, Moses did a magnificent job of personnel selection, training, organization, and delegation of authority.4 The famed ruler Solomon, among other accomplishments, was the “manager” of numerous great construction projects. He transformed the bat- tered ruins of many ancient cities and crude shantytowns into powerful fortifications. With his wealth and the help of Phoenician artisans, Solomon built the Temple in Jerusalem. Seven years went into the construction of the Temple, after which Solomon took 13 years more to build a palace for himself. He employed a workforce of 30,000 Figure I.1 The Great Pyramid of Cheops, an early (circa 2500 BC) large-scale project. Photograph courtesy of Arab Information Center.
- 16. Introduction 3 Israelites to fell trees and import timber from the forests of Lebanon.5 That was almost 3,000 years ago. About 600 years later, Nehemiah completely rebuilt the wall around Jerusalem—in just 52 days. With later civilizations, notably the Greeks and Romans, projects requiring exten- sive planning and organizing escalated. To facilitate their military campaigns and commercial interests, the Romans constructed networks of highways and roads throughout Europe, Asia Minor, Palestine, and northern Africa, so that all roads would “lead to Rome.” The civilizations of Renaissance Europe and the Middle and Far East undertook river engineering, and construction of aqueducts, canals, dams, locks, and port and harbor facilities. With the spread of modern religions, constructionoftemples,monasteries,mosques,andmassiveurbancathedralswasadded to the list of projects. The remains of these structures throughout the Mediterranean, Asia Minor, and China testify to the ancients’ occupation with large-scale projects. With the advent of industrialization and electricity, the projects of humankind took on increasing complexity. Projects for the construction of railroads, electrical and hydroelectric power facilities and infrastructures, subways, and factories became commonplace. In recent times, development of large systems for communications, defense, transportation, research, and information technology have spurred differ- ent, more complex kinds of project activity. As long as humankind does things, there will be projects. Many projects of the future will be similar to those in the past. Others will be different in terms of either increased scale of effort or more advanced technology. Representative of the lat- ter are three recent projects: the English Channel tunnel (Chunnel), the International Space Station, and SpaceShipOne. The Chunnel required tremendous resources, and took a decade to complete. The International Space Station (Figure I.2) required development of new technologies, and the efforts of the US, Russian, European, Cana- dian, and Japanese space agencies. SpaceShipOne is the venture of a small company in California aimed at developing a vehicle and launch system for future space tourism. Figure I.2 The International Space Station, a modern large-scale project. Photograph courtesy of NASA/Johnson Space Center.
- 17. Introduction 4 I.2 WHAT IS A PROJECT? From these examples, it is clear that humankind has been involved in project activities for a long time. But why are these considered “projects” while other human activities, such as planting and harvesting a crop, stocking a warehouse, issuing payroll checks, or manufacturing a product, are not? What is a project? This is a question we will cover in much detail later. As an introduction, though, below are listed some characteristics that warrant classifying an activity as a project.6 1. A project has a definable goal or purpose, and well-defined end-items, deliver- ables, or results, usually specified in terms of cost, schedule, and performance requirements. 2. Every project is unique; it requires doing something different than was done previously. It is a one-time activity, never to be exactly repeated again. Even in a “routine” project such as home construction, variables such as geography, labor market, and public services make it unique. 3. Projects are temporary activities. They are ad hoc organizations of personnel, material, and facilities organized to accomplish a goal within a scheduled time frame; once the goal is achieved, the ad hoc organization is disbanded. 4. Projects cut across organizational and functional lines because they need skills and talents from different functions, professions, and organizations. 5. Involvement in anything new or different always carries some uncertainty about the outcome. Given that a project is unique, it also involves unfamiliarity and risk. 6. The organization doing the project usually has something at stake. The work calls for special scrutiny or effort, because failure would jeopardize the organization or its goals. 7. A project is the process of working to achieve a goal; during the process the proj- ect passes through several distinct phases in the project life cycle. Often, the tasks, people, organizations, and resources change as the project moves from one phase to the next. The examples described earlier are for familiar kinds of projects, such as con- struction (pyramids), development (transportation and information technology), or a combination of both (space station). In general, the list of activities that qualify as projects is long and includes many that are commonplace. Weddings, remodeling a home, and moving to another house are certainly projects for the families involved. Company audits, major litigations, corporate relocations, and mergers are also proj- ects, as are new product development and system implementations. Military cam- paigns also meet the criteria of projects; they are temporary, unique efforts directed toward a specific goal. The Normandy Invasion in WWII on June 6, 1944 is a good example: The technical ingenuity and organizational skill that made the landings possible was staggering. The invasion armada included nearly 5,000 ships of all descriptions protected by another 900 warships. The plan called for landing 150,000 troops and 1500 tanks on the Normandy coast in the first 48 hours.7 Most artistic endeavors are projects, too. Composing a song or symphony, writing a novel, or making a sculpture is a one-person project. The unusual (and somewhat controversial) works of the artist Christo—draping portions of the Grand
- 18. Introduction 5 Canyon, several islands in Biscayne Bay, and 1,000,000 square feet of Australian coastline with colored plastic—are artistic projects also, but on a larger scale. So is the making of motion pictures, whether independently made or the releases of major production studios. Some artistic projects also require the skills of engineers and builders; for example, Mount Rushmore, the Statue of Liberty, and the Eiffel Tower. Many efforts at saving human life and recovering from man-made or natural disasters become projects. Examples include the massive clean-up following the Soviet nuclear accident at Chernobyl; rescue and recovery operations following disas- trous earthquakes in Chile, Haiti, China, Mexico City, Turkey, and elsewhere; and the Indian Ocean tsunami of December 2004 and the Japan tsunami in 2011. Figure I.3 shows generalized project endeavors, and examples of well-known projects. Notice the diversity in the kinds of efforts. The figure shows approximately where projects fall with respect to complexity and uncertainty. Complexity is mea- sured by magnitude of the effort, number of groups and organizations that need to be coordinated, and diversity in the skills or expertise needed to accomplish the work. Time and resource commitments tend to increase with complexity. Uncertainty is measured roughly by the difficulty in predicting the final outcome in terms of the dimensions of time, cost, and technical performance. In most projects there is some uncertainty in one or two dimensions, at least in the initial stages of planning (e.g., weddings and world fairs). The most complex projects have uncer- tainty in all three dimensions (e.g., the International Space Station). Generally, the more often something is done, the less the uncertainty in doing it. This is simply because people learn by doing and so improve their efforts—the “learning curve” concept. Projects that are very similar to previous ones and about which there is abundant knowledge have lower uncertainty. These are found in the lower portion of Figure I.3 (e.g., weddings, highways, dams, system implemen- tation). Projects with high uncertainty are in the upper portion of the figure. As manned missions to Mars become frequent, they too will move down the uncertainty scale. The cost curve indicates that the expense of projects increases roughly in pro- portion to both complexity and uncertainty. Cost, represented in terms of time or economic value, is at the level of tens or hundreds of labor hours for projects with low complexity and uncertainty, but increases to millions and billions of hours for projects with the greatest complexity and uncertainty. When the uncertainty of a project drops to nearly zero, and when the project effort is repeated a large number of times, then the work is usually no longer considered a project. For example, building a skyscraper is definitely a project, but mass construc- tion of prefabricated homes more closely resembles a scheduled, repetitive operation than a project. Admiral Byrd’s exploratory flight to the South Pole was a project, but modern daily supply flights to Antarctic bases are not. When in the future tourists begin taking chartered excursions to Mars, trips there will not be considered projects either. They will just be ordinary scheduled operations. In all cases, projects are conducted by organizations that, after the project is com- pleted, go on to do something else (construction companies) or are disbanded (Admi- ral Byrd’s crew, the Mars exploration team). In contrast, repetitive, high certainty activities (prefabricated housing, supply flights, and tourist trips to Antarctica or Mars) are (or will be) performed by permanent organizations that do the same thing over and over, with few changes in operations other than scheduling. It is because projects are not repetitive efforts that they must be managed differently.
- 20. Introduction 7 I.3 PROJECT MANAGEMENT: THE NEED Although humankind has been involved in projects since the beginning of recorded history, obviously the nature of projects and the environment have changed. Many modern projects involve great technical complexity, and require a wide diversity of skills. Managers are faced with the problem of putting together and directing large temporary organizations while being subjected to constrained resources, limited time, and environmental uncertainty. To cope with complexity and uncertainty, new forms of project organization and management have evolved. Two examples of activities that required project organization and management are the Manhattan Project to develop the first atomic bomb, and the Pathfinder Mis- sion to land and operate a rover vehicle on the surface of Mars. Projects such as these are unparalleled not only in terms of technical difficulty and organizational complex- ity, but also in terms of the requirements circumscribing them. In ancient times, proj- ect requirements were more flexible. If the Pharaohs needed more workers, then more slaves or more of the general population were conscripted. If builders ran out of fund- ing during construction of a Renaissance cathedral, the work was stopped until more funds could be raised (one reason why some cathedrals took decades or centuries to complete). If a king ran out of money while building a palace, he simply raised taxes. In other cases where additional money could not be raised, more workers could not be found, or the project could not be delayed, then the scale of effort or the quality of workmanship was simply reduced to accommodate the constraints. In the Manhattan and Pathfinder projects, the requirements were not so flexible. First, both projects were subject to severe time constraints. Manhattan, undertaken during World War II, required developing the atomic bomb in the shortest time pos- sible to end the war. For Pathfinder, the mission team was challenged with develop- ing and landing a vehicle on Mars in less than 3 years’ time and on a $150 million bud- get. This was less than half the time and one-twentieth the cost of the previous probe NASA had landed on Mars. Both projects involved advanced research and devel- opment, and explored new areas of science and engineering. In neither case could technical performance requirements be compromised to compensate for limitations in time, funding, or other resources; to do so would increase the risk to undertakings that were already very risky. But constraints and uncertainty in project work are not restricted to large-scale government science programs. They are common in every- day business and technology where organizations continually strive to develop and implement new products, processes, and systems, and to adapt to changing require- ments in a changing world. Consider Dalian Company’s development of “Product J,” a product development project that exemplifies what companies everywhere must do to remain competi- tive—indeed, to survive. In the past, Dalian Company had relied upon trial and error to come up with new products: in essence, whatever worked was used again; what- ever failed was discarded. In recent years the company had begun to lose market. Although it had had many innovative concepts on the drawing board, all had failed because it had been too slow to move them into the marketplace. Dalian was now considering development of Product J, a promising but radically new idea. To move the idea from concept to product would require the involvement of engineers and technicians from several Dalian divisions and suppliers. Before approving the bud- get, the Dalian management wanted assurances that Product J could be introduced early enough to put it well ahead of the competition. The project would need a new product development process guided by project management.
- 21. Introduction 8 Another example is Shah Alam Hospital’s installation of a new employee benefits plan to better suit employee needs, add flexibility and value to the benefits package, and reduce costs. The project would be big—it would involve developing new poli- cies, training staff workers, familiarizing 10,000 employees with the plan, and install- ing a new computer network and database, and require active participation from personnel in human resources, financial services, and information systems, as well as experts from two consulting firms. This project typifies “change” projects every- where—projects initiated in response to changing needs and with the goal of trans- forming the organization’s way of doing things. The project would be different from anything the hospital had done before. As a final example, consider that virtually every company in the world has or will have a website. Behind each site are multiple projects to develop or enhance the web- site and to integrate electronic business technology into the company’s mainstream marketing and supply-chain operations. Such projects are also examples of organiza- tions’ need to change—in this case, to keep pace with advances in information tech- nology and business processes. Activities such as the three examples defy traditional management approaches for planning, organization, and control. They are representative of activities that require modern methods of project management to fulfill difficult technological or market- related performance goals in spite of limitations on time and resources. As a distinct area of management practice, project management is still a new idea, and its methods are still unknown to many experienced managers. Only 50 years ago, its usage was restricted largely to the defense, aerospace, and construction industries. Today, however, project management is being applied in a wide variety of industries and organizations. Originally applied only in large-scale, complex technological proj- ects such as the Apollo Program to land men on the moon, today project management techniques have expanded and are applicable to any project-type activity, regardless of size or technology. Methods of modern project management would have been as useful to early Egyptian and Renaissance builders as they are to present-day contrac- tors, engineers, systems specialists, and managers. I.4 RESPONSE TO MODERN SOCIETY Project management has grown in response to the need for a managerial approach that deals with the problems and opportunities of modern society. It is a depar- ture from the management of simpler ongoing, repetitive operations where the market and technology tend to be predictable, anticipated outcomes are more cer- tain, and only one or a few parties or organizations are involved. In stable and pre- dictable situations like these, traditional organizational forms and management procedures—forms that rely on centralized decision-making and adherence to hierarchical authority—work well. When, however, situations require adapt- ability and rapid response to change—change spurred, for example, by changing technologies or markets—then the project management form of organization and management works much better. Project management provides the diversified technicalandmanagerialcompetencyanddecentralizedcommunicationanddecision- making necessary to meet the challenges of complex, unfamiliar, high-stakes activities.
- 22. Introduction 9 I.5 SYSTEMS APPROACH TO MANAGEMENT A system is a collection of interrelated components or elements that in combination do something. The systems approach to management regards a goal or solution to a problem as the end result or outcome of a system. The focus of the approach is to opti- mize the performance of the overall system (not of its individual components) so as to achieve the goal. The approach starts by defining the goal, identifying components or elements of the system that contribute to or detract from meeting the goal, and then managing the elements to best achieve the goal. Project management is a systems approach to management. A project is a system of interrelated components—work tasks, resources, stakeholders, as well as sched- ules, budgets, and plans. The purpose of project management is to integrate the com- ponents to accomplish the project goal. I.6 PROJECT GOAL: TIME, COST, AND REQUIREMENTS For virtually every project, the goal can be conceptualized in terms of hitting a target that floats in the three dimensions of cost, time, and requirements (Figure I.4). Cost is the specified or budgeted cost for the project. Time is the scheduled period over which the work is to be done. Performance is what the project end-item, deliverables, or final result must do; it includes whatever the project customer or end-user considers nec- essary or important. The target represents a goal to deliver a certain something, by a certain date, for a certain cost. The purpose of project management is to hit the target.8 Unfortunately, technological complexity, changing markets, and an uncontrol- lable environment make it easy to miss the target. Time, cost, and technical perfor- mance are interrelated, and exclusive emphasis on any one will likely undermine the others. In trying to meet schedules and performance requirements, costs increase; conversely, in trying to contain costs, work performance erodes and schedules slip. In earlier times, one or two aspects of the goal were simply allowed to slide so that Figure I.4 Three-dimensional project goal. Adapted from Milton Rosenau, Successful Project Management. Belmont, CA: Lifetime Learning Publications; 1981. p. 16. Cost Target Time Requirements
- 23. Introduction 10 the “most fixed” could be met. Most projects, as the Pathfinder, Dalian Company, and Shah Alam Hospital examples show, do not have this luxury. To an extent, time, cost, and performance must receive equal emphasis. Project management offers a way to maintain focus on all three dimensions and to control the trade-offs among them. As a systems approach, it integrates resources and enables simultaneous emphasis on the “whole” project goal—time, cost, and per- formance requirements. I.7 PROJECT MANAGEMENT: THE PERSON, THE TEAM, THE METHODOLOGY Three key features distinguish project management from traditional forms of man- agement: the person, the team, and the methodology. The Person The most important feature regarding project management is the role of the project manager—the individual who has overall responsibility to plan, direct, and integrate the efforts of all project stakeholders to achieve the project goal. In the role of proj- ect manager, one person is held accountable for the project and is totally dedicated to achieving its goals. The project manager coordinates the efforts across all of the involved functional areas and organizations, and oversees the planning and control of costs, schedules, and work tasks.9 TheTeam A project is a team effort, and project management is bringing together individuals and groups to form the team and to direct them toward a common goal. Often, the team consists of people and groups from different functional areas and organizations. Depending on project requirements, the size and composition of the team may fluctu- ate, and the team may disband after the project is completed. The Methodology The project manager and project team typically perform work in phases according to a “project management methodology.” This methodology provides for integrative planning and control of projects, which according to Archibald refers to the pulling together of all important elements of information related to (1) the products or results of the project, (2) the time, and (3) the cost, in funds, manpower, or other key resources. Further, this information must be pulled together for all (or as many as practical) phases of the project. Finally, integrated planning and control requires continual revision of future plans, comparison of actual results with plans, and projection of total time and cost at completion through interrelated evaluation of all elements of information.10 As a project proceeds from one phase to the next, the project management methodology helps the project manager to (1) identify the required project tasks, (2) identify the required resources and the costs, (3) establish priorities, (4) plan and
- 24. Introduction 11 update schedules, (5) monitor and control end-item quality and performance, and (6) measure project performance.11 I.8 ABOUT THIS BOOK Philosophy and Objectives As a philosophy and an approach, project management is broader and more sophis- ticated than traditional management of repetitive activities. The history of the theory and practice of project management reveals its roots in many disciplines, including management science, systems theory, accounting, operations management, organiza- tional design, law, and applied behavioral science. What has evolved, and will con- tinue to evolve, is a philosophy, approach, and set of practices, the sum total of which comprises project management. Some managers fail to understand this, believing that application of techniques alone, such as “Gantt charts,” “PERT,” or “matrix manage- ment” (all explained later) make for successful project management. Project manage- ment is much more than these. C.P. Snow wrote an essay, entitled “Two Cultures,” about the cultural gap that separates scientists from the rest of society. He wrote of the conflict of ideas, the prob- lems of communication, and the lack of understanding between scientists and other intellectuals.12 Managers and management scholars also tend to see the world from either of two perspectives: some see the world in “hard,” quantitative terms; others see it in “soft” or behavioral terms. The “quantitativists” tend to view projects in terms of costs, dates, and economic variables; their approach is to structure problems math- ematically and to follow some prescribed set of procedures to arrive at a solution. The “behaviorists” view problems in terms of people’s behavior, skills, and attitudes, and systems of organization; their approach is try to motivate attitudinal and behavioral change, and to alter the processes and structure of teams, groups, and organizations. The intent of this book is to give a comprehensive, balanced view that emphasizes both the behavioral and quantitative sides of project management. The philosophy of his book is that for managers to “do” project management, they must gain familiarity with four topical areas: system methodology; systems development process; manage- ment methods, procedures, and systems; and organization and human behavior. Cor- respondingly, the objectives of this book are to cover in depth: 1. The principles and philosophy that guide project management practice 2. The logical sequence of stages in the life of a project 3. The methods, procedures, and systems for defining, planning, scheduling, controlling, and organizing project activities 4. The organizational, managerial, and human behavioral issues in project management. In recent years the scope of project management has grown to encompass more than the management of individual projects, recognizing that project success involves more than the skills and talent of a good project manager; hence, the fifth objective of this book is to describe responsibilities of the organization for effective project manage- ment and successful projects. The Study Project The best way to learn about project management is actually to participate in it or, failing that, to witness it. At the end of every chapter in this book are two kinds of
- 25. Introduction 12 questions: the first are the usual chapter review questions, while the second are “Ques- tions About the Study Project.” The latter are intended to be applied to a particular project of the reader’s choosing. This will be called the “study project.” The purpose of these questions and the study project is to help the reader relate concepts from each chapter to real-life situations. The questions about the study project can be used in two ways: 1. For readers who are currently working in projects as managers or project team members, the questions can be related to their current work. The questions serve to increase the reader’s awareness of key issues surrounding the project, and to guide managers in the conduct of project management. 2. For readers who are currently full or part-time students, the questions can be applied to “real life” projects they are permitted to observe and research. Many business firms and government agencies are happy to allow student groups to interview managers and collect information about their projects. Though secondhand, this is nonetheless an excellent way to learn about project manage- ment practice (and mismanagement). Organization ofThis Book Beyond this introductory chapter, the book is divided into five main parts. Part I is devoted to the basic concepts of project management. This part describes project man- agement principles, systems methodologies, and the systems approach—the philoso- phy that underlies project management. Also covered are the origins and concepts of project management, situations where it is needed, and examples of applications. Part II describes the logical process in the creation and life of a system. Called the Systems Development Cycle, it is the sequence of phases through which all human- made systems move from birth to death. The cycle is described in terms of its relation to projects and project management. Part III is devoted to methods and procedures for planning, scheduling, cost-estimating, budgeting, resource-allocating, controlling, and terminating a project. The topics of resource planning, computer and web-based project management, and project evaluation are also covered. Part IV is devoted to project organizations, teams, and the people in projects. It covers forms of project organization; roles and responsibilities of project managers and team members; styles of leadership; and methods for managing teamwork, conflict, and emotional stress. Part V covers topics that lie beyond the project manager but are crucial for project suc- cess and, more broadly, the success of the organizations and communities that spon- sor and undertake projects. It also covers a topic that spans most other topics in this book but requires special attention: managing projects in different countries. The five stated objectives of this book are roughly divided among chapters in the book’s five parts: 1. Basic concepts and systems philosophy: Chapters 1 and 2. 2. Systems development and project life cycle: Chapters 3 and 4. 3. Methods, procedures, and systems for planning and control: Chapters 5 through 12. 4. Organization, management, and human behavior: Chapters 13 through 15. 5. Project management maturity, the PMO, project selection and portfolio manage- ment, and international project management: Chapters 16 through 18. The Appendices provide examples of three topics mentioned throughout the book: request for proposal (Appendix A), project proposal (Appendix B), and project master plan (Appendix C).
- 26. Introduction 13 I.9 PMBOK Several project management professional organizations have sprouted around the world. These organizations have served to improve the practice of project management by establishing standards, guidelines, and certifications, and have advanced project management from being a simple title or role to a recognized, respected profession. Among the more well-known among these organizations are the IPMA (International Project Management Association), the UK’s APM Group (Association for Project Man- agement), and the PMI (Project Management Institute). Starting in 1985, the PMI—the largest of these organizations—gathered up all the known, accepted best practices in the profession, and has since published them in a series of documents called A Guide to the Project Management Body of Knowledge (PMBOK).13 The APM and IPMA have also published their own versions of the PMBOK. Although none of the PMBOKs cover everything about project management (and couldn’t do so even if they tried), they have become the recognized standards about what, minimally, a project manager should know in practice and for attaining professional certification. The PMI calls its popular project management certification PMP—Project Management Professional. The PMI’s Guide to PMBOK divides project management knowledge into nine areas: • Project integration management • Project scope management • Project time management • Project cost management • Project quality management • Project human resource management • Project communications management • Project risk management • Project procurement management For readers interested in the PMI’s PMBOK, or seeking PMP certification, Table I.1 shows the correspondence between PMBOK knowledge areas as published in the PMI’s Guide, and the chapters in this book that address them. I.10 STUDY PROJECT ASSIGNMENT Select a project to investigate. It should be a “real” project; that is, a project that has a real purpose and is not contrived just so you can investigate it. It can be a current project or one already completed; whichever, it must be a project for which you can readily get information. If you are not currently involved in a project as a team member, then you must find one for which you have permission to study (collect data and interview people) as an “outsider.” The project should include a project team (a minimum of five peo- ple) with a project leader and be at least 2–3 months in duration. It should also have a specific goal in terms of a target completion date, a budget limit, and a specified end- item result or product. In general, larger projects afford better opportunity to observe the concepts of project management than smaller ones.
- 27. Introduction 14 Table I.1 Book Chapter versus the PMI’s PMBOK Knowledge Areas PMBOK Guide Book Chapters PMBOK Knowledge Areas Key: P=PMBOK Knowledge Area is a major focus of this chapter *=PMBOK Knowledge Area is addressed in this chapter Introduction P * * Chapter 1: What Is P * Project Management? Chapter 2: Systems * * * Approach and Systems Engineering Chapter 3: Systems P * * * P Development Cycle and Project Conception (and Appendix) Chapter 4: Project and * * * P System Definition Chapter 5: Planning * * * P * P Fundamentals Chapter 6: Project Time * * P Planning and Networks Chapter 7: Advanced * P * Project Network Analyses and Scheduling Chapter 8: Cost * P * Estimating and Budgeting Chapter 9: Project * * P Quality Management Chapter 10: Managing * P Risks in Projects Chapter 11: Project * * * * * P * Execution and Control Chapter 12: Project * * P * Evaluation, Communication, Implementation, and Closeout Introduction Project Life Cycle and Organization Project Management Process Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communications Management Project Risk Management Project Procurement Management
- 28. Introduction 15 Table I.1 Continued Chapter 13: Project * P Organization Structure and Integration Chapter 14: Project * * Roles, Responsibility, and Authority Chapter 15: Managing * P Participation, Teamwork, and Conflict Chapter 16: The * * * Management of Project Management Chapter 17: Project * * * Selection and Portfolio Management Chapter 18: * * * * * * * * * International Project Management If you are studying a project as an outsider, it is also a good idea to do it in a team with three to six people and an appointed team leader (i.e., perform the study using a team). This, in essence, becomes your project team—a team organized for the purpose of studying a project. You can then readily apply many of the planning, organizing, team-building, and other procedures discussed throughout the book as practice and to see how they work. This “hands-on” experience with your own team, combined with what you learn from the project you are studying, will give you a fairly accurate picture about problems encountered and management techniques used in real-life project management. REVIEW QUESTIONS AND PROBLEMS 1. Look at websites, newspapers, magazines, or television for examples of projects. Surprisingly, a great number of newsworthy topics relate to current and future projects, or to the outcome of past projects. Prepare a list of these topics. 2. Prepare a list of activities that are not projects. What distinguishes them from project activities? Which activities are difficult to classify as projects or non-projects? 3. Because this is an introductory chapter, not very much has been said about why projects must be managed differently, and what constitutes project manage- ment—the subject of this book. Now is a good time to speculate about these: Why do you think projects and non-projects need to be managed differently? What do you think are some additional or special considerations necessary for managing projects?
- 29. Introduction 16 NOTES 1. Tompkins P. Secrets of the Great Pyramids. New York, NY: Harper & Row; 1976, pp. 233–234; Poirier R. The Fifteen Wonders of the World. New York, NY: Random House; 1961, pp. 54–67. 2. Ibid., pp. 227–228. 3. Barber F. In: The Mechanical Triumphs of the Ancient Egyptians. London, UK: Tribner; 1900, p. 233. 4. George CS. The History of Management Thought. Upper Saddle River, NJ: Prentice Hall; 1968, p. 11. 5. Potok C. Wanderings. New York, NY: Fawcett Crest; 1978, pp. 154–162. 6. Archibald RD. Managing High-Technology Projects. New York, NY: Wiley; 1976, p. 19; Meredith JR, Mantel S. Project Management: A Managerial Approach, 6th edn. New York, NY: Wiley; 2006, pp. 8–10; Roman DD. Managing Projects: A Systems Approach. New York, NY: Elsevier; 1986, pp. 2–10; Stewart JM. Making project management work. Business Horizons 1965; 8(3): 54–68. 7. Terraine J. The Mighty Continent. London, UK: BBC; 1974, pp. 241–242. 8. Rosenau MD. Successful Project Management. Belmont, CA: Lifetime Learning; 1981, pp. 15–19. 9. Kerzner H. Project Management: A Systems Approach to Planning, Organizing, and Controlling, 10th edn. Hoboken, NJ: John Wiley & Sons; 2009, pp. 14–16. 10. Archibald RD. Managing High-Technology Projects. New York, NY: Wiley; 1976, pp. 6–7. 11. Kerzner H. Project Management: A Systems Approach to Planning, Organizing, and Controlling, p. 19–20. 12. Snow CP. The Two Cultures and a Second Look. Cambridge, UK: Cambridge University Press; 1969. 13. A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4th edn. Project Management Institute, November 2008.
- 30. Part Part I I Philosophy and Concepts CHAPTER 1 What Is Project Management? CHAPTER 2 Systems Approach and Systems Engineering The two chapters in this section describe the philosophy and con- cepts that differentiate project management from traditional, non- project management. Project management is an application of what has been called the systems approach to management. This section intro- duces features associated with project management, and describes the principles, terminology, and methodology of the systems approach. It sets the stage for more detailed coverage in later sections.
- 31. 19 The projects mentioned in the Introduction—the Great Pyramid of Egypt, the International Space Station, the Chunnel, and the development of Product J—all have something in common with each other and with every other undertaking of human organizations: they all require, in a word, management. Certainly the resources, work tasks, and goals of these proj- ects vary greatly, yet without management none of them could happen. This chapter contrasts project management and non- project management, and looks at the variety of ways and places where project management is used. 1.1 FUNCTIONS AND VIEWPOINTS OF MANAGEMENT 2 The role of management is to plan, organize, and integrate resources and tasks to achieve the organization’s goals. Although the specific responsibilities Making a film is a lot like carrying out a space mission. Both are big-ticket items produced by teams, which come into existence with budgetary and schedule constraints. The technical skills necessary to land a spacecraft on a planet are close to the ones required to create the illusion of that landing. —M.G Lord, Astro Turf1 What Is Project Management? Chapter Chapter 1 1
- 32. Part I Philosophy and Concepts 20 of managers vary greatly, all managers—whether they are corporate presidents, agency directors, line managers, school administrators, movie producers, or project managers—have this same role. Management Functions The activities of a manager can be classified into the five functions identified in Figure 1.1. First, the manager decides what has to be done and how it will be done. This is the planning function, which involves setting a purpose or goal and estab- lishing the means for achieving it consistent with higher-level organizational goals, resources, and constraints in the environment. Second, and related to planning, is arranging for the work to be done; this is the organizing function. The manager must (1) hire, train, and gather people into a team with specified authority, responsibility, and accountability relationships; (2) acquire and allocate facilities, materials, capital, and other resources; and (3) create an orga- nization structure that includes policies, procedures, reporting patterns, and commu- nication channels. Third, the manager directs and motivates people to attain the goal. This is the leadership function. The manager tries to influence the work performance and behav- ior of workers and groups. Fourth, the manager monitors work performance with respect to the goal and takes necessary action whenever work begins to deviate from the goal; this is the con- trol function. For effective control, the manager tracks information about performance with respect to costs, schedules, and goal criteria. All four functions are aimed at the goal, which implies a fifth function: assessing the four functions to determine how well they, the functions, are doing and where change is needed, either to the goal or to the functions themselves. On a day-by-day basis, rarely do managers perform the functions in Figure 1.1 in strict sequence. Although planning should precede the others, there is always a need to organize activities, direct people, and evaluate work, regardless of sequence. Man- agers constantly face change, which means that plans, activities, performance stan- dards, and leadership styles must also change. Managers oversee a variety of work tasks simultaneously, and for each one they must be able to exercise any of these functions as needed. Different managers’ jobs carry different responsibilities depending on the func- tional area and managerial level of the job. Some managers devote most of their time to planning and organizing, others to controlling, and others to directing and motivat- ing. No process or set of management functions applies equally in all cases. Managers must be adaptable to the situation. This is the contingency viewpoint of management. Planning Control Leadership Organizing Purpose or Goal Change Figure 1.1 The functions of management.
- 33. Chapter 1 What Is Project Management? 21 Viewpoints of Management The contingency viewpoint is but the latest in an evolving series of management prop- ositions and methodologies. The earliest, called the classical viewpoint, originated at the start of the twentieth century. This held that there was one best way to manage with a corresponding set of universal bureaucratic and scientific management princi- ples that could be applied to all situations. The classical viewpoint established formal principles for planning, organizing, leading, and controlling. In theory, the principles outline all the kinds of things managers should do. The drawback is that they ignore much of the reality of what actually happens in organizations, and therefore provide poor guidance about what managers should do in different situations. The 1930s brought the behavioral viewpoint, in which the emphasis shifted from work principles to the human and social aspects of organizations. One of the early proponents of this viewpoint, Elton Mayo, introduced the concept of “social man”— the worker who is motivated by social needs and relationships with others, and is responsive to work group norms and pressures.3 The contribution of this viewpoint is that it highlighted the importance of leadership style, group dynamics, and social environment—concepts not considered by the classical theorists. But the behavior- ists, like their classical counterparts, tended to look at management rather narrowly. Human and organization behavior are more complex than they presumed, and many behaviorist theories concerning satisfaction, morale, and productivity are too simplis- tic to be of practical use. During World War II, a third viewpoint, called the systems approach, was intro- duced. Whereas the first two viewpoints sought to simplify management through concepts that would fit all situations, the systems viewpoint acknowledges complex- ity and causal relationships. Simply stated, before managers can prescribe action, they must first understand the system and its relationship with the environment. Rather than give a set of rote prescriptions about how to manage, the approach suggested ways to understand the elements and dynamics of a situation, and models to help clarify problems and identify courses of action. But even this approach could not be relied upon always to tell the manager what to do. All three viewpoints represent different perspectives, all make valuable contribu- tions to management theory and practice, and all have limitations. The current con- tingency viewpoint recognizes that none of them alone can guide a manager in all aspects of the job in every situation. This viewpoint, which includes ideas like situ- ational leadership4 and the contingency approach to management,5 stresses that all three views can be applied independently or in some combination, depending upon the situation. Simply, the contingency viewpoint suggests that for management practice to be effective it must be consistent with the requirements of the environment, the tasks being performed, and the motivation and skills of the people performing them. 1.2 PROJECT VIEWPOINT VERSUS TRADITIONAL MANAGEMENT The purpose of project management is to manage a system of tasks, resources, peo- ple and organizations to accomplish the project goal; this is what makes it a systems approach to management. Nonetheless, project management also relies upon ele- ments of the classical and behavioral viewpoints, so it is, in fact, a good example of the contingency approach because it is a management philosophy and methodology oriented toward one type of undertaking—projects.
- 34. Part I Philosophy and Concepts 22 Characteristics of Projects A project was defined in the Introduction as:6 1. Having a single, definable goal or purpose and well-defined end-items or deliverables 2. Being unique 3. Being somewhat or largely unfamiliar and risky 4. Utilizing skills and talents from different professions and organizations 5. Being a temporary activity 6. Having something at stake 7. Being the process of working toward a goal. Perhaps the more significant distinguishing characteristics are the second, third, and fourth: every project is unique and unfamiliar in some sense, and requires mul- tifunctional or multi-organizational involvement. This creates uncertainty and risk, and decreases the chances of achieving the desired result. In non-project, repetitive activities like mass production or delivery of services, which involve procedures that seldom change and are performed by the same people, day-in, day-out, the results are more certain and the risks low. Projects need a different kind of management. Characteristics of Project Management Looking at the characteristics of a project, the question from a management perspec- tive is: How do you manage such a thing? The answer: use project management. The key features of project management are as follows.7 1. A single person, the project manager, heads the project organization and works independently of the normal chain of command. The project organization reflects the cross-functional, goal-oriented, temporary nature of the project. 2. The project manager is the person who brings together all efforts to meet project objectives. 3. Because each project requires a variety of skills and resources, project work might be performed by people from different functional areas or by outside contractors. 4. The project manager is responsible for integrating people from the different functional areas or outside contractors. 5. The project manager negotiates directly with functional managers or contractors who might be responsible for the individual work tasks and personnel within the project. 6. While the project manager focuses on delivering a particular product or service at a certain time and cost, functional managers are responsible for the pool of workers and resources in their areas. As a result, conflict may arise between project and functional managers over the people and resources allotted to a project. 7. A project might have two chains of command—one functional and one project— and people working in a project report to both a project manager and a func- tional manager. 8. Decision-making, accountability, outcomes, and rewards are shared between the project team and supporting functional units and outside contractors. 9. Although the project organization is temporary, the functional or subcontracting units from which it is formed are permanent. When a project ends, the project
- 35. Chapter 1 What Is Project Management? 23 organization is disbanded and people return to their functional or subcontract- ing units. Because projects involve the coordinated efforts of different units from within and outside the organization, managers and workers in different units and at dif- ferent levels need to associate directly with each other. Formal lines of communica- tion and authority are frequently bypassed and a horizontal hierarchy is created. This horizontal hierarchy enables members of the project organization from different func- tional areas and outside organizations to communicate and work directly with each other as needed. In non-project organizations, managers tend to be specialized and responsible for a single functional unit or department. A project, however, needs the support of many departments; hence, someone from outside these departments must take responsibil- ity for meeting the project’s goals. That person is the project manager. This emphasis on project goals versus the performance of each functional unit is one feature that distinguishes project managers from functional managers. Project managers often direct people who are not “under” them but who are “assigned” to them from different areas of the organization as needed. Thus, the tasks of project managers are more complicated than those for departmental managers. Project managers must know how to use diplomacy, resolve conflicts, and be effective leaders, and be able to function without the convenience of always having the same team reporting to them. Example 1.1: Project Management in Construction Large construction projects are often in the news—sometimes because of prob- lems owing to cost overruns or schedule slippages. Although many factors are cited (labor union problems, materials shortages, weather, inflation), the real cause is frequently poor management and lack of control. Often, the manager of the project is either the architect or the contractor. This works on small, less complex construction jobs, but on big jobs it is a bad arrangement because archi- tects and contractors each represent the interests of a separate “functional area.” When things go wrong and arguments arise, both tend to be self-serving; there is no one who is impartial and can reconcile differences in the best interests of the customer—the building owner or developer. A better arrangement is when the owner or developer appoints an indepen- dent construction project manager. The project manager represents the owner’s interests during the entire design and construction process. As shown in Figure 1.2, the project manager’s central position within the project organization enables him or her to monitor and coordinate all design and building tasks in accordance with the owner’s or developer’s goals. The project manager’s role ensures that the architect’s designs are within the developer’s cost allowances and building Owner/developer Project manager Architect General contractor Design and/or building subcontractors Communication Contractual authority Figure 1.2 The project manager in a construction project.
- 36. Part I Philosophy and Concepts 24 requirements, and that the contractor’s work is executed according to contract specifications and at a fair price. The project manager is involved throughout the project life cycle, overseeing preliminary architectural design, doing the subcon- tracting, and controlling site work according to design specifications, time, cost, and worker safety. Other examples of project managers are described later in the chapter. 1.3 EVOLUTION OF PROJECT MANAGEMENT No single individual or industry can be credited with the idea of project manage- ment. It is often associated with the early missile and space programs of the 1960s, but clearly its origins go back much earlier. Techniques of project management probably first appeared during the major construction works of antiquity, such as the Pyra- mids, the Roman aqueducts, the Qutab Minar mosque in Delhi, and the Great Wall of China. Later these techniques were improved and modified for usage on other forms of construction projects, such as shipbuilding. Starting in the early twentieth century, industrial managers found that techniques used to manage construction could also be used for large-scale non-construction jobs, such as designing and testing new products, and building and installing specialized machinery. Around the same time, during World War I, improved techniques for planning non-standard, project-type work were being developed, and a new produc- tion scheduling and tracking tool called the Gantt chart was introduced (see exam- ples in Chapter 5). About 30 years later, the first network-type display for describing industrial processes, called a process flow diagram, was developed. This would become the basis for project network diagrams. By the 1950s, the size and complexity of many projects had increased so much that existing management techniques proved inadequate. In particular, large-scale proj- ects—development of aircraft, missiles, communication systems, and naval vessels— were becoming so complex that they defied all existing methods to plan and control them. Repeatedly, these projects suffered enormous cost and schedule overruns. To grapple with the problem, two new network-based planning and control methods were developed, one by the Navy in 1958, called PERT, and the other by DuPont Corporation in 1957, called CPM. Both methods (described in Chapter 7) were created exclusively for planning, scheduling, and controlling large projects with numerous interrelated work activities. A decade later, these methods were combined with com- puter simulation methods to permit more realistic analysis of schedules. By the mid-1950s, wide-scale usage of computers provided increased capability for handling the immense amount of information necessary to manage large-scale projects. Network methods were refined to integrate project cost accounting with project scheduling. These methods came into widespread usage in the 1960s when the federal government mandated the use of network scheduling/costing methods, called cost schedule control systems (C/SCS), first with Department of Defense and NASA contracts, then with other large-scale efforts such as nuclear power plants. In the 1970s, a project tracking concept called earned value came into use. This con- cept led to performance measurement systems that track not only expenditures, but also the percentage of work completed. This led to more reliable forecasting of final project costs and completion dates. The past 40 years have witnessed the increased computerization of project man- agement. Initially, project planning and tracking systems were available only for large
- 37. Chapter 1 What Is Project Management? 25 mainframe computers, and cost $10,000 to $100,000. Today, relatively low-cost soft- ware—between $200 and $2000—makes it possible to apply a variety of techniques for scheduling, costing, resource planning, performance analysis, and forecasting to virtually any size project. Associated with the development of methods for project planning and control were the evolution of forms of project organization and the role of project manager. Not until World War II was the project recognized as a distinct organizational form. In the urgency to develop sophisticated weaponry and organize massive task forces of troops and material, pure project forms of organization evolved. In 1961, IBM became one of the first companies in industry to formally use the role of project manager; there, project managers (called “systems managers”) were given broad responsibility across functional lines to oversee development and installation of mainframe computers. In 1962, in one of the first discussions of the evolution of project management, Davis identified four types of project management organization,8 noting that project organizations tend to evolve from one type to the next as their problems become more complex and organizations become more sophisticated in dealing with them. Davis’s classification can be used to introduce four types of project managers: • Project expeditors, whose purpose is to try to speed up work. They are the commu- nication link between senior managers and the project. Their purpose is to achieve unity of communications. They are not really managers, but are go-betweens who translate technical concepts into business concepts such as costs, schedules, and markets. The role is limited to funneling information from technical workers to executives, and making suggestions; thus, it tends to be restricted to small proj- ects with low risk and little at stake. • Project coordinators, whose purpose is to achieve unity of control over project activi- ties. They have authority to control project matters and disburse funds from the budget, but no actual line authority over workers. Their authority derives solely from their association with upper-level managers. The construction project man- ager in Figure 1.2, for example, would be in this position if she coordinated the work but needed approval from the developer for major decisions such as con- tracting or allocation of funds. • Matrix managers, whose purpose is to achieve unity of direction. Although they serve the same purposes as the first two, they additionally have authority to plan, direct, and control project work. Matrix managers direct people located adminis- tratively in different functional departments, and the resulting crisscross pattern of vertical–functional and horizontal–project reporting relationships create what is called a matrix organization. In Figure 1.3, for example, the manager of Project One oversees project tasks 1–3, which are performed by people assigned from the functional areas of accounting, contracts, etc. Another example is the manager of a construction project that involves both designing and constructing a building. Managers from the architectural and construction departments assign person- nel to the project, who then report to the project manager for as long as needed. The same personnel may also work on other projects and report to other matrix managers. • Pure project managers, whose purpose is to achieve unity of command over the people in pure project organizations that report directly to them. They are primar- ily integrators and generalists rather than technical specialists. They must balance technical factors of the project with schedules, costs, resources, and human fac- tors. In the course of a project, they deal with top management, functional manag- ers, vendors, customers, and subcontractors. The manager of a large construction
- 38. Part I Philosophy and Concepts 26 project who is hired by the developer and delegated the authority to make major decisions (such as selecting and contracting with the architect and the contractor) has such a role. The latter two types are most in keeping with the concept of the project manager, although the other two are also widely found. 1.4 WHERE IS PROJECT MANAGEMENT APPROPRIATE?9 The fact is, project management is applied almost everywhere, and there are relatively few industries or situations where project management is not applied at least some of the time. This section identifies conditions and situations where a project-type organi- zation is applicable or essential. Project management can be applied to any ad hoc undertaking. As shown in the Introduction (Figure I.3), an “ad hoc undertaking” includes activities that range from writing a term paper or remodeling a kitchen, to fundraising and constructing theme parks such as Walt Disney World. Generally, the more unfamiliar or unique the undertaking, the greater the need for project management to ensure nothing gets overlooked; the more numerous, interdisciplinary, and interdependent the activities in the undertaking, the greater the need for project management to ensure everything is coordinated, integrated, and completed. Customers such as major corporations or the US government frequently request or mandate formal project management because they believe it offers better cost, schedule, and quality control, and they prefer having a single point of contact—the project manager—with whom to deal. Criteria Cleland and King list five general criteria for determining when to use project man- agement techniques and organization.10 Top management Accounting Contracts Engineering Task 1 Project One Project Two Purchasing Task 3 Task 2 Task 1 Figure 1.3 Vertical and horizontal elements of a matrix project organization.
- 39. Chapter 1 What Is Project Management? 27 1. Unfamiliarity By definition, a project is something different from the ordinary and routine. A project always requires that different things be done, that the same things be done differently, or both. For example, continuous minor changes in products such as small improve- ments in automobile parts can usually be accomplished without project management; however, modernizing an automotive plant, which calls for non-routine efforts such as upgrading facilities, replacing equipment, retraining employees, and altering work procedures, would certainly require project management. 2. Magnitude of the Effort When a job requires substantially more resources (people, capital, equipment, etc.) than are normally employed by a department or organization, project management may be necessary. Examples include relocating a facility, merging two corporations, or developing or substantially redesigning a product and placing it on the market. Even when the job lies primarily within the realm of one functional area, the task of coordinating the work with other functional areas might be large. For example, a corporate software installation project might seem to fall entirely within the functional area of information technology, yet in reality it will require a seamless meshing of the procedures and resources of all departments affected by the installation and involve hundreds of people. 3. Changing Environment Industries such as computers, electronics, pharmaceuticals, and communications face continual change driven by an environment characterized by high innovation, intense competition, and shifting markets and consumer demands. Other industries, such as chemicals, biotechnology, and aerospace, also exist in environments that, though less volatile, are highly competitive and dynamic. Project management provides the neces- sary flexibility to deal with emerging threats and opportunities in such environments. 4. Interrelatedness Functional areas tend to be self-serving and work independently. When a multifunc- tional effort is required, project management is necessary to build lateral relationships between the areas to expedite work and reconcile conflicts. The project manager coor- dinates the efforts of internal functional areas and interactions with outside subcon- tractors and vendors. 5. Reputation of the Organization If failure to complete the project satisfactorily will result in financial ruin, loss of mar- ket share, damaged reputation, or loss of future contracts, there is a strong case for project management. Although project management is no guarantee for success, it does improve the odds. It can do much to reduce the inherent risks in large, complex undertakings. Example 1.2: Renovating the Statue of Liberty11 By the early 1980s, 95 years after the Statue of Liberty was presented to the American people, its surface and interior structure had become so badly corroded that it was judged structurally unsound. To oversee restoration of the statue and other buildings on nearby Ellis Island, the US Department of the Interior estab- lished a foundation. Very little of the restoration work qualified as “standard.” It involved highly specialized skills such as erection of scaffolding, construction of a new torch, building of windows for the crown, and replacement of the interior framework— expertise that tends to be found in smaller firms. As a result, the work was
- 40. Part I Philosophy and Concepts 28 accomplished by a legion of over 50 small businesses, many of whose workers were immigrants or descendants of immigrants whom the statue had welcomed to America. There were myriad notable features about the job. The scaffolding surround- ing the statue never touched it at any point. Constructed of hundreds of thou- sands of pieces of aluminum, it qualified for the Guinness Book of World Records as the largest free-standing scaffolding ever built. To renovate the statue’s inte- rior, 1,699 five-foot bars were painstakingly fashioned from 35,000 pounds of stainless steel, and then individually installed. Around the crown, 25 windows were replaced. Each was handcrafted and had to be treated as a project unto itself. To fashion an entirely new torch, French artisans practiced an ancient copper-shaping technique. The project was truly a marriage of art and engineering. The 30-month, $31 million renovation effort involved thousands of tasks per- formed by hundreds of people. Most of the tasks were non-routine and inter- related, and all had to be completed within a tight budget and schedule; such a situation calls for project management. (See Chapter 15 for a discussion of the company responsible for managing the renovation.) Where Project Management Is Not Appropriate The obverse of all of this is that the more familiar and routine the undertaking, the more stable the environment, the less unique and more standardized the end-item, and the lower the stake in the result, the less the need for project management. Pro- duction of standardized industrial and agricultural outputs, for example, is generally more efficiently managed by tried and true operations planning and control proce- dures than by project management. This is because for standardized, repetitive opera- tions, there is much certainty in the process and outcome; for such operations, stan- dardized routine procedures for production planning, scheduling, and budgeting are well-suited, while project management is not. 1.5 MANAGEMENT BY PROJECT: A COMMON APPROACH Though not appropriate for managing every situation, project management does apply to a great many situations—not only large-scale, infrequent undertakings, but also all kinds of smaller, more frequent activities. Whenever an undertaking involves activities that are somewhat unique or unfamiliar, and that require cooperation from several parties, project management applies. For example, consultants in every industry perform work on a project-by-project basis. Whenever this work calls for coordinated participation of several individuals or groups, project management applies. The larger the number of people or groups involved and the greater the need to coordinate them, the more project management applies. Similarly, groups that work on developing or implementing new products, sys- tems, or services also work on a project-by-project basis. The larger, riskier, more complex, costly, innovative, or different the thing being developed or implemented is, the more applicable is project management. Further, any group that performs unique work on a client-by-client basis (so- called made-to-order, or made-to-engineer) is also performing project work. If the work requires coordinated efforts from different parties, project management usually applies.
- 41. Chapter 1 What Is Project Management? 29 Think about these situations for a moment, and you start to realize the many cases where projects happen and project management applies. Managing any kind of work as a discrete project is referred to as “managing by project,” or MBP.12 With MBP, an undertaking or set of activities is planned and man- aged as if it were a project. In particular, MBP implies that the undertaking will have well-defined objectives and scope, firm requirements for the end-results, a plan of work, a completion date, and a budget for the required resources. A team is formed for the sole purpose of performing the work, and a project manager or team leader is assigned to guide and coordinate the work. At some time, all organizations use project approaches. Even in stable, repetitive industries, small projects involving a few individuals are always in progress: new machines are installed or old ones are repaired; the office is remodeled; the cafeteria is relocated. It is when larger or more special undertakings arise, such as the develop- ment of a totally new product, installation of major equipment, or the move to a new location, that a more formalized project group must be formed. Example 1.3: Relocation of Goman Publishing Company Many companies, regardless of size (whether headquarters for a multi-billion dol- lar corporation or a storefront family restaurant), at some point face the deci- sion to relocate. Relocation requires planning and coordination of numerous tasks involving many individuals, departments, and outside contractors. It is an impor- tant event that if done properly can be an exciting and profitable experience, but if done poorly can lead to financial loss or ruin. It is also representative of a situation wherein a company must do something it does not ordinarily do. Consider Goman Publishing, a company experiencing rapid growth and which was soon to exceed the capacity of its current facility. The initial task in relocating the company was to decide between two options: buying land and construct- ing a new building, or leasing or buying an existing structure. After deciding to build, the next task was to select a site. The main selection criteria were purchase expense, distance from current location, prestige and size of the new location, and access to major highways. Next was the relocation planning, which had two major phases: design and construction of the new facility, and the physical move, each involving numerous considerations. For example, Goman wanted to retain its current employees, and to maximize the new facility’s appeal it chose to build an indoor employee parking area and a large, well-appointed cafeteria. Among the many move-related considerations were furniture procurement, special handling of computer equipment, hiring movers, distributing information to employees and clients about the move, and maintaining corporate security. Further, the relocation would have to be scheduled to minimize downtime and interruption of operations. To oversee the project and ensure that construction and the physical move went according to plan, Goman appointed a project manager and support staff. The project manager worked with architects and building contractors during the design and construction phases, and with representatives from functional depart- ments and moving contractors during the move phase. Despite the scope and unfamiliarity of the project, Goman was able to complete the construction and physical move on time and according to budget. 1.6 DIFFERENT FORMS OF PROJECT MANAGEMENT Project management has different forms with different names, including systems management, task force management, team management, ad hoc management, matrix
- 42. Part I Philosophy and Concepts 30 management, and program management. Regardless, all these forms share two fea- tures: (1) a project team or project organization created uniquely for the purpose of achieving a specific goal; and (2) a single person—a project manager—assigned respon- sibility for seeing that the goal is accomplished. Beyond these, features of the forms differ somewhat. The first section below covers “basic” project management, the most commonly understood concept of project management. The other sections cover variants of or management forms similar to project management. Basic Project Management The most common project approach places the project manager and functional man- agers on the same organizational level so that both report to the same senior-level person. The project manager is given formal authority to plan, direct, organize, and control the project from start to finish. The project manager may work directly with any level and functional area of the organization to accomplish project goals. She reports to the general manager or owner, and keeps him apprised of project status. Sometimes the project manager has authority to hire personnel and procure facilities, although more often she negotiates with functional managers to “borrow” them. Basic project management is implemented in two widely used forms—pure proj- ect and matrix. In pure project management, a complete, self-contained organization is created. The needed resources belong to the project, and do not have to be bor- rowed. In matrix management, the project organization is created from resources allotted (borrowed) from the functional units. The project must share these resources with other concurrent projects, and with the functional areas from which they are bor- rowed. These two project management forms will be described further in Chapter 13. Although often found in construction and technology industries, basic project management can be readily applied to small, non-technical activities as well, includ- ing in the arts and social sciences. Adams, Barndt, and Martin cite examples where basic project management could be applied:13 • Health, Education, and Welfare (HEW) performs social work largely on the basis of grants allocated through state and local agencies. Associated with each grant are time, cost, and performance requirements for the funding agencies. In essence, each grant results in a project to which the concepts of project management can be applied. • When an advertising firm conducts a promotional campaign, it utilizes the sup- port of marketing research, accounting, graphics, sales, and other units. Several projects are usually underway at any given time, each in a different stage of its life cycle. These campaigns are similar to the projects in other industries that commonly practice project management. • A good deal of work performed in education development can be considered proj- ect work. Like HEW, much of this work is funded by grants with target goals, and cost and time constraints. Also, the work requires coordination among many edu- cators and researchers—a task for which project management is ideally suited. Program Management14 The term “program management” is often used interchangeably with project man- agement due to the similarities of programs and projects: both (1) are defined in terms of goals or objectives about what must be accomplished; (2) emphasize the time period over which goals or objectives are to be pursued; and (3) require plans,
- 43. Chapter 1 What Is Project Management? 31 budgets, and schedules for accomplishing the goals. That is, projects and programs both work toward goals specified in terms of a desired product or service output, a target date, and a budget. However, for definitional purposes in this book, programs and projects are differ- ent—the main distinction being that a program extends over a longer time horizon and consists of several parallel or sequential work efforts or projects that are coordinated to meet a program goal. The projects within a program share common goals and resources, and often they are interdependent. As examples, an urban development program may include several projects, such as housing rehab, job and skill training, and small business consulting assistance; a Mars exploration program may include several proj- ects for unmanned probes to Mars and its moons, Phobos and Diemos, followed by a manned mission to Mars. Sometimes individual projects in a program grow to become so large that they themselves become full-fledged programs, as was the case with the Apollo Lunar Program. The Manhattan Project was really a “program.” Another distinction is that projects are oriented to producing and delivering a product or service, after which the project organization is dissolved. The project organization develops and delivers the end-item, but the operation and service of the end-item is someone else’s responsibility. In a program, however, once the end-item product or service has been delivered, it is up to program management to ensure that it is integrated with other systems, and operational for as long as needed. For exam- ple, several contractors might produce and deliver a satellite and its booster rocket, but afterwards someone else is responsible for launching the rocket and satellite, and after that someone else again deals with monitoring and operating the orbiting satel- lite. Program management would oversee everything—the development of the satel- lite and rocket, launch support, ongoing satellite monitoring, and so on—whatever is needed to achieve the overall satellite program goal. Most concepts in project management apply also to the management of programs, though with modification to deal with the larger scope and magnitude of programs. A program manager oversees and coordinates the projects within the program, but because a program is composed of teams from various projects, a program structure must be created to coordinate them. This structure is similar to (and overlays) the project structure. Contrast the structure of the typical aircraft development program shown in Figure 1.4 with the project management structure shown in Figure 1.3. Since Senior management Comptroller Field support Engineering Aerodynamics project Propulsion project Structures project Avionics project Information technology Program management Figure 1.4 Typical aircraft development program.
- 44. Part I Philosophy and Concepts 32 many programs last too long for any one person to be in charge from start to finish, different people might occupy the role of program manager during a program’s life. New Venture Management Project management resembles new venture management, a type of management used in consumer-oriented firms for generating new products or markets. In new venture management, a team is created to find new products or markets that fit an organiza- tion’s specialized skills, capabilities, and resources. Once it has defined the product, the team may go on to design and develop it, then determine the means to produce, market, and distribute it. Similarities between project management and venture management include:15 • The focus on a single unifying goal • Their multidisciplinary nature, with experts and managers from various func- tional areas working together under a single head • Being action-oriented and dedicated to change • Their temporary character—once a new venture team has completed its assign- ment, members go back to their original departments or another venture group, or to a new division or a new company that splits off from the parent organization with the purpose of producing the newly developed product. Product Management The term product management refers to a single person responsible for overseeing all aspects of a product’s production scheduling, inventory, distribution, and sales. The product manager coordinates and expedites the product’s launch, manufacture, dis- tribution, and support. Like the project manager, the product manager communicates directly with functions inside and outside the organization, and coordinates efforts directed at product goals. The product manager is active in managing conflicts and resolving problems that would degrade manufacturing capability, forestall distribu- tion, alter price, harm sales, or in any way affect financing, production, and marketing of the product. For products with long life cycles, the product manager role is filled on a rotating basis. 1.7 PROJECT ENVIRONMENTS 16 Project management also varies depending on the project environment, which author Daniel Roman classifies as commercial/for profit, government/non-profit, and mili- tary. All the project forms described above are found in the commercial environment. The forms most commonly found in government and the military are basic project management and program management. Commercial/For-Profit Project Management The end-item in a commercial project is a clearly defined product or service, often customized to satisfy a customer, and motivated by profit criteria. The project man- ager usually guides the project through its entire life cycle, coordinating efforts of the project team with functional areas, subcontractors, and vendors, and keeping the cus- tomer and top management informed of progress toward project and profit objectives.
- 45. Chapter 1 What Is Project Management? 33 Once the project is completed, the project team is dissolved and the project man- ager is potentially out of a job. Thus, some project managers are continually work- ing to “perpetuate their existence” through preparing proposals and seeking out new projects, which may surface as extensions to existing projects or as upgrades to applications from former projects. Government and Non-Profit Project Management Government and non-profit projects differ from commercial activities in several ways. First, there is no profit incentive in government and non-profit work, and economic factors may be of lesser importance in project management. Project managers are fre- quently reassigned during their projects, which is problematic for administrative con- tinuity. In government work particularly, project continuity depends heavily upon political considerations because funding is legislatively appropriated. Second, most of these projects focus on evaluation or testing of products or ser- vices procured from commercial contractors or vendors. Because design and devel- opment work in government projects is usually done by contractors, the project manager’s role is largely administrative. Though she is responsible for checking on the contractors’ progress, the project manager has little control over technical matters. Project managers may oversee and coordinate multiple, related projects—in other words, they are program managers. Military Project Management Similar to government projects, most military projects involve testing and evaluat- ing hardware developed by contractors. Evaluation is often based on the “weapons systems” approach, whereby each project is part of a larger systems program and hardware is evaluated for its contribution to the mission of the overall system. The major criteria for evaluating projects are technical and political; costs are of lesser importance and profit is not a consideration. Project managers are military officers. Because their tour of duty is limited, officers typically do not oversee a project for its full life cycle. The military must train or promote people with the administrative and technical competency to carry on the job. Civilians are often employed to provide technical support and managerial con- tinuity. This arrangement is a source of strife, because civilians are not subject to the same rotation of assignments and are often paid more, despite their formal “subordi- nate” status to military project managers. 1.8 PROJECT MANAGEMENT IN INDUSTRIAL SETTINGS The following cases show typical applications of project management in a variety of industrial settings. They portray the diversity of situations in which project manage- ment is applied. SpaceShipOne and the X-Prize Competition17 In April of 2003, SpaceShipOne (SS1) and its mothership White Knight were rolled out to the public. Simultaneously, it was announced that SS1 was entering the $10 million X-Prize competition, against 23 other teams from 7 countries, to be the first
- 46. Part I Philosophy and Concepts 34 manned vehicle to successfully make two trips into space in less than 2 weeks (Figure 1.5). Space is internationally recognized as beginning at 100km (or about 62 miles) up (commercial jets fly at about 8km). The brainchild of celebrated aerospace engineer and visionary Burt Rutan and the culmination of almost 8 years of design and develop- ment work, it was but the first step in Rutan’s broader dream to build vehicles to carry paying passengers into space. Rutan’s major challenge was not just winning of the prize, but also designing and building a complete space launch system—spacecraft, aerial launch vehicle, rocket motor, and all support subsystems—without having many hun- dreds of engineers to do it and many millions of dollars in government support. Rutan would try to do it with his own company of 130 people, a small handful of subcontrac- tors, and the $25 million backing of billionaire Paul Allen, cofounder of Microsoft. Besides Rutan and Allen, the principal stakeholders in the program included the Ansari Foundation, Sir Richard Branson, and the FAA. The Ansari Foundation is the sponsor of the X-Prize competition. Its long-term goal is to spur innovations that will make space travel safe, affordable, and accessible to everyone, and its X-Prize requirements were for “a non-government-funded program to put three people safely into space twice within two weeks with a reusable spacecraft.” Sir Richard Branson, founder of the Virgin Group, is the program’s customer; his plan is to buy space- ships and the associated technology for his fledgling space airline, Virgin Galactic. Branson has estimated that Virgin will be able to turn a profit if it can carry 3,000 customers into sub-orbit over a 5-year period at about $190,000 a ticket—to include medical checks, 3 days of preflight training, custom-molded seats, and 5 minutes of floating weightless while in space. (By comparison, a trip aboard the Russian Soyuz costs about $20 million.) Paying passengers are another stakeholder group. Although none would be aboard SS1, the vehicle was designed with them in mind. For instance, SS1’s cabin is designed to provide a “shirtsleeve” environment so passengers would not have to wear spacesuits. The FAA is also a stakeholder; it imposes a long list of requirements necessary for the spaceship to be “certified” and commercially viable. As in most technical projects, a project engineer as well as a project manager over- sees the project. The project engineer is responsible for identifying technical require- ments and overseeing design work, system integration, and testing. All this, and what is left for the project manager to do, will become clearer in later chapters. The Development of Product J at Dalian Company18 The future of Dalian Company depends on its ability to continuously develop and market new products. Dalian specializes in food and drink additives, but it is rep- Figure 1.5 SpaceShipOne beneath its mothership, White Knight. Photograph courtesy of John Nicholas.
- 47. Chapter 1 What Is Project Management? 35 resentative of firms in industries such as pharmaceuticals, food products, biotech- nology, home and commercial appliances, computer and entertainment electronics, and communications that must continuously generate new products to survive in a competitive environment. Dalian Company was concerned about maintaining market share for “Product H,” a mainstay that accounted for the majority of its profits. It was known that com- petitors were developing substitutes for Product H that might be less expensive. To beat the competition, Dalian had to develop its own improved substitute, “Product J.” The product development process is facilitated by the New Product Development Department. The department is a “project office” responsible for ongoing manage- ment and coordination of all internal and externally contracted development projects so that good ideas can be developed and quickly brought to market. The department has three directors of product development who are the project managers. Each director is responsible for a certain kind of project—exploration and development, technology-related new business, and new product commercialization—and typically manages several projects at a time. The directors facilitate, coordinate, and monitor the project efforts of the various departments—research and development, engineer- ing, marketing, manufacturing, and legal. For each new product concept, a team is created with representatives from func- tional departments. A director works with the team on a weekly or daily basis to assess the project’s progress and requirements. Functional managers decide what is to be done and how, but the directors have the final say over project direction. Each director always knows the status of the project and reports problems or delays to upper management, which manages the projects as a “portfolio.” Projects with big problems or signs of failure are cancelled so resources can be allocated to more prom- ising projects. Development of Product J required many tasks: R&D needed to develop a prod- uct prototype and prepare specifications; engineering needed to define where and in what ways the product would be used; marketing needed to define the commercial market and determine how to position the product; manufacturing needed to develop a new process for making the product that would be difficult for competitors to copy; finance needed to determine the initial product costing and perform profit/loss fore- casts; and legal needed to obtain regulatory approval and perform patent research. The director for Product J was involved from project conception. She worked with R&D scientists and marketing experts to determine the feasibility of the project, and was active in convincing upper management to approve it. She worked with scien- tists and managers to prepare project plans and schedules. When additional labor, equipment, instruments, or raw materials were needed, she wrote requests for funds. When additional personnel were needed, she wrote personnel requests to upper man- agement. During the project she issued monthly and quarterly progress reports, and scheduled and chaired all project review meetings. This project was similar to many development projects. Every development proj- ect is unique, and therefore has to be estimated, planned, and organized from scratch. Small Projects at Delamir Roofing Company Delamir Roofing Company installs and repairs roofs for factories and businesses throughout the US. Like other businesses associated with the construction industry, Delamir considers each job a project, and assigns a project manager to oversee it. Involvement of the project manager begins when a request for work is received from a potential customer. The project manager examines the blueprints to determine how much material and labor time will be needed (called “prepping the job”), and
- 48. Part I Philosophy and Concepts 36 then prepares a budget and a short proposal. After a contract is acquired, the project manager goes to the site ahead of the crew to make arrangements and accommoda- tions for work to begin. The project manager has discretion in work crew selection, which depends on how many workers are needed and who is available. After work begins, he is responsible not only for supervision of work and delivery of supplies, but also for maintaining budget records and reporting progress to the home office. The project manager performs the final inspection with the customer and signs off when the job is completed. In this example, the project manager ensures that the size and skills of the crew fit the requirements of the job, and that, overall, the job is done well. 1.9 PROJECT MANAGEMENT IN THE SERVICE SECTOR Project management is also employed in a broad range of services, including bank- ing, consulting, and accounting. In the next example, project management is used to plan and control auditing and management consultation projects in a large account- ing firm called CPAone. A second example shows project management applied to a non-profit fundraising campaign. Improving Auditing Efficiency at CPAone19 The auditing division at CPAone generates financial statements to meet generally accepted accounting principles. In large audits, the size of the task requires the involvement of many people. In the audit of a national corporation, for example, numerous auditors with diverse specialties are required to investigate all aspects of operations in various geographic areas. Given the number of people and the variety of skills, expertise, and personalities involved, a project manager is needed to oversee the audit. Every audit begins by assigning the client to a partner who is familiar with the client’s business. The partner becomes the audit’s “project director,” responsible for the project’s initiation, staffing, scheduling, and budgeting. The project director begins by studying the client’s income statement, balance sheet, and other financial statements. If the client has a bad financial reputation, the project director can make the decision for CPAone to refuse the audit. If the client is accepted, the director prepares a proposal that explains the general approach for con- ducting the audit and designates the completion date and the cost estimate. In determining the general approach for conducting the audit, the project director considers the company’s size and number of departments. Auditors are then assigned on a department-by-department basis. The audit team is a pure project team, created anew for every audit, composed of people who have the skills best suited to the needs of the audit. Generally, each audit team has one or two staff accountants and one or two senior accountants. The project cost estimate is based on estimated labor hours multiplied by employees’ hourly wages. During the audit, the director monitors all work to ensure that it adheres to the Book of Auditing Standards and is completed on schedule. Each week, the client and project director meet to review progress. When problems cannot be solved immedi- ately, the director may call in people for CPAone’s tax or consulting divisions. If the IRS requests an examination after the audit is completed, the project director sees to it that the client is represented.
- 49. Chapter 1 What Is Project Management? 37 Non-Profit Fundraising Campaign Project: Archdiocese of Boston20 American Services Company, a fund-raising consulting firm for non-profit organi- zations, contracted with the Archdiocese of Boston to manage a 3-year campaign to raise $30 million for education, social and healthcare services, building renovations, and a clergy retirement fund. American Services appointed a project manager to pre- pare the campaign strategy and to organize and direct the campaign staff. The project manager had to deal with issues concerning three groups: donors, the Archdiocese Board of Directors, and campaign volunteers. Potential target donors had to be iden- tified and provided with evidence to show how their financial commitments would benefit the community and the Archdiocese; the board and church leadership had to be involved in and kept apprised of campaign planning and progress; and volunteers had to be identified, organized, and motivated. One of the project manager’s first tasks was to conduct a feasibility study to deter- mine whether there was sufficient leadership capability, volunteer willingness, and “donor depth” within the Archdiocese community to achieve the $30 million goal. Fol- lowing the study, which indicated that the goal was achievable, pastors were invited to a kick-off luncheon at which time the Cardinal of the Archdiocese introduced the campaign. During the meeting, influential church personnel were signed up and the process of identifying potential donors and volunteers started. The project manager provided guidance for establishing a campaign leadership team and project office, enlisting volunteers, forming campaign committees, and recruiting and training volunteers. In addition to organizational matters, he con- vened several “reality sessions” with chairpersons to remind them of the importance of the campaign and renew their commitment to the campaign goal, and organized frequent meetings with the volunteers to instill a sense of pride and involvement in the campaign. 1.10 PROJECT AND PROGRAM MANAGEMENT IN THE PUBLIC SECTOR AND GOVERNMENT The following two illustrations about disaster recovery and the NASA organization illustrate how project management and program management is performed in large public sector and joint government/commercial undertakings. Disaster Recovery The aid assistance, clean-up, rebuilding, and return-to-normalcy efforts following a disaster involve the labors of numerous organizations. A large disaster such the December 2004 tsunami in the Indian Ocean impacts many countries, and requires the support and coordinated efforts of host governments; non-governmental agencies (NGOs); local business, religious, and community organizations; and international aid, charitable, and funding organizations. Almost by definition, post-disaster recovery is a program or several programs— a host of efforts devoted to the goals of rescuing and providing immediate relief to victims and, ultimately, to returning the lives of people in the areas affected back to normal. Each program involves many projects to address the multiple aspects of a recovery effort, including projects to provide:21
- 50. Part I Philosophy and Concepts 38 • Immediate rescue of victims • Food and medical care • Temporary shelter and housing • Clothing, blankets, and other immediate physical needs • Social, moral, and spiritual assistance. Ideally, disaster recovery is treated as an organized, coordinated effort—a man- aged program with numerous projects that enable quick assessment of the scope of the situation, identification and organization of needed and available resources, and effective deployment of those resources. For all of that to happen effectively requires leadership, usually in the person of someone with exceptionally strong organization and leadership abilities—in effect, a program leader. In the chaos and frenzy immedi- ately following a disaster, however, it is often not clear who is in charge. Indeed, the poor immediate response and confused rescue and recovery efforts in New Orleans and the surrounding US Gulf coastal region following Hurricane Katrina has been blamed on a lack of leadership and coordinated management at all levels of govern- ment—federal, state, and local. In the months and years following a disaster, the focus turns to obtaining and allocating aid funding; reconstruction, redevelopment, and rebuilding (infrastructure, organizations, facilities); permanently situating (returning home or relocating) victims; dealing with waste and debris; and providing opportunities, jobs and ongoing sup- port. To accomplish this requires numerous projects—for instance, projects to obtain and allocate financial assistance to individuals, businesses, and local government, and to provide subsidized housing and building materials. Often, the goal is to employ the victims in many small-scale, labor-intensive projects to provide jobs and income. For example, the December 2004 tsunami caused severe damage to coastal areas in Sri Lanka, Thailand, Indonesia, the Maldives, and other countries around the Indian Ocean; in India alone it affected an estimated 2.7 million already-poor people, 80 percent of whose livelihoods depended on fishing while 15 percent depended on agriculture. The government of India launched the Emergency Tsunami Reconstruc- tion Project, estimated to cost US$682.8 million, to help repair or reconstruct about 140,000 damaged houses in two coastal regions and assist with the reconstruction of public buildings and the revival of livelihoods in fisheries and agriculture.22 It is a project that in fact will consist of many hundreds of projects, take many years, and continue for as long as the funding holds out. NASA Organization and Project Management23 NASA was created in 1958 from what had been the National Advisory Committee on Aeronautics (NACA). NACA had had a long, successful history of working inti- mately with researchers in universities, industry, and the military, and at NASA there remained a determination to continue that partnership-style of operation. NASA and industry would work closely together on technical problems, but technical initiative and technical decisions would be left to NASA field installations. NASA organization includes: (1) top management, (2) functional support for top management, (3) program offices for developing and controlling major programs, and (4) field installations, which conduct the programs and their projects on-site or at uni- versities or contractors. NASA is divided into four mission directorates or offices: Explo- ration Systems, Space Operations, Science, and Aeronautics Research (see Figure 1.6). Each directorate is responsible for the development, justification, and manage- ment of programs that support broad NASA goals. Directorates are assigned field
- 51. Chapter 1 What Is Project Management? 39 installations to carry out permanent activities for the directorate, but also carry out projects or tasks under the direction of other directorates. For example, though Ames reports to Science, it also contributes to projects in Space Operations. All four kinds of project managers described earlier—expeditor, coordinator, matrix, and pure project—are found at NASA, but the latter two are more common. The matrix is preferred for its flexibility and efficient use of talent. Employees from field centers and contractors are assigned to a project, but remain on the payrolls of their parent organization and subject to its merit reviews and promotions. Most stay in the offices of the parent organization. For the largest projects, however, the pure project form is used because it permits better control, quicker reaction from the project team, and simpler communication patterns. In a typical (non-NASA) government project, the agency prepares specifications for a program, lets a contract, and then relies on the contractor for results. NASA uses a different approach; it feels that no single company has all of the capability to execute a large project. Although NASA relies upon industry to build, integrate, and test-fly hardware, it relies upon its own considerable in-house management and technical competence to monitor and work with contractors. Because NASA projects call for a diversity of technical and managerial competency, project managers prac- tice the philosophy of “participative responsibility”—an integration of technical and managerial competency across industry, academia, and NASA laboratories. Regard- less of location, NASA brings in experts from its own field installations, universities, and other government laboratories to assist contractors in tackling difficult problems. This participative team approach avoids the usual delays caused by working across boundaries which separate government, commercial, and military organizations. The Inspector General Chief Safety and Mission Assurance Officer MISSION MISSION SUPPORT Chief Education Officer Exploration Systems Chief Financial Officer Chief Information Officer Chief Engineer Institutions and Management General Counsel Chief of Strategic Communications Space Operations Johnson Kennedy Marshall Stennis Ames Goddard Jet Propulsion Laboratory Dryden Glenn Langley ADA Systems Integration Chief Scientist Chief Medical Officer Director of Advanced Planning NASA Advisory Council Aerospace Safety Advisory Panel Chief of Staff Advisory Staff Public affairs Legislative Affairs External Relations Human Resources Institutional and Corporate Management Equal Opportunity Programs Security Management and Safeguards Independent Technical Authority Procurement Small and Disadvantaged Business Utilization Science Aeronautics Research Administrator Deputy Administrator (Chief Operating Officer) Figure 1.6 NASA program and organization chart.
- 52. Part I Philosophy and Concepts 40 concept utilizes teamwork, central control, and decentralized execution, but respects the semi-autonomous status of NASA’s field installations. NASA defines a program as a series of undertakings that over several years are designedtoaccomplishbroadscientificortechnicalgoals.Itdefinesaprojectasanunder- taking within a program with a scheduled beginning and end, and normally involves design, construction, and/or operation and support of specific hardware items. NASA uses a dual system of responsibility. Perhaps the single greatest contribu- tor to a project’s success is the person upon whom final responsibility rests: the project manager. She is the official responsible for executing the project within the guidelines and controls of NASA, and for day-to-day supervision, execution, and completion of projects. Although most of the workers on a project are outside of the administrative authority of the project manager, nonetheless they take directions on project matters from the project manager. Each project manager has a counterpart in Washington, the program manager, who is the senior NASA staff official responsible for developing and administering headquarter’s guidelines and controls with respect to a given project. He must fight the battles for resource allocation within headquarters, work with all organizations participating in the project, relate the project to NASA’s broader goals, and testify to or justify authorizations from Congress or the president. The success of a project depends on the project and program managers working together, and the quality of their relationship. 1.11 SUMMARY Project management is a systems-contingency approach to organization and management; it applies elements of classical and behavioral management and uses organizational forms and management roles best suited to the unique environment of projects. The most important aspect of project management is the project manager—the person who functions to unify project-related planning, communications, control, and direction to achieve project goals. The project manager is the integrator who ties together the efforts of functional areas, suppliers, and contractors, and keeps top man- agement and the customer apprised of project progress. Project management includes many things, but in particular the organization, systems, and procedures to enable the project manager to plan, organize, direct, and integrate everything necessary to achieve project goals. Project management can be applied to any temporary, goal-oriented activity, but it becomes more essential as the magnitude, unfamiliarity, and stake of the undertak- ing increase. Organizations in rapidly changing business and technology environ- ments especially need project management. Project management takes on a variety of forms: larger efforts typically utilize pure project, matrix, and program management forms; smaller efforts are handled by project expeditors and coordinators. Consumer-oriented firms use new-venture and product-management forms that are similar to basic project management. Project management is applied in much the same way in commercial, non-profit, government, and military projects, with variations to account for differences in the environments. Project management is a “systems approach” to management. The next chapter describes what that means, and discusses the systems philosophy and methodologies that underlie much of project management theory and practice.
- 53. Chapter 1 What Is Project Management? 41 REVIEW QUESTIONS AND PROBLEMS 1. Describe five functions of management. Are any of these not performed by man- agers? How do you think each of these functions comes into play in the course of a project? 2. Describe the classical and behavioral viewpoints of management and how they differ from the systems approach. The classical and behavioral viewpoints originated decades ago. Are they still of use today? (For a better idea of how the viewpoints differ, refer to current popular management references or texts.) 3. Explain what distinguishes the contingency approach to management from the other three viewpoints. 4. List the main characteristics of “projects.” How do these features distinguish projects from other, non-project activities? 5. What are the characteristics of “project management?” Contrast these with func- tional and other types of non-project management. 6. What makes project management more suitable to project environments than traditional management and organization? 7. Where did project management methods and organization originate? What hap- pened during the twentieth century that made project management necessary? 8. What are the four types of project management roles? Describe the respon- sibilities of managers in each role. Are all four roles ever used in the same organization? 9. What are the five criteria that Cleland and King suggest for determining when to use project management? From these, describe briefly how a manager should know when project management is appropriate for the task. 10. When is project management clearly not appropriate? List some “project-type” activities where you think project management should not be used. Describe organizations or kinds of work where both project and non-project types of management are appropriate. 11. Briefly compare and contrast the following forms of project management: pure project, matrix, program, new venture, product, and ad hoc committee/task force. For each form, give at least one example of an organization where it is used. 12. What are some of the problems of being a project leader in commercial, govern- ment, and military projects? Where do organizations in these environments get project leaders from? 13. In the industry, service sector, and government examples in this chapter, what common characteristics of the environment, the project goals, and the project tasks make project management appropriate (or necessary)? Also, what seem to be the common characteristics of the roles and responsibilities of the project managers in these examples? What are the differences? 14. Now that you know a little about projects and project management, list some government and private organizations where you think project management might be useful. You might want to check to see if, in fact, they are using project management. QUESTIONS ABOUT THE STUDY PROJECT 1. In the project you are studying, what characteristics of the company, project goals, tasks, or necessary expertise make the use of project management appro- priate or inappropriate? Consider the project size, complexity, risk, and other criteria in answering this question.
- 54. Part I Philosophy and Concepts 42 2. How does the project you are studying fit the definition of a project? 3. What kind of project management is used—program, product, matrix, pure, or other? Explain. Is it called “project management,” or something else? 4. What kind of role does the project manager have—expeditor, coordinator, pure project, or matrix manager? Explain. What is his or her title? Case 1.1 Disaster Recovery at Marshall Field’s24 Early one morning, basements in Chicago’s down- town central business district began to flood. A hole the size of an automobile had developed between the river and an adjacent abandoned tun- nel. The tunnel, built in the early 1900s for trans- porting coal, runs throughout the downtown area. When the tunnel flooded, so did the basements of buildings connected to it—some 272 in all, includ- ing that of major retailer Marshall Field’s. The problem was first noted at 5.30am, when a member of the Marshall Field’s trouble desk saw water pouring into the basement. The manager of maintenance was notified and immediately took charge. His first actions were to contact the Chi- cago Fire and Water Departments, and Marshall Field’s parent company, Dayton Hudson in Min- neapolis. Electricity—and with it all elevator, com- puter, communication, and security services for the 15-story building—would soon be lost. The build- ing was evacuated, and elevators were moved above basement levels. A command post was set up and a team formed from various departments, such as facilities, security, human resources, public relations, and financial, legal, insurance, and sup- port services. Later that day, members of Dayton Hudson’s risk management group arrived from Minneapolis to take over coordinating the team’s efforts. The team’s goal was to ensure the safety of employees and customers, minimize flood dam- age, and resume normal operations as soon as pos- sible. The team hoped to open the store to custom- ers 1 week after the flood began. An attempt was made to pump the water out; however, as long as the tunnel hole remained unre- paired, the Chicago River continued to pour back into the basements. Thus, the basements remained flooded until the tunnel was sealed and the Army Corps of Engineers gave approval to start pump- ing. Everything in the second-level basement was a loss, including equipment for security, heating, ventilation, air-conditioning, fire sprinkling, and mechanical services. Most merchandise in the first-level basement stockrooms was also lost. Electricians worked around the clock to install emergency generators and restore lighting and elevator service. Additional security officers were hired. An emergency pumping system and new piping to the water-sprinkling tank were installed so the sprinkler system could be reacti- vated. Measures were taken to monitor ventilation and air quality, and dehumidifiers and fans were installed to improve air quality. Within the week, inspectors from the City of Chicago and OSHA gave approval to reopen the store. After water was drained from Marshall Field’s basements, damaged merchandise was removed and sold to a salvager. The second basement had to be gutted to assure removal of contaminants. Salvageable machinery had to be disassembled and sanitized. The extent of the damage was assessed and insurance claims filed. A construction company was hired to manage restoration of the damaged areas. Throughout the ordeal, the public relations department dealt with the media, being candid yet showingconfidenceintherecoveryeffort.Custom- ers had to be assured that the store was safe. The team overseeing the recovery initially met twice a week to evaluate progress and make decisions, then slowly disbanded as the store recovered. This case illustrates crisis management, an important element of which is having a team that can move fast to minimize losses and quickly recover damages. At the beginning of a disas- ter there is little time to plan, though companies and public agencies often have crisis guidelines for responding to emergency situations. When an emergency occurs they then develop more spe- cific, detailed plans to guide short- and long-term recovery efforts.
- 55. Exploring the Variety of Random Documents with Different Content
- 56. Plate C.—Olive. One half natural size.
- 57. G. P. W. Collection. Vitis Labrusca. "ISABELLA GRAPE." This variety of grape was early introduced to these Islands, and has become very popular. It is a hardy vine, variable in productiveness, and is practically the only grape grown in any quantity in Hawaii. The leaves are of medium size, often roundish and thick; their upper surface is dark-green, the under surface is whitish-green. The Isabella is an attractive blue-black grape, bearing in large, well- formed clusters, having a thick bloom. The muskiness of the thick skin is somewhat objectionable. Plate CI
- 58. Plate CI.—"Isabella Grape." One half natural size.
- 59. G. P. W. Collection. Pyrus Sinensis. SAND PEAR. This tree is a vigorous and clean grower, having strong, thick shoots, beautiful foliage, and very ornamental fruit. The dark-green leaves are broadly ovate, and long-pointed, with their margins thickly furnished with very sharp, almost bristle-like teeth. The large white flowers appear rather in advance of the leaves. The fruit is hard and rough, about 2½ inches in diameter, with generally a depression about the stem. The flesh is tough and gritty, but is very delicious when baked. Propagation is by cuttings. Plate CII
- 60. Plate CII.—Sand Pear. One half natural size.
- 61. G. P. W. Collection. Passiflora quadrangularis. GRANADILLA VINE. This tall, strong climber is a native of tropical America. Its leaves are broadly ovate, and the strong stems are purplish in color. The large, interesting flowers are from 3 to 5 inches across. The sepals are linear and violet shaded, the petals are very narrow and lilac. The many rows of filaments in the crown are violet with bars of white below the middle, the inner and shorter set being deep violet. The oblong fruit attains a size from 5 to 9 inches in length, and in color is a pale, yellowish green. The succulent, edible pulp of its hollow center has an agreeable sub-acid flavor, and contains many flat seeds. This vine bears well where there are bees; artificial fertilization also increases the number of its fruits. Plate CIII
- 62. Plate CIII.—Granadilla Vine. One half natural size.
- 63. G. P. W. Collection. Passiflora edulis. PURPLE WATER LEMON. "LILIKOI." This strong, woody vine is native of Brazil, and is naturalized in most tropical countries. Its first introduction to these islands was at Lilikoi, district of Makawao, Maui, whence its native name. Its serrate leaves are large and deeply three-lobed; the white flowers are tinted with purple. The fruit is oblong, globular, and when ripe is purple in color; its shell-like skin is thick and crisp. The orange-colored edible pulp is very fragrant, and is filled with small seeds, which germinate readily. Plate CIV
- 64. Plate CIV.—Purple Water Lemon—"Lilikoi." One half natural size.
- 65. G. P. W. Collection. Passiflora laurifolia. YELLOW WATER LEMON. This strong-growing, glabrous vine, climbing by tendrils, is a native of tropical America. The date when it was introduced to Hawaii, and by whom, is not known; but in the Hilo and Hamakua districts of Hawaii this variety grows wild. Its thick leaves are oval, oblong and entire, and have a short, sharp point. The flowers are about 2½, inches across, are white, with red spots on them. The fruit is slightly oblong, 2 inches in diameter, and very regular in size and shape. When ripe, it is yellow spotted with white. It has a medium-hard shell or skin, and the edible pulp is whitish-yellow, and contains many flat, black seeds. Plate CV
- 66. Plate CV.—Yellow Water Lemon. One third natural size.
- 67. G. P. W. Collection. Passiflora alata. This is a strong, vigorous vine, very suitable for arbors and trellises. It is not commonly found in Hawaii; however, a very fine specimen of its kind is growing in Dr. St. D. G. Walter's garden in Honolulu. The leaves are oval to ovate, the petioles having two glands. The fragrant purple flowers are about two inches in diameter. The ovoid- pointed fruit has a tough, leathery shell which, when green, is six- striated, with white stripes; when quite ripe the fruit is a dull orange- yellow. The numerous seeds are imbedded in the juicy, scented pulp, which is aromatic and delicious. Propagation is by seed and by cuttings. Plate CVI
- 68. Plate CVI.—Passiflora alata. One half natural size.
- 69. G. P. W. Collection. Passiflora, var. foetida. This strong and hardy vine grows well on arbors and trellises. Its leaves are three-cleft, and have long petioles; and spiral tendrils spring from the axils. The single, pale-green flowers are surrounded by a green, lace-like covering. The fruit is nearly globular, and slightly pointed; it is about three-fourths of an inch in diameter, and when ripe is a bright scarlet. Plate CVII
- 70. Plate CVII. Passiflora, var. foetida. Two thirds natural size.
- 71. G. P. W. Collection. Cereus triangularis. NIGHT-BLOOMING CEREUS. Although this plant with its wonderful nocturnal blossoms may be found growing almost everywhere in the Islands, the best specimens of its kind may be seen on the stone walls of Oahu College. The beautiful creamy flowers with their yellow centers are large, about a foot long, and when in full bloom about the same in diameter. The tube is covered with large, leaf-like green scales. The fruit, which is about 3½ inches long and 2 inches in diameter, is covered with persistent, large, fleshy scales which are scarlet colored when ripe, and the interior pulp is edible and refreshing. Fruit, however, upon the night-blooming cereus in Hawaii is rather rare, although a few fine specimens have matured. Plate CVIII
- 72. Plate CVIII.—Night-blooming Cereus. Two thirds natural size.
- 73. G. P. W. Collection. Kigelia pinnata. SAUSAGE TREE. This medium-sized and very handsome shade tree is a native of tropical Africa. It was probably introduced to Hawaii by Dr. Hillebrand. A fine tree of this species is growing in Mrs. Foster's garden, Nuuanu avenue. It has large pinnate leaves, and panicles of purple flowers. The peculiar rough, grey, oblong fruits hang from a long stem, and present an odd appearance. This tree and also one other of the same variety growing in the grounds of the Queen's Hospital, very rarely set their fruit. Because of the difficulty of obtaining seeds, the sausage tree has not been widely distributed. Plate CIX
- 74. Plate CIX.—Sausage Tree. One fourth natural size.
- 75. G. P. W. Collection. Phoenix dactylifera. THE DATE PALM. The date, which is a native of North Africa, Arabia, and Persia, is a noble palm, often growing to a height of from 80 to 100 feet. It is of remarkable longevity, and will continue to produce fruit even at the age of a hundred years. The neighborhood of the sea is considered unfavorable to their production, although they will luxuriate in saltish soil and bear well when brackish water is used. Many varieties of dates exist, the fruit differing in shape, size and color. They will grow from seeds, although the superior varieties can be continued only from off-shoots of the root. These will commence to bear in five years. In Asia, the growers of the commercial date find it necessary to pollinate artificially by hanging sprays of the male flowers in the branches of the fruit-bearing trees. There are no imported trees bearing in Hawaii, and although there are many date trees in Honolulu, artificial pollination would doubtless greatly increase the yield and the quality of the fruit. Plate CX
- 76. Plate CX.—The Date Palm. One half natural size.
- 77. G. P. W. Collection. Phoenix dactylifera. DATE (red and yellow variety). The accompanying cut shows fruit from two of the best date trees in Honolulu, and it is curious to note that both of them were grown from seeds taken from packages of dried dates purchased from a local grocer. Plate CXI
- 78. Plate CXI.—Date (red and yellow var.) One third natural size.
- 79. G. P. W. Collection. Acrocomia sp. This interesting palm is seldom seen in Hawaii; there being but two specimens of its kind that have produced fruit in Honolulu. Its stem is capitately thickened at the persistent bases of the armed petioles. The glaucous leaves are pari-pinnate with narrow, lanceolate, accuminate segments, having a prominent mid-rib. The inflorescence is simple and branching. The fruit is arranged similar to that of Cocos, each about three-fourths of an inch in diameter, sub-globose with a pointed apex. When ripe, it is a bright yellow, and its juicy, edible pulp has the flavor of apricots. Plate CXII
- 80. Plate CXII.—Acrocomia sp. One half natural size.
- 81. G. P. W. Collection. Cocos nucifera. COCOANUT PALM. "NIU." The original home of this widely-diffused tree is not positively known. Some writers say it is indigenous to the islands of the Indian Ocean; others show that in all probability it is of American origin. On account of its buoyant husk and impervious shell, it was enabled to drift across the oceans without losing its germinating power, and in this manner was widely dispersed. It is strictly a tropical plant, and grows naturally on the seashore, or in its immediate vicinity. It has pinnate leaves about 12 to 18 feet long, and the inflorescence first appears in a cylindrical sheath, which splits length-wise, exposing long sprays of male flowers, and near the base generally one female flower, which is much larger, and eventually develops into a fruit. The picture shows both forms of flowers, as well as a young nut, and also a mature cocoanut. Propagation is by means of the nut alone, which must be thoroughly ripe before planting. The outer husk must be left on, germination taking place at the largest eye; sometimes two eyes may sprout, and twin trees grow from these. Many varieties have been imported from islands of the Pacific, Ceylon, West Indies, and Central America. The cocoanut is not raised in Hawaii for commercial purposes. Plate CXIII
- 82. Plate CXIII.—Cocoanut Palm—"Niu." One half natural size.
- 83. G. P. W. Collection. Cordia collococca. CLAMMY CHERRY. This low tree, with its spreading branches, is a native of the West Indies, and is rarely met with in these Islands; there being but two trees of its kind known to me, one growing at the Old Plantation, Honolulu, the other at Honouliuli Ranch, Oahu. The whitish branches are very brittle. The leaves are obovate, oblong, glabrous above and shiny beneath. The subsessile flowers are whiteish-purple. The fruit, which is half inch in diameter, is bluntly pointed and smooth. The fleshy pulp is sticky, and adheres to the single seed. This plant may be grown from seeds and from cuttings. Plate CXIV
- 84. Plate CXIV.—Clammy Cherry. One half natural size.
- 85. G. P. W. Collection. Flacourtia cataphracta. This tree, which is a native of the Malay Islands and China, was introduced to Hawaii by Mr. Albert Jaeger. There is but one tree which has borne fruit; this is growing at the Old Plantation, Honolulu, Oahu. The tree, which is about 25 feet high, has dense foliage; the leaves are small, oblong, lanceolate, glabrous, having short petioles. Flowers very small, dioceous; the fruit about the size of a common grape, is purple when ripe, and has a pleasant sub- acid flavor. It contains a few flatish seeds. Plate CXV
- 86. Plate CXV.—Flacourtia cataphracta. One half natural size.
- 87. G. P. W. Collection. Atalantia buxifolia. This small tree of dwarfish habit is from tropical Asia. It is closely related to the orange, and has large thorns. Its simple leaves are alternate, coriaceous, emarginate, and from 1 to 1½ inches in length. The petioles are short. The small, solitary flowers have five petals. The berry is globose and three-quarters of an inch in diameter. When ripe, it is a shiny black, and has a thick skin. The pulp has somewhat the flavor of a lime, and the seeds are generally 1 to 5 in number. The only specimens of this tree in Hawaii are growing in the garden of Mrs. Foster; they, presumably, were introduced by Dr. Hillebrand, as these gardens formerly belonged to him. Plate CXVI
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