3-1: Describe the importance of projects to a firm, identify the people and teams that work on projects, and list the qualities that make a project a success.

Shortened product life cycles, narrow product-launch windows, increasingly complex products, and global competition have made projects a principal way for modern organizations to gain a competitive advantage. Project managers function as mini-CEOs for their projects, directing the myriad of activities that need to be done on them and the people who need to do them. Typical structures for project teams are the matrix structure, functional structure, and pure project structure. A successful project is one that comes in on time and on budget and meets its quality and functionality specifications as well as the client’s needs.

3-2: Identify the stages of the typical life cycle of a project.

Projects have a definite beginning and end. As a result, they follow a life cycle that restricts the nature of the work as well as the resources committed to the project. The four phases of a project life cycle are the conceptualization, planning, execution, and termination stages. The conceptualization stage answers the question: “What are we hoping to achieve with the project?” The planning stage answers the question: “How are we going to complete the project successfully?” This stage includes all the detailed schematics, schedules, performances specifications, and other plans for the project. The execution stage is the stage where the actual work of the project is being performed, and the bulk of the resources allocated to it are consumed. The termination stage occurs when the finished project is transferred to its intended users, the project’s resources get reassigned, and it is formally closed out.

3-3: Explain how scope management techniques, statement-of-work documents, work breakdown structures, and risk management principles enable firms to conceptualize, plan, and organize projects.

During the conceptualization stage, the firm determines the nature of the project, its objectives, and ways to meet those objectives. Some key pieces of information that must be either collected or developed early on for this purpose include the development of a problem (or need) statement, an analysis of alternative solutions to the problem, information gathering to uncover the details of the project, and the generation of clearly stated objectives for the project. There are a variety of techniques and tools project managers can use for scope management—that is, to prevent projects from getting out of control. One tool is a statement of work (SOW), which is a detailed description of the work required for the project.17 Another is a work breakdown structure (WBS). The WBS sets a project’s scope by breaking down its overall mission into a cohesive set of synchronous, increasingly specific tasks. Risk management refers to a system for identifying, analyzing, and responding to a variety of risk factors that can seriously affect the project’s success. 

3-4: Use analytical tools to calculate project schedules.

There are several methods and tools for scheduling projects, including the critical path method (CPM) and program evaluation and review technique (PERT). CPM works best when you can be reasonably certain of how long the project’s activities are likely to take. PERT works best when you must use statistical probabilities to try to determine the duration of activities. Developing duration estimates and precedence diagrams allows us to determine the project’s critical path (fastest time to completion) and all activities that are either critical (have zero slack) or have some slack time associated with them. Finally, it may be necessary to crash a project by accelerating its activities to speed up its completion.

3-5: Identify the main supply chain activities of a project and the qualities that should be considered when designing the project’s supply chain.

The major supply chain activities for developing a project begin with the inbound procurement of all the services and parts needed for it. Fabrication is the manufacturing or assembling of materials produced at another site to create the service or good. Distribution is the final link in the project development chain—that is, the actual transfer of the product to its users. Four fundamental steps should be taken when creating and managing a supply chain for a project. (1) Setting the supply chain’s goals: Determining what we want the supply chain to do, and how will it improve the firm’s ability to develop the project. (2) Doing an environmental analysis: Determining which suppliers are technically and financially capable of working with our firm, and what the strengths and weaknesses of each are. (3) Coordinating and planning: Determining how to structure the supply chain to ensure the flow of resources is efficient and cost effective. (4) Controlling: Measuring the performance of the chain and adjusting the flow of resources or mixture of suppliers to improve the chain. 

3-6: Demonstrate how to execute, track, and terminate projects.

Two of the best known methods for tracking projects upon their execution are (1) S-curves, which relate the budgeted money spent on the project over its life cycle as a way to estimate the project’s current status, and (2) earned value management (EVM), which links the percentage of activities completed, money spent, and schedule to give a more accurate estimate of the project’s status. The EVM method also enables close estimates of the project’s final budget and completion date. Terminating a project requires the completion of several administrative tasks, including archiving all legal and contractual documents, closing the project’s cost accounts, and reassigning the project’s team members. Creating a lessons learned document provides future project teams with information about what worked well and what did not so they can improve their performance.

3-7: Identify the critical steps in planning for sustainability in projects.

A useful way to integrate sustainability practices into project management is to set standards for ways in which a project can achieve green outcomes. Seven critical steps in planning for sustainability in projects include (1) setting sustainability expectations, (2) identifying opportunities to reduce costs, (3) using sustainability risk management, (4) emphasizing value maximization, (5) identifying specific sustainability requirements that are to be pursued, (6) engaging suppliers and subcontractors in sustainable ways, and (7) motivating the project team. 

3-8: Discuss issues related to global project management.

Projects are occurring in settings around the planet. The rise of global business practices have necessitated a focus on processes and methods that allow for projects to be managed in international settings. The implications of global project management include (1) the need to develop global project management standards, (2) the increased use of geographically dispersed teams, and (3) the use of virtual technologies.

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