The Little Black Book Of Project Management, 2nd Edition

The Little Black Book of Project Management Second Edition The Little Black Book of Project Management Second Edition Michael C. Thomsett American Management Association New York • Atlanta • Brussels • Buenos Aires • Chicago • London • Mexico City San Francisco • Shanghai • Tokyo • Toronto • Washington, D.C. Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Tel.: 212-903-8316. Fax: 212-903-8083. Web site: www.amacombooks.org This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Library of Congress Cataloging-in-Publication Data Thomsett, Michael C. The little black book of project management / Michael C. Thomsett.— 2nd ed. p. cm. Includes index. ISBN 0-8144-7137-4 1. Project management. I. Title. HD69.P75 T48 2002 658.4⬘04—dc21 2001056689  2002 Michael C. Thomsett. All rights reserved. Printed in the United States of America. This publication may not be reproduced, stored in a retrieval system, or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of AMACOM, a division of American Management Association, 1601 Broadway, New York, NY 10019. Printing number 10 9 8 7 6 5 4 3 2 1 Contents Introduction xi 1 Organizing for the Long Term Background for Project Management Project Definitions Definition and Control The Successful Project Manager The Methodical Manager Project Classification Work Project 1 3 5 8 11 14 16 18 2 Creating the Plan Setting Leadership Goals Building Your Resource Network Structuring Your Project Team Holding a Project Announcement Meeting Setting Project Objectives Developing the Initial Schedule Identifying Key Elements Necessary for Project Success Work Project 19 20 23 25 27 29 31 3 Choosing the Project Team The Imposed Team Problem The Commitment Problem Defining Areas of Responsibility Estimating Time Requirements Working With Other Departments The Executive Point of View Delegation Problems and Solutions Work Project 37 38 41 43 44 46 48 49 53 v 32 36 vi Contents 4 Preparing the Project Budget Budgeting Responsibility Labor Expense: The Primary Factor Additional Budgeting Segments Budgeting Each Phase of Your Project Budgeting Controls Work Project 54 55 58 61 63 67 69 5 Establishing a Schedule The Scheduling Problem The Gantt Chart Scheduling Control The Scheduling Solution Gantt Limitations Work Project 71 72 74 78 80 81 83 6 Flowcharting for Project Control Listing Out the Phases Work Breakdown Structures CPM and PERT Methods Automated Project Management Systems Setting Your Flowcharting Rules Work Project 85 86 88 91 93 97 98 7 Designing the Project Flowchart Activity and Event Sequences The Vertical Flowchart and Its Limitations The Horizontal Network Diagram and Its Advantages Building the Network Diagram Applying the Network Diagram Expanded Applications Work Project 100 102 105 107 110 114 116 118 8 Writing the Supporting Documentation Project Narratives More Than Pap