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Handbook of Project Management

Handbook of Project Management

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Published by G
Useful book on Project Management and its application, with incisive illustrations and practical examples.
Useful book on Project Management and its application, with incisive illustrations and practical examples.

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Published by: G on Sep 17, 2009
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Scope Management

“The scope of a project can be either the work content or components of the project. It can be fully described
by naming all activities performed, the end products which will result, and the resources consumed.”3

The

scope statement is a vital document as it defines the project, not only what is included but what is not
included. One manager of project managers commented that managing the scope of projects was his most
important and troublesome assignment. On the one hand, he had to ensure that the client’s needs had been
met, but on the other hand, he had to ensure that any work content not in the originally contracted scope
statement could be billed to the client.

Quality Management

The definition of quality is simply “conformance to requirements/specifications.” If the requirements for the
product of the project are consistent with the real, or perceived, needs of the client/customer, then the
client/customer is likely to be satisfied with the product of the project. The product either conforms to these
requirements or it does not. Quality should not be confused with excellence, luxury, prestige, “gold-plating,”
or other terms that describe the product of the project in qualifying degrees. These terms may be applied to the
statement of requirements/specifications, but quality then refers to conformance to these
requirements/specifications. There can be waste involved in producing a product or service that exceeds
requirements just as surely as in producing a product that falls short of requirements. This definition of quality
is the essential concept on which quality management operates.

The concept of a project as a process is essential for the application of process control to the management of
projects, and more specifically, statistical process control applied to reduce variability. The concept of the
progressive elaboration of specifications as the essential nature of the process fits with the quality concept that
the customer is the next person/operation in the process. The “customer” is the next engineer, the tool builder,
the ad layout person, and so on. If the product going to the customer has no defects, he or she can perform his
or her task in the most efficient manner—and do the right thing right the first time.

It should be noted that this same concept of conformance can apply to the project itself as a measure of how
well it was planned and executed relative to such things as environmental and safety expectations of society.
Quality Management for Projects and Programs, a book by Lewis R. Ireland, published by the PMI,
amplifies on these concepts.

Time Management

The management of time is crucial to the successful completion of a project. In some large projects that run
for several years at costs in excess of $1 billion, the financing charges can approach $1 million per day. Even
in many smaller projects, especially in a competitive market, it is essential to complete projects on time or
lose the edge in the marketplace.

The function of time management has been divided into four processes: planning, estimating, scheduling, and
control. Planning includes depicting what is intended to be done, how it will be done, and what will be used to
do it. Estimating is the determination of the duration required to perform each activity. Scheduling determines
the time period in which it is intended to perform the activity, recognizing both time and resource constraints.
Control includes a recognition of what has happened and taking action to ensure that the project will be
completed on time.

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AMA Handbook of Project Management, The

by Paul C. Dinsmore

AMACOM Books
ISBN: 0814401066 Pub Date: 01/01/93

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Cost Management

Cost management includes the processes that are required to maintain financial control of projects including
economic evaluation, estimating, organizing, controlling, analyzing, reporting, forecasting, and taking
necessary corrective action. Cost estimating is the process of assembling and predicting costs of a project over
its life cycle. The cost budgeting process involves establishing budgets, standards, and a monitoring system
by which the cost of the project can be measured and managed. Cost control entails gathering, accumulating,
analyzing, monitoring, reporting, and managing the costs on an ongoing basis. Cost applications include
special cost techniques, such as data banks to aid in estimating and product life cycle costing, and topics that
affect cost management, such as computer applications and value analysis.

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