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statement of work in, 24
time–cost analysis for, 107–111
in value management, 9
Performance variations, price
adjustments due to, 146
Pfizer, 18
PING Golf, Inc., 273–274
Planned value (PV), 114, 118,
121
Planning, see Project planning
Planning phase (SCOR model),
231
PMBoK (Project Management
Institute), 33, 191
PMI, see Project Management
Institute
Porter, Michael, 255
Portfolio of projects, earned value
management with, 122–123
Pratt & Whitney, 215
Price incentives, 145–146
Problem definition/statement, 23
clarity of, 19
by project team, 23
Process-oriented WBS, 34, 36
Procter & Gamble, 209
Procurement:
in project supply chain process,
221–224
in value and risk management
integration, 273
Product-based WBS, 33–34, 38,
39
Production phase (LCC), 271
Product quality management,
235–236. See also Quality
management
Product standards, 252
Program budgeting, 93–94
Progress monitoring:
forecasting in, 67–68. See also
Forecasting methods
in project control process, 106–107
Project acceleration (‘‘crashing’’),
99–104
costs associated with, 45, 50
decision making for, 100–103
and project budgeting, 99–104
repeating process of, 101
use of contingency funds for, 98
Project-based ventures, 1, 18
Project baseline plan, 106
Project budgeting, 83–104
activity-based costing, 90–93
approaches to, 85–90
bottom-up, 88–90
contingency budget in, 95–98
cost estimation linked to, 45
developing budget, 85
issues in, 83–84, 98
and program budgeting, 93–94
and project acceleration (‘‘crashing’’),
99–104
top-down, 86–88
Project closeout management, 147
Project control process, 106–107
Project delivery/implementation,
integrating cost and value in,
267–272
Project development, integrating cost
and value in, 265–267
Project evaluation and control system,
105–107
Project execution plan, 176
Project finance, 154–146. See also
Financial management
contingencies in, 59
defined, 150
financing of projects vs., 149–150
planning, 156–157
Project life cycle, 18–19. See also
specific stages, e.g.: Needs
assessment
accuracy of cost estimates through,
48–49
life-cycle costing, 268–272
286 Index
Project Management Institute (PMI),
33, 191, 248
Project management standards,
252
Project objectives, 23
Project planning, 27–41
creation of work breakdown
structure vs., 41
as part of project strategy, 17
scope definition, 28–32
in value management, 8
work breakdown structure in, 32–41
Project quality management, 236. See
also Quality management
Project standards, 252
Project strategy, 17
Project supply chain process
framework, 221–225
Project team:
contingency budget input from, 97,
98
problem definition by, 23
Project value, 8, 163. See also Value
management
evaluating, 17
fundamental concepts of, 164–166
risk management and increase in,
181
tracking, 9
Project value chain, 256–257
Project value chain analysis, 257–259
Proof-of-concept, 180–181
Proposals:
development of, in value
management, 9
standards for evaluating, 24
PV, see Planned value
QA (quality assurance), 244
Qualitative methods:
for forecasting, 68
for progress/performance
measurement, 106
Quality:
as project performance metric, 228,
229
as supply chain value driver, 219
Quality assurance (QA), 244
Quality award models, 248
Quality Champion, 245
Quality control, 245
Quality engineering, 239–243
Quality loss function, 240
Quality management, 235–253
methods for project organizations,
247–252
process of, 236–237
for product quality, 235–236
for project quality, 236–245
and quality standards for projects,
252–253
Six Sigma methodology for, 249–252
total quality management for,
245–247
Quantitative methods:
for forecasting, 68
for progress/performance
measurement, 106, 107
r (correlation coefficient), 74
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