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Project Management

Project Management. Learning Objectives. Discuss the behavioral aspects of projects in terms of project personnel and the project manager. Discuss the nature and importance of a work breakdown structure in project management. Give a general description of PERT/CPM techniques.

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Project Management

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  1. Project Management

  2. Learning Objectives • Discuss the behavioral aspects of projects in terms of project personnel and the project manager. • Discuss the nature and importance of a work breakdown structure in project management. • Give a general description of PERT/CPM techniques. • Construct simple network diagrams.

  3. Learning Objectives • List the kinds of information that a PERT or CPM analysis can provide. • Analyze networks with deterministic times. • Analyze networks with probabilistic times. • Describe activity “crashing” and solve typical problems.

  4. Projects Build A A Done Build B B Done Build C C Done Build D Ship JAN FEB MAR APR MAY JUN On time! Unique, one-time operations designed to accomplish a specific set of objectives in a limited time frame.

  5. Project Management • What are the Key Metrics • Time • Cost • Performance objectives • What are the Key Success Factors? • Top-down commitment • Having a capable project manager • Having time to plan • Careful tracking and control • Good communications

  6. Project Management • What are the Major Administrative Issues? • Executive responsibilities • Project selection • Project manager selection • Organizational structure • Organizational alternatives • Manage within functional unit • Assign a coordinator • Use a matrix organization with a project leader

  7. Project Management • What are the tools? • Work breakdown structure • Network diagram • Gantt charts • Risk management

  8. Planning and Scheduling Gantt Chart Locate new facilities Interview staff Hire and train staff Select and order machine Installation / Remodel Move in/startup MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

  9. Key Decisions • Deciding which projects to implement • Selecting a project manager • Selecting a project team • Planning and designing the project • Managing and controlling project resources • Deciding if and when a project should be terminated

  10. Project Manager Responsible for: Work Quality Human Resources Time Communications Costs

  11. Ethical Issues • Temptation to understate costs • Withhold information • Misleading status reports • Falsifying records • Comprising workers’ safety • Approving substandard work

  12. Project Life Cycle Feasibility Planning Management Concept Execution Termination

  13. Work Breakdown Structure Project X Level 1 Level 2 Level 3 Level 4

  14. PERT and CPM PERT: Program Evaluation and Review Technique CPM: Critical Path Method • Graphically displays project activities • Estimates how long the project will take • Indicates most critical activities • Show where delays will not affect project

  15. The Network Diagram • Network (precedence) diagram – diagram of project activities that shows sequential relationships by the use of arrows and nodes. • Activity-on-arrow (AOA) – a network diagram convention in which arrows designate activities. • Activity-on-node (AON) – a network diagram convention in which nodes designate activities. • Activities – steps in the project that consume resources and/or time. • Events – the starting and finishing of activities, designated by nodes in the AOA convention.

  16. The Network Diagram (cont’d) • Path • Sequence of activities that leads from the starting node to the finishing node • Critical path • The longest path; determines expected project duration • Critical activities • Activities on the critical path • Slack • Allowable slippage for path; the difference the length of path and the length of critical path

  17. A Comparison of AON and AOA Network Conventions A comes before B, which comes before C A C (a) B A B C A A A and B must both be completed before C can start (b) C C B B B B and C cannot begin until A is completed B A (c) A C C Activity on Activity Activity on Node (AON) Meaning Arrow (AOA)

  18. A Comparison of AON and AOA Network Conventions C and D cannot begin until A and B have both been completed A C B A C (d) D B D A C A C B D B D Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) C cannot begin until both A and B are completed; D cannot begin until B is completed. A dummy activity is introduced in AOA (e) Dummy activity

  19. A Comparison of AON and AOA Network Conventions B A C D Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) B and C cannot begin until A is completed. D cannot begin until both B and C are completed. A dummy activity is again introduced in AOA. A B D (f) C Dummy activity

  20. Project Network – Activity on Arrow AOA 4 Order setup 2 Locatefacilities Remodel 1 5 6 Move in Interview Hire andtrain 3

  21. Project Network – Activity on Node Order setup Locatefacilities 2 6 1 Move in Remodel 5 S 7 Hire andtrain Interview 4 3 AON

  22. Time Estimates • Deterministic • Time estimates that are fairly certain • Probabilistic • Estimates of times that allow for variation

  23. Computing Algorithm • Network activities • ES: earliest start • EF: earliest finish • LS: latest start • LF: latest finish • Used to determine • Expected project duration • Slack time • Critical path

  24. Determining the Project Schedule Earliest start (ES) = earliest time at which an activity can start, assuming all predecessors have been completed Earliest finish (EF) = earliest time at which an activity can be finished Latest start (LS) = latest time at which an activity can start so as to not delay the completion time of the entire project Latest finish (LF) = latest time by which an activity has to be finished so as to not delay the completion time of the entire project Activity Description Time (weeks) A Build internal components 2 B Modify roof and floor 3 C Construct collection stack 2 D Pour concrete and install frame 4 E Build high-temperature burner 4 F Install pollution control system 3 G Install air pollution device 5 H Inspect and test 2 Total Time (weeks) 25 Perform a Critical Path Analysis Table 3.2

  25. AON Example Milwaukee Paper Manufacturing'sActivities and Predecessors

  26. AON Network for Milwaukee Paper Activity A (Build Internal Components) A Start Activity B (Modify Roof and Floor) B Start Activity

  27. AON Network for Milwaukee Paper Activity A Precedes Activity C A C Start B D Activities A and B Precede Activity D

  28. AON Network for Milwaukee Paper F A C E Start H B G D Arrows Show Precedence Relationships

  29. AOA Network for Milwaukee Paper C (Construct Stack) 4 2 F (Install Controls) A (Build Internal Components) E (Build Burner) H (Inspect/ Test) Dummy Activity 7 1 6 B (Modify Roof/Floor) G (Install Pollution Device) D (Pour Concrete/ Install Frame) 3 5

  30. Determining the Project Schedule Activity Description Time (weeks) A Build internal components 2 B Modify roof and floor 3 C Construct collection stack 2 D Pour concrete and install frame 4 E Build high-temperature burner 4 F Install pollution control system 3 G Install air pollution device 5 H Inspect and test 2 Total Time (weeks) 25 Perform a Critical Path Analysis

  31. Determining the Project Schedule Activity Name or Symbol A Earliest Finish Earliest Start ES EF LS LF Latest Finish Latest Start 2 Activity Duration Perform a Critical Path Analysis

  32. ES/EF Network for Milwaukee Paper (Forward pass) ES EF = ES + Activity time Start 0 0 0

  33. ES/EF Network for Milwaukee Paper EF of A = ES of A + 2 ESof A A 2 0 2 Start 0 0 0

  34. ES/EF Network for Milwaukee Paper EF of B = ES of B + 3 A 2 ESof B 0 2 0 3 Start 0 0 B 3 0

  35. ES/EF Network for Milwaukee Paper A 2 C 2 0 2 2 4 Start 0 0 0 B 3 0 3

  36. ES/EF Network for Milwaukee Paper A 2 C 2 0 2 2 4 Start 0 0 = Max (2, 3) D 4 0 3 B 3 0 3 7

  37. ES/EF Network for Milwaukee Paper A 2 C 2 0 2 2 4 Start 0 0 0 B 3 D 4 0 3 3 7

  38. ES/EF Network for Milwaukee Paper A 2 C 2 F 3 0 2 4 7 2 4 E 4 H 2 Start 0 0 4 8 13 15 0 B 3 D 4 G 5 0 3 3 7 8 13

  39. LS/LF Times for Milwaukee Paper (Backward pass) A 2 C 2 F 3 0 2 4 7 2 4 E 4 H 2 Start 0 0 4 8 13 15 13 15 0 LS = LF – Activity time B 3 D 4 G 5 0 3 3 7 8 13 LF = EF of Project

  40. LS/LF Times for Milwaukee Paper A 2 C 2 F 3 0 2 4 7 2 4 10 13 E 4 H 2 Start 0 0 LF = Min(LS of following activity) 4 8 13 15 13 15 0 B 3 D 4 G 5 0 3 3 7 8 13

  41. LS/LF Times for Milwaukee Paper LF = Min(4, 10) A 2 C 2 F 3 0 2 4 7 2 4 2 4 10 13 E 4 H 2 Start 0 0 4 8 13 15 13 15 4 8 0 B 3 D 4 G 5 0 3 3 7 8 13 8 13

  42. LS/LF Times for Milwaukee Paper A 2 C 2 F 3 0 2 4 7 2 4 2 4 10 13 0 2 E 4 H 2 Start 0 0 4 8 13 15 13 15 0 0 4 8 0 B 3 D 4 G 5 0 3 3 7 8 13 4 8 8 13 1 4

  43. Computing Slack Time After computing the ES, EF, LS, and LF times for all activities, compute the slack or free time for each activity • Slack is the length of time an activity can be delayed without delaying the entire project Slack = LS – ES or Slack = LF – EF

  44. Computing Slack Time Earliest Earliest Latest Latest On Start Finish Start Finish Slack Critical Activity ES EF LS LF LS – ES Path A 0 2 0 2 0 Yes B 0 3 1 4 1 No C 2 4 2 4 0 Yes D 3 7 4 8 1 No E 4 8 4 8 0 Yes F 4 7 10 13 6 No G 8 13 8 13 0 Yes H 13 15 13 15 0 Yes

  45. Critical Path for Milwaukee Paper A 2 C 2 F 3 0 2 4 7 2 4 2 4 10 13 0 2 E 4 H 2 Start 0 0 4 8 13 15 13 15 0 0 4 8 0 B 3 D 4 G 5 0 3 3 7 8 13 4 8 8 13 1 4

  46. ES – EF Gantt Chartfor Milwaukee Paper 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 A Build internal components B Modify roof and floor C Construct collection stack D Pour concrete and install frame E Build high-temperature burner F Install pollution control system G Install air pollution device H Inspect and test

  47. LS – LF Gantt Chartfor Milwaukee Paper 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 A Build internal components B Modify roof and floor C Construct collection stack D Pour concrete and install frame E Build high-temperature burner F Install pollution control system G Install air pollution device H Inspect and test

  48. Critical Path Example Activity Immediate Predecessors Time (weeks) A - 6 B - 7 C A 3 D A 2 E B 4 F B 6 G C, E 10 H D, F 7 Perform a Critical Path Analysis

  49. 21 0 0 21 A 6 C 3 F 6 0 6 7 13 6 9 12 14 8 11 8 14 2 8 E 4 H 7 Start End 0 21 21 0 7 11 13 20 14 21 7 11 0 0 B 7 D 2 G 10 0 7 6 8 11 21 0 7 11 21

  50. Computing Slack Time Earliest Earliest Latest Latest On Start Finish Start Finish Slack Critical Activity ES EF LS LF LS – ES Path A 0 6 2 8 2 No B 0 7 0 7 0 Yes C 6 9 8 11 2 No D 6 8 12 14 6 No E 7 11 7 11 0 Yes F 7 13 8 14 1 No G 11 21 11 21 0 Yes H 13 20 14 21 1 No

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