Mastering Project Management: Your Guide to Success

1. BUAD306 Chapter 17 – Project Management

2. Life is a Project • You are already a project manager! • Fraternity/sorority projects • Sport-related activities • Family events • Work-related projects

3. Types of Projects • Corporate • Mergers, systems conversions, relocations, new business ventures, new products, start—ups… • Department • Quality improvement, work-flow modifications, new technology/ equipment, automation, new products…

4. Project Plan • The roadmap for your project • Designates who does what, when, where • Shows sequence of activities and schedule of when they occur • Analyzed regularly (daily) to identify issues and gauge timeliness of project Conveying the “why” is critical to the Project manager’s job!

5. Gantt Charts • Visual display of project tasks • Specific tasks • Timeframe to complete • Sequence • Assignments of Responsibility • Pros/Cons • Simple, easy to create • Doesn’t show interdependencies

6. WK1 WK2 WK3 WK4 WK5 WK6 WK7 WK8 WK9 WK10 Gantt Chart Gantt Chart Paint Develop Floor Plan Buy Furniture, etc. Hang fixtures Install lighting Arrange Furniture Display Inventory Open Store

7. PERT and CPM • PERT – Program Evaluation and Review Technique • CPM – Critical Path Method • Together, Project Managers can do the following: • See a graphical display of activities • Estimate length of project • Identify tasks most critical to completion • Determine how long any activity can be delayed without delaying the project

8. 1 2 3 Network Diagram Network consists of branches & nodes Node Branch Predecessor Activity

9. Network Conventions (AOA) a b c a c b c a a c Dummy activity b b d

10. Project Network Hang Fixtures 4 Display Inventory/ Goods 2 Paint Install Lighting 1 5 6 Arrange Furniture Develop Floor Plan Buy Furniture 3

11. Critical Path • A path is a sequence of connected activities running from start to end node in network • The critical path is the path with the longest duration in the network • Project cannot be completed in less than the time of the critical path

12. 3 weeks 4 3 weeks 2 4 weeks 5 weeks 1 5 6 2 weeks 2 weeks 9 weeks 3 Find the Critical Path

13. Slack • Represents time available for getting a path completed as compared to the critical path • is the “wiggle room” you have on that path

14. Example 1 D E F A C H B G

15. Example 2 D C A B G H E F *Max you can crash any activity is one week *For each week crashed, can earn $2500

16. Expediting Your Project? • Why? • Save $ • Make $ • Improve customer satisfaction • Government requirements

17. Crashing • Use of additional resources, which typically cost money, to shorten the original length of the overall project • Conditions: • Activity crashed must be on the critical path(s) • Benefit of crashing must outweigh the cost of crashing

18. 3 weeks 4 3 weeks 2 4 weeks 5 weeks 1 5 6 2 weeks 2 weeks 9 weeks 3 Should We Crash? Can earn $700 for each week opened early $500/week; maximum = 1 $500/week; maximum = 3

19. 3 weeks 4 3 weeks 2 4 weeks 5 weeks 1 5 6 2 weeks 2 weeks 9 weeks 3 Should We Crash? Can earn $700 for each week opened early What if $100/week; maximum = 1 $500/week; maximum = 3

20. Example 2 – Part 2 D C A B G H E F *Max you can crash any activity is one week *For each week crashed, can earn $2500

21. Example 3 E D H J A B C G F I *Max you can crash any activity is one week *For each week crashed, can earn $2000

22. Handout #1: • Given the project diagram below and the table of info: • Calculate the critical path and slacks • If the company wants to shorten the project by 3 weeks and spend no more than $5,000, is it possible? Assume no task can be crashed more than twice. Explain • Using original data: if activity D is delayed by 5 weeks, is there a delay in the entire project? If so, by how much? C A B D H E F G

23. Handout #2: • Given the project diagram below and the table of info: • Calculate the critical path and slacks • The company has crash costs as shown (costs are listed for 1st week crash and 2nd week. If no cost shown, it cannot be crashed). The company would like to crash the project by 4 weeks. How much will it cost to do this and what tasks will be crashed and by how much? B C E G A I J H D F

24. Handout #2: - ALTERNATIVE!!!!!!!!!! • Given the project diagram below and the table of info: • Calculate the critical path and slacks • The company has crash costs as shown (costs are listed for 1st week crash and 2nd week. If no cost shown, it cannot be crashed). The company would like to crash the project by 4 weeks. How much will it cost to do this and what tasks will be crashed and by how much? B C E G A I J H D F

25. Handout #3: • Given the project diagram below and the table of info: • Calculate the critical path and slacks • If task D were to slip by 4 weeks, would there be a delay in the project? If so, by how much? • Given the original info, the company must complete the project in 20 weeks or else be fined $2000 for each week beyond 20. Is it possible for the company to complete the project and NOT be fined? If so, how would they do so? B F D A I C E H G

26. Microsoft Project • Powerful business tool • Easily entry and organization of project tasks • PERT/CPM flexibility • Standard project communications • Custom reporting

27. Risk Management • Types of Risks • Project Risks – overall project • Task Risks – individual components • Decision Risks – strategic • Cost Benefit Analysis Read Text

28. Key Project Tasks • Project Designation • Project Manager Selection • Project Team Designation • Project Planning • Managing Resources/Activities • Issues Management • Communication • Post-Mortem/Analysis

29. Project Manager • Ultimately responsible for success/failure of project • Manages: work effort, resources, communications, quality, timetables, and costs • Requires strategic management, “juggling” & prioritization skills, etc. • Can be certified (PMI)

30. Project Management Issues • Time Considerations • Quality Factors • Conflicts of Interest • Limited Resources • Perception within Organization • STRESS!