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PROJECT MANAGEMENT

PART SIX. PROJECT MANAGEMENT. Chapter Eighteen Project Management. Projects. Build A A Done Build B B Done Build C C Done Build D Ship. JAN. FEB. MAR. APR. MAY. JUN. On time!.

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PROJECT MANAGEMENT

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  1. PART SIX PROJECT MANAGEMENT • Chapter Eighteen • Project Management

  2. 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.

  3. 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

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

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

  6. Project Life Cycle Feasibility Planning Management Concept Execution Termination

  7. Project Risk • Risk: occurrence of events that have undesirable consequences • Delays • Increased costs • Inability to meet specifications • Project termination

  8. Risk Management • Identify potential risks • Analyze and assess risks • Work to minimize occurrence of risk • Establish contingency plans

  9. Work Breakdown Structure Project X Level 1 Level 2 Level 3 Level 4 Figure 18-3

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

  11. 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

  12. Project Network – Activity on Arrow Orderfurniture 4 Furnituresetup 2 Locatefacilities Remodel 1 5 6 Move in Interview Hire andtrain 3

  13. Project Network – Activity on Node Orderfurniture Furnituresetup Locatefacilities 2 6 1 Move in Remodel 5 S 7 Hire andtrain Interview 4 3

  14. Network Conventions a b c a c b a c a c Dummy activity b b d

  15. Example 1 6 weeks 4 Orderfurniture 3 weeks 2 Furnituresetup 8 weeks Locatefacilities Remodel Move in 11 weeks 1 5 6 1 week Interview Hire and train 4 weeks 9 weeks 3

  16. Example 1 Solution Critical Path

  17. Computing Algorithm • Network activities • ES: early start • EF: early finish • LS: late start • LF: late finish • Used to determine • Expected project duration • Slack time • Critical path

  18. Probabilistic Estimates o m te p Activity start Optimistictime Most likely time (mode) Pessimistic time Figure 18-8

  19. Optimistic time Most likely time Pessimistic time 2-4-6 b 2-3-5 c 1-3-4 a 3-4-5 d 3-5-7 e 5-7-9 f 2-3-6 g 3-4-6 i 4-6-8 h Example 5

  20. 17 Weeks 1.00 a-b-c Weeks 10.0 d-e-f Weeks 16.0 1.00 g-h-i Weeks 13.5 Example 6

  21. Technology • Computer aided design (CAD) • Groupware (Lotus Notes) • Project management software • CA Super Project • Harvard Total Manager • MS Project • Sure Track Project Manager • Time Line

  22. Advantages of PM Software • Imposes a methodology • Provides logical planning structure • Enhances team communication • Flag constraint violations • Automatic report formats • Multiple levels of reports • Enables what-if scenarios • Generates various chart types

  23. Advantages of PM Software A project consists of 10 activities, lettered A through J, as shown in the accompanying precedence diagram, with the activities on the arrows. For each activity, the deterministic time estimate in weeks is shown in the following table.

  24. Advantages of PM Software A project consists of 10 activities, lettered A through J, as shown in the accompanying precedence diagram, with the activities on the arrows. For each activity, the deterministic time estimate in weeks is shown in the following table. •  Activity Time Activity Time ABCDE 24356 FGHIJ 34431 • List all of the paths through the network. • What is the duration of each of the paths? • What is the critical path? • What is the second-most critical path? • What is the slack time for each activity? • Calculate the ES, Ef, LS and LF times for each activity.

  25. Time-Cost Trade-Offs: Crashing Total cost Expected indirect costs Shorten CRASH Cumulative cost of crashing Shorten Optimum Figure 18-11

  26. 10 b 6 a 2 f 5 c 9 e 4 d Example 7

  27. Advantages of PERT 4 2 1 5 6 3 • Forces managers to organize • Provides graphic display of activities • Identifies • Critical activities • Slack activities

  28. Important activities may be omitted Precedence relationships may not be correct Estimates may include a fudge factor Limitations of PERT 4 2 1 5 6 3 142 weeks

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