1 / 81

Chapter 10

Chapter 10. Projects. Learning Objectives. Explain what project management is and why it is important. Identify the different ways projects can be structured in an organization. Describe how project objectives are set.

katell-martin
Download Presentation

Chapter 10

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 10 Projects

  2. Learning Objectives • Explain what project management is and why it is important. • Identify the different ways projects can be structured in an organization. • Describe how project objectives are set. • Describe how projects are organized into components using work breakdown structure • Determine the “critical path” for a project. • Demonstrate how to “crash,” or reduce the length, of a project.

  3. Project Examples • Building: a ship, a satellite, an oil rig, and a nuclear plant. • Developing: computer programs, an advertising campaign, a new product, a new process, and training materials. • Implementing: new technologies and work procedures. LO 1

  4. What is Project Management? • Project: a series of related jobs usually directed toward some major output and requiring a significant period of time to perform • Project management: the management activities of planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project LO 1

  5. Objectives of a Project LO 1

  6. Objectives of a Project The 4th dimension: client satisfaction LO 1

  7. Project Life Cycle Project Life Cycle: changing patterns of resource usage and level of activity over the course of the project LO 1

  8. Project Life Cycle • Stages of a Conventional Project: • Slow beginning • Buildup of size • Peak • Begin a decline • Termination LO 1

  9. Project Life Cycle LO 1

  10. Project Life Cycle Time distribution of project effort is characterized by slow-rapid-slow LO 1

  11. Project Life Cycle • Risk during project life cycle • With most projects there is some uncertainty about the ability to meet project goals • Uncertainty of outcome is greatest at the start of a project • Uncertainty decreases as the project moves toward completion LO 1

  12. Project Life Cycle • Try to avoid the “90-90 rule of project management”: The first 90% of the project takes 90% of the time, the last 10% takes the other 90%. LO 1

  13. Project Life Cycle What does this rule really mean? LO 1

  14. Project Life Cycle • During the life cycle cycle, project management is accomplished through the use of processes such as: • Initiating, planning, executing, controlling, and closing • Many of these processes are iterative in nature because the project is being progressively elaborated LO 1

  15. Project Life Cycle An Alternate View* Stage 1: Excitement – Euphoria Stage 2: Disenchantment Stage 3: Search for the Guilty Stage 4: Punishment of the Innocent Stage 5: Distinction for the Uninvolved *Author unknown but believed to have perished in stage 4 LO 1

  16. Types of Development Projects LO 2

  17. Structuring Projects • Pure project • Functional project • Matrix project LO 2

  18. Pure Project • Advantages • The project manager has full authority • Team members report to one boss • Shortened communication lines • Team pride, motivation, and commitment are high • Disadvantages • Duplication of resources • Organizational goals and policies are ignored • Lack of technology transfer • Team members have no functional area "home" LO 2

  19. Functional Project LO 2

  20. Functional Project Continued • Advantages • A team member can work on several projects • Technical expertise maintained in functional area • Functional area is “home” after project completed • Critical mass of specialized knowledge • Disadvantages • Aspects of the project that are not directly related to the functional area get short-changed • Motivation of team members is often weak • Needs of the client are secondary and are responded to slowly LO 2

  21. Matrix Project LO 2

  22. Matrix Project Continued • Advantages • Better communications between functional areas • Project manager held responsible for success • Duplication of resources is minimized • Functional “home” for team members • Policies of the parent organization are followed • Disadvantages • Too many bosses • Depends on project manager’s negotiating skills • Potential for sub-optimization LO 2

  23. Defining Project Objectives Why Set Project Objectives • To provide direction for project activities • To enable measuring results against prior exceptions • Resource usage (manpower, materials, etc.) • Schedule integrity • Quality of work • To determine specific goals which will provide maximum effectiveness of project activities LO 3

  24. Defining Project Objectives Requirements for Project Objectives • Achievable (time, resources, staff) • Understandable (vs. complex) • Specific (vs. general, vague statements) • Tangible (“deliverables”) • Measurable (resources, schedule, quality) • Consistent (with strategy, programs, policies, procedures) • Assignable (department or individual) LO 2

  25. Defining Project Objectives Example: D.U. Singer Project Title: Permanent Antiseptic Production Start-Up • Objectives: • Develop a comprehensive plan for the production of a new, permanent antiseptic • Complete development and testing of a manufacturing process that: • Meets all current FDA, EPA, and OSHA regulations as well as internal specifications • produces 95% yield of product (full packaged) at a level of 80% of full production goal of 10 million liters per year LO 2

  26. LO 2

  27. Work Breakdown Structure • Statement of work (SOW): a written description of the objectives to be achieved • Task: a further subdivision of a project • Usually shorter than several months • Performed by one group or organization • Work package: a group of activities combined to be assignable to a single organizational unit LO 4

  28. Work Breakdown Structure Continued • Project milestones: specific events on the project • Work breakdown structure (WBS): defines the hierarchy of project tasks, subtasks, and work packages • Activities: pieces of work that consume time • Defined within the context of the WBS LO 4

  29. An Example of a Work Breakdown Structure LO 4

  30. Work Breakdown Structure, Large Optical Scanner Design LO 4

  31. Work Breakdown Structure Program: New Product Introduction 1.0 Project 1: Engineering Development 1.1 Task 1: Run pilot test 1.2 Task 2: Review process costs and efficiencies 1.3 Task 3: Prepare Capital Equipment List 2.0 Project 2: Market Survey 2.1 Task 1: Complete Market Survey 2.2 Task 2: Analyze Survey Results 2.3 Task 3: Prepare Marketing Plan LO 4

  32. Work Breakdown Structure 3.0 Project 3: Manufacturing Start-up 3.1 Task 1: Install and Test New Equipment 3.2 Task 2: Establish Manufacturing Procedures 3.3 Task 3: Detailed Testing of Initial Output 4.0 Project 4: Sales Force Training 4.1 Task 1: Select Sales People 4.2 Task 2: Select Distributors 4.3 Task 3: Train Sales Force and Distributors LO 4

  33. Project Control Charts • Charts are useful because their visual presentation is easily understood • Software is available to create the charts • Gantt chart: a bar chart showing both the amount of time involved and the sequence in which activities can be performed LO 4

  34. Sample of Graphic Project Reports LO 4

  35. Network-Planning Models • A project is made up of a sequence of activities that form a network representing a project • The path taking longest time through this network of activities is called the “critical path” • The critical path provides a wide range of scheduling information useful in managing a project • Critical Path Method (CPM) helps to identify the critical path(s) in the project networks LO 5

  36. Prerequisites for Critical Path Methodology A project must have: • well-defined jobs or tasks whose completion marks the end of the project; • independent jobs or tasks; • and tasks that follow a given sequence. LO 5

  37. Types of Critical Path Methods • CPM with a Single Time Estimate • Used when activity times are known with certainty • Used to determine timing estimates for the project, each activity in the project, and slack time for activities • CPM with Three Activity Time Estimates • Used when activity times are uncertain • Used to obtain the same information as the Single Time Estimate model and probability information • Time-Cost Models • Used when cost trade-off information is a major consideration in planning • Used to determine the least cost in reducing total project time LO 5

  38. Critical Path Method (CPM) • Identify each activity to be done and estimate how long it will take • Determine the requires sequence and construct a network diagram • Determine the critical path • Determine the early start/finish and late start/finish schedule LO 5

  39. Activity Designation Immed. Pred. Time (Weeks) Assess customer's needs A None 2 Write and submit proposal B A 1 C B 1 Obtain approval D C 2 Develop service vision and goals Train employees E C 5 Quality improvement pilot groups F D, E 5 Write assessment report G F 1 Example 1: CPM with Single Time Estimate Develop a critical path diagram and determine the duration of the critical path and slack times for all activities. LO 5

  40. D(2) G(1) A(2) B(1) F(5) C(1) E(5) First draw the network Act. Imed. Pred. Time A None 2 B A 1 C B 1 D C 2 E C 5 F D,E 5 G F 1 LO 5

  41. Find the Critical Path • Activities on the critical path cannot be delayed without delaying the completion of the project • There are two paths: A – B – C – D – F – G: 12 weeks A – B – C – E – F – G: 15 weeks • Activity D can be delayed by up to 3 weeks without delaying the project • The longest path is critical – why? LO 5

  42. Determine early starts and early finish times ES=4 EF=6 D(2) ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=9 EF=14 ES=14 EF=15 G(1) A(2) B(1) C(1) F(5) ES=4 EF=9 Hint: Start with ES=0 and go forward in the network from A to G. E(5) LO 5

  43. Hint: Start with LF=15 or the total time of the project and go backward in the network from G to A. D(2) ES=9 EF=14 ES=14 EF=15 G(1) A(2) B(1) F(5) LS=0 LF=2 LS=2 LF=3 LS=3 LF=4 E(5) Determine late starts and late finish times ES=4 EF=6 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 LS=7 LF=9 C(1) ES=4 EF=9 LS=9 LF=14 LS=14 LF=15 LS=4 LF=9 LO 5

  44. Slack=(7-4)=(9-6)= 3 Wks ES=9 EF=14 ES=14 EF=15 G(1) A(2) B(1) F(5) LS=0 LF=2 LS=2 LF=3 LS=3 LF=4 Critical Path & Slack ES=4 EF=6 D(2) ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 LS=7 LF=9 C(1) ES=4 EF=9 LS=9 LF=14 LS=14 LF=15 E(5) LS=4 LF=9 Duration=15 weeks LO 5

  45. Example 2: Great Valley General Hospital Project LO 5

  46. F A C E Start H B D G Network for Great Valley General Hospital Project 3 2 2 2 4 3 5 4 Arrows show precedence relationships Start is a “Dummy” activity with 0 duration LO 5

  47. Activity Name Earliest Start Earliest Finish ES EF Latest Start LS LF Activity Duration Latest Start and Finish Steps Latest Finish LO 5

  48. Critical Path for Great Valley General Hospital Project F A C E Start H B D G Arrows show precedence relationships LO 5

  49. Critical Path for Great Valley General Hospital Project • Four paths in the network: Path 1: Start – A – C – F – H: 9 weeks Path 2: Start – A – C – E – G – H: 15 weeks Path 3: Start – A – D – G – H: 13 weeks Path 4: Start – B – D – G – H: 14 weeks • Path 2 is critical LO 5

  50. Great Valley Critical Path • A, C, E, G, and H are on the critical path and so they have 0 slack • B is on path 4, so its slack is 15 – 14 = 1 • D is on paths 3 and 4, so its slack is 15 – Max (13,14) = 1 • F is on path 1, so its slack is 15 – 9 = 6 • An activity can be delayed by its slack and not delay the project completion LO 5

More Related