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Chapter 10 part 1

Chapter 10 part 1. Project Management. Why is Project Management Important?. Why do I need to know this stuff? Relevant across functional areas How is this going to help me now? Valuable to recruiters How is this going to help me later? Vital to success as a manager.

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Chapter 10 part 1

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  1. Chapter 10 part 1 Project Management

  2. Why is Project Management Important? • Why do I need to know this stuff? • Relevant across functional areas • How is this going to help me now? • Valuable to recruiters • How is this going to help me later? • Vital to success as a manager

  3. Project Management Defined • Project • a series of related jobs usually directed toward some major output and requiring a significant period of time to perform • Project Management • planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project

  4. Project Management Defined • All projects require: • Time • Money • Other resources • To achieve the goal, three factors must be satisfied: • Performance: Completion of all stated activities • Scheduling: On-time • Cost: Within budget

  5. Project Management Activities • Planning • Objectives • Resources • Work break-down schedule • Organization • Directing • Project activities • Start & end times • Network • Controlling • Monitor, compare, revise, action

  6. Project Structure and Organization A pure project is where a self-contained team works full-time on the project A functional project is housed within a functional division A matrix project spans functional areas

  7. Project Management in Action Question?? What is the current world record for shortest amount of time to build a 3 bedroom house? • About 1.5 days • About 4 hours • About 3 hours • About 1 hour

  8. Project Management in Action Answer C. About 3 hours

  9. Level Program 1 Project 1 Project 2 2 Task 1.1 Task 1.2 3 Subtask 1.1.1 Subtask 1.1.2 4 Work Package 1.1.1.1 Work Package 1.1.1.2 Work Breakdown Structure Defines the hierarchy of project tasks, subtasks, and work packages

  10. Gantt Chart Vertical Axis: Always Activities or Jobs Horizontal bars used to denote length of time for each activity or job. Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Time Horizontal Axis: Always Time

  11. 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

  12. 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.

  13. 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 (PERT) • 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

  14. Steps in the CPM with Single Time Estimate • 1. Activity Identification • 2. Activity Sequencing and Network Construction • 3. Determine the critical path • From the critical path all of the project and activity timing information can be obtained

  15. Critical Path Analysis • Identifies critical path • Longestpath in network • Shortesttime project can be completed • Any delay on critical path activities delays project • Critical path activities have 0 slack • Provides activity information • Earliest (ES) & latest (LS) start • Earliest (EF) & latest (LF) finish • Slack (S): Allowable delay

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

  17. 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

  18. Project Duration D(2) Critical Path G(1) A(2) B(1) C(1) E(5) Determine path lengths Act. Imed. Pred. Time ABCDFG 12 A None 2 B A 1 ABCEFG 15 C B 1 D C 2 E C 5 F D,E 5 G F 1 F(5)

  19. Determine ES and EF • Begin at starting event and work forward • Earliest Start (ES) • For starting activities: • ES = 0 • For all others: • ES = Maximum EF of all predecessors • Earliest Finish (EF) • EF = ES + Activity time

  20. Determine LS and LF • Begin at ending event and work backward • Latest Finish (LF) • For ending activities • LF = Maximum EF • For non-ending activities • LF = Minimum LS (latest start) of all successors • Latest Start (LS) • LS = LF - Activity time

  21. Network Diagrams ES EF Earliest Start Earliest Finish Activity Name Latest Start Latest Finish LS LF Activity Duration

  22. 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)

  23. 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 Hint: Start with LF=15 or the total time of the project and go backward in the network from G to A. 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

  24. 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

  25. Example Network #2 F 3 A C 2 2 E H 4 2 B D G 3 4 5

  26. Critical Path • Four paths in the network: • Path 1: A – C – F – G: 9 weeks • Path 2: A – C – E – G – H: 15 weeks • Path 3: A – D – G – H: 13 weeks • Path 4: B – D – G – H: 14 weeks • Path 2 is critical

  27. Critical Path • Slack = LS – ES or LF - EF • 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 – Min (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

  28. Case Competition Example Activity List

  29. Case Competition Network Diagram Slides Practice D Read Discuss Pizza F 60 Present 60 B C A Write G 60 70 40 40 E ABCDFG 330 ABCEG 360 150 Project Duration Critical Path

  30. Discussion Case competition example • What is the duration of the project (4a)? • 6 hours (60+70+40+150+40) • Fancy Animation (4b)? • Yes, does not delay project • Additional time for writing report (4c)? • No, will delay the project • Will shortening practice run reduce the project duration (4d)? • No, not on critical path

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