Post on 11-Oct-2018
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By
Ir. Dr. Syuhaida Ismail razakschool.utm.my/syuhaida
0126469235 syuhaida.kl@utm.my
MDE 2583 -‐ PROJECT MANAGEMENT
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● Cer-fied PMP? ● Experience in PM? ● ANended any PM courses/training? ● Skill in using PM tools?
ICE-‐BREAKING
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ASSESSMENT
1 Quiz 1 x 10% 10% 2 Individual Assignment 1 x 20% 20 % 3 Case Study Group
Assignment 1 x 20% 20 %
4 Post Module Assignment 1 x 50% 50 %
Total 100 %
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References/Bibliography
● PMBOK (2013) ● MS Project 2013 ● Kerzner, R. (2013). Project Management:
Systems Approach to Planning, Scheduling and Controlling. John Wiley & Sons Inc.
● Gray, C.F. and Larson, E.W. (2006). Project Management: The Managerial Process. New York: McGraw-Hill International Edition.
● Meredith, J.R. and Mantel, S.J. (2009). Project Management: A Managerial Approach. John Wiley & Sons Inc.
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PMI and PMBOK
● Project Management Ins-tute (PMI) – World's leading not-‐for-‐profit professional membership
associa-on for project management profession – Founded in 1969 – Delivers value for > 2.9 million professionals worldwide – Advances careers, improves organiza-onal success and further
matures the profession of project management – Ac-vity: Recognize standards, cer-fica-ons, resources, tools,
academic research, publica-ons, professional development courses, and networking opportuni-es
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PMI and PMBOK
● Project Management Book of Knowledge (PMBOK) – A book which presents a set of standard terminology and guidelines for project management. The Fibh Edi-on is the document resul-ng from work overseen by PMI
– 47 processes + 5 process groups + 10 knowledge areas
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Project management is “the applicaEon of knowledge, skills, tools, and techniques to project ac-vi-es in order to meet or exceed stakeholder needs and expectaEons from a project” (PMI, Project Management Body of Knowledge (PMBOK Guide), 2013, p. 6)
• Both a management science of science (technical skill, tool and technique) and art (sob skill and people) that follows systema-c and structured process
WHAT IS PROJECT MANAGEMENT?
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Management is an act of gejng things done through and with others, with 2 basic concepts: • Goals – set objec-ves, do the right things
(effec-ve) • Ac-ons – establish right process, do
things right (efficient)
WHAT IS MANAGEMENT?
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OPERATION VS PROJECT
Opera-on – Exis-ng systems – Repe--ve work – Efficiency (do the right things) and effec-veness (do the things right)
– Reliance on standard procedures
– Line management – Focus on “maintaining”
Project – One-‐-me resource configura-on
– Unique and separate work
– Cohesion and direc-on – End-‐product driven – Stakeholder driven – Project orienta-on – Focus on “change”
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DEFINITION OF A “PROJECT”
● Must make a distinction between terms: – Program - an exceptionally large, long-range
objective that is broken down into a set of projects – Task - set of activities comprising a project – Work Packages - division of tasks – Work Units - division of work packages
● In the broadest sense, a project is a specific,
finite task to be accomplished
Chapter 1-8
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Program
Project A
Task A1
Work Package A1a
Work Package A1b
Work Unit
Task A2
Project B
Task B1
DEFINITION OF A “PROJECT”
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CHARACTERISTICS OF A PROJECT
● Specific objec-ves-‐ Time (4 years), Cost (USD 12 B) & Performance – Life-‐cycle of building, M&E, road, O&G, steel structure
● Mul--‐Disciplinary – different disciplines, companies and countries (Belgian and Dutch dredger)
● Temporary undertakings-‐ definite start and end date (2000-‐2004); therefore of finite dura-on
● Consume and compete for scarce resources (40000 workers, 2 shibs, 12 hours/shib
● Produce unique and one-‐off outcomes – 2 palm island, 100 luxury hotels, theme parks, monorail etc
● Phases -‐ Project has a number of phases/schedule ● Usually have own budgets ● One leader assigned overall responsibility ● Projects are subject to a lot of changes – less tourist due to 9/11, rising
seawater hence unsound soil, 6-‐7 Richter scale earthquake, storm, 2m high waves
● Subject to conflicts – monorail, damage marine habitat, coastal erosion, wave paNern, silty water, changes on coastal shape
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PROJECT STAKEHOLDERS
● Stakeholders are the people involved in or affected by project ac-vi-es
● Stakeholders include – the project sponsor and project team (unethical project team in 15%
cost plus contract) – support staff – customers (1990s automo-ve sales strategy vs 2010s) – users (Proton Saga wind-‐down auto window using rubber losing
torque due to sun) – suppliers – opponents to the project (e.g. Lynas, Bakun dam, Langat 2)
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WHEN IS A PROJECT A PROJECT? (PETRONAS TWIN TOWER)
Stewart (1965) uses four criteria ● Scope-‐ definable in terms of a single, specified end result
(From 5 SEA countries, Malaysia is the least known) ● Unfamiliarity-‐unique, infrequent, more uncertainty
(uniquely Malaysia, pinnacles, the tallest) ● Complexity-‐ greater degree on interdependency amongst
tasks (2 contractors, site sat on cliff edge, decayed limestone and sob rocks)
● Stake (risk)-‐ Outcome affects company’s stake (bad concrete batch, heavy rain, Tower 1 leaning 25 mm off from ver-cal)
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TRIPLE CONSTRAINTS OF PROJECT MANAGEMENT
Solutions must not exceed boundaries
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PROJECT MANAGEMENT FRAMEWORK
Project Integration Management
Project Success
Scope Mgt.
Time Mgt.
Cost Mgt.
Quality Mgt.
HR Mgt.
Comm. Mgt.
Risk Mgt.
Procure. Mgt.
10 Knowledge Areas Core Functions
Facilitating Functions
Stakeholder needs and
expectations
Tools and techniques
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Knowledge
Areas
Project Management Process Groups
Ini$a$ng Process Group
Planning Process Group Execu$ng Process Group
Monitoring & Controlling Process
Group
Closing Process Group
Project Integra$on Management
Develop Project Charter
Develop Project Management Plan
Direct and Manage Project Execu-on
• Monitor & Control Project work • Perform Integrated Change Control
Close Project or Phase
Project Scope Management
• Collect requirements • Define Scope • Create WBS
• Verify scope • Control scope
Project Time Management
• Define ac-vi-es • Sequence Ac-vi-es • Es-mate Ac-vity resources • Es-mate Ac-vity dura-ons • Develop schedule
Control Schedule
Project Cost Management
• Es-mate cost • Determine budget
Control Cost
Project Quality Management
Plan Quality Perform Quality Assurance
Perform Quality Control
Project Human Resource Management
Develop Human Resource Plan • Acquire project team • Develop project team • Manage Project team
Project Communica$on Management
Iden-fy Stakeholders
Plan Communica-ons • Distribute Informa-on • Manage Stakeholder Expecta-on
Report Performance
Project Risk Management
• Plan Risk Management • Iden-fy Risk • Perform Qualita-ve Risk Analysis • Perform Quan-ta-ve Risk Analysis • Plan Risk Response
Monitor & Control Risk
Project Procurement Management
Plan Procurements Conduct Procurements Administer Procurements Close Procurements
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PROJECT INTEGRATION MANAGEMENT
Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle
Many new project managers have trouble looking at the “big picture” and want to focus on too many details
E.g. Sony and Siemen do it all while Apple Inc outsources to pass over costs to customer i.e. Corning gorilla glass manufactured in China by Taiwanese
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PROJECT MANAGER VS PMO
Project Manager PMO Project focus Overall organisa-onal
focus: a) Suppor-ve PMO –
consulta-ve role b) Controlling PMO – require compliance to
governance c) Direc-ve PMO – directly manage
projects
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KEY TO SUCCESS
● People processes of teamwork and leadership as well as tools and techniques
● Blending of hard and sob methods and techniques are important in Project Management
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TOOLS IN PROJECT MANAGEMENT
● Microsob Project (MSP) ● Primavera Project Planner (P3) ● Primavera Professional Project Management (P6)
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PROJECT LIFE CYCLE Time Distribu-on of Project Effort
Initiation Planning
Executing
Closing
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Process Groups Interact in a Phase or Project
Project Management Process (IPEC+MC)
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Knowledge
Areas
Project Management Process Groups
Ini$a$ng Process Group
Planning Process Group Execu$ng Process Group
Monitoring & Controlling Process
Group
Closing Process Group
Project Integra$on Management
Develop Project Charter
Develop Project Management Plan
Direct and Manage Project Execu-on
• Monitor & Control Project work • Perform Integrated Change Control
Close Project or Phase
Project Scope Management
• Collect requirements • Define Scope • Create WBS
• Verify scope • Control scope
Project Time Management
• Define ac-vi-es • Sequence Ac-vi-es • Es-mate Ac-vity resources • Es-mate Ac-vity dura-ons • Develop schedule
Control Schedule
Project Cost Management
• Es-mate cost • Determine budget
Control Cost
Project Quality Management
Plan Quality Perform Quality Assurance
Perform Quality Control
Project Human Resource Management
Develop Human Resource Plan • Acquire project team • Develop project team • Manage Project team
Project Communica$on Management
Iden-fy Stakeholders
Plan Communica-ons • Distribute Informa-on • Manage Stakeholder Expecta-on
Report Performance
Project Risk Management
• Plan Risk Management • Iden-fy Risk • Perform Qualita-ve Risk Analysis • Perform Quan-ta-ve Risk Analysis • Plan Risk Response
Monitor & Control Risk
Project Procurement Management
Plan Procurements Conduct Procurements Administer Procurements Close Procurements
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PMBOK 5 process groups
Project Management Process (IPEC+MC)
Initiation
Planning
Execution
Monitoring and
Controlling Closing
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PROJECT LIFE CYCLE Time Distribu-on of Process Interac-on
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Project Scope Management
● Organisation scope – defining scopes amongst organisations involved
● Project scope – defining scopes of the project itself ● Activity scope – determining how detailed you want to
cover the activity ● As project and activity are the main focus of scope
management, time management is also important in managing the scope
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PROJECT TIME MANAGEMENT
● Create project calendar ● Define WBS ● Define the activities ● Determine sequence of activities ● Estimate activities duration ● Estimate activities resources ● Determine constraints and limitation ● Develop schedule ● Control
It involves BOTH project planning and scheduling
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● Project planning – Process of iden-fying all the ac-vi-es necessary to successfully complete the project
– Technique e.g. WBS
● Project scheduling – Process of determining sequen-al order of planned ac-vi-es, assigning realis-c dura-ons to each ac-vity, and determining start and finish dates for each ac-vity
– Technique e.g. GanN chart, PERT and CPM
PROJECT TIME MANAGEMENT
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PROJECT PLANNING TECHNIQUE: WBS
● A work breakdown structure (WBS) is an outcome-‐oriented analysis of the work involved in a project that defines the total scope of the project
● A graphical display of the project that shows division of work in a mulElevel system
● The concept of the WBS is simple: in order to manage a whole project, one must manage/control each of its part
● It is a founda-on document in project management because it provides the basis for planning and managing project schedules, costs and changes
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● WBS defines: – Work to be performed – The needed exper-se – Selec-on of the project team – Base for project scheduling and control
● The development of WBS is a con-nuing process: – Starts when the project is first assigned to the project manager
– Con-nues un-l all work packages have been defined
PROJECT PLANNING TECHNIQUE: WBS
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Figure 4-‐6a. Sample of Intranet WBS Organized by Product
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Figure 4-‐6b. Sample Intranet WBS Organized by Phase
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Table 4-‐3. Intranet WBS in Tabular Form 1.0 Concept
1.1 Evaluate current systems 1.2 Define Requirements 1.2.1 Define user requirements 1.2.2 Define content requirements 1.2.3 Define system requirements 1.2.4 Define server owner requirements 1.3 Define specific functionality 1.4 Define risks and risk management approach 1.5 Develop project plan 1.6 Brief web development team
2.0 Web Site Design 3.0 Web Site Development 4.0 Roll Out 5.0 Support
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Figure 4-‐7. Intranet WBS and Gand Chart in Microsoe Project 98
WBS Gantt Chart
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CREATE A WBS FOR SATAY BARBEQUE
Assumptions • Vegetables are uncut
• Nasi impit is uncut • Kuah is unheated
• Satay is raw • Satay Grill ready but no fire
• Arang/coal ready • Fire lighter available
• Lighter available • Plates are available
Activity ends when satay is served as
shown
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WORK BREAKDOWN STRUCTURE
Serve Satay
Veggies & Nasi Impit
Prepare Satay Grill
Barbeque & Serve
1.1 Cut nasi impit 1.2 Cut onions 1.3 Cut cucumbers 1.4 Warm up sauce
2.1 Put charcoal in grill 2.2 Light fire 2.3 Spread charcoal
3.1 Put satay on grill 3.2 Grill & serve
1 2 3
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PROJECT SCHEDULING TECHNIQUES
● GanN chart or bar chart ● Cri-cal Path Method (CPM) ● Program Evalua-on & Review Technique (PERT)
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GANTT CHART
J F M A M J JTime Period
Activity
Design
Build
Test
J F M A M J JTime Period
Activity
Design
Build
Test
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GANTT CHART
Activities
Time (days)
Planned
Actual
Early start (ES)
Early finish (EF)
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LET’S RECAP!
Serve Satay
Veggies & Nasi Impit
Prepare Satay Grill
Barbeque & Serve
1.1 Cut nasi impit 1.2 Cut onions 1.3 Cut cucumbers 1.4 Warm up sauce
2.1 Put charcoal in grill 2.2 Light fire 2.3 Spread charcoal
3.1 Put satay on grill 3.2 Grill & serve
1 2 3
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Warm up sauce Cut Nasi Impit
Put satay
Cut Cucumber Cut Onions
Put coals
Light fire
Spread coals
Serve satay
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PERT & CPM
● Network techniques/analysis system ● Consider precedence rela-onships & interdependencies
● Each uses a different es-mate of ac-vity -mes
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PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT)
● Program Evalua-on and Review Technique (PERT) -‐Similar method – Developed in 1957 – by the US Navy, with Booz, Allen & Hamilton Management Consultants, as a probabilisEc approach to scheduling for Polaris missile
– Commonly used by the manufacturing industry v Both methods are oben referred to as a network analysis system.
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PERT -‐ PROBABILITY
● Expected project -me (T) • Sum of cri-cal path ac-vity -mes, t
64 bmaET ++
=
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CRITICAL PATH METHOD (CPM)
● Cri-cal Path Method (CPM) – Developed in 1956 – by the DuPont Company with Remington Rand as consultants, as a determinisEc approach to scheduling.
– Commonly used in the engineering and construc-on industry.
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PERT & CPM STEPS
● Iden-fy ac-vi-es ● Determine sequence ● Create network ● Determine ac-vity -mes ● Find cri-cal path
• Earliest & latest start -mes • Earliest & latest finish -mes • Slack
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● Activity – A specific task or set of tasks – Use resources and take time to complete – e.g. concreting
● Event – The result of completing one or more
activities – Use no resources
Chapter 8-9
TERMINOLOGY
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● Network – Combination of all activities and events – Define the project and the activity
precedence relationships
Chapter 8-9
TERMINOLOGY
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TERMINOLOGY
● Path – Series of connected activities (or intermediate
events) between any two events in a network
● Critical – Activities, events, or paths which, if delayed,
will delay the completion of the project – A sequence of critical activities that connect
the project’s start event to its finish event Chapter 8-10
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● An activity can be in any of these conditions: – It may have a successor(s) but no
predecessor(s) - starts a network – It may have a predecessor(s) but no
successor(s) - ends a network – It may have both predecessor(s) and
successor(s) - in the middle of a network
Chapter 8-11
TERMINOLOGY
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AcEvity on Node (AoN)
2 2 Years
Enroll Receive Exec. Diploma
Project: Obtain an Exec. Diploma/Master
1 month
Attend class, study etc.
1 1 day
3
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AcEvity on Arrow (AoA) – Can be complex due to dummy acEvity
2 Years
Enroll Receive Exec.
Diploma
Project: Obtain an Exec. Diploma/Master
1 month
Attend class, study,
etc. 1
1 day 2 3 4
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AoA Nodes Have Meaning
Graduating Applicant
Project: Obtain a Master’s Degree
1
Alumni
2 3 4
Student
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Terminology for AOA
Chapter 8-9
event activity
Indicator b = concreting
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We’ll use AcEvity on Node
1-2 must be done before 2-3 or 3-4 can start
2
3
4
1
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AcEvity RelaEonships
2-3 must be done before 3-4 or 3-5 can start
2
3
4
1 5
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2-4 and 3-4 must be done before 4-5 can start
2
3
4
1 5
AcEvity RelaEonships
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When 5-6 is done, project is complete.
2
3
4
1 5 6
AcEvity RelaEonships
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NETWORK EXAMPLE -‐ AON
You’re a project manager for Bechtel. Construct the AON network.
Ac-vity Predecessors A -‐-‐ B A C A D B E B F C G D H E, F
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2 3 1 A
C
B D
A precedes B and C, B and C precede D
2 4 1 A C
B
D
3
5
4
Add a phantom arc for clarity.
Dummy activity
NETWORK EXAMPLE – AOA – Can be complex due to dummy acEvity
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LET’S TRY THIS! (AOA)
AcEvity Predecessor A -‐ B -‐ C A D A,B
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DUMMY
● An ac-vity with zero dura-on ● Links together ac-vi-es whose sequence would otherwise not be shown
● Indicated by a dashed arrow ● Show the sequence between ac-vi-es e.g. ac-vity A and D without the problem of linking Ac-vity B with Ac-vity C
● Determined by looking at the ac-vity list and find those ac-vi-es that share some, but not the en-re set of prior ac-vi-es.
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CRITICAL PATH METHOD (CPM) FOR AON
● Provides ac-vity informa-on • Earliest (ES) & latest (LS) start • Earliest (EF) & latest (LF) finish • Slack (S) or float (F): Allowable delay
● Iden-fies cri-cal path • Longest path in network (from start to end) • Shortest -me project can be completed • Any delay on ac-vi-es delays project • Ac-vi-es have 0 slack or float *Cri-cal ac-vi-es = Ac-vi-es in cri-cal path. Have no float i.e. ES = EF and/or LS = LF. Indicated with double line.
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SLACK/FLOAT
● Total float: Measure of leeway (delay) in starting and completing an activity. It assumes that all activities preceding that activity finished as Early as possible and all successor activities are started as Late as possible. FREE TIME WITHOUT DELAYING THE WHOLE PROJECT DURATION
TF = LF – EF = LS - ES ● Free float: Amount of time that an activity’s start can be
delayed with out affecting the early start date of any successor activity in the network. FREE TIME WITHOUT DELAYING THE EARLY START OF SUCCEESOR ACTIVITY
FF = ES NEXT ACTIVITY – EF THAT ACTIVITY
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1
3
7 6
4
5
2
A D
G
B
E
L
H
F
C
J
MK
AOA to AON EXERCISE
Forward calculation– choose the largest value Backward calculation – choose the smallest value
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The duration (in weeks) of the activities in the network are given as listed below:-
● A – 7 ● B – 1 ● C – 10 ● D – 3 ● E – 2 ● F – 3
● G – 12 ● H – 13 ● J – 8 ● K – 17 ● L – 4 ● M – 12
AOA to AON EXERCISE
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● Transform the AOA to AON network ● Find
a) The minimum project time b) The earliest and latest times for each event c) The total float of each activity d) The free float of each activity e) The critical path
AOA EXERCISE
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CRITICAL PATH ANALYSIS EXAMPLE 2
Event ID Pred. Description Time
(Wks) A None Prepare Site 1 B A Pour fdn. & frame 6 C B Buy shrubs etc. 3 D B Roof 2 E D Do interior work 3 F C Landscape 4 G E,F Move In 1
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QUIZ ● The duration (in weeks) of the activities in the network are
given as listed below:
AcEviEes Predecessor DuraEon (Weeks)
A -‐ 5
B A 4
C A 6
D A 5
E B 4
F C 3
G D 5
H E, F 7
I G 4
J H, I 3
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● In 30 minutes, find: a) The minimum project time b) The earliest and latest times for each event c) The total float of each activity d) The free float of each activity e) The critical path
QUIZ
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BENEFITS OF PERT/CPM
● Useful at many stages of project management
● Mathema-cally simple ● Use graphical displays ● Give cri-cal path & slack -me ● Provide project documenta-on ● Useful in monitoring costs
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EARNED VALUE MANAGEMENT SYSTEM (EVMS)
A predetermined amount of value i.e. budget, that is claimed, or earned, when the corresponding work is accomplished
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EARNED VALUE MANAGEMENT SYSTEM (EVMS) OBJECTIVES
● Plan all work prior to beginning it ● Measure performance based on an objec-ve set of technical criteria
● Analyze schedule status and projec-ons using a -me phased CPM network
● Analyze the expenditure of funds in light of the work accomplished (not work scheduled)
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EARNED VALUE MANAGEMENT SYSTEM (EVMS) OBJECTIVES
● Isolate problems: – Quan-fy technical problems within the context of cost
and schedule parameters – Not aimed at replacing or changing the process for
technical problem detec-on;
● Forecast comple-on date and final cost ● Take correc-ve ac-on ● Maintain disciplined control of the performance measurement baseline
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QUALITY MANAGEMENT
● Objec-ves: – Improve quality of project – Achieve maximum customer saEsfacEon
● Philosophies: – Process improvement – Customer and supplier involvement – Teamwork and training to achieve customer sa-sfac-on
– Cost effec-veness – Defect free quality work
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STEPS OF QUALITY MANAGEMENT
● Prepara-on and planning ● Implementa-on of plan ● Measurement and verifica-on of implementa-on
● Evalua-on of results
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CUSTOMER SATISFACTION
● Func-on of project is to provide clients with the products, services, facili-es or structures that meet their need
● Ensuring quality at each stage in the project (from ini-a-on to closure) will sa-sfy the customer
● Thus, management func-ons to: – Maintain and incrementally improve current methods and procedures through process control
– Direct efforts to achieve technological advances through innova-on
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QUALITY MANAGEMENT PROCESS
Plan
Do Check
Act
Corrective action on opportunity, standardize and feed forward to the next plan
Verify results of plan
Plan improvements for present practices
Implementation of plan on small scale
PROGRESS
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FUNCTIONAL, PROJECT AND MATRIX ORGANIZATIONAL STRUCTURES
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ORGANIZATION STRUCTURE INFLUENCES ON PROJECTS
Organization Type Project Characteristics
Functional
Matrix Projectized Weak Matrix Balanced
Matrix Strong Matrix
Project Manager's Authority
Little or None
Limited Low to Moderate
Moderate To High
High to Almost Total
Percent of Performing Organization's Personnel Assigned Full- time to Project Work
Virtually None
0-25%
15-60%
50-95%
85-100%
Project Manager's Role Part-time Part-time Full-time Full-time Full-time Common Title for Project Manager's Role
Project Coordinator/ Project Leader
Project Coordinator/ Project Leader
Project Manager/ Project Officer
Project Manager/ Program Manager
Project Manager/ Program Manager
Project Management Administrative Staff
Part-time
Part-time
Part-time
Full-time
Full-time
The organizational structure influences the project manager’s authority, but remember to address the human resources, political, and symbolic frames, too.
PMBOK Guide, 1996, p. 18
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DISTINCTIONS BETWEEN PROJECT AND FUNCTIONAL MANAGEMENT
– Job of func-onal managers go on forever
– They operate and op-mise the use of resources of overall company basis
– Job of project managers is over once project is finished
– They op-mise resources of a project
– Different defini-ons of op-misa-on may lead to conflicts
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ADVANTAGES OF PROJECT MANAGEMENT ORGANISATIONAL APPROACH
● Teamwork -‐ beNer mo-va-on and communica-on
● Synergism -‐ high performing team ● Cross-‐border management -‐ difficult cultures, func-ons and boundaries
● Forward-‐looking -‐ what else needs doing ● Client rela-ons -‐ one point of contact ● Results – more effec-ve
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IMPORTANCE OF GOOD COMMUNICATIONS
● The greatest threat to many projects is a failure to communicate
● Strong verbal skills are a key factor in career advancement for Project Managers
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PROJECT COMMUNICATIONS MANAGEMENT PROCESSES
● Communica-ons planning: determining the informa-on and communica-ons needs of the stakeholders
● Informa-on distribu-on: making needed informa-on available in a -mely manner
● Performance repor-ng: collec-ng and dissemina-ng performance informa-on
● Administra-ve closure: genera-ng, gathering, and dissemina-ng informa-on to formalize phase or project comple-on (including lesson learn)
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LYNAS CASE-‐STUDY – GROUP WORK
● Iden-fy project stakeholders ● What are the issues? ● What are project benefits? ● What are the project risks? (major & minor)
● Why are there conflicts? ● How to resolve conflicts? ● How can management inform the public?
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SUGGESTIONS FOR IMPROVING PROJECT COMMUNICATIONS
● Resolve conflicts effec-vely ● Develop beNer communica-on skills ● Run effec-ve mee-ngs ● Use templates for project communica-ons
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RISK LEVEL FOR TYPICAL PROJECT
PROJECT MANAGER (Head of Section/Mgr)
PROGRAM MANAGER (Head of Department/ SM)
POTFOLIO MANAGER (Head of Division/GM)
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WHAT IS RISK? A risk is a potenEal problem characterised by: (a) A likelihood of occurrence (b) A poten-al impact
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SOURCES OF RISK
1. Use of new or untried technology 2. Inexperienced team 3. Poor Project management
structure 4. Lack of resource or resource
conflicts 5. Work takes longer than planned 6. Deliveries from supplier late 7. Insufficient produc-on facili-es 8. Placing of subcontract and
purchase orders
10. Replace key, sick or holidaying personnel
11. Weather may delay work 12. Labour disputes may delay work 13. Poor cost es-mates 14. Currency conversion rates may
changes 15. Interfaces with other people,
departments and companies. 16. Pressure from NGOs, Poli-cians,
Crooks 17. Global Weather Changes 18. Natural Disasters
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RISK ASSESSMENT MAP
Impact Probability
Low Medium High
High ? Medium
Low ?
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PROCUREMENT ● Procurement refers to the process of acquiring projects
● The process may be categorized into six main elements: 1. Ini-a-on – recognises need for a facility/service etc 2. Funding – provides finance required for project 3. Design – translates requirement of ini-ator into drawings 4. Statutory Approval – obtains relevant authori-es to ini-ate
and construct a facility and upon its comple-on/occupancy/comple-on of facility
5. Tendering -‐ obtains offer leading to a contract between a client and contractor, a client and consultant or a contractor and sub-‐contractor
6. Construc-on -‐ physically fits the varied components of a facility together, to form a final structure.
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PROCUREMENT SYSTEM
● The system of procurement determines the rela-onship of par-es involved in the procurement process
● The contractual rela-onship indicates the types of risks each party will be responsible and the reward for doing so in the processes of construc-on procurement.
● In Malaysia the dominant procurement system are:-‐ • Tradi-onal lump-‐sum system or Design/Bid/Build • Design & Build or Turnkey System • Construc-on Management • Owner/Agent
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STAKEHOLDER
● Individuals and groups with a mul-tude of interests, expecta-ons and demands as to what business should provide to society
● Divided into 2: – Primary stakeholder – have a direct stake in organisa-on and its success
– Secondary stakeholder – have public or special interest stake in organisa-on
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STAKEHOLDER MANAGEMENT
● Iden-fy types of stakeholders and their power
● Determine opportuni-es (build good produc-ve working rela-onship) and challenges (how can the stakeholders be handled) that stakeholders present
● Know the economic, legal, ethical and philanthropic (humane) responsibili-es that the organisa-on has to the stakeholders