Opermgt 345 Shannon January, 2001 1 Project Management Basic Concepts Opermgt 345 January, 2001.

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1Opermgt 345 Shannon January, 2001

Project ManagementBasic Concepts

Opermgt 345

January, 2001

2Opermgt 345 Shannon January, 2001

What is a Project?

A Project is a series of activities and tasks that:

Have a specific objective to be completed with certain objectives

Have a defined start and end dates

Have funding limits (if applicable)

Consume Resources

3Opermgt 345 Shannon January, 2001

Typical Project Structure

ProjectDefinition

ProjectDefinition

ProjectPlanning

ProjectPlanning

ProjectImplementation

ProjectImplementation

ProjectMonitoring

ProjectMonitoring

ProjectAdjustment

ProjectAdjustment

ProjectEvaluation

ProjectEvaluation

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Project Life CycleR

esou

rces

and

Eff

ort

Phase 1

•Goals•Scope•Baseline•Requirements•Feasibility•Desirability

ConceptualDesign

Phase 2

AdvancedDevelopment

•Plan•Budget•Schedule•Management Commitment

Phase 3

DetailedDesign

•Define Responsibility•Team•Organization Structure•Detailed Plan•Kickoff

Phase 4

ProjectImplementation

•Manage•Measure•Control•Update and Modify Plan•Problem Solve

ProjectTermination

Phase 5

•Closeout•Document•Suggest Improvements•Reassign•Dissolve Project Team

5Opermgt 345 Shannon January, 2001

Successful Projects

A successful project is one which achieves the following objectives:

– Completed On Time– Completed Within Cost– Meets Performance Criteria– Minimum Disruption of the Main Work of the

Organization– Effective Utilization of Resources

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The Triple Play ofProject Management

Constraints

Time Cost

Performance

7Opermgt 345 Shannon January, 2001

Triple Constraint Trade-offs

Budget

ScheduleEarly Late TIME

$

Performance Specifications

Better

Worse

8Opermgt 345 Shannon January, 2001

Major causes of failure

Selection of a unsound projectSelecting the wrong person as a project

managerLack of support from upper managementMisused management techniquesProject termination not planned

9Opermgt 345 Shannon January, 2001

Project Definition

Build Canoe Rental Building onCoeur d A’lene Lake

10Opermgt 345 Shannon January, 2001

Form Project Team

•Select Project Leader

•Identify Key People

•Gain Management Commitment

•Define Project Team Operating Rules

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The Top Level Project Tasks

Brainstormthe

Major Tasks

Brainstormthe

Major Tasks

EstablishWork Flow

EstablishWork Flow

AB

C

D E F

G

12Opermgt 345 Shannon January, 2001

Define Top Level TasksCanoe Example

Site Preparation

Build Dock

Build Building

Finish and Ready for Business

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Sequence Top Level Tasks

Site Preparation

Build Dock

Build Building

Finish

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Sub-Tasks

A

B

C

D E F

G

Detailed Tasks

Detailed Tasks

Develop Work Sequence

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Brainstorm Sub-Tasks

Site Preparation Build Dock Build Building Finish

Dock Site

Building Site

Install Pilings

Build Dock

Foundation

Frame

Roof

Power

Siding

Paint

Order Canoes

Landscape

AssembleCanoes

Open forBusiness

16Opermgt 345 Shannon January, 2001

Work Breakdown Structure

Top Level Task

2nd LevelTask

2nd LevelTask

2nd LevelTask

2nd LevelTask

3rd LevelTask

3rd LevelTask

3rd LevelTask

3rd LevelTask

3rd LevelTask

3rd LevelTask

3rd LevelTask

3rd LevelTask

3rd LevelTask

Lower Level Tasks

17Opermgt 345 Shannon January, 2001

Sequence Sub-TasksTask Description Immediate Predecessor

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canoes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

18Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

(Activities on Arrows)

1

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

19Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

1 3A

Prep Dock Site

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

20Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

1 3A

Prep Dock Site

2

Order

Canoes

J

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

21Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

1 3A

Prep Dock Site

2

Order

Canoes

4

J

B

Prepare

Hut S

ite

6

D

HutFoundation

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

22Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

1 3A

Prep Dock Site

2

Order

Canoes

4

J

B

Prepare

Hut S

ite

6

D

HutFoundation

5C

Install Pilings9

E

Build Dock

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

23Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

1 3A

Prep Dock Site

2

Order

Canoes

4

J

B

Prepare

Hut S

ite

6

D

HutFoundation

5C

Install Pilings9

E

Build Dock

G

Power To H

ut A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

24Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

1 3A

Prep Dock Site

2

Order

Canoes

4

J

B

Prepare

Hut S

ite

6

D

HutFoundation

5C

Install Pilings9

E

Build Dock

G

Power To H

ut

LAssemble Canoes

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

25Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

1 3A

Prep Dock Site

2

Order

Canoes

4

J

B

Prepare

Hut S

ite

6

D

HutFoundation

5C

Install Pilings9

E

Build Dock

G

Power To H

ut

LAssemble Canoes

7F

Frame Hut

Roof

I

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

26Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

1 3A

Prep Dock Site

2

Order

Canoes

4

J

B

Prepare

Hut S

ite

6

D

HutFoundation

5C

Install Pilings

7F

Frame Hut8

H

Side Hut

9E

Build Dock

G

Power To H

ut

I Roof

K Paint Hut

LAssemble Canoes

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

27Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

1 3A

Prep Dock Site

2

Order

Canoes

4

J

B

Prepare

Hut S

ite

6

D

HutFoundation

5C

Install Pilings

7F

Frame Hut8

H

Side Hut

9E

Build Dock

G

Power To H

ut

I Roof

K Paint Hut

LAssemble Canoes

10M

FinishLandscape

11N

Open forBusiness

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

28Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart) Canoe ExampleAdd Times

1 3A (3)

Prep Dock Site

2

Order

Canoes

4

J (2)

B (4)

Prepare

Hut S

ite

6

D (3)

HutFoundation

5C (6)

Install Pilings

7F (3)

Frame Hut8

H (2)

Side Hut

9E (4)

Build Dock

G (2)

Power To H

ut

I (2) Roof

K (4)Paint Hut

L (10)Assemble Canoes

10M (4)

FinishLandscape

11N (2)

Open forBusiness

A Prepare Dock Site 3 d B Prepare Hut Site 4 d C Install Dock Pilings 6 d D Foundation for Hut 3 d E Build Dock 4 d F Frame Hut 3 d G Power to Hut 2 d H Side the Hut 2 d I Roof the Hut 3 d J Order Canoes 2 d K Paint Hut 4 d L Assemble Canoes 10 d M Finish Landscaping 4 d NOpen for Business 2 d

Task Description Time

29Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart)

1 3A

Prep Dock Site

2

Order

Canoes

4

J

B

Prepare

Hut S

ite

6

D

HutFoundation

5C

Install Pilings

7F

Frame Hut8

H

Side Hut

9E

Build Dock

G

Power To H

ut

I Roof

K Paint Hut

LAssemble Canoes

10M

FinishLandscape

11N

Open forBusiness

A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Task Predecessor

30Opermgt 345 Shannon January, 2001

Build Network Diagram(PERT Chart) Canoe ExampleAdd Times

1 3A (3)

Prep Dock Site

2

Order

Canoes

4

J (2)

B (4)

Prepare

Hut S

ite

6

D (3)

HutFoundation

5C (6)

Install Pilings

7F (3)

Frame Hut8

H (2)

Side Hut

9E (4)

Build Dock

G (2)

Power To H

ut

I (2) Roof

K (4)Paint Hut

L (10)Assemble Canoes

10M (4)

FinishLandscape

11N (2)

Open forBusiness

A Prepare Dock Site 3 d B Prepare Hut Site 4 d C Install Dock Pilings 6 d D Foundation for Hut 3 d E Build Dock 4 d F Frame Hut 3 d G Power to Hut 2 d H Side the Hut 2 d I Roof the Hut 3 d J Order Canoes 2 d K Paint Hut 4 d L Assemble Canoes 10 d M Finish Landscaping 4 d NOpen for Business 2 d

Task Description Time

31Opermgt 345 Shannon January, 2001

Determining Project Length

Option 1: Sum all the task durations: A Prepare Dock Site - 3 d B Prepare Hut Site - 4 d C Install Dock Pilings A 6 d D Foundation for Hut B 3 d E Build Dock C 4 d F Frame Hut D 3 d G Power to Hut D 2 d H Side the Hut F 2 d I Roof the Hut F 3 d J Order Canoes and Receive Canoes - 2 d K Paint Hut H 4 d L Assemble Canoes J 10 d M Finish Landscaping L,I,K,E,G 4 d N Open for Business M 2 d

Sum = 52 daysAnything wrong with this approach?

32Opermgt 345 Shannon January, 2001

Determining Project Length

Option 2: Determine duration of each network path

33Opermgt 345 Shannon January, 2001

Network DiagramProject Paths

1 3A (3)

Prep Dock Site

2

Order

Canoes

4

J (2)

B (4)

Prepare

Hut S

ite

6

D (3)

HutFoundation

5C (6)

Install Pilings

7F (3)

Frame Hut8

H (2)

Side Hut

9E (4)

Build Dock

G (2)

Power To H

ut

I (2) Roof

K (4)Paint Hut

L (10)Assemble Canoes

10M (4)

FinishLandscape

11N (2)

Open forBusiness

Paths:

A-C-E-M-N = 19 days

34Opermgt 345 Shannon January, 2001

1 3A (3)

Prep Dock Site

2

Order

Canoes

4

J (2)

B (4)

Prepare

Hut S

ite

6

D (3)

HutFoundation

5C (6)

Install Pilings

7F (3)

Frame Hut8

H (2)

Side Hut

9E (4)

Build Dock

G (2)

Power To H

ut

I (2) Roof

K (4)Paint Hut

L (10)Assemble Canoes

10M (4)

FinishLandscape

11N (2)

Open forBusiness

Paths:

A-C-E-M-N = 19 daysB-D-F-H-K-M-N = 22 days

Network DiagramProject Paths

35Opermgt 345 Shannon January, 2001

1 3A (3)

Prep Dock Site

2

Order

Canoes

4

J (2)

B (4)

Prepare

Hut S

ite

6

D (3)

HutFoundation

5C (6)

Install Pilings

7F (3)

Frame Hut8

H (2)

Side Hut

9E (4)

Build Dock

G (2)

Power To H

ut

I (2) Roof

K (4)Paint Hut

L (10)Assemble Canoes

10M (4)

FinishLandscape

11N (2)

Open forBusiness

Paths:

A-C-E-M-N = 19 daysB-D-F-H-K-M-N = 22 daysB-D-F-I-M-N = 18 days

Network DiagramProject Paths

36Opermgt 345 Shannon January, 2001

1 3A (3)

Prep Dock Site

2

Order

Canoes

4

J (2)

B (4)

Prepare

Hut S

ite

6

D (3)

HutFoundation

5C (6)

Install Pilings

7F (3)

Frame Hut8

H (2)

Side Hut

9E (4)

Build Dock

G (2)

Power To H

ut

I (2) Roof

K (4)Paint Hut

L (10)Assemble Canoes

10M (4)

FinishLandscape

11N (2)

Open forBusiness

Paths:

A-C-E-M-N = 19 daysB-D-F-H-K-M-N = 22 daysB-D-F-J-M-N = 18 daysB-D-G-M-N = 15 days

Network DiagramProject Paths

37Opermgt 345 Shannon January, 2001

1 3A (3)

Prep Dock Site

2

Order

Canoes

4

J (2)

B (4)

Prepare

Hut S

ite

6

D (3)

HutFoundation

5C (6)

Install Pilings

7F (3)

Frame Hut8

H (2)

Side Hut

9E (4)

Build Dock

G (2)

Power To H

ut

J (2) Roof

K (4)Paint Hut

L (10)Assemble Canoes

10M (4)

FinishLandscape

11N (2)

Open forBusiness

Paths:

A-C-E-M-N = 19 daysB-D-F-H-K-M-N = 22 daysB-D-F-J-M-N = 18 daysB-D-G-M-N = 15 daysJ-L-M-N = 18 days

Network DiagramProject Paths

38Opermgt 345 Shannon January, 2001

Critical Path

The Critical Path is the Longest PathThrough the Network.

39Opermgt 345 Shannon January, 2001

1 3A (3)

Prep Dock Site

2

Order

Canoes

4

J (2)

B (4)

Prepare

Hut S

ite

6

D (3)

HutFoundation

5C (6)

Install Pilings

7F (3)

Frame Hut8

H (2)

Side Hut

9E (4)

Build Dock

G (2)

Power To H

ut

I (2) Roof

K (4)Paint Hut

L (10)Assemble Canoes

10M (4)

FinishLandscape

11N (2)

Open forBusiness

Network Diagram Canoe ExampleCritical Path

Paths:

A-C-E-M-N = 19 daysB-D-F-H-K-M-N = 22 daysB-D-F-J-M-N = 18 daysB-D-G-M-N = 15 daysJ-L-M-N = 18 days

40Opermgt 345 Shannon January, 2001

Completed Task Timetable

Task Description Immediate Predecessor Time ES LS EF LF

A Prepare Dock Site - 3 d 0 3 3 6 B Prepare Hut Site - 4 d 0 0 4 4 C Install Dock Pilings A 6 d 3 6 9 12 D Foundation for Hut B 3 d 4 4 7 7 E Build Dock C 4 d 9 12 13 16 F Frame Hut D 3 d 7 7 10 10 G Power to Hut D 2 d 7 14 9 16 H Side the Hut F 2 d 10 10 12 12 I Roof the Hut F 3 d 10 13 13 16 J Order Canoes and Receive Canoes - 2 d 0 4 2 6 K Paint Hut H 4 d 12 12 16 16 L Assemble Canoes J 10 d 2 6 12 16 M Finish Landscaping L,I,K,E,G 4 d 16 16 20 20 N Open for Business M 2 d 20 20 22 22

41Opermgt 345 Shannon January, 2001

Slack Time

Total Slack = The length of time an activity can bedelayed without affecting the projectcompletion time.

Total Slack = Late Start - Early Start

Total Slack = Late Finish - Early FinishFor Critical Activities

Free Slack = The time a task can be delayed without delaying another task.

42Opermgt 345 Shannon January, 2001

Slack Time

Task Description Immediate Predecessor Time ES LS EF LF Slack

A Prepare Dock Site - 3 d 0 3 3 6 3 B Prepare Hut Site - 4 d 0 0 4 4 0 C Install Dock Pilings A 6 d 3 6 9 12 3 D Foundation for Hut B 3 d 4 4 7 7 0 E Build Dock C 4 d 9 12 13 16 3 F Frame Hut D 3 d 7 7 10 10 0 G Power to Hut D 2 d 7 14 9 16 7 H Side the Hut F 2 d 10 10 12 12 0 I Roof the Hut F 3 d 10 13 13 16 3 J Order Canoes and Receive Canoes - 2 d 0 4 2 6 4 K Paint Hut H 4 d 12 12 16 16 0 L Assemble Canoes J 10 d 2 6 12 16 4 M Finish Landscaping L,I,K,E,G 4 d 16 16 20 20 0 N Open for Business M 2 d 20 20 22 22 0

43Opermgt 345 Shannon January, 2001

Critical Path Tasks

Critical Path = All tasks with slack = zero

44Opermgt 345 Shannon January, 2001

Critical Path Tasks

Task Description Immediate Predecessor Time ES LS EF LF Slack

A Prepare Dock Site - 3 d 0 3 3 6 3 B Prepare Hut Site - 4 d 0 0 4 4 0 *** C Install Dock Pilings A 6 d 3 6 9 12 3 D Foundation for Hut B 3 d 4 4 7 7 0 *** E Build Dock C 4 d 9 12 13 16 3 F Frame Hut D 3 d 7 7 10 10 0 *** G Power to Hut D 2 d 7 14 9 16 7 H Side the Hut F 2 d 10 10 12 12 0 *** I Roof the Hut F 3 d 10 13 13 16 3 J Order Canoes and Receive Canoes - 2 d 0 4 2 6 4 K Paint Hut H 4 d 12 12 16 16 0 *** L Assemble Canoes J 10 d 2 6 12 16 4 M Finish Landscaping L,I,K,E,G 4 d 16 16 20 20 0 *** N Open for Business M 2 d 20 20 22 22 0 ***

Critical Path = B - D - F - H - K - M - N