Ch3(Project Management)

8/18/2019 Ch3(Project Management)

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©The McGraw-Hill Companies,

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Chapter 3

Project Management


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• Definition of Project Management

• Work Breakdown Structure

• Project Control Charts

• Structuring Projects

• Critical Path Scheduling

OBJECT!ES


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Project Management

Defined

• Project is a series of related jo"s usuall#

directed toward some major out$ut and

re%uiring a significant $eriod of time to$erform

• Project Management are the management

acti&ities of $lanning' directing' and controlling

resources ($eo$le' e%ui$ment' material) to meet

the technical' cost' and time constraints of a

$roject


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Project Control Charts* +antt Chart

Activity 1

Activity 2

Activity 3

Activity 4

Activity 5 Activity 6

Time

Vertical Axis: Always Activities

or Jobs

Vertical Axis: Always Activities

or Jobs

Horizontal Axis: Always Time

Horizontal Axis: Always Time

Horizontal bars use to enote len!t"

o# time #or eac" activity or $ob%

Horizontal bars use to enote len!t"

o# time #or eac" activity or $ob%


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Structuring Projects Pure Project*

Advantages

Pure Project

Defined

, $ure $roject is where a self-contained teamworks full-time on the $roject

• The $roject manager has full authorit#o&er the $roject

• Team mem"ers re$ort to one "oss• Shortened communication lines• Team $ride' moti&ation' and

commitment are high


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Structuring Projects Pure Project*

Disadvantages• Du$lication of resources

• Organi.ational goals and $olicies are ignored

• /ack of technolog# transfer• Team mem"ers ha&e no functional area

0home0



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1unctional Project

Defined

&resient

'esearc" an

(evelo)ment*n!ineerin! +anu#acturin!

&ro$ect

A

&ro$ect

,

&ro$ect

-

&ro$ect

(

&ro$ect

*

&ro$ect

.

&ro$ect

/

&ro$ect

H

&ro$ect

0

A functional project is housed within afunctional division

*xam)le &ro$ect , is in t"e #unctional

area o# 'esearc" an (evelo)ment%

*xam)le &ro$ect , is in t"e #unctional

area o# 'esearc" an (evelo)ment%



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Structuring Projects

1unctional Project* Advantages• , team mem"er can work on se&eral

$rojects

• Technical e2$ertise is maintained withinthe functional area

• The functional area is a 3home4 after the

$roject is com$leted• Critical mass of s$eciali.ed knowledge



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1unctional Project* Disad&antages

• ,s$ects of the $roject that are not

directl# related to the functional area get

short-changed• Moti&ation of team mem"ers is often

weak

• 5eeds of the client are secondar# and areres$onded to slowl#



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Structuring Projects*

Matri2 Project Organi.ation Structure

&resient

'esearc" an

(evelo)ment*n!ineerin! +anu#acturin! +aretin!

+ana!er

&ro$ect A

+ana!er

&ro$ect ,

+ana!er

&ro$ect -



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Matri2* ,d&antages

• Enhanced communications "etween functionalareas

• Pin$ointed res$onsi"ilit#

• Du$lication of resources is minimi.ed

• 1unctional 3home4 for team mem"ers

• Policies of the $arent organi.ation are followed



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Matri2* Disad&antages

• Too man# "osses

• De$ends on $roject manager6s

negotiating skills

• Potential for su"-o$timi.ation



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Work Breakdown Structure Defined

&ro!ram

&ro$ect 1 &ro$ect 2

Tas 1%1

ubtas 1%1%1

or &aca!e 1%1%1%1

7evel

1

2

3

4

Tas 1%2

ubtas 1%1%2

or &aca!e 1%1%1%2

A work breakdown structure defines the hierarchyof project tasks, subtasks, and work packages

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5etwork-Planning Models• , $roject is made u$ of a se%uence of

acti&ities that form a network re$resenting a$roject

• The $ath taking longest time through this

network of acti&ities is called the 3critical$ath4

• The critical $ath $ro&ides a wide range ofscheduling information useful in managing a

$roject• Critical Path Method (CPM) hel$s to identif#

the critical $ath(s) in the $roject networks

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Prere%uisites for Critical Path Methodolog#

, $roject must ha&e*

well-defined jo"s or tasks whosecom$letion marks the end of the $roject7

inde$endent jo"s or tasks7

and tasks that follow a gi&en se%uence8

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T#$es of Critical Path Methods• CPM with a Single Time Estimate

– 9sed when acti&it# times are known with certaint#

– 9sed to determine timing estimates for the $roject' eachacti&it# in the $roject' and slack time for acti&ities

• CPM with Three ,cti&it# Time Estimates – 9sed when acti&it# times are uncertain

– 9sed to o"tain the same information as the Single TimeEstimate model and $ro"a"ilit# information

• Time-Cost Models – 9sed when cost trade-off information is a major

consideration in $lanning

– 9sed to determine the least cost in reducing total $rojecttime

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Ste$s in the CPM with Single Time

Estimate • :8 ,cti&it# dentification

• ;8 ,cti&it# Se%uencing and 5etworkConstruction

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E2am$le :8 CPM with Single Time

Estimate

-onsier t"e #ollowin! consultin! )ro$ect:

Develop a critical path diagram and determine

the duration of the critical path and slack times

for all activities.

,cti&it# Designation mmed8 Pred8 Time (Weeks)

Assess customer's needs A None 2

Wrte and su!mt proposa" # A 1$!tan appro%a" C # 1

&e%e"op ser%ce %son and oa"s & C 2

(ran emp"o)ees * C 5

+ua"t) mpro%ement p"ot roups , &- * 5

Wrte assessment report . , 1

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E2am$le :8 CPM with Single Time

Estimate

-onsier t"e #ollowin! consultin! )ro$ect:

,cti&it# Designation mmed8 Pred8 Time (Weeks)

Assess customer's needs A None 2

Wrte and su!mt proposa" # A 1$!tan appro%a" C # 1

&e%e"op ser%ce %son and oa"s & C 2

(ran emp"o)ees * C 5

+ua"t) mpro%ement p"ot roups , &- * 5

Wrte assessment report . , 1

Develop a critical path diagram and determine

the duration of the critical path and slack times

for all activities.

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E2am$le :* 1irst draw the network

A/2 #/1 C/1

&/2

*/5

,/5./1

A None 2

# A 1

C # 1

& C 2

* C 5

, &-* 5

. , 1

Act med red (me

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E2am$le :* Determine earl# starts and

earl# finish times

*9

*,14

*14

*,15

*0

*,2

*2

*,3

*3

*,4

*4

*,9

*4*,6

A/2 #/1 C/1

&/2

*/5

,/5 ./1

nt tart th *0

and o orard n the

netor: rom A to .

nt tart th *0

and o orard n the

netor: rom A to .

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E2am$le :*

Determine late

starts and late finishtimes

*9

*,14

*14

*,15

*0

*,2

*2

*,3

*3

*,4

*4

*,9

*4*,6

A/2 #/1 C/1

&/2

*/5

,/5 ./1

;14

;,15

;9

;,14

;4

;,9

;7

;,9

;3

;,4

;2

;,3

;0

;,2

nt tart th ;,15 or

the tota" tme o the pro


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E2am$le :* Critical Path = Slack

*9

*,14

*14

*,15

*0

*,2

*2

*,3

*3

*,4

*4

*,9

*4*,6

A/2 #/1 C/1

&/2

*/5

,/5 ./1

;14

;,15

;9

;,14

;4

;,9

;7

;,9

;3

;,4

;2

;,3

;0

;,2

&uraton 15 ee:s

"ac:/7=4/9=6 3 W:s


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E2am$le ;8 E2$ected Time

Calculations

*(/A 3>4/6>15

6

*(/A 3>4/6>15

6

*(/A42?67*(/A42?67Tas

0mmeiate

&reecesors

*x)ecte

Time

A 9one <

, 9one 5%333- A 14

( A 5

* - 11

. ( <

/ , 11H *. 4

0 /H 1;

Tas

0mmeiate

&reecesors 8)timistic +ost 7iely &essimistic

A 9one 3 6 15

, 9one 2 4 14

- A 6 12 3:

( A 2 5 ;

* - 5 11 1<. ( 3 6 15

/ , 3 = 2<

H *. 1 4 <

0 /H 4 1= 2;

*@pected (me $pt (me > 4/Aost ;:e") (me0 > ess (me

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6

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Calculations

Tas

0mmeiate

&reecesors

*x)ecte

Time

A 9one <

, 9one 5%333

- A 14( A 5

* - 11

. ( <

/ , 11

H *. 40 /H 1;

*(/#32?65333*(/#32?65333

*(/# 2>4/4>14

6

*(/# 2>4/4>14

6

Tas

0mmeiate


A 9one 3 6 15

, 9one 2 4 14

- A 6 12 3:

( A 2 5 ;

* - 5 11 1<. ( 3 6 15

/ , 3 = 2<

H *. 1 4 <

0 /H 4 1= 2;


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6

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Calculations

Tas

0mmeiate

&reecesors

*x)ecte

Time

A 9one <

, 9one 5%333

- A 14

( A 5

* - 11

. ( <

/ , 11

H *. 4

0 /H 1;

*(/C 6>4/12>30

6

*(/C 6>4/12>30

6

*(/C84?614*(/C84?614

Tas

0mmeiate


A 9one 3 6 15

, 9one 2 4 14

- A 6 12 3:

( A 2 5 ;

* - 5 11 1<. ( 3 6 15

/ , 3 = 2<

H *. 1 4 <

0 /H 4 1= 2;


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6

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E2am$le ;8 5etwork

,(>)

B(?8


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E2am$le ;8 Pro"a"ilit# E2ercise

What s the pro!a!"t) o nshn ths pro


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Act%t) %arance- 5 /3essm1 = $ptm1

602 2σ Act%t) %arance- 5 /

3essm1 = $ptm1

602 2σ

Tas 8)timistic +ost 7iely &essimistic Variance

A 3 6 15 4

, 2 4 14

C 6 12 3: 16

( 2 5 ;

E 5 11 1< 4

. 3 6 15

/ 3 = 2<

H 1 4 < 1I 4 1= 2; 16

/um the %arance along the critical

path

σ 2∑ 5 41σ

2∑ 5 41

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There is a 43.8% probability that this project will be

completed in less than 53 wees.

There is a 43.8% probability that this project will be

completed in less than 53 wees.

p/D =156 438- or 438 E /N$F&(/=156 p/D =156 438- or 438 E /N$F&(/=156

D & = (

53=54

41 =156

*

cp

2σ ∑

D & = (

53=54

41 =156

*

cp

2σ ∑

(* 54

p/t &

t

&53

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E2am$le ;8 ,dditional Pro"a"ilit# E2ercise

• What is the $ro"a"ilit# that the $rojectduration will e2ceed ? weeks

• What is the $ro"a"ilit# that the $rojectduration will e2ceed ? weeks

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E2am$le ;8 ,dditional E2ercise Solution

t(* 54

p/t &

&56

D

& = (

56=54

41 312

*

cp2

σ ∑D

& = (

56=54

41 312

*

cp2σ ∑

p/D G 312 8- or 8 /1=N$F&(/312 p/D G 312 8- or 8 /1=N$F&(/312

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Time-Cost Models

• !asic Ass"mption# Felationshi$ "etweenacti&it# com$letion time and $roject cost

• Time $ost odels* Determine theo$timum $oint in time-cost tradeoffs –

,cti&it# direct costs – Project indirect costs

– ,cti&it# com$letion times

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CPM ,ssum$tionsG/imitations • Project acti&ities can "e identified as entities (There

is a clear "eginning and ending $oint for eachacti&it#8)

• Project acti&it# se%uence relationshi$s can "es$ecified and networked

• Project control should focus on the critical $ath

• The acti&it# times follow the "eta distri"ution' with

the &ariance of the $roject assumed to e%ual the sum

of the &ariances along the critical $ath• Project control should focus on the critical $ath

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Ch3(Project Management)

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