Project Management Chapter 13 OPS 370. Projects Project Management Five Phases 1. Initiation 2....
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Transcript of Project Management Chapter 13 OPS 370. Projects Project Management Five Phases 1. Initiation 2....
Project Planning
• A. Creation of a Number of Planning Documents:– Project Plan
• Activities, Interdependencies, Time Estimates
– Resource Plan• What Resources Are Required
– Financial Plan• Estimated Costs
– Quality Plans• Quality Targets, Control and Improvement Techniques
– Communications Plan• Updates to Stakeholders
– Risk Plan• Assessment of Risks and Uncertainties
Project Management Tools and Techniques
• Project Management has a Number of Tools Available:– Precedence Relationship and Time Estimates– Network Diagram– Critical Path Method (CPM)– Cost and Time Tradeoff Analysis– Program Evaluation and Review Technique
(PERT)
Precedence Relationships and Time Estimates
• A. Precedence Relationship Analysis:– a. Identification of Relationships and Sequences of
Activities Within a Project
• B. Take Great Care to Estimate the Completion Time for Each Activity.
• C. Project Schedule, Cost, and Resource Requirements Depend on the Precedence Relationships and Time Estimates
Cables By Us is bringing a new product on line to be manufactured in their current facility in some existing space. The owners have
identified 11 activities and their precedence relationships. Develop an AON for the project.
Activity DescriptionImmediate
PredecessorDuration (weeks)
A Develop product specifications None 4B Design manufacturing process A 6C Source & purchase materials A 3D Source & purchase tooling & equipment B 6E Receive & install tooling & equipment D 14F Receive materials C 5G Pilot production run E & F 2H Evaluate product design G 2I Evaluate process performance G 3J Write documentation report H & I 4K Transition to manufacturing J 2
Construct a Network
• Project Information (Different project)– Activity Immediate Predecessor
A -- B -- C A D A E B F C, D, E G C, D, E H F, G I F, G J H, I
LS, LF Network
LF = 41LS = 39
LF = 39LS = 35
LF = 35LS = 32
LF = 35LS = 33
LF = 32LS = 30
LF = 30LS = 16
LF = 30LS = 25
LF = 25LS = 22
LF = 16LS = 10
LF = 10LS = 4
LF = 4LS = 0
Calculating Slack
Activity Late EarlyFinish Finish
A 4 4 B 10 10 C 25 7 D 16 16 E 30 30 F 30 12 G 32 32 H 35 34 I 35 35 J 39 39 K 41 41
Slack[weeks] 0 0 18 0 0 18 0 1 0 0 0
Reducing the Time of a Project (Crashing)
Activity
Normal Time (wk)
Normal Cost ($)
Crash Time
Crash Cost ($)
Max. weeks of reduction
Reduce cost per
week
A 4 8,000 3 11,000 1 3,000
B 6 30,000 5 35,000 1 5,000
C 3 6,000 3 6,000 0 0
D 6 24,000 4 28,000 2 2,000
E 14 60,000 12 72,000 2 6,000
F 5 5,000 4 6,500 1 1500
G 2 6,000 2 6,000 0 0
H 2 4,000 2 4,000 0 0
I 3 4,000 2 5,000 1 1,000
J 4 4,000 2 6,400 2 1,200
K 2 5,000 2 5,000 0 0
Reducing the Time of a Project (crashing)
Activity
Normal Time (wk)
Normal Cost ($)
Crash Time
Crash Cost ($)
Max. weeks of reduction
Reduce cost per
week
A 4 8,000 3 11,000 1 3,000
B 6 30,000 5 35,000 1 5,000
C 3 6,000 3 6,000 0 0
D 6 24,000 4 28,000 2 2,000
E 14 60,000 12 72,000 2 6,000
F 5 5,000 4 6,500 1 1500
G 2 6,000 2 6,000 0 0
H 2 4,000 2 4,000 0 0
I 3 4,000 2 5,000 1 1,000
J 4 4,000 2 6,400 2 1,200
K 2 5,000 2 5,000 0 0
Crash costs are assumed to be linear …
Crashing Example: Suppose the Cables By Us project manager wants to reduce the new product project from 41
to 36 weeks.
PERT• A. Program Evaluation and Review Technique: Addresses
the Impact of Uncertainties in Activity Time Estimates on the Duration of the Entire Project
• B. Different Estimates for Activity Times are Developed:
ExampleActivity t o tm t p t e s 2
A 1 2 6B 2 3 3C 1 2 4D 3 4 6E 2 2 4F 12 16 25G 4 8 10H 3 5 6I 2 3 4J 3 4 4K 2 2 6
ExampleActivity t o tm t p t e s 2
A 1 2 6 2.50 0.69B 2 3 3 2.83 0.03C 1 2 4 2.17 0.25D 3 4 6 4.17 0.25E 2 2 4 2.33 0.11F 12 16 25 16.83 4.69G 4 8 10 7.67 1.00H 3 5 6 4.83 0.25I 2 3 4 3.00 0.11J 3 4 4 3.83 0.03K 2 2 6 2.67 0.44
26 1
6
1 4*2 6
6
Example• 1. Longest Path (Using Expected Activity
Times)– A. BCDFGK Length of 36.3 (Variance of 6.67)– B. Standard Deviation = Sqrt(6.67) = 2.58
• 2. Can Now Answer Questions