Project ManagementChapter 17

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Unique, one-time operations designed to Unique, one-time operations designed to accomplish a specific set of objectives in a limited accomplish a specific set of objectives in a limited time frame.time frame.

Build A

A Done

Build B

B Done

Build C

C Done

Build D

Ship

JAN FEB MAR APR MAY JUN

On time!

Projects

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Project Management

How is it different? Limited time frame Narrow focus, specific objectives Less bureaucratic

Why is it used? Special needs Pressures for new or improves products or

services

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Project Management

What are the Key Metrics Time Cost Performance objectives

What are the Key Success Factors? Top-down commitment Having a capable project manager Having time to plan Careful tracking and control Good communications

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Project Management

What are the Major Administrative Issues? Executive responsibilities

• Project selection

• Project manager selection

• Organizational structure Organizational alternatives

• Manage within functional unit

• Assign a coordinator

• Use a matrix organization with a project leader

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Project Management

What are the tools? Work breakdown structure Network diagram Gantt charts Risk management

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Deciding which projects to implement

Selecting a project manager

Selecting a project team

Planning and designing the project

Managing and controlling project resources

Deciding if and when a project should be terminated

Summary of Key Decisions

Project ManagerResponsible for:

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Work QualityHuman Resources TimeCommunications Costs

Project Life Cycle

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Concept

FeasibilityFeasibility

PlanningPlanning

ExecutionExecution

TerminationTermination

Man

agem

ent

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Planning and Scheduling

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Gantt Chart

PERT and CPM Networks

PERT: Program Evaluation and Review Technique

CPM: Critical Path Method

• Graphically displays project activities• Estimates how long the project will take• Indicates most critical activities• Show where delays will not affect project

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The Network DiagramNetwork (precedence) diagram – diagram of project

activities that shows sequential relationships by the use of arrows and nodes.

Activity-on-arrow (AOA) – a network diagram convention in which arrows designate activities.

Activity-on-node (AON) – a network diagram convention in which nodes designate activities.

Activities – steps in the project that consume resources and/or time.

Events – the starting and finishing of activities, designated by nodes in the AOA convention.

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The Network Diagram (cont’d)

Path Sequence of activities that leads from the starting node

to the finishing node

Critical path The longest path; determines expected project duration

Critical activities Activities on the critical path

Slack Allowable slippage for path; the difference the length

of path and the length of critical path

Network Conventions for PERT and CPM Networks (AOA)

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a

b

c ab

c

a

b

c

d

a

b

c

Dummyactivity

Project Network

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1

2

3

4

5 6

Locatefacilities

Orderfurniture

Furnituresetup

InterviewHire andtrain

Remodel

Move in

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Project Network with Activity Times and Activities Labeled

Example

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3

4

5 6

8 weeks

6 weeks

3 weeks

4 weeks9 weeks

11 weeks

1 week

Example Solution

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P a t h L e n g t h( w e e k s )

S l a c k

1 - 2 - 3 - 4 - 5 - 61 - 2 - 5 - 61 - 3 - 5 - 6

1 82 01 4

206

Critical PathCritical Path

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Network activities ES: earliest start EF: earliest finish LS: latest start LF: latest finish

Used to determine Expected project duration Slack time Critical path

Computing Algorithm

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Computer aided design (CAD)Groupware (Lotus Notes)CA Super ProjectHarvard Total ManagerMS ProjectSure Track Project ManagerTime Line

Project Management Software

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Imposes a methodology

Provides logical planning structure

Enhances team communication

Flag constraint violations

Automatic report formats

Multiple levels of reports

Enables what-if scenarios

Generates various chart types

Advantages of PM Software

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Summary

Projects are a unique set of activities

Projects go through life cycles

PERT and CPM are two common techniques

Network diagrams

Project management software available

Advantages of Gantt Charts and Networks

• Forces managers to organize• Provides graphic display of activities• Identifies

– Critical activities

– Slack activities

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Build A

A Done

Build B

B Done

Build C

C Done

Build D

Ship

JAN FEB MAR APR MAY JUN

On time!

Limitations of Networks

• Important activities may be omitted

• Precedence relationships may not be correct

• Estimates may include a fudge factor

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3

4

5 6

142 weeks

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Temptation to understate costs

Withhold information

Misleading status reports

Falsifying records

Comprising workers’ safety

Approving substandard work

Ethical Issues

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Homework Problem

Do problem 5 (part a only) on p. 819. While thesolution is given in the following slides, be sure that you take the time to try to solve this problem prior to looking at the solution.

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5

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48

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Network before doing the critical path method

Problem 5a

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LSES

LFEF

124

2821

1912

2618

1

2

58

96

3

12

11

2619

2821

1912

114

00

1010

1616

2020

2525

3131

2525

2020

1616

1010

2618

2820

3124

2113

70

2113

2619

10

4 7

9

5

2

3

6

5

4

6

10

4

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2

114

5a.

Key

Network after doing the critical path method(Activity slacks are given in the table on the next slide)

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Activity ES EF LF LS Slack

1–2 0 4 11 7 7

2–4 4 13 21 12 8

4–7 13 18 26 21 8

7–10 18 20 28 26 8

10–12 21 24 31 28 7

2–5 4 12 19 11 7

5–8 12 19 26 19 7

8–10 19 21 28 26 7

1–3 0 10 10 0 0

3–6 10 16 16 10 0

6–9 16 20 20 16 0

9–11 20 25 25 20 0

11–12 25 31 31 25 0

5a (continued)

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End of slides for Project Management