PROJECT MANAGEMENT

Outline

What is project mean?

Examples of projects…

Project Planning and Control

Project Life Cycle

Gantt Chart

PERT/CPM

What is Project?

What is the different between normal business activities and Project?

Project Unique, one time operations design to

accomplish a specific set of objectives in a limited time frame.

Examples of project…

1. Building a house

2. Building a factory

3. Add assembly line in the factory

4. Merging to companies

5. Managing political campaign

6. Designing a new product

7. Soft ware development

In project a lot of problem arise? Why?

a lot of activities should be handles » Limited time

» Restricted resources

Project Planning and Control

Definition of Project Management Work Breakdown Structure Project Control Organizational Structures Critical Path Scheduling

– CPM with a Single Time– CPM with Three Activity Time Estimates

Project Management

Project – Lengthy network of activities needed to complete a

major output. Project Management

– Planning, execution, and controlling resources to needed to complete the project.

Project Life Cycle

Definition Why we need to start new project Feasibility Analysis (Cost, Benefit , risk of under taking a project)

Planning Details of the work, estimates time, Human resource and cost

Execution During which a project itself is done

Termination During which closer is achieved

Project Planning, Controlling and Scheduling

Project Planning:» 1. Setting goals.

» 2. Defining the project.

» 3. Tying needs into timed project activities.

» 4. Organizing the team.

Before Project

Project Planning, Controlling and Scheduling

Project Scheduling:» 1. Tying resources to specific activities.

» 2. Relating activities to each other.

» 3. Updating and revising on regular basis.

Project Planning, Controlling and Scheduling

Project Controlling:» 1. Monitoring resources, costs, quality and budgets.

» 2. Revising and changing plans.

» 3. Shifting resources to meet demands.

During Project

Work Breakdown Structure

Program

Project 1 Project 2

Task 1.1

Subtask 1.1.1

Work Package 1.1.1.1

Level

1

2

3

4

Task 1.2

Subtask 1.1.2

Work Package 1.1.1.2

Project Control: Gantt Chart

The Gantt chart is a popular tool for planning and scheduling simple project.

It enables a manager to initially schedule project activities and then to monitor progress over time by comparing planned progress to actual progress

Project Control: Gantt Chart

Activity 1Activity 2Activity 3Activity 4Activity 5Activity 6

Time

a

ba

bc

c

d

d

d

PERT and CPM

PERT (program evaluation and review technique)

» U.S. Navy Special Projects Office (1958)

» Polaris missile project

CPM (critical path method)» J. E. Kelly of Remington-Rand and M. R. Walker of Du

Pont (1957)

» Scheduling maintenance shutdowns of chemical processing plants

Questions answered by PERT/CPM

1. When will the entire project be completed?

2. What are the critical activities or tasks in the project, that is, the ones that will delay the entire project if they are late?

3. Which are the non-critical activities, that is, the ones that can run late without delaying the entire project’s completion?

4. What is the probability that the project will be completed by a specific date?

Questions answered by PERT/CPM

5. At any particular date, is the project on schedule, behind schedule, or ahead of schedule?

6. On any given date, is the money spent equal to, less than, or greater than the budgeted amount?

7. Are there enough resources available to finish the project on time?

8. If the project is to be finished in a shorter amount of time, what is the best way to accomplish this at the least cost?

To Find Critical Path ???

To find the critical path, need to determine the following quantities for each activity in the network:

1. Earliest start time (ES): the earliest time an activity can begin without violation of immediate predecessor requirements.

2. Earliest finish time (EF): the earliest time at which an activity can end.

3. Latest start time (LS): the latest time an activity can begin without delaying the entire project.

4. Latest finish time (LF): the latest time an activity can end without delaying the entire project.

CPM with Single Time Estimate

Consider the following consulting project:

Develop a critical path diagram and determine theduration of the critical path and slack times for allactivities

Activity Designation Immed. Pred. Time (Weeks)Assess customer's needs A None 2Write and submit proposal B A 1Obtain approval C B 1Develop service vision and goals D C 2Train employees E C 5Quality improvement pilot groups F D, E 5Write assessment report G F 1

First draw the network

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

Determine early start and early finish times

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4EF=9

ES=4EF=6

?A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

When I can start depends on when predecessors finish.

ES=9EF=14

ES=14EF=15

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

Determine late starts and late finish times

ES=9EF=14

ES=14EF=15

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

LS=14LF=15

LS=9LF=14

LS=4LF=9

LS=7LF=9

?

Don’t delay the project

ES=9EF=14

ES=14EF=15

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

LS=14LF=15

LS=9LF=14

LS=4LF=9

LS=7LF=9

LS=3LF=4

LS=2LF=3

LS=0LF=2

Critical Path & Slack

ES=9EF=14

ES=14EF=15

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

LS=14LF=15

LS=9LF=14

LS=4LF=9

LS=7LF=9

LS=3LF=4

LS=2LF=3

LS=0LF=2

Duration = 15 weeks

Slack=(7-4)=(9-6)= 3 Wks

Activity Times

To find the expected activity timeexpected activity time (tt), the beta distribution weights the estimates as follows

64 bma

t

Activity Times

The time estimates in PERT are

Optimistic timeOptimistic time (aa) =time an activity will take if everything goes as well as possible. There should be only a small probability (say, 1/100) of this occurring.

Pessimistic timePessimistic time (bb) =time an activity would take assuming very unfavorable conditions. There should also be only a small probability that the activity will really take this long.

Most likely timeMost likely time (mm) =most realistic time estimate to complete the activity

Activity Times

The time estimates in PERT are

Optimistic timeOptimistic time (aa) =time an activity will take if everything goes as well as possible. There should be only a small probability (say, 1/100) of this occurring.

Pessimistic timePessimistic time (bb) =time an activity would take assuming very unfavorable conditions. There should also be only a small probability that the activity will really take this long.

Most likely timeMost likely time (mm) =most realistic time estimate to complete the activity

Consider the following project:

Immed. Optimistic Most Likely Pessimistic Activity Predec. Time (Hr.) Time (Hr.) Time (Hr.) A -- 4 6 8 B -- 1 4.5 5 C A 3 3 3 D A 4 5 6 E A 0.5 1 1.5 F B,C 3 4 5 G B,C 1 1.5 5 H E,F 5 6 7 I E,F 2 5 8 J D,H 2.5 2.75 4.5 K G,I 3 5 7

PERT/ CPM

CPM uses two sets of time and cost estimates for activities:

» A normal time and cost and

» A crash time and cost

The normal cost is an estimate of cost to complete an activity in normal time.

The crash time is the shortest possible activity time.

Crash cost is the cost of completing the activity on a crash or deadline basis.

Project Crashing with PERT/CPM: Four Steps

1. Find the normal critical path and identify the critical activities.

2. Compute the crash cost per week (or other time period) for all activities in the network.

This process uses the following formula:

crash cost/time period =crash cost/time period =crash cost – normal costcrash cost – normal cost

normal time – crash timenormal time – crash time

Project Crashing with PERT/CPM: Four Steps

3. Select the activity on the critical path with the smallest crash cost per week.

Crash this activity to the maximum extent possible or to the point at which your desired deadline has been reached

4. Check to be sure that the critical path you were crashing is still critical.

– Often, a reduction in activity time along the critical path causes a non-critical path or paths to become critical.

» If the critical path is still the longest path through the network, return to step 3.

» If not, find the new critical path and return to step 2.

Subproject

For extremely large projects, an activity may be made of several smaller sub-activities.

Each activity might be viewed as a smaller project or a subproject of the original project.

The person in charge of the activity might wish to create a PERT/CPM chart for managing this subproject.

Many software packages have the ability to include several levels of subprojects

In class assignment

Immediate Completion Activity Description Predecessors Time (days) A Initial Paperwork --- 3 B Build Body A 3 C Build Frame A 2 D Finish Body B 3 E Finish Frame C 7 F Final Paperwork B,C 3 G Mount Body to Frame D,E 6 H Install Skirt on Frame C 2