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PART 1 INTRODUCTION
Managers
Some of these involve routine, repetitive activities, but others involve non routine activities. Under the latter
heading are projects: unique, one-time operations designed to accomplish a set of objectives in a limited time frame. Others examples of projects include constructing a shopping complex, designing projects products designing designing web pages. One strategy that many firms adopt those to in maintain a merging and two a companies, political putting campaign. on a play, of new
running
Examples
within or
business
organization
designing
services,
designing systems,
advertising a
information databases,
reengineering development,
software
and
competitive
advantage,
especially
high-tech
industries, is to have the ability to constantly introduce new products that incorporate the latest, state-of-the art technologies. computer chips Intel, while which there introduces is still next-generation demand for
strong
current generation chips can introduce these new products, is often a critical element of success. The demands ability is also to react quickly to to changing The customer and
applicable
services.
design
rollout of an advertising campaign for a new product or services and the development of a new financial services
instrument are examples of services that fall under the heading projects. Another example of a service that would benefit by using project management concepts is one that designs and develops websites for companies. Projects may involve considerable cost. Some have a long time horizon, and some involve a large number of
activities that must be carefully planned and coordinated. Most are expected (a) time, to be completed based on three major how long will the project take from
elements
start to finish and will it be completed on schedule. (b) cost, what are all of the costs, both direct and indirect and performance targets. (c) performance, does the project take from start to finish and will it be completed on
schedule. To accomplish this, goals must be established and priorities set. Tasks must be identified and time estimates made. Resource requirements Once also must way, be projected must and be
budgets
prepared.
under
progress
monitored to assure that project goals and objectives will be achieved. This project approach enables an organization to focus attention and concentrate efforts on accomplishing a narrow set of performance objectives within a limited time and budget framework. This can produce significant benefits
compared with other approaches that might be considered. Even so, projects present managers with a host of problems that differ in many respects from those encountered with more routine activities. The problems of planning and
coordinating
and monitored if the project is to proceed according to schedule and at a reasonable cost. Project appropriate management foe exactly techniques the are also type of very the
opposite
environment: one where a products lead time may be long. The key factor in this case is that where frequency of production is low, each item produced tend to be viewed as a separate project. There are two main components in project management: one heavily emphasizes the organization and the behavior of people; the other focuses on the method (computing start and completion times, critical paths, etc.). This report introduces the basic concepts of project management, management, managers are discuss along apt some behavioral of the aspects of project project a
with
some
difficulties
description of graphical and computational methods that are used for planning and scheduling projects.
DEFINITION OF PROJECT MANAGEMENT A project is basically a set of activities aimed at meeting a goal (Finch 2006). In a technical sense, a
project is defined as a series of related jobs or tasks that are usually directed toward some major output and
require a significant period of time to perform (Davis, 2003/ Chase, et.al., 1995). Project directing, management can be defined as planning, equipment,
and
controlling
resources
(people,
material, information) in a project to meet the technical objectives within budget and schedule constraints (Swink, 2011). According that to Finch, It consists of a variety of
techniques the
project
activities
complete the project on time. The length of projects can range from several months to several years. The difficulty in managing projects is that each to project of is somewhat
distinct,
adding
uncertainty
process
scheduling
resources. In addition, there may be competition for the resources used to complete the project because resources used to complete the project because resources may be used on several project simultaneously. This makes coordinating and scheduling their availability a challenge. Examples of projects include a new product and service development,
How Projects Succeed Successful projects meet the following objectives: 1. Completed within budget. 2. Completed on time. 3. Deliverables meet the expectations of customers,
project team members, and the stakeholders. Meeting deliverables objectives includes completion of the specific work outputs of the project, as well as achieving goal as learning new lessons from the project, executing activities with minimal environmental impact, and other considerations. Schedule (Faster)
Project Deliverable s
Scope/Quality (Better)
Budget (Cheaper)
Exhibit 1.1. Three primary objectives in project management Exhibit conflict with 1.1. one indicates, another. A these general outcomes saying in usually project
management is faster, better, or cheaper, you can have two, but not three. This means that once a project has been planned and resources have been allocated, changes to the budget, schedule, and deliverables require trade-offs. For example, if management wants to reduce either the
the
other
hand,
by
changing
the
technologies
used
to
execute the project, or by changing how project activities are defined, project managers can sometimes achieve
STRUCTURING PROJECT Most of the time, projects are planned and executed within an established organization. However the project
manager must organize the specific project team to maximize its potential for success. Projects typically fall along a spectrum of organizational forms, anchored by three types: functional 2011). A functional project is housed and controlled within a single functional department during each project stage. project, pure project, matrix project (Swink,
Imagine for example, a product development project in which the marketing function makes all of its promotional plans and inputs, then the engineering department creates all the product designs, then the operations department establishes all of the process plans needed to deliver the product. At each stage of the project, a different function are
completed, the project is handed off to the next function (Swink, 2011). A pure project is housed outside the normal functional departments in the business. The project team is made up of functional representatives that are fully dedicated to the project for the duration of the projects life. A pure
project has a single project manager who is responsible for the budget, schedule, and all project activities. Consider
for
example,
product
development
effort
in
which
marketing, engineering, and operational personnel are all collocated product and work together plans, to simultaneously designs, and develop product
promotional
product
process designs (Swink, 2011) Pure project structure allows team members from each function better. to A work major together to solve is problem its cost. faster and
disadvantage
Personnel
dedicate 100 percent of their time to the project, though they may always be needed at this level. Also, collocation and reorganization costs can be high. The pure project
approach is best when: Speed is crucial. The project includes complex or uncertain tasks. Resources cost is not a tight constraint. Innovation is needed. Managers want to shield the project from
The matrix project is probably the most commonly used organizational structure because it balances the advantages and disadvantages of the functional and pure project types. A matrix utilizes people from different functional area who are loaned to the project time to time. A full time
project manager plans the projects tasks and schedules, while functional managers determine which people and
technologies are used. This approach is appropriates when organization cannot afford to tie up critical resources on
single project, and when efficient use of resources (cost) is important. From a team members perspective, the matrix approach can be quite stressful. He or she must balance the requirements of working on several projects at once and working for several managers at the same time. Because of the conflicts that are inherent in the matrix project
structure, the stature of the project manager within the organization heavyweight is critical manager to project gets the success. resources A and
project
priorities that the project needs by virtue of his ability to influence the functional managers who control the
resources. Matrix with weak project managers are not likely to succeed (Swink, 2011).
Exhibit Project
1.2
Advantages
and
Disadvantages
of
Structuring
Functional Project Advantages Functional manager controls both budget and activities A team member can work on several projects The functional area is the team members home after the project is completed Technical expertise is maintained within the
Matrix Project Advantages Enhanced interfunctional communications Pinpointed responsibility Duplication of resources is minimized Functional home for team members Policies of the parent organization are followed
Pure Project Advantages The project manager has full authority over the project Team members report to one boss Shortened communication lines. Team pride, motivation, and commitment are high.
functional area (critical mass of specialized knowledge) Disadvantages Aspects of the project that are not directly related to the functional area get shortchanges Needs of the client are secondary and are responded to slowly (no one involved in details is ultimately responsible for the final results) Motivation of team members is often weak
Disadvantages Disadvantages Project team Duplication of members have resources multiple bosses. Organizational Success depends goals and on project policies are managers ignored negotiating skills Difficult to transfer technology/ learning Team members have no functional area home
Exhibit 1.2. list the advantages and disadvantages of each of the of does A project a types. Efficiency is the primary the
advantage project
functional disrupt
project the is
approach
because
not
existing project
structure.
disadvantage
that
often have others job responsibilities, so the project may not receive top priority. This approach is appropriate for projects function, where little the majority of work is one is specific needed,
cross-functional
integration
and project leadership can be handled via the normal chain of command. The functional approach is mainly useful for incremental, fairly routine projects (Swink, 2011).
Note
that
regardless
of
which
of
the
three
major
organizational forms is used, the project manager is the primary contact point with the customer. Communication and flexibility responsible are for greatly enhanced, as one of person the is
successful
completion
project
WORK BREAKDOWN STRUCTURE A project start out as a statement of work (SOW). The SOW may be a written description of the objectives to be achieved, with brief statement of the work to be done and proposed schedule specifying the start and completion dates. It could also contain performance measures in terms of budget and completion steps (milestones) and the written reports to be supplied (Chase, Jacobs, 2004). A task is a further subdivision of a project. It is usually not longer than several months in duration and is performed by one group or organization. A subtask may be used if needed to further subdivide the project into more meaningful pieces (Chase, Jacobs, 2004). A work package is a group of activities combined to be assignable to a single organizational unit. It still falls into the format of all project management; the package
provides a description of what is to be done, when it is to be started and completed, the budget, measures of
performance, and specific events to be reached at points in time. These specific events are called project milestones. Typical milestones might be the completion of the design, the production of prototype, the completed testing of the
prototype, and the approval of a pilot run (Chase, Jacobs, 2004). A plan is required for the successful accomplishment of both contract and corporate objectives. It needs to
define all effort to be expended, assigns responsibility to a specially identified organizational element, and
establishes schedules and budgets for the accomplishment of work. The foremost step in the planning is the process Work after
project
requirements
definition
Breakdown
Structure (WBS)( http://pom-mn313pm.tripod.com/id1.html). The work breakdown structure (WBS) is the heart of project management. This subdivision of the objective into smaller and smaller pieces more clearly defines the system in detail and contributes to its understanding and success. Conventional use shows the work breakdown structure
decreasing in size from top to bottom (Davis, 2003). Level 1 2 3 4 5 Program Project Task Subtask Work Package
Exhibit 1.2 shows part of the work breakdown structure for a project to open the a restaurant. level Note the For item ease in
identifying determine
through
numbers. third
example, down) is
worker
requirements
(the
identifies as 1.1.1 (the first item in level 1, the first item in level 2, and first item in level 3). Similarly, install (the 17th item down) is 1.2.3 (Davis, 2003). Exhibit 1.2. Part of a Work Breakdown Structure for Opening a New Restaurant
1 x
Level 2 3 4 x X X X X
5 1.0 1.1 1.1.1 1.1.2 1.1.2.1 1.1.2.2 1.1.2.2.1 1.1.2.2.2 1.1.3 1.2 1.2.1. 1.2.1.1 1.2.1.2 1.2.2 1.2.2.1 1.2.2.2 1.2.3 1.2.3.1 1.2.3.2 Open new restaurant Recruit workers Determine workers requirements Recruit workers Place advertisements Screen applicants Conduct interviews Check references Hire and train workers Purchase and install kitchen equipment Design menu Develop recipes Determine equip. requirements Purchase equipment Obtain quotes Select vendor Install equipment Connect electrical Connect plumbing
X X X X X X X X X X X X X
The
key
factors
in
having
good
work
breakdown
structure are to Allow the activities to be worked on independently. Make them manageable in size. Give authority to carry out the program. Monitor and measure the program. Provide the required resources.
PROJECT CONTROL CHARTS The large Department of of Defense was one and of has the earliest a
users
project
management
published
variety of useful standard forms. Many are used directly or have been modified by firms engaged in project management. Since those early days, however, graphics software has been written for most computers, so management, the customer,
and the project manager have a wide choice of how data are presented (Davis, 2003).
Exhibit
1.3
is
sample
Gantt
chart,
sometimes
referred to as bar chart, showing both the amount of time involved and the sequence in which activities can be
performed. The chart is named after Henry L. Gantt, who won a presidential citation for his application of this type of chart to shipbuilding in World War I (Chase, Jacobs,
2004).The Gantt chart is a popular tool for planning and scheduling simple projects. It enables a manager to
initially schedule project activities and then to monitor progress over time by comparing planned progress to actual progress. Exhibit 1.3 illustrates a Gantt chart for a
banks plan to establish a new direct marketing department. To prepare the chart, the vice president in charge of the project had to first identify the major activities that would be required. Next, time estimates for each activity were made, and the sequence of activities was determined. Once completed, the chart indicated which activities were
to occur, their planned duration, and when they were to occur. Then, as the project progressed, the manager was able to see which activities were ahead of schedule and which were delaying the project. This enabled the manager to direct attention where it was needed most to speed up the project in order to finish on schedule (Stevenson,
Gantt chart is its simplicity. However, Gantt charts fail to reveal certain relationships among activities that can be crucial to effective project management. For instance, if one of the early activities in a project suffers a
delay, it would be important for the manager to be able to easily determine which later activities would result delay. Conversely, some activities may safely delay without
developed in the 1950s. The Critical Path Method (CPM) was developed for scheduling maintenance shutdowns at chemical processing projects plant owned by Du in Pont. this Since maintenance reasonably
are
formed
often
industry,
accurate time estimates for activity are available. CPM is based is based on the assumptions that project activity times can be estimated accurately and that they do not
vary. The Program Evaluation and Review Technique (PERT) were developed for the U.S Navys Polaris missile project. This was massive project involving 3,000 contractors.
Because most of the activities had never been done before. PERT was developed to handle uncertain time estimates
(Chase, Jacobs, 2004). PERT (program evaluation and review technique) and CPM (Critical techniques path for method) are two of the most widely used planning and coordinating large-scale
projects. By using PERT or CPM managers are able to obtain (Stevenson, 2005):
A graphical display of project activities. An estimate of how long the project will take. An indication of which activities are the most
critical to timely project completion. An indication of how long any activity can be delayed without delaying the project. Although PERT and CPM were developed independently
they have a great deal in common. Moreover, many of the initial difference between them have disappeared as users borrowed certain features from one technique for use with the other (Stevenson, 2005).
Program Evaluation Review Technique (PERT) There are four steps necessary in developing a PERT network project schedule: 1. A comprehensive project analysis is performed. 2. All of the required project activities are categorized according to their order of precedence. 3. A PERT chart is drawn where all the activities preceding an event are shown using a lettered arrow and events are
numbered using circles. 4. Time and/or cost estimates are assigned to each activity. EXAMPLE 1.1 It is necessary for a manager to develop a PERT network using the following information listing activities and their respective predecessors. Activity A B C D E F G H Preceding Activity --B B B C D E
A PERT chart is drawn as in Exhibit 1.4, where all the activities are lettered using arrows and the events are numbered using circles.
Activities can also be designated by their beginning and ending events. For example: Beginning Event Ending Event Activity
1 2 2 3 4 4 5
2 3 4 4 5 6 7
Critical path method (CPM) It estimates is based on developing project three activity time time with
for
calculating
completion
variances. The three time estimates are an optimistic time (a), pessimistic time (b), and and most most likely time (m).
Optimistic,
pessimistic,
likely
times:
1. Optimistic time (a). This is an estimate of the least, or minimum, time an activity will take to complete.
2. Pessimistic time (b). This is an estimate of the most, or maximum, time an activity will take to complete.
3. Most Likely time (m). This is an estimate of the average or normal amount of time an activity would take assuming it were to be repeated several times.
In arriving at an expected time (te) for a given project activity, a beta probability distribution is
employed in PERT. The three time estimates are combined and averaged to calculate a time estimate. Normally, in PERT applications the most likely time (m) is given a weight of 4 while the optimistic time (a) and pessimistic time (b) are each given a weight of 1. The variance (v) for each activity is also calculated: te = a + 4m + b / 6 v = b - a / 6
The expected times (te) and variance (v) are calculated for each activity after the network for the PERT analysis is completed. EXAMPLE 1.2 Activities can also be designated by their beginning events. For Example Beginning Event 1 2 2 3 4 4 5 Ending Event 2 3 4 4 5 6 7 Activity 1-2 2-3 2-4 3-4 4-5 4-6 5-7
There are five activities in a project. It is necessary to compute the expected times and variances for the project:
Critical path analysis Critical sequence of path analysis from consists the of analyzing event to the the
activities
beginning
ending event. The critical path is the longest path through a network. It is critical because any increase in time for an activity on this path will delay the entire project. Moreover, any decrease in time for an activity not on the critical path will not shorten the project. To calculate the critical path, data must be obtained on the earliest start and finish times, the latest start and finish times, and the available slack time:
1.
ES-Earliest
activity
start
time.
The
time
when
all
2.
LS-Latest
activity
start
time.
The
time
when
all
successor activities have to be finished without delaying the entire project. The latest activity start time is
calculated by subtracting the expected time of the activity (t) from the latest finish time (LF) and then subsequently subtracting (t) for the slowest (longest (t) path(s).
3. EF-Earliest activity finish time. The earliest activity finish time equals the earliest activity start time (ES) of the activity plus expected time (t) for the activity. 4. LF-Latest finish time. The time when the project must be finished. The latest activity finish time equals the latest start time (LS) plus the expected time (t) of the activity. 5. S-Slack time. An activity`s total slack is the
difference between the latest and earliest activity start times (LS - ES) or the latest and earliest activity finish times (LF-EF). Slack is the free time associated with each activity. In other words, paths that are not critical have slack time. Slack represents unused resources that can be diverted to the critical path. After activity, includes: 1. The critical path. The time it takes to finish all the project`s activities without any slack time. EXAMPLE 1.3 Using the PERT chart in Figure Exhibit 1.5, calculate ES and EF for each activity. EXHIBIT 1.5 PERT CHART calculating the overall the preceding can be data for each This
project
analyzed.
Now the earliest start (ES) and earliest activity finish times (EF) are determined. In order for an activity to begin, all of the preceding activities must be finished. EF is calculated by adding expected time (te) to ES for each activity. Activity t ES 1-2 1-3 1-4 2-5 3-5 4-5 3 6 5 4 5 2 0 0 0 3 6 5 EF (t + ES) 3 6 5 7 11 7
The latest activity finish time (LF) of the project is 11 since the earliest activity finish time (EF) for activity 3-5 is 11. In order to calculate a project`s critical path, it is necessary to determine the latest start time (LS) by subtracting the expected time (t) of the activity from the latest finish time (LF). It is also necessary to determine the slack time for each activity by subtracting the earliest activity start time (ES) from the latest activity start time (LS).
EXAMPLE 1.4 Using the above data, what is the project`s slack time and critical path?
t 3 6 5 4 5 2
ES 0 0 0 3 6 5
EF (t+ES) 3 6 5 7 11 7
LS 4 0 4 7 6 9
LF (LS + t) 7 6 9 11 11 11
S (LS-ES) 4 0 4 4 0 4
The critical path is the activity with 0 slack time, or activity 3-5. The total completion time of the project is 11 since activity 3-5 is the longest path to completion. Exhibit 1.6 presents the critical path.
Note: 1. If the the the project duration (length of critical include the path) (1)
exceeds changing
allowable deadline
deadline, or (2)
options
"crashing"
project.
critical
path.
This
may
involve
shifting
more
resources
(money) to those activities or perhaps outsourcing some of the work. The critical path method (CPM) model, also known as pert/cost, argues that most activities can be reduced in duration if extra resources (men, machines, money, and so on) are assigned to them. The cost for getting the job done may increase, but if other advantages outweigh this added cost, the job should be expedited or crashed. When making a cost/time trade-off, the first activity to be crashed (have its completion time accelerated) is one on the critical path. To select and activity on another path would not
reduce the total time of completion. The activity chosen should be the one whose completion time can be accelerated at the lowest possible cost per unit of time saved.
2. The primary difference between PERT and CPM is that. CPM considers activity costs and PERT does not
(http://worldacademyonline.com/article/18/1/project_managem ent__planning_and_control__techniques__pert_and_cpm.html).
MANAGING RESOURCES A successful Project Manager must effectively manage the resources assigned to the project. This includes the labor hours of the designers, the builders, the testers and the inspectors on the project team. It also includes
managing any labor subcontracts. However, managing project resources frequently involves more than people management. The project manager must also manage the equipment used for the project and the material needed by the people and
People
Equipment trucks, test, backhoes, and tape other heavy equipment CD burners or or and
Cranes,
staging decks,
servers, mixers,
studio,
microphones
Material
Concrete, pipe, rebar, insulation or CD blanks, computers, jewel cases, instruction manuals Managing the people resources means having the right
people, with the right skills and the proper tools, in the right quantity at the right time. It also means ensuring that they know what needs to be done, when, and how. And it means motivating them to take ownership in the project too. Managing direct employees normally means managing the senior person in each group of employees assigned to your project. Remember that these employees also have a line manager to whom they report and from whom the usually take technical direction. In a matrix management situation, like a project team, your job is to provide project direction to them. Managing labor subcontracts usually means managing
the team lead for the subcontracted workers, who in turn manages the workers. The equipment you have to manage as part of your
project depends on the nature of the project. A project to construct a frozen food warehouse would need earth moving equipment, cranes, and cement trucks. For a project to
release a new version of a computer game, the equipment would and include computers, test equipment, and duplication machinery. The project management key for
packaging
equipment is much like for people resources. You have to make sure you have the right equipment in the right place at the right time and that it has the supplies it needs to operate properly. Most projects involve the purchase of material. For a
frozen food warehouse, this would be freezers, the building HVAC machinery and the material handling equipment. For a project to release a music CD by a hot new artist, it would include press the CD blanks, artwork for the jewel case, and to be sent to deejays. The project
releases
management issue with supplies is to make sure the right supplies arrive at the right time
(http://www.grook.net/forum/civil-engineering/projectmanagment/project-management-101-lesson-02-managingresources).
that determines the success of an organization. Whether it is a question of facing an economic crisis or generating large turnover, project management plays a pivotal role in
the
growth
of
firm. idea
Since of
time
immemorial, management
man in
has the
incorporated
the
project
construction of monuments and various other architecture. However, since the early 1950s, project management started to be pursued as a major discipline forms the in the corporate in the
companies.
Project
management
backbone
fields of civil engineering, defense, aerospace engineering and infrastructure development and others. In Project Management Time-Cost Trade-Off, all
significant human undertakings can be viewed as projects; some have more successful outcomes is his than others. both Project to the the
Management individual
Time-Cost worker
Trade-Off planning
essential own
work
and
multinational company developing new production facilities for the next century. The first stage is to examine the possible projects, estimating their costs, benefits and
risks. The best options are then analyzed in more detail: their costs, time schedules and resource implications are all assessed. For the Project Management Time-Cost TradeOff alternative project plans are considered and the best plan must is implemented. control ensure of Throughout the the project cost on the manager
keep to
schedule,
and
technical and to
quality budget.
successful
completion
time
A project is one-time or infrequently occurring set of activities that creates outputs within prespecifiec time
and cost schedules. Project management is the combination of planning, directing and controlling resources (people,
equipment, technical
information, objectives
material) within
in
project and
to
meet
budget
schedule
constraints. To make projects successful, project managers should keep the following facts in mind:
Most
projects Such
are
important
processes
for
managing
change.
most organization are not configurated for projects; they are configured for routine operations and
processes.
large
of
the
project of a
ability in
to the
influence definition
success
comes occur
planning
stages
before
project managers should remember that both social and technical factors contribute to a projects success.
Projects
can
be
organized
and
executed
in
three
different ways: pure projects, functional project, and matrix project. offers Each of these and organizational that
structures
advantages
disadvantages
Project
manager
need
to
be
aware
of
tool
and
techniques for budgeting, scheduling, and controlling projects. These include the work breakdown structure, critical path method and others.
Large organizations typically must manage a portfolio of projects at the same time. Selection and
prioritization of projects should be seen as ways to strategically manage change and generate new
PART IV REFERENCES A. Books Swink, Morgan, et.al,. Managing Operation Across the Supply Chain, 2011 Davis, Mark M., et., al. Fundamentals of Operations Management Fourth Edition, 2003 Chase, Richard, Aquilano, Nicholas J. Production and Operations Management: Manufacturing Services Seventh edition, 1995 Finch, Byron J. Operations Now: Profitability, Processes, Performance Second Edition, 2006 Stevenson, William. Operations Management Eight Edition, 2005 Chase, Richard, et.al. Operations Management For Competitive Advantage Tenth Edition, 2004 B. Websites
http://www.grook.net/forum/civil-engineering/projectmanagment/project-management-101-lesson-02-managingresources http://pom-mn313pm.tripod.com/id13.html
http://worldacademyonline.com/article/18/1/project_manageme nt__planning_and_control__techniques__pert_and_cpm.html
http://www.zetamuhendislik.com/pages/Project.htm
http://www.buzzle.com/articles/why-is-project-managementimportant.html