By: Shirley G.

Poliquit

Create an understanding of the basics of Project Management. Explore specifics of project management to apply to your projects. Share and create common proposed language, structures and processes. Create a baseline for leading projects virtually.

is basically a set of activities aimed at meeting a goal.

Includes start and end time. Creates something new or fixes/improves something that already exist. Proposes and supports change temporary. Performed by people and teams. Constraints by resources. Planned, Executed, Controlled

day-to-day work routine activities Repetitive tasks Ongoing work

Definition: defined as planning, directing, and controlling resources (people, equipment, material, information) in a project to meet the technical objectives within budget and schedule constraints (Swink, 2011)

constructing houses, factories, shopping malls, athletic stadiums or arenas developing military weapons systems, aircrafts, new ships launching satellite systems constructing oil pipelines developing and implementing new computer systems planning concert, football games, or basketball tournaments introducing new products into market

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.

Schedule (Faster)

Project Deliverables

Scope/Quality (Better)

Budget (Cheaper)

Three primary objectives in project management

Functional project Project that is housed and controlled within a single functional department.

Pure Projects project that is housed outside normal functional departments and all stages are managed by single leader.

Matrix project project in which a full time project manager works together with functional managers to control budgets and to supervise functional workers who are loaned to the project from time to time.

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 functional area (critical mass of specialized knowledge)

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.

Disadvantages Aspects of the project that are not directly related to the functional area get short-changes 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 Project team members have multiple bosses. Success depends on project managers negotiating skills

Disadvantages Duplication of resources Organizational goals and policies are ignored Difficult to transfer technology/ learning Team members have no functional area home

Definition

Method by which a project is divided into tasks and and subtasks

LEVEL
1 2 3 4 5 Program Project Task Subtask Work Package

Terms: Statement of work written description of objectives of a project Program - an exceptionally large, longrange objective that is broken down into a set of projects Task - set of activities comprising a project Work Packages - division of tasks Work Units - division of work packages

Allow activities to be worked on independently Make them manageable size. Give authority to carry out the program Monitor and measure the program Provide the required resources.

Gantt Chart referred to as Bar Chart, showing both the amount of the time involved and the sequence in which activities can be performed.

Gantt chart for bank

0
Activity Design house and obtain financing Lay foundation Order and receive materials Build house

Month 4 |

| 10

Select paint
Select carpet

1
Finish work

Month

Critical Path Method (CPM) DuPont & Remington-Rand (1956) Deterministic task times Activity-on-node network construction Project Evaluation and Review Technique (PERT) US Navy, Booz, Allen & Hamilton Multiple task time estimates Activity-on-arrow network construction

Completion

date? On Schedule? Within Budget? Critical Activities? How can the project be finished early at the least cost?

 Identify

activities Determine sequence Create network Determine activity times Find critical path

Earliest & latest start times Earliest & latest finish times Slack

Activity-on-node (AON) nodes represent activities, and arrows show precedence relationships Activity-on-arrow (AOA) arrows represent activities and nodes are events for points in time Event completion or beginning of an activity in a project

Node 1 2 3

Branch

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Concurrent Activities
Lay foundation

3
Lay foundation Dummy 2 1 Order material (b) Correct precedence relationship 0

3 2

Order material

(a) Incorrect precedence relationship

9-28

Lay foundations

Build house

2 2 Start 1 3 3 1 5 1

4 3

Finish work

7 1 6 1
Select carpet

Design house and obtain financing

Order and receive Select paint materials

9-29

Critical Path
2 2 Start 1 3 3 1 5 1 6 1 4 3 7 1

A: B: C: D:

1-2-4-7 3 + 2 + 3 + 1 = 9 months 1-2-5-6-7 3 + 2 + 1 + 1 + 1 = 8 months 1-3-4-7 3 + 1 + 3 + 1 = 8 months 1-3-5-6-7 3 + 1 + 1 + 1 + 1 = 7 months

Critical path

Longest path through a network Minimum project completion time

9-30

Start at 5 months

2 2
Start

4 3

Finish at 9 months

1 3 3 1
Start at 3 months

7 1 6 1
Start at 6 months

Finish

5 1

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Activity number

Earliest start

Earliest finish
1 0 3

Latest finish

Activity duration

Latest start

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 Start

at the beginning of CPM/PERT network to determine the earliest activity times Earliest Start Time (ES) earliest time an activity can start ES = maximum EF of immediate predecessors Earliest finish time (EF) earliest time an activity can finish earliest start time plus activity time EF= ES + t
9-33

Lay foundations

Build house
Start

2 2 1 1 0 3

5 4 3 5 8

7
1 6 3 3 4 5 1
Select pain
9-34

Design house and obtain financing

Finish work

1 5 6
Select carpet

1
Order and receive materials

Copyright 2006 John Wiley & Sons, Inc.

 Determines

latest activity times by starting at the end of CPM/PERT network and working forward Latest Start Time (LS) Latest time an activity can start without delaying critical path time LS= LF - t Latest finish time (LF) latest time an activity can be completed without delaying critical path time LS = minimum LS of immediate predecessors
9-35

Lay foundations Build house Start

2
2 1 0 3

3
3

5
5 4 3 5 5 8 8 7 8 9

3
6 3 1 3 4 4 5 1 6 7 7 8

Design house and obtain financing

Finish work

5
1

5
6

6
7
Select carpet

Order and receive materials

Select pain

Copyright 2006 John Wiley & Sons, Inc.

9-36

Activity
*1 *2 3 *4 5 6 *7

LS
0 3 4 5 6 7 8

ES
0 3 3 5 5 6 8

LF
3 5 5 8 7 8 9

EF
3 5 4 8 6 7 9

Slack S
0 0 1 0 1 1 0

* Critical Path

9-37

Beta

distribution a probability distribution traditionally used in CPM/PERT

Mean (expected time): t= a + 4m + b 6 2

Variance: where

b-a 6

a = optimistic estimate m = most likely time estimate b = pessimistic time estimate

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Examples of Beta Distributions

P(time) P(time)

t
Time

a
Time

P(time)

m=t
Time

b
9-39

Equipment installation

1
6,8,10 System development

Equipment testing and modification System training Final debugging 10 1,4,7 11

2,4,12

8
Manual testing 3,7,11

Start

2
3,6,9 Position recruiting

Finish

5
2,3,4 Job Training

9
2,4,6 System testing

1,10,13 System changeover

3
1,3,5

6
3,4,5 Orientation

7
2,2,2

9-40

Activity Time Estimates

TIME ESTIMATES (WKS) ACTIVITY MEAN TIME VARIANCE

a 6 3 1 2 2 3 2 3 2 1 1

m 8 6 3 4 3 4 2 7 4 4 10

b 10 9 5 12 4 5 2 11 6 7 13

t 8 6 3 5 3 4 2 7 4 4 9

2 0.44 1.00 0.44 2.78 0.11 0.11 0.00 1.78 0.44 1.00 4.00

1 2 3 4 5 6 7 8 9 10 11

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Activity Early, Late Times, and Slack

ACTIVITY

t 8 6 3 5 3 4 2 7 4 4 9

0.44 1.00 0.44 2.78 0.11 0.11 0.00 1.78 0.44 1.00 4.00

ES

EF

LS

LF

1 2 3 4 5 6 7 8 9 10 11

0 0 0 8 6 3 3 9 9 13 16

8 6 3 13 9 7 5 16 13 17 25

1 0 2 16 6 5 14 9 12 21 16

9 6 5 21 9 9 16 16 16 25 25

1 0 2 8 0 2 11 0 3 8 0

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1 0 8 1

4 8 13 5 16 21 8 9 7 9 5 6 3 6
9 16

Critical Path
10 13 17

1 0

3
Finish

Start

2 0 6 0

16
13

9
7

3 0 3 2

6 3 4 5

9 9 4 12 16

11 16

25

9 16 25

7 3 5 2 14 16

9-43

Total project variance 2 = 22 + 52 + 82 + 112

= 1.00 + 0.11 + 1.78 + 4.00

= 6.89 weeks

9-44

Determine probability that project is completed within specified time Z= x-

where

= tp = project mean time = project standard deviation

x = proposed project time Z = number of standard deviations x is from mean
9-45

Probability

= tp

Time

9-46

What is the probability that the project is completed within 30 weeks?

P(x 30 weeks)

= 6.89 weeks = 6.89

Z =

x-

= 2.62 weeks

= 30 - 25 2.62 = 1.91

= 25 x = 30

Time (weeks)

From Table A.1, (appendix A) a Z score of 1.91 corresponds to a probability of 0.4719. Thus P(30) = 0.4719 + 0.5000 = 0.9719
9-47

What is the probability that the project is completed within 22 weeks?

P(x 22 weeks)

= 6.89 weeks = 6.89

Z =

x-

= 2.62 weeks

= 22 - 25 2.62 = -1.14

x = 22 = 25

Time (weeks)

From Table A.1 (appendix A) a Z score of -1.14 corresponds to a probability of 0.3729. Thus P(22) = 0.5000 - 0.3729 = 0.1271
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 Crashing

reducing project time by expending additional resources

Crash

time cost

an amount of time an activity is reduced

cost of reducing activity time reduce project duration at minimum cost

Crash Goal

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2 8 1
12

4
12

7 4
3 4 6 4

5 4

9-50

$7,000 $6,000
Crash cost

$5,000 $4,000

Crashed activity Slope = crash cost per week

$3,000
$2,000 $1,000
Crash time

Normal activity

Normal cost

Normal time

| 2

| 4

| 6

| 8

| 10

| 12

| 14
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Weeks

ACTIVITY

NORMAL TIME (WEEKS)

CRASH TIME (WEEKS)

NORMAL COST

CRASH COST

TOTAL ALLOWABLE CRASH TIME (WEEKS)

CRASH COST PER WEEK

1 2 3 4 5 6 7

12 8 4 12 4 4 4

7 5 3 9 1 1 3

$3,000 2,000 4,000 50,000 500 500 15,000

$5,000 3,500 7,000 71,000 1,100 1,100 22,000

5 3 1 3 3 3 1

$400 500 3,000 7,000 200 200 7,000

$75,000

$110,700

9-52

$500
2 8 1
12

$7000 4
12

$700 7 4 6 4 $200 $500 2 8 $7000 4

12

Project Duration: 36 weeks

FROM

$400

3 4 $3000

5 4 $200

$700

TO
7

7 4
6 4 $200

Project Duration: 31 weeks Additional Cost: $2000

$400

3 4

5 4 $200

$3000

9-53

 Crashing costs increase as project duration decreases Indirect costs increase as project duration increases Reduce project length as long as crashing costs are less than indirect costs

9-54

 Flow

Charting - Uses Nodes and Arrows Arrows

An

arrow leads from tail to head directionally node is represented by a circle

Nodes

Minimum cost = optimal project time

Total project cost Indirect cost

Cost ($)

Direct cost Crashing Project duration

9-56

Time