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Introduction:
Project Management Drivers
Expansion of knowledge Demand for new products Worldwide markets Competition Belief better living though technology Expanding size of projects
Introduction:
Three Project Objectives
Introduction:
Recent Managing Changes
Less hierarchical
Systems approach
Project oriented
Project Definition
Definition used by PMI*:
A temporary endeavor undertaken to create a unique product or service
Terminology
Program (group of projects) Project Task (subset of work elements) Work package (sub element of task) Work unit
Project Attributes
Purpose Life cycle Interdependencies Uniqueness Conflict
Quick momentum
Slow finish
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Overview of PS Process
Project Management Office (PMO): Aligning corporate needs and project goals Project selection: Choose candidate projects using evaluation criteria Dealing with uncertainty: Risk analysis Strategically selecting best projects: Project Portfolio Process (PPP) Locking up the deal: Writing a project proposal
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PS Models
Idealized view of reality Representing the STRUCTURE of the problem, not the detail Deterministic or stochastic
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Nature of PS Models:
Methodology
Start with detailed list of firms goals Create list of project evaluation factors
(PEFs)
Weigh every element in PEF list Compute an overall score for project
based on weighted PEFs Select project that has the closest alignment with firms goals
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Types of PS Models:
Nonnumeric
Sacred Cow Operating Necessity Competitive Necessity Product Line Extension Comparative Benefit Model
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Matrix organization
Team structure with members from different functional areas depending on skills needed
Project manager
Leader of project team
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Project Scheduling
1. Tying resources to specific activities 2. Relating activities to each other Before Project 3. Updating and revising on regular basis
During Project
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Project Planning
Statement of work
Written description of goals, work & time frame of project
Activities require labor, resources & time Precedence relationship shows sequential relationship of project activities
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Project Planning
Statement of work
written description of goals, work & time frame of project
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Dinner
Pasta
Hierarchical organization of work to be done on a project Project broken down into modules Modules subdivided into subcomponents, activities, and tasks Identifies individual tasks, workloads, and resource requirements
Purchase Boil water Add tomato sauce/paste Wash lettuce Drain lettuce Tear lettuce Butter top Open Cook Saut onion & garlic Cool meatballs Slice Taste Drain Heat Serve Serve Add spices Add croutons/ dressing Mix Serve Cook sauce Serve Serve
Turn on music
Figure 6.1
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Thus, the budget reflects the project plan, time-phased, in monetary terms
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Bottom Line: Any system can be gamed So know what the games are . . .
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A Gantt Chart
Popular tool for project scheduling Graph with bar for representing the time for each task Provides visual display of project schedule Also shows slack for activities
Amount of time activity can be delayed without delaying project
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A Gantt Chart
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Activity Design house and obtain financing Lay foundation Order and receive materials Build house Select paint Select carpet Finish work
Month 4
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3 Month
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CPM/PERT
Critical Path Method (CPM)
DuPont & Remington-Rand (1956) Deterministic task times Activity-on-node network construction
Branch
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3
0 1
4
Select paint 1
3 1
6
Select carpet
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Critical Path
A path is a sequence of connected activities running from start to end node in network The critical path is the path with the longest duration in the network Project cannot be completed in less than the time of the critical path
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Lay foundation 2 3
3
0 1
2
Design house and obtain financing Order and receive materials
4
Select paint 1
3 1
6
Select carpet
Lay foundation 2 3
3
0 1
1
Design house and obtain financing
2
Order and receive materials
4
Select paint 1
3 1
6
Select carpet
Start at 5 months 2 0 1
Finish at 9 months 1
4
1
3 1
Start at 3 months
Start at 8 months
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b-a = 6
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t
Time
a
Time
P(time)
m=t
Time
b
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= tp
Time
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Project Control
All activities identified and included Completed in proper sequence Resource needs identified Schedule adjusted Maintain schedule and budget Complete on time
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Time-Cost Relationship
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
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Time-Cost Tradeoff
Minimum cost = optimal project time
Direct cost
Time
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