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Management
ISS Project:
Research on human life & production at
space
Complexity: 16 Countries, 34 space
deliveries
Problems: Over budget, Russian economic
Adeyl Khan, Faculty, BBA, NSU
Projects
Unique, one-time operations designed to
Unique Task
Specific Objective
Variety of Resources
Time bound
Less bureaucratic
FEB
MAR
APR
MAY
Build A
A Done
Build B
B Done
Build C
C Done
Build D
Ship
On time!
JUN
Feasibility
Termination
Execution
Planning
requirements
Underestimation of efforts needed
Risks not considered at the project start
Unforeseen technical difficulties
Unforeseen human difficulties
Miscommunication among project staff
Failure to recognize that project is falling
behind schedule
Adeyl Khan, Faculty, BBA, NSU
Advantages
Enables us to map out a course of action or
work plan
Helps us to think systematically and
thoroughly
Supports special needs
installation of a new machine!
services
Project Performance/Success
Key Performance Metrics
Time
Cost
Other (quality, utilization )
Key Success Factors
Top-down commitment
A good project manager
Planning
Controlling- Careful tracking and control
Communications
Adeyl Khan, Faculty, BBA, NSU
Administrative Issues
Project selection
Project manager selection
Selecting a project team
resources
Deciding if and when a project
should be terminated
Adeyl Khan, Faculty, BBA, NSU
alternatives
Manage within
functional unit
Assign a
coordinator
Use a matrix
organization with
a project leader
Ethical Issues
Temptation to understate costs
Withhold information
Misleading status reports
Falsifying records
Compromising workers safety
Approving substandard work
assigned
owners can define criteria for completing
the specific task
WBS is a hierarchical
arrangement of the products
and services produced during
and by a project.
The project is the highest level
of the WBS while an individual
activity required to create a
product or service is the
lowest level.
Adeyl Khan, Faculty, BBA, NSU
Project
Project XX
Level 1
Level 2
Level 3
Level 4
Masthead Design
Complete
Designer
Selected
Stories Photos
Complete
Articles Done
Assembly
Printing
Complete
Illustrations Done
Concept
Submitted
Ideas Assembled
Content
Approved
Ideas Approved
Newsletter
Mailed
Questionaire
Mailed
1st Draft
Stories Reviewed
Stories
Approved
14
PERT: Program
Evaluation
and Review
Critical
Path
Method
Technique
PERT and CPM
Project Scheduling
Adeyl Khan, Faculty, BBA, NSU
15
Network Diagram
Install rough
electrical & plumbing
for a House
Construction Project
Pour
basement
floor
Install
drains
10
9
Erect
frame & roof
Excavate
& pour
footings
Pour
foundation
Lay
flooring
Outputs
project duration
critical activities
slack for each activity
Adeyl Khan, Faculty, BBA, NSU
12
Install
kitchen
equipment
Paint
4
Lay
brickwork
Finish
carpeting
Inputs
list of activities
precedence relationships
activity durations
Install
finished
plumbing
Install
drywall
Install
cooling &
heating
11
16
Finish
electrical
work
Finish
roof
Lay
storm
drains
13
14
Finish
floors
Install
roof
drainage
15
Finish
grading
18
Pour
walks;
Landscape
17
Critical Path
unique number)
Establish start and finish times of each task.
Keep in mind the estimates made
Time Estimates
for duration and effort.
Determine float/slack time Deterministic
Time estimates that are
Revise
fairly certain
Probabilistic
Estimates of times that
allow for variation
17
Components of a Network
Diagram
Path
b
a
e
c
g
j
i
Critical Path?
Activity
Immediate
Predecessor
Activities
Activity
Immediate
Predecessor
Activities
c, e
b, d
b,d
f, g, h
Ex 1: Deterministic time
estimates are given- determine
6 weeks
the Critical
Path
4
2
re
n i tu
Fur p
u
set
8 weeks
ate s
c
Lo ilitie
fac
er e
d
r
r
O
u
t
i
n
fur
Rem
od e
l
11 weeks
3 weeks
In
te
rv
i
4 weeks ew
in
a
r
t
nd
a
re
Hi
9 weeks
3
Adeyl Khan, Faculty, BBA, NSU
Move
in
1 week
Path
6
Length Slack
(weeks)
1-2-4-5-6
1-2-5-6
1-3-5-6
18
20
14
Start
1
2
1
3
2
4
5
A1, 6 days
End
2
4
3
5
5
5
6
Time
6
6
4
9
13
3
3
ES
0
6
0
4
6
12
19
EF
6
12
4
13
19
15
22
A2, 6 days
LF
6
16
10
19
19
19
22
LS
0
10
6
10
6
16
19
Slack
0
4
6
6
0
4
0
Network
activities
4
A6, 3 days
A5, 13 days
A3, 4 days
A4, 9 days
A7, 3 days
6
21
Network Diagram
Advantages
Limitations
Forces managers to
organize
Provides graphic display
of activities
Identifies
Critical activities
Slack activities
be omitted
Precedence relationships
may not be correct
Estimates may include a
fudge factor
May focus solely on
critical path
to
Activity
start
Optimistic
time
tm
te
Most likely
time (mode)
tp
Pessimistic
time
t
+
4t
+t
o
m
p
=
6
te = expected time
to = optimistic time
tm = most likely time
tp = pessimistic time
Adeyl Khan, Faculty, BBA, NSU
2
(t
t
)
p o
36
= variance
to = optimistic time
tp = pessimistic time
Example 5
Optimistic
time
2-4-6
b
3-5-7
e
6
32- g
4-6-8
h
Adeyl Khan, Faculty, BBA, NSU
Pessimistic
time
5
32- c
4
3
1- a
3-4-5
d
Most likely
time
5-7-9
f
-6
4
3- i
Path Probabilities
Z =
17
Weeks
1.00
a-b-c
Weeks
10.0
d-e-f
16.0
Weeks
1.00
g-h-i
13.5
Weeks
Time-cost Trade-offs
which activity durations
should be decreased so
as to minimize additional
costs
period at a time
2. Only an activity on the
critical path
3. Crash the least
expensive activity
4. Multiple critical paths:
find the sum of crashing
the least expensive
activity on each critical
path
d=5
c=8
Activity
Duration
Crashed
Duration
Activity
Cost
Crashed
Cost
40
45
50
54
50
68
30
33
Crashing
Cost/day
Time-Cost Trade-Offs:
Crashing
Total !!!
cost
Expected indirect costs
Shorten
CRASH
Cumulative
cost of
crashing
Shorten
Optimum
Example 7
6
2
f
9
4
d
10
Advantages of PM Software
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
Ris k analys is
Ris k planning
Lis t of potential
ris ks
Prioritis ed ris k
lis t
Ris k avoidance
and contingency
plans
Ris k
monitoring
Ris k
as s es s ment
properly
The project reporting is
inadequate or does not
exist
Quality criteria is not
defined or measured
Lack of ownership - It is
not clear who is
responsible for the
project outcome
The progress is not
monitored and
controlled properly.
syndrome.
Poor or non-existent
planning
The project is not
resourced as planned
Lack of coordination of
activities
Adeyl Khan, Faculty, BBA, NSU
Success steps
1 - You need to define the
project clearly
2 - You need to plan the
project
(not to be mixed with
project schedule) A good
plan should include
scheduling as well as many
other points
3 - You need to provide a
way of including
contingency plan
4 - You need a
communication plan
5 - You need a quality plan
what constitutes
Adeyl Khan, definition
Faculty, BBA,ofNSU
quality
10 - You need to be
prepared that no matter
how well a project is
planned something may go
wrong at some point
Question 1
The project is going according to the plan
Check your
contingency plan to see
if you can absorb the
request
Question 2
You are a project manager assigned to run a
Accept this
Enrol a night
course in
localisation
Ask to be assigned
to another project
Question 3
You are a running a project for a corporate
Yours
personally
Your
companys
The
clients
people
The
clients
manageme
nt
Statistical Analysis
of PERT/CPM
Method
41
PERT Equations
3 duration time estimates
optimistic (to), most likely (tm), pessimistic (tp)
Activity duration:
mean
te = (to + 4tm + tp) / 6
variance
Path duration:
mean of path duration = T = te
variance of path duration = 2 = Vt
Zcp
T
55
X
actual
Project duration
45
actual
project
duration
(AOA)
Identify the critical path
List the critical activities
46
Summary- A project
will deliver a unique set of Business
and/or technical objectives
Is made up of defined processes & tasks
Will run for set period of time (life cycles)
Has a budget for resources and $s
PERT/Network diagrams tools makes it
easy to manage projects
Project management software available
Work Smart Not Hard !!!
Adeyl Khan, Faculty, BBA, NSU
Project scheduling
Split project into tasks and estimate time
Project manager
must:
define all project tasks
build a network that
depicts their
interdependence
identify the critical
tasks
track the progress of
these tasks
recognize the delay
one day at a time
50
Scheduling problems
Estimating the difficulty of problems and
Stakeholde
rs
Risks
Issues
Change
Identify stakeholders
Involve in planning
Establish expectations/accountabili
Formal communication
Gain sign-off
Change and issues resolution
Project reviews
Define project completion
Risk Management
Any factor capable of causing the project to go
off track.
Develop and monitor a Risk Plan
Issues Management
Unresolved issues will drive a project towards
failure and consume a significant part of a
project managers time.
Stakeholders play key role in issues
management and resolution
- Establish Issues log, review, escalation
process
Adeyl Khan, Faculty, BBA, NSU
Change Management
Uncontrolled changes to a project will