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McGraw-Hill/Irwin
Chapter 3
Project Management
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OBJECTIVES
Definition of Project Management
Work Breakdown Structure
Project Control Charts
Structuring Projects
Critical Path Scheduling
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Project Management
Defined
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Gantt Chart
Vertical
VerticalAxis:
Axis:
Always
AlwaysActivities
Activities
or
or Jobs
Jobs
Horizontal
Horizontalbars
barsused
usedtotodenote
denotelength
length
ofoftime
timefor
foreach
eachactivity
activityor
orjob.
job.
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5
Activity 6
Time
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Horizontal
HorizontalAxis:
Axis:Always
AlwaysTime
Time
2006 The McGraw-Hill Companies, Inc., All
Pure Project
A pure project is where a self-contained team
works full-time on the project
Structuring Projects 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
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Functional Project
Research and
Development
Engineering
Manufacturing
Example,
Example, Project
Project B
B is
is in
in the
the functional
functional
area
area of
of Research
Research and
and Development.
Development.
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Structuring Projects
Functional Project:
Advantages
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10
Structuring Projects
Functional Project:
Disadvantages
Aspects of the project that are not
directly related to the functional
area get short-changed
Motivation of team members is
often weak
Needs of the client are secondary
and are responded to slowly
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12
Structuring Projects
Matrix: Advantages
Pinpointed responsibility
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13
Structuring Projects
Matrix: Disadvantages
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14
Level Program
1
2
Project 1
Project 2
Task 1.1
Task 1.2
Subtask 1.1.1
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Subtask 1.1.2
Work Package 1.1.1.2
15
Network-Planning Models
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16
17
Time-Cost Models
Used when cost trade-off information is a major
consideration in planning
Used to determine the least cost in reducing total project
time
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19
Activity
Assess customer's needs
Write and submit proposal
Obtain approval
Develop service vision and goals
Train employees
Quality improvement pilot groups
Write assessment report
20
A
B
C
None
A
B
2
1
1
D
E
F
C
C
D,E
2
5
5
A(2)
B(1)
D(2)
C(1)
F(5)
G(1)
E(5)
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21
ES=2
EF=3
ES=3
EF=4
A(2)
B(1)
C(1)
Hint:
Hint:Start
Startwith
withES=0
ES=0
and
andgo
goforward
forwardininthe
the
network
networkfrom
fromAAtotoG.
G.
McGraw-Hill/Irwin
D(2)
ES=4
EF=9
ES=9
EF=14
ES=14
EF=15
F(5)
G(1)
E(5)
22
Determine late
starts and late
finish times
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
A(2)
B(1)
C(1)
LS=0
LF=2
LS=2
LF=3
LS=3
LF=4
ES=4
EF=6
D(2)
LS=7
LF=9
ES=4
EF=9
E(5)
Hint:
Hint:Start
Startwith
withLF=15
LF=15
or
orthe
thetotal
totaltime
timeof
ofthe
the
project
project and
andgo
go
backward
backwardin
inthe
the
network
networkfrom
fromGGto
toA.
A.
ES=9
ES=14
EF=14 EF=15
F(5)
G(1)
LS=9
LF=14
LS=14
LF=15
LS=4
LF=9
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ES=2
EF=3
ES=3
EF=4
A(2)
B(1)
C(1)
LS=0
LF=2
LS=2
LF=3
LS=3
LF=4
D(2)
LS=7
LF=9
ES=4
EF=9
E(5)
LS=4
LF=9
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Slack=(7-4)=(9-6)= 3 Wks
ES=9
EF=14
ES=14
EF=15
F(5)
G(1)
LS=9
LF=14
LS=14
LF=15
Duration=15 weeks
24
25
Example 2. Expected
Time Calculations
ET(A)=
ET(A)=3+4(6)+15
3+4(6)+15
Task
A
B
C
D
E
F
G
H
I
Immediate Expected
Predecesors
Time
None
7
None
5.333
A
14
A
5
C
11
D
7
B
11
E,F
4
G,H
18
66
ET(A)=42/6=7
ET(A)=42/6=7
Immediate
Task Predecesors Optimistic Most Likely Pessimistic
A
None
3
6
15
B
None
2
4
14
C
A
6
12
30
D
A
2
5
8
E
C
5
11
17
F
D
3
6
15
G
B
3
9
27
H
E,F
1
4
7
I
G,H
4
19
28
Opt.
Time
++ 4(Most
Likely
Time)
++ Pess.
Time
Opt.
Time
4(Most
Likely
Time)
Pess.
Time
Expected
ExpectedTime
Time ==
66
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26
Immediate Expected
Predecesors
Time
None
7
None
5.333
A
14
A
5
C
11
D
7
B
11
E,F
4
G,H
18
ET(B)=
ET(B)=2+4(4)+14
2+4(4)+14
66
ET(B)=32/6=5.333
ET(B)=32/6=5.333
Immediate
Task Predecesors Optimistic Most Likely Pessimistic
A
None
3
6
15
B
None
2
4
14
C
A
6
12
30
D
A
2
5
8
E
C
5
11
17
F
D
3
6
15
G
B
3
9
27
H
E,F
1
4
7
I
G,H
4
19
28
Opt.
Time
++ 4(Most
Likely
Time)
++ Pess.
Time
Opt.
Time
4(Most
Likely
Time)
Pess.
Time
Expected
ExpectedTime
Time ==
66
McGraw-Hill/Irwin
27
Ex 2. Expected Time
Calculations
Task
A
B
C
D
E
F
G
H
I
Immediate Expected
Predecesors
Time
None
7
None
5.333
A
14
A
5
C
11
D
7
B
11
E,F
4
G,H
18
ET(C)=
ET(C)=6+4(12)+30
6+4(12)+30
66
ET(C)=84/6=14
ET(C)=84/6=14
Immediate
Task Predecesors Optimistic Most Likely Pessimistic
A
None
3
6
15
B
None
2
4
14
C
A
6
12
30
D
A
2
5
8
E
C
5
11
17
F
D
3
6
15
G
B
3
9
27
H
E,F
1
4
7
I
G,H
4
19
28
Opt.
Time
++ 4(Most
Likely
Time)
++ Pess.
Time
Opt.
Time
4(Most
Likely
Time)
Pess.
Time
Expected
ExpectedTime
Time ==
66
McGraw-Hill/Irwin
28
Example 2. Network
Duration = 54 Days
C(14)
E(11)
H(4)
A(7)
D(5)
F(7)
I(18)
B
(5.333)
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G(11)
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29
p(t < D)
D=53
TE = 54
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t
DD -- TTEE
ZZ ==
22
cpcp
30
Pessim.
-- Optim.
Pessim.
Optim.)22
Activity
variance,
=
(
Activity variance, = (
)
66
22
Task
A
B
C
D
E
F
G
H
I
22
41
== 41
31
p(t < D)
D=53
TE = 54
D
D -- TTEE 5353-54
54
ZZ ==
==
== -.156
-.156
22
41
41
cpcp
p(Z
p(Z <<-.156)
-.156) ==.438,
.438, or
or 43.8
43.8 %
% (NORMSDIST(-.156)
(NORMSDIST(-.156)
There
There isis aa 43.8%
43.8% probability
probability that
that this
this project
project will
will be
be
completed
completed in
in less
less than
than 53
53 weeks.
weeks.
McGraw-Hill/Irwin
Ex 2. Additional Probability
Exercise
What
What is
is the
the probability
probability that
that the
the
project
project duration
duration will
will exceed
exceed 56
56
weeks?
weeks?
McGraw-Hill/Irwin
32
TE = 54
t
D=56
D
-- TTEE 56
--54
D
56
54
ZZ ==
=
== .312
.312
22 =
41
41
cp
cp
p(Z
p(Z>>.312)
.312) == .378,
.378, or
or 37.8
37.8 %
%(1-NORMSDIST(.312))
(1-NORMSDIST(.312))
McGraw-Hill/Irwin
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34
Time-Cost Models
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CPM Assumptions/Limitations
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35
36
End of Chapter 3
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