University of Mediterranean Karpasia

University of Mediterranean Karpasia
Project Management Prof. Dr. Ali ŞEN University of Mediterranean Karpasia

What is a Project? A temporary and one-time endeavor undertaken to create a unique product or service, which brings about beneficial change or added value In order to define project management, we need to understand what a project is. A project is a temporary and one-time endeavor undertaken to create a unique product or service, which brings about beneficial change or added value. Projects have end dates!

Examples of Projects Building Construction Research Project

PROJECT MANAGEMENT VS. GENERAL MANAGEMENT

Skill Requirements for Effective Project Management
Conflict Resolution Creativity and Flexibility Ability to Adjust to Change Good Planning Negotiation win-win versus win-lose

Figure 1-1: Performance, Cost, and Time Project Targets
Chapter 1: The World of Project Management

Figure 1-2 The Project Life Cycle

Management of Projects
Planning - goal setting, defining the project, team organization Scheduling - relates people, money, and supplies to specific activities and activities to each other Controlling - monitors resources, costs, quality, and budgets; revises plans and shifts resources to meet time and cost demands

Project Management Activities
Planning Objectives Resources Work break-down schedule Organization Scheduling Project activities Start & end times Network Controlling Monitor, compare, revise, action

Project Planning, Scheduling, and Controlling
Figure 3.1 Before Start of project During project Timeline project

Project Control Reports
Detailed cost breakdowns for each task Total program labor curves Cost distribution tables Functional cost and hour summaries Raw materials and expenditure forecasts Variance reports Time analysis reports Work status reports

Figure 3.1 Before Start of project During project Timeline project

Time/cost estimates Budgets Engineering diagrams Cash flow charts Material availability details Budgets Delayed activities report Slack activities report CPM/PERT Gantt charts Milestone charts Cash flow schedules Figure 3.1 Before Start of project During project Timeline project

The Constraint Triangle
RESOURCE (COST) What is most important? PRODUCT (SPECIFICATION) SCHEDULE (TIME)

Peanuts

Tools And Techniques

The Work Breakdown Structure (WBS)

Outline Introduction Risks in preparing a WBS Summary
Purposes, Benefits and Examples of a WBS Additional WBS Terminology Risks in preparing a WBS Summary Appendix -- Constructing a WBS Steps of Construction Notes on WBS Examples of Issues in preparing WBS

The Overall Planning Cycle
Manage Risks Analyze Job Generate Initial Plans Generate Detailed Plans This is the model we will use -- it focuses on the planning process -- three main activities, one concurrent risk activity, and then monitoring the results as we execute. Note that planning goes on continuously, throughout the software development You don’t just plan -- you monitor execution against the plan and you replan and replan on a regular basis Measure, Manage Productivity and Quality Execute

Detailed Planning - Processes
Source Information Statement of Work Requirements Constraints Standards Processes History etc. Estimate Size Estimate Effort and Cost WBS Size Effort & Cost Revise & Negotiate Not OK Complete Detailed Planning Evaluate Estimate Schedule OK Schedule

Detailed Planning - Questions
What Do We Have To Do? How Big Is It? How Much Will it Cost? WBS Size Effort & Cost What Can We Change? Not OK Is This Acceptable? Complete Detailed Planning How Long? What Do We Do When? OK Schedule

Work Breakdown Structure Introduction
Just tell me what I have to do!

The Work Breakdown Structure Is ...
A hierarchical list of the activities required to complete a project It includes tasks for Software development Software development management Support of software development Any other activities required to meet customer requirements, such as training, documentation etc. Parser Code Generator File System Run Time User Interface Software Manage Development Build “C” Compiler Build Test Suite Write Documentation Installation “C” Compiler Software for

Top Level Role of WBS WBS Cost Estimate (proposal &/ project start)
Source Documents (SOW, Requirements, contract, test criteria, etc,) WBS Cost Tracking (during execution) Historical Records (at end of project)

An example of a WBS Shown as a Tree
Software for “C” Compiler Manage Software Development Build “C” Compiler Build Test Suite Write Documentation Installation This is a three level WBS -- most real ones have more levels of detail It lists all tasks that need to be done to supply the complete product Note that level 2 consists of the main tasks and level 3 provides more detail Every task in the WBS should reflect something in a statement of work, requirements specification or such Every task in the WBS needs to be reflected in cost estimates Parser Code Generator File System Run Time User Interface

An example of a WBS Shown as Indented Text
1 Software for “C” Compiler 1.1 Build a “C” Compiler 1.1.1 Build a User Interface 1.1.2 Build a File System 1.1.3 Build a Parser 1.1.4 Build a Code Generator 1.1.5 Build a Run Time System 1.2 Build the Test Suite for the Compiler etc. 1.3 Write Documentation 1.4 Write Installation Software 1.5 Manage Software Development

Purposes of a WBS To organize the work to be done
To illustrate the work to be done To assure that all necessary work has been identified To divide the work into small, well defined tasks

Why Do a WBS? To facilitate planning, estimating and scheduling of the project To identify contractual tasks and deliverables To provide a basis for data monitoring and historical data collection

“Rolling Up” Costs $15K $38K $13K $24K $22K $31K $112K $85K $28K $45K

Work Breakdown Structure Jigsaw model
ELEMENTS

GANTT Charts Constructing GANTT Charts Staffing and Re-scheduling

University of Nottingham
4/14/2017 Gantt Chart A GANTT chart is a type of bar chart that illustrates a project schedule. After the PERT/CPM analysis is completed, the following phase is to construct the GANTT chart and then to re-allocate resources and re-schedule if necessary. GANTT charts have become a common technique for representing the phases and activities of a project work breakdown structure. It was introduced by Henry Gantt around 1910 – 1915. Maria Petridou

4/14/2017 Gantt Chart Maria Petridou

4/14/2017 Gantt Chart Characteristics: The bar in each row identifies the corresponding task The horizontal position of the bar identifies start and end times of the task Bar length represents the duration of the task Task durations can be compared easily Good for allocating resources and re-scheduling Precedence relationships can be represented using arrows Critical activities are usually highlighted Slack times are represented using bars with doted lines The bar of each activity begins at the activity earliest start time (ES) The bar of each activity ends at the activity latest finish time (LF). Maria Petridou

4/14/2017 Gantt Chart Advantages Simple Good visual communication to others Task durations can be compared easily Good for scheduling resources Disadvantages Dependencies are more difficult to visualise Minor changes in data can cause major changes in the chart Maria Petridou

Constructing Gantt Chart
University of Nottingham 4/14/2017 Constructing Gantt Chart The steps to construct a GANTT chart from the information obtained by PERT/CPM are: Schedule the critical tasks in the correct position. Place the time windows in which the non-critical tasks can be scheduled. Schedule the non-critical tasks according to their earliest starting times. Indicate precedence relationships between tasks. Maria Petridou

University of Nottingham 4/14/2017 Constructing Gantt Chart Example of an early GANTT chart construction: Maria Petridou

University of Nottingham 4/14/2017 Constructing Gantt Chart Step 1. Schedule critical tasks: Maria Petridou

University of Nottingham 4/14/2017 Constructing Gantt Chart Step 2. Place time windows for non-critical tasks: Maria Petridou

University of Nottingham 4/14/2017 Constructing Gantt Chart Step 3. Schedule non-critical tasks Step 4. Indicate precedence relationships: Maria Petridou

Project Management Software
University of Nottingham 4/14/2017 Project Management Software Benefits of project management software: Calculate project schedule Resource smoothing Automatic generation of reports and charts Limitations of project management software Allocation of resources to tasks Estimation of tasks durations Make decisions Reading: (Kendall&Kendall, chapter 3), (Dennis &Wixom, chapter 3). Maria Petridou

Activity-in-the-Box Network Diagrams (precedence)

Six Steps PERT & CPM Define the project and prepare the work breakdown structure Develop relationships among the activities - decide which activities must precede and which must follow others Draw the network connecting all of the activities

Six Steps PERT & CPM Assign time and/or cost estimates to each activity Compute the longest time path through the network – this is called the critical path Use the network to help plan, schedule, monitor, and control the project

Questions PERT & CPM Can Answer
When will the entire project be completed? What are the critical activities or tasks in the project? Which are the noncritical activities? What is the probability the project will be completed by a specific date?

Questions PERT & CPM Can Answer
Is the project on schedule, behind schedule, or ahead of schedule? Is the money spent equal to, less than, or greater than the budget? Are there enough resources available to finish the project on time? If the project must be finished in a shorter time, what is the way to accomplish this at least cost?

A Comparison of AON and AOA Network Conventions
Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) A comes before B, which comes before C (a) A B C A and B must both be completed before C can start (b) A C B B and C cannot begin until A is completed (c) B A C Figure 3.5

Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) C and D cannot begin until both A and B are completed (d) A B C D C cannot begin until both A and B are completed; D cannot begin until B is completed. A dummy activity is introduced in AOA (e) C A B D Dummy activity Figure 3.5

Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) B and C cannot begin until A is completed. D cannot begin until both B and C are completed. A dummy activity is again introduced in AOA. (f) A C D B Dummy activity Figure 3.5

Immediate Predecessors
AON Example Milwaukee Paper Manufacturing's Activities and Predecessors Activity Description Immediate Predecessors A Build internal components — B Modify roof and floor C Construct collection stack D Pour concrete and install frame A, B E Build high-temperature burner F Install pollution control system G Install air pollution device D, E H Inspect and test F, G Table 3.1

AON Network for Milwaukee Paper
Start B Activity A (Build Internal Components) Start Activity Activity B (Modify Roof and Floor) Figure 3.6

Activity A Precedes Activity C A Start B C D Activities A and B Precede Activity D Figure 3.7

G E F H C A Start D B Arrows Show Precedence Relationships Figure 3.8

AOA Network for Milwaukee Paper
1 3 2 (Modify Roof/Floor) B (Build Internal Components) A 5 D (Pour Concrete/ Install Frame) 4 C (Construct Stack) 6 (Install Controls) F (Build Burner) E (Install Pollution Device) G Dummy Activity H (Inspect/ Test) 7 Figure 3.9

Determining the Project Schedule
Perform a Critical Path Analysis The critical path is the longest path through the network The critical path is the shortest time in which the project can be completed Any delay in critical path activities delays the project Critical path activities have no slack time

Perform a Critical Path Analysis Activity Description Time (weeks) A Build internal components 2 B Modify roof and floor 3 C Construct collection stack 2 D Pour concrete and install frame 4 E Build high-temperature burner 4 F Install pollution control system 3 G Install air pollution device 5 H Inspect and test 2 Total Time (weeks) 25 Table 3.2

Perform a Critical Path Analysis Activity Description Time (weeks) A Build internal components 2 B Modify roof and floor 3 C Construct collection stack 2 D Pour concrete and install frame 4 E Build high-temperature burner 4 F Install pollution control system 3 G Install air pollution device 5 H Inspect and test 2 Total Time (weeks) 25 Earliest start (ES) = earliest time at which an activity can start, assuming all predecessors have been completed Earliest finish (EF) = earliest time at which an activity can be finished Latest start (LS) = latest time at which an activity can start so as to not delay the completion time of the entire project Latest finish (LF) = latest time by which an activity has to be finished so as to not delay the completion time of the entire project Table 3.2

Perform a Critical Path Analysis A Activity Name or Symbol Earliest Start ES Earliest Finish EF Latest Start LS Latest Finish LF Activity Duration 2 Figure 3.10

Forward Pass Begin at starting event and work forward
Earliest Start Time Rule: If an activity has only a single immediate predecessor, its ES equals the EF of the predecessor If an activity has multiple immediate predecessors, its ES is the maximum of all the EF values of its predecessors ES = Max {EF of all immediate predecessors}

Forward Pass Begin at starting event and work forward
Earliest Finish Time Rule: The earliest finish time (EF) of an activity is the sum of its earliest start time (ES) and its activity time EF = ES + Activity time

ES/EF Network for Milwaukee Paper
ES EF = ES + Activity time Start

2 EF of A = ES of A + 2 ES of A A 2 Start

Start A 2 3 EF of B = ES of B + 3 ES of B B 3

Start A 2 C 2 4 B 3

Start A 2 C 2 4 D 4 3 = Max (2, 3) 7 B 3

Start A 2 C 2 4 D 4 3 7 B 3

Start A 2 C 2 4 E 4 F 3 G 5 H 2 8 13 15 7 D 4 3 7 B 3 Figure 3.11

Backward Pass Begin with the last event and work backwards
Latest Finish Time Rule: If an activity is an immediate predecessor for just a single activity, its LF equals the LS of the activity that immediately follows it If an activity is an immediate predecessor to more than one activity, its LF is the minimum of all LS values of all activities that immediately follow it LF = Min {LS of all immediate following activities}

Backward Pass Begin with the last event and work backwards
Latest Start Time Rule: The latest start time (LS) of an activity is the difference of its latest finish time (LF) and its activity time LS = LF – Activity time

LS/LF Times for Milwaukee Paper
4 F 3 G 5 H 2 8 13 15 7 D C B Start A 13 LS = LF – Activity time LF = EF of Project 15

4 F 3 G 5 H 2 8 13 15 7 D C B Start A LF = Min(LS of following activity) 10 13

LF = Min(4, 10) 4 2 E 4 F 3 G 5 H 2 8 13 15 7 10 D C B Start A

4 F 3 G 5 H 2 8 13 15 7 10 D C B Start A 1

Computing Slack Time After computing the ES, EF, LS, and LF times for all activities, compute the slack or free time for each activity Slack is the length of time an activity can be delayed without delaying the entire project Slack = LS – ES or Slack = LF – EF

Computing Slack Time Earliest Earliest Latest Latest On Start Finish Start Finish Slack Critical Activity ES EF LS LF LS – ES Path A Yes B No C Yes D No E Yes F No G Yes H Yes Table 3.3

Critical Path for Milwaukee Paper
4 F 3 G 5 H 2 8 13 15 7 10 D C B Start A 1

ES – EF Gantt Chart for Milwaukee Paper
A Build internal components B Modify roof and floor C Construct collection stack D Pour concrete and install frame E Build high-temperature burner F Install pollution control system G Install air pollution device H Inspect and test

LS – LF Gantt Chart for Milwaukee Paper
A Build internal components B Modify roof and floor C Construct collection stack D Pour concrete and install frame E Build high-temperature burner F Install pollution control system G Install air pollution device H Inspect and test

Variability in Activity Times
CPM assumes we know a fixed time estimate for each activity and there is no variability in activity times PERT uses a probability distribution for activity times to allow for variability

Three time estimates are required Optimistic time (a) – if everything goes according to plan Pessimistic time (b) – assuming very unfavorable conditions Most likely time (m) – most realistic estimate

Estimate follows beta distribution Expected time: Variance of times: t = (a + 4m + b)/6 v = [(b – a)/6]2

Estimate follows beta distribution Expected time: Variance of times: t = (a + 4m + b)/6 v = [(b − a)/6]2 Figure 3.12 Probability Optimistic Time (a) Most Likely Time (m) Pessimistic Time (b) Activity Time Probability of 1 in 100 of > b occurring Probability of 1 in 100 of < a occurring

Computing Variance Most Expected Optimistic Likely Pessimistic Time Variance Activity a m b t = (a + 4m + b)/6 [(b – a)/6]2 A B C D E F G H Table 3.4

Probability of Project Completion
Project variance is computed by summing the variances of critical activities s2 = Project variance = (variances of activities on critical path) p

Project variance is computed by summing the variances of critical activities Project variance s2 = = 3.11 Project standard deviation sp = Project variance = = 1.76 weeks p

PERT makes two more assumptions: Total project completion times follow a normal probability distribution Activity times are statistically independent

Standard deviation = 1.76 weeks 15 Weeks (Expected Completion Time) Figure 3.13

What is the probability this project can be completed on or before the 16 week deadline? Z = – /sp = (16 wks – 15 wks)/1.76 = 0.57 due expected date date of completion Where Z is the number of standard deviations the due date or target date lies from the mean or expected date

From Tablaeu What is the probability this project can be completed on or before the 16 week deadline? Z = − /sp = (16 wks − 15 wks)/1.76 = 0.57 due expected date date of completion Where Z is the number of standard deviations the due date or target date lies from the mean or expected date

0.57 Standard deviations Probability (T ≤ 16 weeks) is 71.57% Weeks Weeks Time Figure 3.14

Determining Project Completion Time
Probability of 0.99 Z Probability of 0.01 2.33 Standard deviations 2.33 From Appendix I Figure 3.15

Variability of Completion Time for Noncritical Paths
Variability of times for activities on noncritical paths must be considered when finding the probability of finishing in a specified time Variation in noncritical activity may cause change in critical path

What Project Management Has Provided So Far
The project’s expected completion time is 15 weeks There is a 71.57% chance the equipment will be in place by the 16 week deadline Five activities (A, C, E, G, and H) are on the critical path Three activities (B, D, F) are not on the critical path and have slack time A detailed schedule is available

Trade-Offs And Project Crashing
It is not uncommon to face the following situations: The project is behind schedule The completion time has been moved forward Shortening the duration of the project is called project crashing

Factors to Consider When Crashing A Project
The amount by which an activity is crashed is, in fact, permissible Taken together, the shortened activity durations will enable us to finish the project by the due date The total cost of crashing is as small as possible

Steps in Project Crashing
Compute the crash cost per time period. If crash costs are linear over time: Crash cost per period = (Crash cost – Normal cost) (Normal time – Crash time) Using current activity times, find the critical path and identify the critical activities

If there is only one critical path, then select the activity on this critical path that (a) can still be crashed, and (b) has the smallest crash cost per period. If there is more than one critical path, then select one activity from each critical path such that (a) each selected activity can still be crashed, and (b) the total crash cost of all selected activities is the smallest. Note that the same activity may be common to more than one critical path.

Update all activity times. If the desired due date has been reached, stop. If not, return to Step 2.

Crashing The Project Time (Wks) Cost ($) Crash Cost Critical Activity Normal Crash Normal Crash Per Wk ($) Path? A ,000 22, Yes B ,000 34,000 2,000 No C ,000 27,000 1,000 Yes D ,000 49,000 1,000 No E ,000 58,000 1,000 Yes F ,000 30, No G ,000 84,500 1,500 Yes H ,000 19,000 3,000 Yes Table 3.5

Crash and Normal Times and Costs for Activity B
| | | 1 2 3 Time (Weeks) $34,000 — $33,000 — $32,000 — $31,000 — $30,000 — — Activity Cost Crash Normal Crash Cost/Wk = Crash Cost – Normal Cost Normal Time – Crash Time = $34,000 – $30,000 3 – 1 = = $2,000/Wk $4,000 2 Wks Crash Time Normal Time Crash Cost Normal Cost Figure 3.16

Critical Path And Slack Times For Milwaukee Paper
4 F 3 G 5 H 2 8 13 15 7 10 D C B Start A 1 Slack = 1 Slack = 0 Slack = 6 Figure 3.17

Advantages of PERT/CPM
Especially useful when scheduling and controlling large projects Straightforward concept and not mathematically complex Graphical networks help highlight relationships among project activities Critical path and slack time analyses help pinpoint activities that need to be closely watched

Advantages of PERT/CPM
Project documentation and graphics point out who is responsible for various activities Applicable to a wide variety of projects Useful in monitoring not only schedules but costs as well

Limitations of PERT/CPM
Project activities have to be clearly defined, independent, and stable in their relationships Precedence relationships must be specified and networked together Time estimates tend to be subjective and are subject to fudging by managers There is an inherent danger of too much emphasis being placed on the longest, or critical, path

Project Execution Plan
Project Execution Strategy Project Management Quality Safety Risk Management Design/Develop/Program Implementation Documentation Training

Prof. Dr. Ali ŞEN Contact Information Prof. Dr. Ali ŞEN

University of Mediterranean Karpasia

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