2 Reference Text Books (參考書籍) 1) Harold Kernel (2003), “Project Management,a system approach to planning, scheduling, andcontrolling” Eighth Edition, Wiley.(1) Heung Suk Hwang (2004), “R&D Project ManagementSoftware and Its Application”, Chung Moon Gak Co.(2) 管 孟忠 (2004), “策略專案管理金字塔(Project ManagementPyramid)”, 博項策略顧問役扮有限公司.(3) Reference Papers and Softwares.Department of Business and Administration
4 Author : 黃 興錫 Department of Business and Administration No of Page : 340 ppISBN : Publish Co. : Chung-Mun Gak Co. Day of Publish : This book was published for Project Management theory and also SW for practical uses and also have shown some of practical example problems.1) Project scheduling, PERT/CPMand its web-based computerprograms with its applicationsamples.2) For the evaluation of projectsfrom the alternative development,evaluate these alternative, andintegration of individual evaluationresults, we propose a three-stepevaluation model and with SW.This text book can be well used in university course work and also in practical problems for project managers.Department of Business and Administration
6 Outline GLOBAL COMPANY PROFILE: BECHTEL GROUP THE IMPORTANCE OF PROJECT MANAGEMENTPROJECT PLANNINGThe Project ManagerWork Breakdown StructurePROJECT SCHEDULINGPROJECT CONTROLLING
7 Outline - Continued PROJECT MANAGEMENT TECHNIQUES: PERT AND CPM The Framework of PERT and CPMNetwork Diagrams and ApproachesActivity on Node ExampleDetermining the Project ScheduleForward PassBackward PassCalculating Slack Time and Identifying the Critical Path(s)
8 Outline - Continued Cost-Time Tradeoffs and Project Crashing Variability in Activity TimesThree Time Estimates in PERTProbability of Project CompletionCost-Time Tradeoffs and Project CrashingA Critique of PERT and CPMVisual PERT/CPM Computer Program Practice
9 Learning ObjectivesWhen you complete this chapter, you should be able to :Identify or Define:Work breakdown structureCritical pathAOA and AON NetworksForward and Backward PassesVariability in Activity Times
10 Learning Objectives - Continued When you complete this chapter, you should be able to :Describe or Explain:The role of the project managerProgram evaluation and review technique (PERT)Critical path method (CPM)Crashing a projectThe Use of MS Project
11 Bechtel Asked by Kuwait to begin rebuilding after Desert Storm 650 wells ablaze, others uncappedNo water, electricity, food or facilitiesLand mines! Bombs! Grenades!Many fires inaccessible because of oil-covered roadsIt may be helpful here to ask students to compare the effort they believe necessary to manage this project to the effort they believe required to actually perform the physical tasks. Total cost might be a useful unit of comparison. One might expect the management cost to run 10% - 20% of the total.
12 Bechtel Project required: Storage, docking, and warehousing facilities at Dubai125,000 tons of equipment and supplies150 kilometers of pipeline capable of delivering 20,000,000 gallons of water per day to the fire sitemore than 200 lagoons with 1,000,000 gals of seawater
13 Bechtel Other Projects Building 26 massive distribution centers in just two years for the internet company Webvan GroupConstructing 30 high-security data centers worldwide for Equinix, Inc.Building and running a rail line between London and the Channel Tunnel ($4.6 billion)Developing an oil pipeline from the Caspian Sea region to Russia ($850 million)Expanding the Dubai Airport in the UAE ($600 million), and the Miami Airport in Florida ($2 billion)
14 Bechtel Other Projects - Continued Building liquid natural gas plants in Yemen $2 billion) and in Trinidad, West Indies ($1 billion)Building a new subway for Athens, Greece ($2.6 billion)Constructing a natural gas pipeline in Thailand ($700 million)Building a highway to link the north and south of Croatia ($303 million)
15 Strategic Importance of Project Management Bechtel Kuwait Project:8,000 workers1,000 construction professionals100 medical personnel2 helicopter evacuation teams6 full-service dining halls27,000 meals per day40 bed field hospital
16 Strategic Importance of Project Management - Continued Microsoft Windows XP Project:hundreds of programmersmillions of lines of codemillions of dollars costFord Redesign of Mustang Project:450 member project teamCost $700-million25% faster and 30% cheaper than comparable project at Ford
17 Project Characteristics Single unitMany related activitiesDifficult production planning and inventory controlGeneral purpose equipmentHigh labor skillsIt is helpful here to provide an expanded discussion of the activities.
20 Management of Large Projects Planning - goal setting, project definition, team organizationScheduling - relating people, money, and supplies to specific activities and activities to one and otherControlling - monitoring resources, costs, quality, and budgets; revising plans and shifting resources to meet time and cost demands
21 Project Management Activities PlanningObjectivesResourcesWork break-down scheduleOrganizationSchedulingProject activitiesStart & end timesNetworkControllingMonitor, compare, revise, actionA useful project management technique must contribute in all areas.
22 Project Organization Works Best When Work can be defined with a specific goal and deadlineThe job is unique or somewhat unfamiliar to the existing organizationThe work contains complex interrelated tasks requiring specialized skillsThe project is temporary but critical to the organizationStudents should be asked to explain why these requirements are appropriate.
23 Project Planning, Scheduling, and Controlling 1. Setting goals2. Defining the project3. Tying needs into timed projectactivities4. Organizing the teamProject Scheduling1. Tying resources to specific2. Relating activities to each other3. Updating and revising on aregular basisTime/cost estimatesBudgetsEngineering diagramsCash flow chartsMaterial availability detailsCPM/PERTGantt chartsMilestone chartsCash flow schedulesProject Controlling1. Monitoring resources, costs, quality,and budgets2. Revising and changing plans3. Shifting resources to meet demandsReportsbudgetsdelayed activitiesslack activitiesBefore ProjectDuring Project
27 A Sample Project Organization PresidentSalesFinanceHumanResourcesEngineeringQualityControlProductionProjectManagerProject 1PhysiologistPropulsionEngineerTestEngineerTechnicianHow does the structure of the project organization compare with the typical structure of the larger organization?ProjectManagerProject 2PsychologistStructuralEngineerInspectionTechnicianTechnician
28 A Sample Project Organization PresidentHumanResourcesSalesFinanceEngineeringQualityControlProductionProjectManagerProject 1PropulsionEngineerTestEngineerTechnicianHow does the structure of the project organization compare with the typical structure of the larger organization?ProjectManagerProject 2StructuralEngineerInspectionTechnicianTechnician
29 Matrix Organization Mkt Oper Eng Fin Project 1 Project 2 Project 3
30 The Role of the Project Manager Project Planand ScheduleRevisions andUpdatesProjectManagerTeamTopManagementResourcesPerformanceReportsInformationregarding times,costs, problems,delaysFeedback Loop
31 Work Breakdown Structure 1. ProjectMajor tasks in the project3. Subtasks in the major tasksActivities (or work packages) to be completed
33 Purposes of Project Scheduling Shows the relationship of each activity to others and to the whole project.Identifies the precedence relationships among activities.Encourages the setting of realistic time and cost estimates for each activity.Helps make better use of people, money, and material resources by identifying critical bottlenecks in the project.You might point out to students that there are those who claim that the real benefit of using project management tools comes from the planning and organizing effort, not the actual management of the tasks during the project.
36 Service Activities for A Delta Jet During a 60 Minute Layover
37 Project Control Reports Detailed cost breakdowns for each taskTotal program labor curvesCost distribution tablesFunctional cost and hour summariesRaw materials and expenditure forecastsVariance reportsTime analysis reportsWork status reports
38 PERT and CPM Network techniques Developed in 1950’s CPM by DuPont for chemical plants (1957)PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958)Consider precedence relationships and interdependenciesEach uses a different estimate of activity timesWhat circumstances lead the two organizations to develop different, yet similar tools for the management of complex projects?In your discussion of PERT/CPM, you should probably note that PERT helps us identify critical tasks/activities and look at the probability of completing the project by a given date; CPM helps us analyze the cost/time tradeoffs possible if we need to speed the project up.
39 Questions Which May Be Addressed by PERT & CPM Is the project on schedule, ahead of schedule, or behind schedule?Is the project over or under cost budget?Are there enough resources available to finish the project on time?If the project must be finished in less than the scheduled amount of time, what is the way to accomplish this at least cost?
40 The Six Steps Common to 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 activitiesAssign time and/or cost estimates to each activityCompute the longest time path through the network. This is called the critical pathUse the network to help plan, schedule, monitor, and control the project
41 A Comparison of AON and AOA Network Conventions
42 Milwaukee General Hospital’s Activities and Predecessors ActivityDescriptionImmediate PredecessorsABuild internal components-BModify roof and floorCConstruct collection stackDPour concrete and install frameA, BEBuild high-temperature burnerFInstall pollution control systemGInstall air pollution deviceD, EHInspect and testF, G
43 AON Network for Milwaukee General Hospital StartABCDFGHArrows show precedence relationships
44 AOA Network (With Dummy Activities) for Milwaukee General Construct stack1324567A Build internal componentsInstall controlsFDummy ActivityBuild burnerEHInspect/TestModify roof/floorBInstall pollution control deviceGDPour concrete/ Install frame
45 Critical Path Analysis Provides activity informationEarliest (ES) & latest (LS) startEarliest (EF) & latest (LF) finishSlack (S): Allowable delayIdentifies critical pathLongest path in networkShortest time project can be completedAny delay on critical path activities delays projectCritical path activities have 0 slackThis and the next several slides illustrate the definitions of terms appropriate to critical path analysis.There are many opportunities for good managers to truly manage a project once they have a PERT network established. For instance, sub-contractors know early start and late start times and the managers know the activities on the critical path upon which to focus effort.
46 Earliest Start and Finish Steps Begin at starting event and work forwardES = 0 for starting activitiesES is earliest startEF = ES + Activity timeEF is earliest finishES = Maximum EF of all predecessors for non-starting activities
47 Latest Start and Finish Steps Begin at ending event and work backwardLF = Maximum EF for ending activitiesLF is latest finish; EF is earliest finishLS = LF - Activity timeLS is latest startLF = Minimum LS of all successors for non-ending activities
49 Critical Path for Milwaukee General Hospital StartHBDGArrows show precedence relationships
50 AON Network for Milwaukee General HospitalIncludes Critical Path StartABCDFGH132158541037E1Slack=0Slack=6Slack=1Slack=0
51 Gantt Chart Earliest Start and Finish Milwaukee General HospitalA Build internal componentsB Modify roof and floorC Construct collection stackD Pour concrete and install frameE Build high-temperature burnerF Install pollution control systemG Install air pollution deviceH Inspect and testThis and the following slide illustrate the translation of Early and Late Start and Finish time to Gantt charts.
52 Gantt Chart Latest Start and Finish Milwaukee General HospitalA Build internal componentsB Modify roof and floorC Construct collection stackD Pour concrete and install frameE Build high-temperature burnerF Install pollution control systemG Install air pollution deviceH Inspect and testThis and the following slide illustrate the translation of Early and Late Start and Finish time to Gantt charts.
53 Gantt Chart Latest Start and Finish 1-2 Fdn & frame1-3 Buy shrubs2-3 Roof2-4 Interior work3-4 Landscape456789123ActivityBuild House Project
54 PERT Activity Times 3 time estimates Follow beta distribution Optimistic times (a)Most-likely time (m)Pessimistic time (b)Follow beta distributionExpected time: t = (a + 4m + b)/6Variance of times: v = (b - a)2/6In your discussion of activity times, you should probably at least make note of the difference between “most likely” and “average” or “ expected” completion times.
55 Project Times Expected project time (T) Project variance (V) Used to obtain probability of project completion!Expected project time (T)Sum of critical path activity times, tProject variance (V)Sum of critical path activity variances, v
57 Converting to Standardized Variable X-T50-40Z===2.s5Normal DistributionStandardized Normal Distributionss= 5= 1ZT= 4050Xm= 02.0Zz
58 Obtaining the Probability Standardized Normal Probability Table (Portion)Z.00.01.02s= 10.0.50000.50399.50798Z::::2.0.97725.97784.97831.97725m= 02.0Z2.1.98214.98257.98300zProbabilities in body
59 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.
60 Factors to Consider when Crashing The amount by which an activity is crashed is, in fact, permissible.Taken together, the shortened activity durations will enable one to finish the project by the due date.The total cost of crashing is as small as possible.
61 Steps in Project Crashing Compute the crash cost per time period. For crash costs assumed linear over time:Using current activity times, find the critical pathIf 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. Note that a single activity may be common to more than one critical pathUpdate all activity times.
62 Crash and Normal Times and Costs for Activity B
64 Advantages of PERT/CPM Especially useful when scheduling and controlling large projects.Straightforward concept and not mathematically complex.Graphical networks aid perception of relationships among project activities.Critical path & slack time analyses help pinpoint activities that need to be closely watched.Project documentation and graphics point out who is responsible for various activities.Applicable to a wide variety of projects.Useful in monitoring schedules and costs.There are those that argue that the Polaris could not have been built without the use of project management techniques (PERT).
65 Limitations of PERT/CPM Assumes clearly defined, independent, & stable activitiesSpecified precedence relationshipsActivity times (PERT) follow beta distributionSubjective time estimatesOver-emphasis on critical pathAnother issue with respect to the use of PERT/CPM is the cost and amount of management time required to keep the system up to date.