Presentation on theme: "1 Chapter 3 part 1 Project Management. 2 Why is Project Management Important? Why do I need to know this stuff? –Relevant across functional areas "— Presentation transcript:
1 Chapter 3 part 1 Project Management
2 Why is Project Management Important? Why do I need to know this stuff? –Relevant across functional areas How is this going to help me now? –Valuable to recruiters How is this going to help me later? –Vital to success as a manager
3 Project is a series of related jobs usually directed toward some major output and requiring a significant period of time to perform Project Management are the management activities of planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project Project Management Defined
4 All projects require: – Time – Money –Resources –To achieve the goal, three factors must be satisfied: Performance: Completion of all stated activities Scheduling: On-time Cost: Within budget Project Management Defined
5 Planning l Objectives l Resources l Work break- down schedule l Organization Directing l Project activities l Start & end times l Network Controlling l Monitor, compare, revise, action Project Management Activities
6 Project Structure and Organization A pure project is where a self- contained team works full-time on the project A functional project is housed within a functional division A matrix project spans functional areas
7 Project Management in Action Question?? What is the current world record for shortest amount of time to build a 3 bedroom house? A. About 1.5 days B. About 4 hours C. About 3 hours D. About 1 hour
8 Project Management in Action Answer C. About 3 hours
9 Work Breakdown Structure Program Project 1Project 2 Task 1.1 Subtask Work Package Level Task 1.2 Subtask Work Package Defines the hierarchy of project tasks, subtasks, and work packages
10 Gantt Chart Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Time Vertical Axis: Always Activities or Jobs Horizontal Axis: Always Time Horizontal bars used to denote length of time for each activity or job.
11 Network-Planning Models A project is made up of a sequence of activities that form a network representing a project The path taking longest time through this network of activities is called the “critical path” The critical path provides a wide range of scheduling information useful in managing a project
12 Prerequisites for Critical Path Methodology A project must have: well-defined jobs or tasks whose completion marks the end of the project; independent jobs or tasks; and tasks that follow a given sequence.
13 Types of Critical Path Methods CPM with a Single Time Estimate –Used when activity times are known with certainty –Used to determine timing estimates for the project, each activity in the project, and slack time for activities CPM with Three Activity Time Estimates (PERT) –Used when activity times are uncertain –Used to obtain the same information as the Single Time Estimate model and probability information 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
14 Steps in the CPM with Single Time Estimate 1. Activity Identification 2. Activity Sequencing and Network Construction 3. Determine the critical path –From the critical path all of the project and activity timing information can be obtained
15 Identifies critical path –Longest path in network –Shortest time project can be completed –Any delay on critical path activities delays project –Critical path activities have 0 slack Provides activity information –Earliest (ES) & latest (LS) start –Earliest (EF) & latest (LF) finish –Slack (S): Allowable delay Critical Path Analysis
16 CPM with Single Time Estimate Consider the following consulting project : ActivityDesignationImmed. Pred.Time (Weeks) Assess customer's needsANone2 Write and submit proposalBA1 Obtain approvalCB1 Develop service vision and goalsDC2 Train employeesEC5 Quality improvement pilot groupsFD, E 5 Write assessment reportGF1 Develop a critical path diagram and determine the duration of the critical path and slack times for all activities.
17 First draw the network A(2)B(1) C(1) D(2) E(5) F(5) G(1) ANone2 BA1BA1 CB1CB1 DC2DC2 EC5EC5 FD,E5 GF1GF1 Act.Imed. Pred. Time
19 Begin at starting event and work forward Earliest Start (ES) –For starting activities: ES = 0 –For all others: ES = Maximum EF of all predecessors Earliest Finish (EF) –EF = ES + Activity time Determine ES and EF
20 Begin at ending event and work backward Latest Finish (LF) –For ending activities LF = Maximum EF –For non-ending activities LF = Minimum LS (latest start) of all successors Latest Start (LS) –LS = LF - Activity time Determine LS and LF
21 Network Diagrams Latest Finish ES LS EF LF Earliest Finish Latest Start Earliest Start Activity Name Activity Duration
22 Determine early starts and early finish times ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A(2)B(1)C(1) D(2) E(5) F(5) G(1) Hint: Start with ES=0 and go forward in the network from A to G.
23 Determine late starts and late finish times ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A(2)B(1) C(1) D(2) E(5) F(5) G(1) LS=14 LF=15 LS=9 LF=14 LS=4 LF=9 LS=7 LF=9 LS=3 LF=4 LS=2 LF=3 LS=0 LF=2 Hint: Start with LF=15 or the total time of the project and go backward in the network from G to A.
26 Four paths in the network: –Path 1: A – C – F – G: 9 weeks –Path 2: A – C – E – G – H: 15 weeks –Path 3: A – D – G – H: 13 weeks –Path 4: B – D – G – H: 14 weeks Path 2 is critical Critical Path
27 Slack = LS – ES or LF - EF A, C, E, G, and H are on the critical path and so they have 0 slack B is on path 4, so its slack is 15–14 = 1 D is on paths 3 and 4, so its slack is 15 – Min (13,14) = 1 F is on path 1, so its slack is 15 – 9 = 6 An activity can be delayed by its slack and not delay the project completion Critical Path
28 Case Competition Example Activity List ActivityDescriptionImmediate Predecessors Duration ARead Case-60 BDiscuss & Identify StrategyA70 COrder PizzaB40 DPrepare PowerpointsC60 EWrite reportC150 FPractice runD60 GGive Presentation and Turn in Report E,F40
29 A B C D F E ReadDiscuss Pizza Practice Present Write Slides G ABCDFG330 ABCEG360 Project Duration Critical Path Case Competition Network Diagram
30 Case competition example What is the duration of the project (4a)? –6 hours ( ) Fancy Animation (4b)? –Yes, does not delay project Additional time for writing report (4c)? –No, will delay the project Will shortening practice run reduce the project duration (4d)? –No, not on critical path Discussion