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Www.utm.my innovative ● entrepreneurial ● global 1 By Syuhaida Ismail, Ph.D, C.Eng. Mohammad Gholamzadeh, M.Eng. syuhaidaismail.com 0126469235 MDE 2583.

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Presentation on theme: "Www.utm.my innovative ● entrepreneurial ● global 1 By Syuhaida Ismail, Ph.D, C.Eng. Mohammad Gholamzadeh, M.Eng. syuhaidaismail.com 0126469235 MDE 2583."— Presentation transcript:

1 innovative ● entrepreneurial ● global 1 By Syuhaida Ismail, Ph.D, C.Eng. Mohammad Gholamzadeh, M.Eng. syuhaidaismail.com MDE PROJECT MANAGEMENT

2 innovative ● entrepreneurial ● global 2 ICE-BREAKING

3 innovative ● entrepreneurial ● global 3 AGENDA SlotActivity 9.00 am – am2-way lecture am – amBreak am – pmGroup assignment I 2.00 pm – 3.00 pmIndustrial Talk by IEM PMTD Chairman 3.00 pm – 3.30 pmQ&A 3.30 pm – 3.45 pmBreak 3.45 pm – 6.00 pmGroup assignment II Saturday (1 March 2014)

4 innovative ● entrepreneurial ● global 4 AGENDA SlotActivity 9.00 am – amGroup presentation am – amBreak am – 1.00 pmGroup assignment III 2.00 pm – 3.00 pmIndustrial Talk by IEM PMTD Committee 3.00 pm – 3.30 pmQ&A 3.30 – 3.45 pmBreak 3.45 pm – 6.00 pmGroup assignment III Sunday (2 March 2014)

5 innovative ● entrepreneurial ● global 5 ASSESSMENT 1Individual Assignment2 x 20%40 % 2Case Study Group Assignment 2 x 10%20 % 3Post Module Assignment1 x 40%40 % Total100 %

6 innovative ● entrepreneurial ● global 6 References/Bibliography ● PMBOK (2008) ● MS Project 2013 ● Kerzner, R. (2013). Project Management: Systems Approach to Planning, Scheduling and Controlling. John Wiley & Sons Inc. ● Gray, C.F. and Larson, E.W. (2006). Project Management: The Managerial Process. New York: McGraw-Hill International Edition. ● Meredith, J.R. and Mantel, S.J. (2009). Project Management: A Managerial Approach. John Wiley & Sons Inc. 6

7 innovative ● entrepreneurial ● global 7 IMPORTANCE OF PROJECT MANAGEMENT

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9 innovative ● entrepreneurial ● global 9 Project management is “the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project” (PMI*, Project Management Body of Knowledge (PMBOK Guide), 1996, p. 6) WHAT IS PROJECT MANAGEMENT?

10 innovative ● entrepreneurial ● global 10 OPERATION VS PROJECT Operation – Existing systems – Repetitive work – Efficiency and effectiveness – Reliance on standard procedures – Line management – Focus on “maintaining” Project –One-time resource configuration –Unique and separate work –Cohesion and direction –End-product driven –Stakeholder driven –Project orientation –Focus on “change”

11 innovative ● entrepreneurial ● global 11 CHARACTERISTICS OF A PROJECT ● Specific objectives- Time, Cost & Performance ● Multi-Disciplinary – different disciplines, companies and countries ● Temporary undertakings- definite start and end date; therefore of finite duration ● Consume and compete for scarce resources ● Produce unique and one-off outcomes ● Phases - Project has a number of phases/schedule ● Usually have own budgets ● One leader assigned overall responsibility ● Projects are subject to a lot of changes ● Subject to conflicts

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13 innovative ● entrepreneurial ● global 13 PROJECT OBJECTIVES ● Performance and quality standards ● Safety and reliability ● Timescales and timing of events ● Costs: budgets and rates of spend ● Use of resources ● Value and cost benefits/effectiveness ● Management requirements and contract agreements

14 innovative ● entrepreneurial ● global 14 PROJECT STAKEHOLDERS ● Stakeholders are the people involved in or affected by project activities ● Stakeholders include – the project sponsor and project team – support staff – customers – users – suppliers – opponents to the project

15 innovative ● entrepreneurial ● global 15 WHEN IS A PROJECT A PROJECT? Stewart (1965) uses four criteria ● Scope- definable in terms of a single, specified end result ● Unfamiliarity-unique, infrequent, more uncertainty ● Complexity- greater degree on interdependency amongst tasks ● Stake (risk)- Outcome affects company’s stake

16 innovative ● entrepreneurial ● global 16 TRIPLE CONSTRAINTS OF PROJECT MANAGEMENT Solutions must not exceed boundaries

17 innovative ● entrepreneurial ● global 17 NORMAL MEASURES OF SUCCESS ● New Products ● New Markets ● New Facilities ● New Organisational Forms ● Etc Subject to the triple constraints of satisfying Time, Cost and Performance criteria

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22 innovative ● entrepreneurial ● global 22 TORRE DAVID ● Is Torre David a failure or a success? Discuss. – How do you measure the success/failure – What are the factors that most influence a successful/failed project outcome? ● What are the causes that lead to under- performing of projects? How do they arise?

23 innovative ● entrepreneurial ● global 23 OTHER MEASURES OF PROJECT SUCCESS ● National pride or security ● Learning and experience ● Improved status and visibility ● Training and development ● Opportunities for authority and responsibility ● Improved ability/skills

24 innovative ● entrepreneurial ● global 24 SYDNEY OPERA HOUSE- PROJECT MANAGEMENT FAILURE? "The construction of the beautiful freestanding, sculptural tripartite Opera House was one of the longest contractual sagas of the century. Sadly, architect Jorn Utzon became the scapegoat of a scandalous political affair and in 1966 withdrew from his project. Originally, the winner of an international open competition in 1957, it was a scheme that broke most of the rules. It was finally completed in August 1973 by other hands under the direction of Peter Hall."

25 innovative ● entrepreneurial ● global 25 IRONIC ISN’T IT? ● Despite its failure as a PM exercise, the Sydney Opera House is considered a world-class venue for opera and a tourist attraction. It is one of the 20th century's most distinctive buildings and one of the most famous performing arts centres in the world. ● So, are we confusing between the project exercise and the result of a project?

26 innovative ● entrepreneurial ● global 26 CONCORDE-FAILURE ? ● Conceived in The first prototype (aircraft 001 F-WTSS) was rolled out on 11 December 1967, but extensive ground testing meant that it didn't fly until 2 March In December 1971, the first pre- production aircraft (101) made its maiden flight. ● However, the oil crisis sparked by the 'Yom Kippur' war of 1973 had a most devastating affect on sales. The soaring cost of fuel rendered Concorde completely uneconomic for all but state-subsidised airlines.

27 innovative ● entrepreneurial ● global 27 SUCCESS IN FAILURE ● Although the Concorde was a commercial failure, it was a marvellous engineering success and flew for almost thirty years until its retirement in 2003.

28 innovative ● entrepreneurial ● global 28 MARS POLAR LANDER’S FAILURE OF SIMPLE NASA SYSTEM ENGINEERING ERROR

29 innovative ● entrepreneurial ● global 29 PROJECT MANAGEMENT FRAMEWORK Project Management Integration Project Success Scope Mgt. Time Mgt. Cost Mgt. Quality Mgt. HR Mgt. Comm. Mgt. Risk Mgt. Procure. Mgt. 9 Knowledge Areas Core Functions Facilitating Functions Stakeholder needs and expectations Tools and techniques

30 innovative ● entrepreneurial ● global 30 Knowledge Areas Project Management Process Groups InitiatingPlanningExecuting Monitoring and Controlling Closing Project Integration Management Develop project charter Develop project management plan Direct and manage project execution - Monitor and control project work - Perform integrated change control Close project or phase Project Scope Management - Collect requirements - Define scope - Create work breakdown structure (WBS) - Verify scope - Control scope Project Time Management - Define activities - Sequence activities - Estimate activity resources - Estimate activity durations - Develop schedule Control schedule Project Cost Management - Estimate costs - Determine budget Control costs Project Quality Management Plan quality Perform quality assurance Perform quality control Project Human Resource Management Develop human resource plan - Acquire project team - Develop project team - Manage project team Project Communications Management Identify stakeholdersPlan communications - Distribute information - Manage stakeholder expectations Report performance Project Risk Management - Plan risk management - Identify risks - Perform qualitative risk analysis - Perform quantitative risk analysis - Plan risk responses Monitor and control risks Project Procurement Management Plan procurementsConduct procurementsAdminister procurements Close procurements

31 innovative ● entrepreneurial ● global 31 PROJECT INTEGRATION MANAGEMENT u Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle u Many new project managers have trouble looking at the “big picture” and want to focus on too many details

32 innovative ● entrepreneurial ● global 32 RESPONSIBILITY AND AUTHORITY ● Senior management commitment to Project Management concept is vital ● Project Manager must clear authority and responsibility over personnel -50% of the battle for project success ● Leadership is crucial-in all cases, these can only be one responsible project leader

33 innovative ● entrepreneurial ● global 33 KEY TO SUCCESS ● People processes of Teamwork and Leadership as well as Tools and Techniques ● Blending of Hard & Soft Methods and Techniques are important in Project Management

34 innovative ● entrepreneurial ● global 34 Tools in Project Management ● Microsoft Project (MSP) ● Primavera Project Planner (P3) ● Primavera Professional Project Management (P6) 34

35 innovative ● entrepreneurial ● global 35 Project Management Structures ● Enterprise Project Structure (EPS) 35 Water Sewage Company Operation & Logistic Water AbadanAhwaz Project1 Project 2 Project 3 Sewage Human Resource Marketing Project1 Office Building Design Construct Civil &Structural Mechanical and electrical equipment Exterior Interior Oxidation Ponds TransformationSoftware Work Break Down Structure (WBS)

36 innovative ● entrepreneurial ● global 36 PROJECT LIFE CYCLE Time Distribution of Project Effort ● Conception ● Selection ● Planning, scheduling, monitoring, control ● Evolution and termination

37 innovative ● entrepreneurial ● global 37 Process Groups Interact in a Phase or Project Project Management Process

38 innovative ● entrepreneurial ● global 38 PROJECT LIFE-CYCLE

39 innovative ● entrepreneurial ● global 39 FACTORS AFFECTING PROJECT OUTCOME ● Project manager ● Project team ● Stakeholder ● Scope, goals and objectives ● Communication ● Risks u Early Project phase work u Important matters u Alternatives u Planning u Control u Outsourcing u Documentation

40 innovative ● entrepreneurial ● global 40 PROJECT CATEGORIES BY TIME SCALES ● Long Term (over 10 years) Electrification / Water pipes replacement Defence Upgrading ● Medium Term (3 to 10 years) Construction of a Dam Computerisation of schools ● Short term (0.5 to 3 years) Organisation of conferences/ new consumer products Hotel construction ● Special small scale Emergency evacuation JE vaccination

41 innovative ● entrepreneurial ● global 41 TYPES OF PROJECTS Well Defined Poorly Defined Well Defined TYPE 1 (KLIA) TYPE 3 (Software) Poorly Defined TYPE 2 (A380 Airbus) TYPE 4 (Multi Media Super Corridor) Project Results Project methods

42 innovative ● entrepreneurial ● global 42 DISCUSSIONS Give examples of project types in your organisation and reason out why you assign them into the above categories 1. TYPE 1- ……………………………. 2. TYPE 2- ……………………………. 3. TYPE 3- ……………………………. 4. TYPE 4- …………………………….

43 innovative ● entrepreneurial ● global 43 PROJECT CONSTRAINTS ● Inadequate resources ● Unrealistic schedules ● Unrealistic budgets ● Unrealistic objective ● Conflicts

44 innovative ● entrepreneurial ● global 44 PROJECT MANAGEMENT PROBLEMS 1. Inadequate resources. 2. Unrealistic deadlines. 3. Unclear goals or direction. 4. Team members uncommitted. 5. Insufficient planning. 6. Communication breakdown. 7. Changes in goals and/or resources. 8. Conflicts between functions or departments. 9. Underestimation of the technical difficulty 10. Problems with software projects. 11. Inability to control contractors work and failure to use specialist staff. 12. Weakness in contract arrangements. 13. Lack of effective planning and control. 14. Interruptions in funding (escalation to escalation). 15. Non-compliance with procedures

45 innovative ● entrepreneurial ● global 45 Scope Management

46 innovative ● entrepreneurial ● global 46 Project Scope Management ● Organisation scope – defining scopes amongst organisations involved ● Project scope – defining scopes of the project itself ● Activity scope – determining how detailed you want to cover the activity 46

47 innovative ● entrepreneurial ● global 47 Project Time Management ● Create project calendar ● Define WBS ● Define the activities ● Determine sequence of activities ● Estimate activities duration ● Estimate activities resources ● Determine constraints and limitation ● Develop schedule ● Control 47

48 innovative ● entrepreneurial ● global 48 WORK BREAKDOWN STRUCTURE ● A work breakdown structure (WBS) is an outcome- oriented analysis of the work involved in a project that defines the total scope of the project ● A graphical display of the project that shows division of work in a multilevel system ● The concept of the WBS is simple: in order to manage a whole project, one must manage/control each of its part ● It is a foundation document in project management because it provides the basis for planning and managing project schedules, costs, and changes

49 innovative ● entrepreneurial ● global 49 WORK BREAKDOWN STRUCTURE ● WBS defines: – Work to be performed – The needed expertise, – Selection of the project team, – Base for project scheduling and control ● The development of WBS is a continuing process: – Starts when the project is first assigned to the project manager – Continues until all work packages have been defined

50 innovative ● entrepreneurial ● global 50 Copyright Course Technology Figure 4-6a. Sample of Intranet WBS Organized by Product

51 innovative ● entrepreneurial ● global 51 Copyright Course Technology Figure 4-6b. Sample Intranet WBS Organized by Phase

52 innovative ● entrepreneurial ● global 52 Table 4-3. Intranet WBS in Tabular Form 1.0 Concept 1.1 Evaluate current systems 1.2 Define Requirements Define user requirements Define content requirements Define system requirements Define server owner requirements 1.3 Define specific functionality 1.4 Define risks and risk management approach 1.5 Develop project plan 1.6 Brief web development team 2.0 Web Site Design 3.0 Web Site Development 4.0 Roll Out 5.0 Support

53 innovative ● entrepreneurial ● global 53 Figure 4-7. Intranet WBS and Gantt Chart in Microsoft Project 98 WBSGantt Chart

54 innovative ● entrepreneurial ● global 54 APPROACHES TO DEVELOP WBS ● Using guidelines: Some organizations, like the DOD, provide guidelines for preparing WBSs ● The analogy approach: It often helps to review WBSs of similar projects ● The top-down approach: Start with the largest items of the project and keep breaking them down ● The bottoms-up approach: Start with the detailed tasks and roll them up

55 innovative ● entrepreneurial ● global 55 BASIC PRINCIPLES FOR CREATING WBS 1. A unit of work should appear at only one place in the WBS. 2. The work content of a WBS item is the sum of the WBS items below it. 3. A WBS item is the responsibility of only one individual, even though many people may be working on it. 4. The WBS must be consistent with the way in which work is actually going to be performed; it should serve the project team first and other purposes only if practical. 5. Project team members should be involved in developing the WBS to ensure consistency and buy-in. 6. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item. 7. The WBS must be a flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement. *Cleland, David I. Project Management: Strategic Design and Implementation, 1994

56 innovative ● entrepreneurial ● global 56 Sample of Activity Definition Form 56 WBS:Date: Activity Code Activity Name DurationPredecessorLag Constraint/ Limitation ResourceCost Project Manager Signature: Date: Supervisor Signature: Date: Provider Signature: Date:

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59 innovative ● entrepreneurial ● global 59 CREATE A WBS FOR SATAY BARBEQUE Assumptions Vegetables are uncut Nasi impit is uncut Kuah is unheated Satay is raw Satay Grill ready but no fire Arang/coal ready Fire lighter available Lighter available Plates are available Activity ends when satay is served as shown

60 innovative ● entrepreneurial ● global 60 WORK BREAKDOWN STRUCTURE 1.1 Cut nasi impit 1.2 Cut onions 1.3 Cut cucumbers 1.4 Warm up sauce 2.1 Put charcoal in grill 2.2 Light Fire 2.3 Spread charcoal 3.1 Put Satay on Grill 3.2 Grill & Serve 12 3

61 innovative ● entrepreneurial ● global 61 Heat up Kuah Cut Nasi Impit Serve Satay on plate Cut Cucumber Cut Onions Light fire Spread coals Cook Satay

62 innovative ● entrepreneurial ● global 62 WHY ARE PROJECTS HARD? ● Resources – People, materials ● Planning – What needs to be done? – How long will it take? – What sequence? – Keeping track of who is supposedly doing what, and getting them to do it

63 innovative ● entrepreneurial ● global 63 IT PROJECTS ● Half finish late and over budget ● Nearly a third are abandoned before completion – The Standish Group, in Infoworld ● Get & keep users involved & informed ● Watch for scope creep / feature creep

64 innovative ● entrepreneurial ● global 64 PROJECT SCHEDULING ● Establishing objectives ● Determining available resources ● Sequencing activities ● Identifying precedence relationships ● Determining activity times & costs ● Estimating material & worker requirements ● Determining critical activities

65 innovative ● entrepreneurial ● global 65 WORK BREAKDOWN STRUCTURE ● Hierarchy of what needs to be done, in what order ● For me, the hardest part – I’ve never done this before. How do I know what I’ll do when and how long it’ll take? – I think in phases – The farther ahead in time, the less detailed – Figure out the tricky issues, the rest is details – A lot will happen between now and then – It works not badly with no deadline

66 innovative ● entrepreneurial ● global 66 MUDROOM REMODEL ● Big-picture sequence easy: – Demolition – Framing – Plumbing – Electrical – Drywall, tape & texture – Slate flooring – Cabinets, lights, paint ● Hard: can a sink fit? D W DW

67 innovative ● entrepreneurial ● global 67 PROJECT SCHEDULING TECHNIQUES ● Gantt chart ● Critical Path Method (CPM) ● Program Evaluation & Review Technique (PERT)

68 innovative ● entrepreneurial ● global 68 GANTT CHART

69 innovative ● entrepreneurial ● global 69 PERT & CPM ● Network techniques/analysis system ● Consider precedence relationships & interdependencies ● Each uses a different estimate of activity times

70 innovative ● entrepreneurial ● global 70 CRITICAL PATH METHOD (CPM) ● Critical Path Method (CPM) – Developed in 1956 – by the DuPont Company with Remington Rand as consultants, as a deterministic approach to scheduling. – Commonly used in the engineering and construction industry.

71 innovative ● entrepreneurial ● global 71 PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT) ● Program Evaluation and Review Technique (PERT) - Similar method – Developed in 1957 – by the US Navy, with Booz, Allen & Hamilton Management Consultants, as a probabilistic approach to scheduling for Polaris missile – Commonly used by the manufacturing industry  Both methods are often referred to as a network analysis system.

72 innovative ● entrepreneurial ● global 72 ● The purpose of CPM is – Plan the work – Guide the progress of a project – Provide a baseline for project control CRITICAL PATH METHOD (CPM)

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76 innovative ● entrepreneurial ● global 76 PERT & CPM STEPS ● Identify activities ● Determine sequence ● Create network ● Determine activity times ● Find critical path Earliest & latest start times Earliest & latest finish times Slack

77 innovative ● entrepreneurial ● global 77 ● Activity – A specific task or set of tasks – Use resources and take time to complete – e.g. concreting ● Event – The result of completing one or more activities – Use no resources Chapter 8-9 TERMINOLOGY

78 innovative ● entrepreneurial ● global 78 ● Network – Combination of all activities and events – Define the project and the activity precedence relationships Chapter 8-9 TERMINOLOGY

79 innovative ● entrepreneurial ● global 79 TERMINOLOGY ● Path – Series of connected activities (or intermediate events) between any two events in a network ● Critical – Activities, events, or paths which, if delayed, will delay the completion of the project – A sequence of critical activities that connect the project’s start event to its finish event Chapter 8-10

80 innovative ● entrepreneurial ● global 80 ● An activity can be in any of these conditions: – It may have a successor(s) but no predecessor(s) - starts a network – It may have a predecessor(s) but no successor(s) - ends a network – It may have both predecessor(s) and successor(s) - in the middle of a network Chapter 8-11 TERMINOLOGY

81 innovative ● entrepreneurial ● global 81 Activity on Node (AoN) 2 2? Years Enroll Receive Master Project: Obtain a Master’s Degree 1 month Attend class, study etc. 1 1 day 3

82 innovative ● entrepreneurial ● global 82 Activity on Arrow (AoA) 2 ? Years Enroll Receive Master Project: Obtain a Master’s Degree 1 month Attend class, study, etc. 1 1 day 234

83 innovative ● entrepreneurial ● global 83 AoA Nodes Have Meaning Graduating Applicant Project: Obtain a Master’s Degree 1 Alumni 234 Student

84 innovative ● entrepreneurial ● global 84 Terminology Chapter 8-9 event activity Indicator b = concreting

85 innovative ● entrepreneurial ● global 85 We’ll use Activity on Node 1-2 must be done before 2-3 or 3-4 can start

86 innovative ● entrepreneurial ● global 86 Activity Relationships 2-3 must be done before 3-4 or 3-5 can start

87 innovative ● entrepreneurial ● global and 3-4 must be done before 4-5 can start Activity Relationships

88 innovative ● entrepreneurial ● global 88 When 5-6 is done, project is complete Activity Relationships

89 innovative ● entrepreneurial ● global 89 NETWORK EXAMPLE You’re a project manager for Bechtel. Construct the network. ActivityPredecessors A-- BA CA DB EB FC GD HE, F

90 innovative ● entrepreneurial ● global 90 NETWORK EXAMPLE - AON ACEFBDGHZ

91 innovative ● entrepreneurial ● global 91 NETWORK EXAMPLE - AON

92 innovative ● entrepreneurial ● global 92 NETWORK EXAMPLE - AOA A C F E B D H G

93 innovative ● entrepreneurial ● global 93 AOA DIAGRAMS 231 A C B D A precedes B and C, B and C precede D 241 A C B D 354 Add a phantom arc for clarity.

94 innovative ● entrepreneurial ● global 94 DUMMY

95 innovative ● entrepreneurial ● global 95 LET’S TRY THIS! ActivityPredecessor A- B- CA DA,B

96 innovative ● entrepreneurial ● global 96 DUMMY

97 innovative ● entrepreneurial ● global 97 DUMMY ● An activity with zero duration ● Links together activities whose sequence would otherwise not be shown ● Indicated by a dashed arrow ● Show the sequence between activities e.g. activity A and D without the problem of linking Activity B with Activity C ● Is determined by looking at the activity list and find those activities that share some, but not the entire set of prior activities.

98 innovative ● entrepreneurial ● global 98 CRITICAL PATH ANALYSIS ● Provides activity information Earliest (ES) & latest (LS) start Earliest (EF) & latest (LF) finish Slack (S): Allowable delay ● Identifies critical path Longest path in network Shortest time project can be completed Any delay on activities delays project Activities have 0 slack or float *Critical activities = Activities in critical path. Have no float i.e. ES = EF and/or LS = LF. Indicated with double line.

99 innovative ● entrepreneurial ● global 99 CRITICAL PATH ANALYSIS

100 innovative ● entrepreneurial ● global 100 SLACK/FLOAT

101 innovative ● entrepreneurial ● global 101 SLACK/FLOAT ● Total float: Measure of leeway (delay) in starting and completing an activity. It assumes that all activities preceding that activity finished as Early as possible and all successor activities are started as Late as possible. FREE TIME WITHOUT DELAYING THE WHOLE PROJECT DURATION TF = LF – EF = LS - ES ● Free float: Amount of time that an activity’s start can be delayed with out affecting the early start date of any successor activity in the network. FREE TIME WITHOUT DELAYING THE EARLY START OF SUCCEESOR ACTIVITY FF = ES NEXT ACTIVITY – EF THAT ACTIVITY

102 innovative ● entrepreneurial ● global 102 COMPUTE SLACK/FLOAT

103 innovative ● entrepreneurial ● global A D G B E L H F C J M K Activity on arrow network – Figure 1.0

104 innovative ● entrepreneurial ● global 104 The duration (in weeks) of the activities in the network are given as listed below:- ● A – 7 ● B – 1 ● C – 10 ● D – 3 ● E – 2 ● F – 3 ● G – 12 ● H – 13 ● J – 8 ● K – 17 ● L – 4 ● M – 12

105 innovative ● entrepreneurial ● global 105 EXAMPLE 1 ● Find a)The minimum project time b)The earliest and latest times for each event c)The critical path

106 innovative ● entrepreneurial ● global 106 CRITICAL PATH ANALYSIS EXAMPLE 2

107 innovative ● entrepreneurial ● global 107 NETWORK SOLUTION A A E E D D B B C C F F G G

108 innovative ● entrepreneurial ● global 108 EARLIEST START & FINISH STEPS ● Begin at starting event & work forward ● ES = 0 for starting activities ES is earliest start ● EF = ES + Activity time EF is earliest finish ● ES = Maximum EF of all predecessors for non- starting activities

109 innovative ● entrepreneurial ● global 109 ACTIVITY A EARLIEST START SOLUTION For starting activities, ES = 0. A A E E D D B B C C F F G G

110 innovative ● entrepreneurial ● global 110 EARLIEST START SOLUTION A A E E D D B B C C F F G G

111 innovative ● entrepreneurial ● global 111 LATEST START & FINISH STEPS ● Begin at ending event & work backward ● LF = Maximum EF for ending activities LF is latest finish; EF is earliest finish ● LS = LF - Activity time LS is latest start ● LF = Minimum LS of all successors for non- ending activities

112 innovative ● entrepreneurial ● global 112 EARLIEST START SOLUTION A A E E D D B B C C F F G G

113 innovative ● entrepreneurial ● global 113 LATEST FINISH SOLUTION A A E E D D B B C C F F G G

114 innovative ● entrepreneurial ● global 114 SLACK/FLOAT

115 innovative ● entrepreneurial ● global 115 SLACK/FLOAT ● Total float: Measure of leeway (delay) in starting and completing an activity. It assumes that all activities preceding that activity finished as Early as possible and all successor activities are started as Late as possible. FREE TIME WITHOUT DELAYING THE WHOLE PROJECT DURATION ● Free float: Property of an activity and not the network path that an activity is part of. It is the amount of time that an activity’s start can be delayed with out affecting the early start date of any successor activity in the network. FREE TIME WITHOUT DELAYING THE EARLY START OF SUCCEESOR ACTIVITY

116 innovative ● entrepreneurial ● global 116 COMPUTE SLACK/FLOAT

117 innovative ● entrepreneurial ● global 117 COMPUTE SLACK/FLOAT

118 innovative ● entrepreneurial ● global 118 CRITICAL PATH A A E E D D B B C C F F G G

119 innovative ● entrepreneurial ● global 119 NEW NOTATION ● Compute ES, EF for each activity, Left to Right ● Compute, LF, LS, Right to Left C 7 LSLF ESEF

120 innovative ● entrepreneurial ● global 120 EXHIBIT 2.6, P.35 A 21 E 5 D 2 B 5 C 7 F 8 G 2

121 innovative ● entrepreneurial ● global 121 A 21 E 5 D 2 B 5 C 7 F 8 G F cannot start until C and D are done. G cannot start until both E and F are done. EXHIBIT 2.6, P.35

122 innovative ● entrepreneurial ● global 122 A 21 E 5 D 2 B 5 C 7 F 8 G E just has to be done in time for G to start at 36, so it has slack. D has to be done in time for F to go at 28, so it has no slack. EXHIBIT 2.6, P.35

123 innovative ● entrepreneurial ● global 123 A 21 E 5 D 2 B 5 C 7 F 8 G EXHIBIT 2.6, P.35

124 innovative ● entrepreneurial ● global 124 GANTT CHART - ES A B C D E F G

125 innovative ● entrepreneurial ● global 125 CAN WE GO FASTER?

126 innovative ● entrepreneurial ● global 126 TIME-COST MODELS 1. Identify the critical path 2. Find cost per day to expedite each node on critical path. 3. For cheapest node to expedite, reduce it as much as possible, or until critical path changes. 4. Repeat 1-3 until no feasible savings exist.

127 innovative ● entrepreneurial ● global 127 What about Uncertainty?

128 innovative ● entrepreneurial ● global 128 PERT ACTIVITY TIMES ● 3 time estimates Optimistic times (a) Most-likely time (m) Pessimistic time (b) ● Follow beta distribution ● Expected time: t = (a + 4m + b)/6 ● Variance of times: v = (b - a) 2 /36  

129 innovative ● entrepreneurial ● global 129 PROJECT TIMES ● Expected project time (T) Sum of critical path activity times, t ● Project variance (V) Sum of critical path activity variances, v

130 innovative ● entrepreneurial ● global 130 EXAMPLE ActivityambE[T]variance A B C Project18.54 C C B B A A

131 innovative ● entrepreneurial ● global 131 BENEFITS OF PERT/CPM ● Useful at many stages of project management ● Mathematically simple ● Use graphical displays ● Give critical path & slack time ● Provide project documentation ● Useful in monitoring costs

132 innovative ● entrepreneurial ● global 132 LIMITATIONS OF PERT/CPM ● Clearly defined, independent & stable activities ● Specified precedence relationships ● Activity times (PERT) follow beta distribution ● Subjective time estimates ● Over emphasis on critical path

133 innovative ● entrepreneurial ● global 133 Risk Management

134 innovative ● entrepreneurial ● global 134 WHAT IS RISK? A risk is a potential problem characterised by: (a)A likelihood of occurrence (b)A potential impact

135 innovative ● entrepreneurial ● global 135 SOURCES OF RISK 1.Use of new or untried technology 2.Inexperienced team 3.Poor Project management structure 4. Lack of resource or resource conflicts 5. Work takes longer than planned 6.Deliveries from supplier late 7.Insufficient production facilities 8.Placing of subcontract and purchase orders 10.Replace key, sick or holidaying personnel 11.Weather may delay work 12.Labour disputes may delay work 13.Poor cost estimates 14.Currency conversion rates may changes 15. Interfaces with other people, departments and companies. 16. Pressure from NGOs, Politicians, Crooks 17. Global Weather Changes 18. Natural Disasters

136 innovative ● entrepreneurial ● global 136 RISK ASSESSMENT MAP Impact Probability LowMediumHigh ? Medium Low ?

137 innovative ● entrepreneurial ● global 137 Management Structure

138 innovative ● entrepreneurial ● global 138 FUNCTIONAL, PROJECT AND MATRIX ORGANIZATIONAL STRUCTURES

139 innovative ● entrepreneurial ● global 139 ORGANIZATION STRUCTURE INFLUENCES ON PROJECTS The organizational structure influences the project manager’s authority, but remember to address the human resources, political, and symbolic frames, too. PMBOK Guide, 1996, p. 18

140 innovative ● entrepreneurial ● global 140 DISTINCTIONS BETWEEN PROJECT AND FUNCTIONAL MANAGEMENT – Job of functional managers go on forever – They operate and optimise the use of resources of overall company basis – Job of project managers is over once project is finished – They optimise resources of a project – Different definitions of optimisation may lead to conflicts

141 innovative ● entrepreneurial ● global 141 ADVANTAGES OF PROJECT MANAGEMENT ORGANISATIONAL APPROACH ● Teamwork- better motivation & Communication ● Synergism- high performing team ● Cross-Border management- diff cultures, functions and boundaries ● Forward Looking- what else needs doing ● Clent Relations- one point of contact ● Results – more effective

142 innovative ● entrepreneurial ● global 142 Project Measurement

143 innovative ● entrepreneurial ● global 143 EARNED VALUE MANAGEMENT SYSTEMS (EVMS) Presented By Sean Alexander (703) or (888) BASIC CONCEPTS

144 innovative ● entrepreneurial ● global 144 EVMS OBJECTIVES ● Plan all work prior to beginning it ● Measure performance based on an objective set of technical criteria ● Analyze schedule status and projections using a time phased CPM network ● Analyze the expenditure of funds in light of the work accomplished (not work scheduled)

145 innovative ● entrepreneurial ● global 145 EVMS OBJECTIVES ● Isolate problems: – Quantify technical problems within the context of cost and schedule parameters; – Not aimed at replacing or changing the process for technical problem detection; ● Forecast completion date and final cost; ● Take corrective action; ● Maintain disciplined control of the performance measurement baseline.

146 innovative ● entrepreneurial ● global 146 BUDGET STRUCTURE Negotiated Changes Written Change Authorization, Not Negotiated Profit/Fee Contract Cost Authorized, Unpriced Work Distributed Budget [  of all CAs] Undistributed Budget Management Reserve Performance Measurement Baseline (PMB) Contract Budget Base (CBB) Contract

147 innovative ● entrepreneurial ● global 147 EARNED VALUE TERMINOLOGY Data ElementTermAcronym Scheduled Work Budgeted Cost for Work ScheduledBCWS Earned ValueBudgeted Cost for Work PerformedBCWP ActualsActual Cost of Work PerformedACWP Authorized WorkBudget At CompletionBAC Forecasted CostEstimate At CompletionEAC Work VarianceSchedule VarianceSV Cost Variance CV Completion Variance Variance At CompletionVAC

148 innovative ● entrepreneurial ● global 148 EARNED VALUE DATA ELEMENTS T/N Cost Variance Schedule Variance Projected Program Delay VAC EAC BAC (PMB) CBB MR ACWP BCWP BCWS ETC Schedule Slip

149 innovative ● entrepreneurial ● global 149 Control Account Software Engineering CWBS/OBS INTEGRATION Work Packages Planning Packages OBS DATA SUMMARIZATION SOFTWARE INTEGRATION PROGRAM Product Development Master Planning Ada Products Software Tools Standards CPCI #1 MOS CPCI #2 MOLE CPCI #3 MAC Ada Study Ada Conversion Ada Approach Ada Applications Secure Systems LAN Applications Marketing BCWS BCWP ACWP BAC EAC FUNCTIONAL ORGANIZATION CWBS EXTENSION SELECTED REPORTING ELEMENTS SELECTED PSWBS ELEMENTS Hardware Engineering Engineering Operations WBS DATA SUMMARIZATIONWBS DATA SUMMARIZATION VP/GM Control Account

150 innovative ● entrepreneurial ● global 150 CONTROL ACCOUNT ELEMENTS Work Packages Detailed, short-span tasks, or material items, required to accomplish the CA objectives, typically in the near term Task 1 Task 2 Task 4 Task 5 Task 3 Work Packages Planning Packages Future work that has not been detail planned as work packages. They are always scheduled to occur in the future.

151 innovative ● entrepreneurial ● global 151 EARNED VALUE TECHNIQUES A predetermined amount of value, i.e. budget, that is claimed, or earned, when the corresponding work is accomplished. The budget value is earned in one of the following ways:  0/100  X/Y Percent  25/75  40/60  50/50  Milestone Weights  Milestone Weights with Percent Complete  % Complete  Subjective Estimate  Objective Indicators  Apportioned Effort  Level of Effort

152 innovative ● entrepreneurial ● global 152 Budgets vs Funds

153 innovative ● entrepreneurial ● global 153 BCWS vs ETC ● Budgeted Cost for Work Scheduled (BCWS) – Time phased budget spread of required resources for the entire task. – Forms the Performance Measurement Baseline (PMB). ● Estimate To Complete (ETC) – Funding required to complete remaining work. – When added to ACWP, it results in the EAC.

154 innovative ● entrepreneurial ● global 154 EAC THE PLAN (BCWS) AND THE ETC BCWS ETC BAC/ The BCWS & BAC represent the work. The ETC & EAC represent the funds (i.e., money) required for that work.

155 innovative ● entrepreneurial ● global 155 BAC vs EAC ● Budget At Completion (BAC) – Budgetary number representing ALL authorized work (i.e., the SOW). – Cannot change without a change to the SOW, or appropriate approval. ● Estimate At Completion (EAC) – Funding number representing ALL the money that will be spent. – Can change without a commensurate change to the SOW.

156 innovative ● entrepreneurial ● global 156 BUDGET VS FUNDS Budget A number written on a piece of paper Cannot be spent BCWS BCWP BAC A number written on a piece of paper Cannot be spent BCWS BCWP BAC Funds Actuals Expenditures & estimates of future spending ETC ACWP EAC Actuals Expenditures & estimates of future spending ETC ACWP EAC

157 innovative ● entrepreneurial ● global 157 P CUM DATA ANALYSIS RELATIONSHIPS TermFormula Percent Complete Cost Performance Index or Performance Factor Checklist Actions Ratio of work accomplished in terms of the total amount of work to do. Symbol % Done CPI or PF TCPI or VF BCWP BAC Average Performance BCWPcum Duration (wks or mos) Since ACWP Began BCWPcum Duration (wks or mos) From Time Now to Manager'sStated Completion Date SC or S/CSchedule Correlation BCWP ACWP Ratio of work accomplished against money spent (an efficiency rating: Work Done for Resources Expended) To Complete Performance Index or Verification Factor BAC - BCWP EAC - ACWP Ratio of work remaining against money remaining (Efficiency which must be achieved to complete the remaining work with the expected remaining money) Schedule Performance Index SPI Ratio of work accomplished against what should have been done (Efficiency Rating: Work done as compared to what should have been done) BCWP BCWS SV Ratio of Schedule Variance (SV) in terms of average amount of work accomplished (in weeks or months). It indicates a correlation to program true schedule condition IEAC Independent Estimate At Completion BAC PF Calculation of a projected Estimate At Completion to compare with the CAM's Estimate At Completion: 1) Ration of total work to be done against experienced cost efficiency 2) Sunk costs added to a ratio of remaining work against weighted cost and schedule efficiencies 1) 2) BAC - BCWP.8CPI +.2SPI ACWP + Average Expected Performance To Finish Average rate at which work has been accomplished since work began Average rate at which work must be accomplished in the future to finish on the date the CAM has forecasted for completion of the work. P TO GO P CUM

158 innovative ● entrepreneurial ● global 158 BENEFITS OF EVMS ● Clear definition of work prior to beginning that work – Helps the line manager credibly request appropriate resources – Provides the basis for a realistic plan against which to measure performance

159 innovative ● entrepreneurial ● global 159 BENEFITS OF EVMS ● Objective measurement of work accomplishment – Helps the line manager develop plans that are rooted in reality If the task can be done within scope, schedule, budget; confidence in a successful outcome is increased If the task cannot be done within scope, schedule, budget; that problem can be defined and resolved at a time when the resolution will be reasonably inexpensive – Assists the line manager to request needed help – Assists program and functional management to identify areas requiring additional management attention

160 innovative ● entrepreneurial ● global 160 BENEFITS OF EVMS ● Provides true cost condition – Side-steps false cost variances – Encourages realistic projections of final cost – Enhances accuracy of funding forecasts

161 innovative ● entrepreneurial ● global 161 ● Reduces propensity of customer/boss to add work without adding budget – Ties budget directly to work – Requires all work transfers to include associated budget – Requires all budget transfers to include associated work ● Fosters management decisions within a framework of reality, rather than latent unease BENEFITS OF EVMS

162 innovative ● entrepreneurial ● global 162 EARNED VALUE DATA ELEMENTS Time Now Cost Variance Schedule Variance Projected Project Delay Variance at Completion (VAC) Estimate at Completion (EAC) Budget at Completion (BAC) Project Budget Base Management Reserve ACWP BCWP BCWS ETC Schedule Slip

163 innovative ● entrepreneurial ● global 163 EARNED VALUE TERMINOLOGY Data ElementTermAcronym Scheduled Work Budgeted Cost for Work ScheduledBCWS Earned ValueBudgeted Cost for Work PerformedBCWP ActualsActual Cost of Work PerformedACWP Authorized WorkBudget At CompletionBAC Forecasted CostEstimate At CompletionEAC Work VarianceSchedule VarianceSV Cost Variance CV Completion Variance Variance At CompletionVAC

164 innovative ● entrepreneurial ● global 164 EARNED VALUE EXERCISE – FENCE PROJECT Calculation of Earned Value

165 innovative ● entrepreneurial ● global 165 Project Communications Management

166 innovative ● entrepreneurial ● global 166 IMPORTANCE OF GOOD COMMUNICATIONS ● The greatest threat to many projects is a failure to communicate ● Strong verbal skills are a key factor in career advancement for Project Managers

167 innovative ● entrepreneurial ● global 167 PROJECT COMMUNICATIONS MANAGEMENT PROCESSES ● Communications planning: determining the information and communications needs of the stakeholders ● Information distribution: making needed information available in a timely manner ● Performance reporting: collecting and disseminating performance information ● Administrative closure: generating, gathering, and disseminating information to formalize phase or project completion

168 innovative ● entrepreneurial ● global 168 COMMUNICATIONS PLANNING ● Every project should include some type of communications management plan, a document that guides project communications ● Creating a stakeholder analysis for project communications also aids in communications planning

169 innovative ● entrepreneurial ● global 169 COMMUNICATIONS MANAGEMENT PLAN CONTENTS ● A description of a collection and filing structure for gathering and storing various types of information ● A distribution structure describing what information goes to whom, when, and how ● A format for communicating key project information ● A project schedule for producing the information ● Access methods for obtaining the information ● A method for updating the communications management plans as the project progresses and develops ● A stakeholder communications analysis

170 innovative ● entrepreneurial ● global 170 INFORMATION DISTRIBUTION ● Getting the right information to the right people at the right time and in a useful format is just as important as developing the information in the first place ● Important considerations include – using technology to enhance information distribution – formal and informal methods for distributing information

171 innovative ● entrepreneurial ● global 171 PERFORMANCE REPORTING ● Performance reporting keeps stakeholders informed about how resources are being used to achieve project objectives – Status reports describe where the project stands at a specific point in time – Progress reports describe what the project team has accomplished during a certain period of time – Project forecasting predicts future project status and progress based on past information and trends – Status review meetings often include performance reporting

172 innovative ● entrepreneurial ● global 172 CASE-STUDY LYNAS - WHAT ARE THE ISSUES?

173 innovative ● entrepreneurial ● global 173 LYNAS CASE-STUDY – GROUP WORK ● Use the internet to get all the information ● Identify project stakeholders ● What are the issues? ● What are project benefits? ● What are the project risks? (major & minor) ● Why are there conflicts? ● How to resolve conflicts? ● How can management inform the public?

174 innovative ● entrepreneurial ● global 174 ADMINISTRATIVE CLOSURE ● A project or phase of a project requires closure ● Administrative closure produces – project archives – formal acceptance – lessons learned

175 innovative ● entrepreneurial ● global 175 SUGGESTIONS FOR IMPROVING PROJECT COMMUNICATIONS ● Resolve conflicts effectively ● Develop better communication skills ● Run effective meetings ● Use templates for project communications

176 innovative ● entrepreneurial ● global 176 CONFLICT HANDLING MODES IN ORDER OF PREFERENCE ● Confrontation or problem-solving: directly face a conflict ● Compromise: use a give-and-take approach ● Smoothing: de-emphasize areas of differences and emphasize areas of agreement ● Forcing: the win-lose approach ● Withdrawal: retreat or withdraw from an actual or potential disagreement

177 innovative ● entrepreneurial ● global 177 Project Closure

178 innovative ● entrepreneurial ● global 178 WHAT IS INVOLVED IN CLOSING PROJECTS? ● Closing processes include gaining stakeholder acceptance of the final product and bringing the project or phase to an orderly end ● Closing verifies that all of the deliverables have been completed ● A project audit is often done

179 innovative ● entrepreneurial ● global 179 TRANSITION PLANNING ● It is important to plan for and execute a smooth transition of the project into the normal operations of the company ● Most projects produce results that are integrated into the existing organizational structure ● Some projects require the addition of new organizational structures ● Some projects end by extinction or starvation

180 innovative ● entrepreneurial ● global 180 ADMINISTRATIVE CLOSURE ● Administrative closure involves – verifying and documenting project results to formalize acceptance of the products produced – collecting project records – ensuring products meet specifications – analyzing whether the project was successful and effective – archiving project information for future use

181 innovative ● entrepreneurial ● global 181 FINAL REPORT OUTLINE ● Cover page ● Table of contents and executive summary (for a long report) ● Need for the project ● Project description and letter of agreement ● Overall outcome of the project and reasons for success or failure ● Project management tools and techniques used and assessment of them ● Project team recommendations and future considerations ● Final project Gantt chart ● Attachments with all deliverables

182 innovative ● entrepreneurial ● global 182 Closing Remarks

183 innovative ● entrepreneurial ● global 183 CURRENT & FUTURE OF PM (- Pinto and Kharbanda 1995) PM approach will replace functional line management Globalisation needs PM approach Trend towards flat, flexible organisation PM used as competitive weapon PM concept changes from decision maker, boss director to leader, coach & facilitator

184 innovative ● entrepreneurial ● global 184 THE END

185 innovative ● entrepreneurial ● global 185 PETRONAS TWIN TOWERS ● Identify the PETRONAS Twin Towers’ stakeholders, their roles and interests. ● Discuss the risks faced during the project management processes of the PETRONAS Twin Towers. ● Appraise the mitigation to the above risks in terms of innovations.

186 innovative ● entrepreneurial ● global 186 BOSCH POWER TOOLS: THE DELTA- SANDER PROJECT (A) ● What are the problems facing the Bosch Delta-Sander project? ● What are the steps required by Mr. Klaus Huttelmaier in order to rectify the problems? ● Should the Bosch Delta-Sander be exhibited in Cologne? Give your opinions.

187 innovative ● entrepreneurial ● global 187 INDIVIDUAL ASSIGNMENT ● “When management does not speak with one voice, then it becomes a peripheral opponent to the team’s mission”. Discuss. ● Why do you think SC still implemented Construction Management approach although the SC management team was facing various issues throughout the SC project?


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