1. Project Management (專案管理)
Introduction
Project management differs from management of more
traditional activities mainly because of its limited time
framework and the unique set of activities involved,
which gives rise to a host of rather unique problems.
Time
The human resources
The work sequence
Project Manager
Communication
Cost
Quality

2. Project Management (專案管理)
Project Life Cycle
Termination
Execution
Planning
Feasibility Analysis
Concept

3. Project Management (專案管理)
Work Breakdown Schedule
Developing a work breakdown structure (WBS) to estimate
how long it will take to complete the various elements of the
project and how much it it will cost.
Level 1
Project
Level 2
Major Elements
Major Supporting
Activities
Level 3
Level 4
Activities

4. Project Management (專案管理)
Planning and Scheduling with Gantt Charts
- For Simple Project
Start
Locate new facility
Interview prospective
staff
Hire and train staff
Select and order
furniture
Remodel and install
phones
Furniture received and
setup
Move in / startup

5. Project Management (專案管理)
Program Evaluation and Review Technique (PERT)
And Critical Path Method (CPM)
- For Large Scale Projects
By using PERT and CPM, managers are able to obtain
1. A graphical display of project activities.
2. An estimate of how long the project will take.
3. An indication of which activities are the most critical to
timely project completion.
4. An indication of how long any activity can be delayed
without lengthening the project

6. Project Management (專案管理)
PERT And CPM
PERT
Used in a high uncertainty environment.
Developed by Lockheed Aircraft, U.S. Navy, and other
consulting firms in an effort to speed up Polaris missile
project
CPM
Developed by Du Pont to plan and coordinate maintenance
projects in chemical plants
Developed for much less uncertainty environment

7. Project Management (專案管理)
The Network Diagram
Example
Order Furniture 4 2
Locate Facilities
Furniture Setup
Remodel 1 5 6
Move In
Interview
Hire and Train 3

8. Project Management (專案管理)
The Network Diagram
Activity-on-arrow: Network diagram convention in which
arrows designate activities
Activity-on-node: Network diagram convention in which
nodes designate activities
Activities: Project steps that consume resources and/or time
Events: The starting and finishing of activities.
Path: A sequence of activities that leads from the starting
node to the finishing node
Critical Path: The longest path
Critical Activities: Activities on the critical path
Slack: Allowable slippage for a path

9. Project Management (專案管理)
The Network Conventions a b c a c b b a c

10. Project Management (專案管理)
The Network Conventions c a b d a c
Dummy Activity b

11. Project Management (專案管理)
Deterministic Time Estimates
Ex:
6 weeks
3 weeks
8 weeks
11 weeks
1 week
4 weeks
9 weeks
The length of each path?
The Critical path?
The expected length of the project?
Amount of slack time for each path?

12. Project Management (專案管理)
Deterministic Time Estimates - A Computing Algorithm
LS LF
ES t EF
ES: the earliest time activity can start
EF: the earliest time activity can finish
LS: the latest time activity can start and not delay the project
LF: the latest time activity can finish and not delay the project
t: activity time

13. Project Management (專案管理)
Deterministic Time Estimates - A Computing Algorithm
Step 1: Determine and place in the brackets for each activity, the earliest starting time, ES, and
the earliest finishing time, EF. Do this for all activities , beginning at the left side of the
precedence diagram and moving into the right side.
ES + t = EF
Step 2: Setting the LF time of the last activity equal to the EF of that activity. Obtain the LS
time by subjecting the activity time, t, from the LF time. Do this for all activities ,
beginning at the right side of the precedence diagram and moving into the left side.
LS = LF - t
Slack Time for each activity = LS - ES or LF - EF.
The critical path using this computing algorithm is denoted by activities with zero slack time.

14. Project Management (專案管理)
Probabilistic Time Estimates
The probabilistic approach involves three time estimates for each activity instead of one:
1. Optimistic time (o) : The length of time required under optimum conditions.
2. Pessimistic time (p) : The length of time required under the worst conditions.
3. Most likely time (m) : The most probable amount of time required.
The Beta distribution is generally used to describe the inherent variability in time estimates.
For a Beta distribution, the following approximation for the mean and variance can be
used

15. Project Management (專案管理)
Probabilistic Time Estimates
PERT makes the simplifying assumption that the mean and variance
of project duration, Te and VT, are the sum of the means and variances
of duration of activities along the critical path. (requires assumption of
independent activity times)
From central limit theory (CLT) we deduce that the distribution of the
sum of n independent activities approaches the normal distribution as
n growth large.

16. Project Management (專案管理)
Probabilistic Time Estimates
Ex:
For the critical path
(a) Calculate the probability of project completion by 47 days.
(b) What is the 95% CI of the expect project completion date?
Sol:
(a)
(b)

17. Project Management (專案管理)
Time-Cost Trade-Offs
Total Cost
Cost
Expected
Indirect Cost
Shorten
Direct Expense
Optimum
Project Length

18. Project Management (專案管理)
Time-Cost Trade-Offs
Ex:Using the following information, develop the optimal time-cost
solution. Assume that indirect project costs are $1000 per day. 6 10 2 a b f 5 9 c e 4 d