1. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-1 Project Management

2. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-2 Unique, one-time operations designed to accomplish a specific set of objectives in a limited time frame. Build A A Done Build B B Done Build C C Done Build D Ship JANFEBMARAPRMAYJUN On time! Projects

3. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-3 Project Manager Responsible for: WorkQuality Human ResourcesTime CommunicationsCosts

4. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-4 Project Life Cycle Concept Feasibility Planning Execution Termination Management

5. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-5 MARAPRMAYJUNJULAUGSEPOCTNOVDEC Locate new facilities Interview staff Hire and train staff Select and order furniture Remodel and install phones Move in/startup Planning and Scheduling Gantt Chart

6. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-6 Work Breakdown Structure Project X Level 1 Level 2 Level 3 Level 4 Figure 18-1

7. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-7 PERT and CPM PERT: Program Evaluation and Review Technique CPM: Critical Path Method Graphically displays project activities Estimates how long the project will take Indicates most critical activities Show where delays will not affect project

8. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-8 Project Network 1 2 3 4 56 Locate facilities Order furniture Furniture setup Interview Hire and train Remodel Move in Figure 18-3

9. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-9 Network Conventions a b ca b c a b c d a b c Dummy activity

10. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-10 Example 1 1 2 3 4 56 8 weeks 6 weeks 3 weeks 4 weeks 9 weeks 11 weeks 1 week

11. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-11 Example 1 Solution Critical Path

12. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-12 Probabilistic Estimates Activity start Optimistic time Most likely time (mode) Pessimistic time opmtete Figure 18-5

13. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-13 Example 5 1-3-4 a 3-4-5 d 3-5-7 e 5-7-9 f 2-4-6 b 4-6-8 h 2-3-6 g 3-4-6 i 2-3-5 c Optimistic time Most likely time Pessimistic time

14. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-14 17 Weeks 10.0 16.0 13.5 1.00 a-b-c d-e-f g-h-i Example 6

15. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-15 Time-Cost Trade-Offs: Crashing Total cost Shorten Cumulative cost of crashing Expected indirect costs Optimum CRASH Figure 18-8

16. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-16 6a6a 4d4d 5c5c 10 b 9e9e 2f2f Example 7

17. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-17 Advantages of PERT Forces managers to organize Provides graphic display of activities Identifies – Critical activities – Slack activities Build A A Done Build B B Done Build C C Done Build D Ship JANFEBMARAPRMAYJUN On time!

18. CHAPTER EIGHTEEN Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 PROJECT MANAGEMENT 18-18 1 2 3 4 56 Limitations of PERT Important activities may be omitted Precedence relationships may not be correct Estimates may include a fudge factor 142 weeks