PROJECT MANAGEMENT

A project consists of interrelated activities which are to be completed in a certain time before the entire t ask is completed Project management is generally applied for constructing public utilities, huge structures, etc., A project is represented in the form of a network for the purpose of analytical treatment to get solutions for scheduling activities.

Definition To plan, implement, and control the management of large, one time projects Used in Construction, Shipbuilding, Weapons Systems Development, etc. Applies to uncertain technology projects Applies to variable cost resource allocation

Examples of Projects Building construction Dam Construction Bridge Construction New product introduction Research project

Project Management Activities Planning Objectives Resources Work break-down sched. Organization Scheduling Project activities Start & end times Network Controlling Monitor, compare, revise, action

Project Planning Establishing objectives Defining project Creating work breakdown structure Determining resources Forming organization

Project Organization Often temporary structure Uses specialists from entire company Headed by project manager Coordinates activities Monitors schedule & costs Permanent structure called ‘matrix organization’

Project Scheduling Sequencing activities Identifying precedence relationships Determining activity times & costs Estimating material & worker requirements Determining critical activities

Project Scheduling Techniques Gantt chart Critical Path Method (CPM) Program Evaluation & Review Technique (PERT)

Gantt Chart

PERT & CPM Network techniques Developed in 1950’s CPM by DuPont for chemical plants PERT by U.S. Navy for Polaris missile Consider precedence relationships & interdependencies Each uses a different estimate of activity times

Questions Answered by PERT & CPM Completion date? On schedule? Within budget? Probability of completing by ...? Critical activities? Enough resources available? How can the project be finished early at the least cost?

PERT & CPM Steps Identify activities Determine sequence Create network Determine activity times Find critical path Earliest & latest start times Earliest & latest finish times Slack

Graphical Representation of Events and Activities Flow Charting - Uses Nodes and Arrows Arrows - An arrow leads from tail to head directionally Nodes - A node is represented by a circle

Activity On Node Task is Represented by Node as the Completion of an Activity Arrows Represent the Sequential Linkages Between Activities For Example, Node 1 is Begin, Node 2 is Complete Task 1, Node 3 is Complete Task 2 1 2 3

Activity On Arrow Task is Represented by an Arrow Bounded on Either End by a Node (Event) Each Event is Identified by a Number The Activity is Designated by the Leading Event Number and the Following Event Number - i.e. Activity 1 - 2 1 2

Designating Task Relationships Sequential vs. Concurrent Activities 1 2 3 Sequential Task Relationship 1 2 3 4 Concurrent Task Relationships

Designating “DUMMY” Activities Represented by Dashed Arrows Show Sequential Relationships Among Tasks, but Take No time or Resources Dummy Activity 2-3 indicates that both Activities 1-2 and 2-3 must be Completed before beginning Activity 3-4 2 1 4 3

Network Diagramming First Step in Project Management Begins with a Work Breakdown Lists the “WHAT’ of a Project Begins with Finished Project Consists of Tree Chart, with Each Branch Listing the “WHAT’s” at that Level Then List Each Task that Must Be Completed to Accomplish the “WHAT”

Listing Of Activities Follows the “WHAT” with List of “HOW” Each “WHAT” Results in Detailed List of the “Specific” Tasks Necessary to Accomplish the “WHAT” Followed by Specification of Sequential and Concurrent Relationships Among Tasks Results in Network Flow Diagram Representing the Tasks and Their Relationships

Activity Time Estimates CPM - One Time Estimate per Activity PERT - Three Time Estimates per Activity a = Optimistic Time Estimate m = Most Likely Time Estimate b = Pessimistic Time Estimate Can Calculate Activity Mean Time Estimate and Variance

PERT Time Estimates Activity Mean Time Estimate = te Activity Variance Estimate = Sigmae te = (a + 4m + b)/6 Sigmae = (b - a)/6 Can Use Central Limit Theorem to Estimate Project Time

Early Start & Early Finish The Early Start Time for an Activity Emanating from an Event is the Earliest Point in Time that an Activity can Begin Determined by the Latest Early Finish of All Activities Terminating in an Event The Early Finish for an Activity is the Sum of its Early Start Time and its te

Late Start & Late Finish The Late Finish Time for an Activity Terminating in an Event is the Point in Time that it can be Completed Without Delaying the Completion of the Project Determined by Assigning to the LF the Value of the Earliest LS of all Activities Emanating from the Event The Late Start for an Activity is it Late Finish minus its te

SLACK Total Slack Free Slack Critical Path The Length of Delay in an Activity that Won’t Delay the Completion of the Project - LF- EF or LS-ES Free Slack The Length of Delay in an Activity that Won’t Delay the Beginning of Another Activity Critical Path Activities with the Minimum Total Slack - Often Total Slack on Critical Path Activities = 0

Critical Path Method Uses Deterministic Time Estimates for Activities Also Estimates Cost of Resources Levels for Each Activity Generally You Can increase the Resource Commitment and Reduce the Time Estimate for and Activity Use CPM to Analyze How To Reduce the Critical Path Most Efficiently

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

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

Components of Project Control Systems Predecessor was Gantt Charts Horizontal Bar Charts - Time Lines Tasks Milestones Flow Charts - Relationships Among All Tasks Activities (tasks that take time and resources) sequential vs. concurrent Events (an accomplishment occurring at a specific point in time)

Conclusion Explained what a project is Summarized the 3 main project management activities Drew project networks Compared PERT & CPM Determined slack & critical path Computed project probabilities