WEEK 15A – PROJECT MANAGEMENT (CHAPTER 3) Characteristics, tools, Pert/CPM, critical path, slack calculation, crashing SJSU Bus David Bentley1

Project Characteristics Definite beginning Definite end Long duration (often months or years) Very low product quantity Very high variety of tasks Multiple tasks often being performed concurrently SJSU Bus David Bentley2

Project Management Tools Work Breakdown Structure Network diagramming CPM (Catalytic Construction & Dupont 1957) PERT (Booz Allen & Hamilton and U.S. Navy 1958) PERT/CPM combined over time Gantt Charts (Henry Gantt early 1900s) SJSU Bus David Bentley3

Planning Complex Projects - Work Breakdown Structure SJSU Bus David Bentley4 Project X Level 1 Level 2 Level 3 Level 4 Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Network Diagram (PERT Chart) SJSU Bus David Bentley5 B 12 E3E3 C6C6 D5D5 A 15 I7I7 J 14 H9H9 F8F8 End Start K6K6 G8G8

Planning Simple Projects - Gantt Chart SJSU Bus David Bentley6 MARAPRMAYJUNJULAUGSEPOCTNOVDEC Locate new facilities Interview staff Hire and train staff Select and order furniture Remodel and install phones Move in/startup Facility Move Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB) Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

PERT/CPM Conventions One starting point One ending point No looping back Activities and events Activity on arrows vs. activity on nodes “Dummy” activity used to preserve integrity Zero time and zero resources All activities entering a node must be complete before starting the next activity SJSU Bus David Bentley7

Activity-on-arrow Pert chart SJSU Bus David Bentley Locate facilities Order furniture Furniture setup Interview Hire and train Remodel Move in Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB) Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Activity-on-node Pert chart SJSU Bus David Bentley Locate facilities Order furniture Furniture setup Interview Remodel Move in 4 Hire and train 7S Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB) Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Network Conventions SJSU Bus David Bentley10 a b ca b c a b c d a b c Dummy activity Operations Management, Seventh Edition, by William J. Stevenson Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

PERT/CPM Steps - 1 Develop the work breakdown structure Identify all tasks from the WBS; identify resources Sequence tasks, determining dependency Estimate time duration of each task Single estimate vs. three estimates (O,P,M) Create the network (PERT) diagram SJSU Bus David Bentley11

PERT/CPM Steps – 2a Identify critical path (see next slide) Determine ES, EF, LS, LF dates Calculate slack LS – ES or LF – EF (Let’ define “critical path” first) SJSU Bus David Bentley12

Critical Path Longest duration path in project Determines the length of the overall project Slippage on critical path will delay project completion Focus on shortening the critical path to shorten the project “Crashing” may result in creation of new critical path SJSU Bus David Bentley13

Calculate path lengths and Determine critical path SJSU Bus David Bentley14 B 12 E3E3 C6C6 D5D5 A 15 I7I7 J 14 H9H9 F8F8 End Start K6K6 G8G8

Path Lengths (+ critical path) Path Length SJSU Bus David Bentley15

PERT/CPM Steps – 2b After we identify the critical path… Determine ES, EF, LS, LF dates Calculate slack LS – ES or LF – EF SJSU Bus David Bentley16

Calculate ES, LS, EF, LF and Determine slack SJSU Bus David Bentley17 B 12 E3E3 C6C6 D5D5 A 15 I7I7 J 14 H9H9 F8F8 End Start K6K6 G8G8

ES, LS, EF, LF, and Slack - 1 Activity ES EF LS LF Slack F H J K SJSU Bus David Bentley18

ES, LS, EF, LF, and Slack - 2 Activity ES EF LS LF Slack A B C E D SJSU Bus David Bentley19

ES, LS, EF, LF, and Slack - 3 Activity ES EF LS LF Slack G I SJSU Bus David Bentley20

Crashing The compression of one or more tasks on the critical path Why crash? Avoid penalties Earn incentives Cost-benefit trade-off analysis How crash? Additional resources Overtime Alternative processes SJSU Bus David Bentley21

Controlling the Project PERT/CPM charts little use for control Gantt charts widely used Project cost reporting also useful Tools Microsoft Project Microsoft Project Server Others Microsoft Visio SJSU Bus David Bentley22

Controlling the Schedule - Gantt Chart SJSU Bus David Bentley23 MARAPRMAYJUNJULAUGSEPOCTNOVDEC Locate new facilities Interview staff Hire and train staff Select and order furniture Remodel and install phones Move in/startup Facility Move Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB) Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

What are the characteristics and qualities of a good project manager? SJSU Bus David Bentley24

Characteristics/Qualities of a Good Project Manager Planning Organizing Delegating Communicating Oral Written _____________ Using people skills Customers/users Team members Analytical Time sensitive Milestones Deadlines ______________ SJSU Bus David Bentley25