PROJECT MANAGEMENT Outline What is project mean? Examples of projects… Project Planning and Control Project Life Cycle Gantt Chart PERT/CPM

What is Project? What is the different between normal business activities and Project? Project Unique, one time operations design to accomplish a specific set of objectives in a limited time frame.

Examples of project… 1. Building a house 2. Building a factory 3. Add assembly line in the factory 4. Merging to companies 5. Managing political campaign 6. Designing a new product 7. Soft ware development

Work Breakdown Structure Program Project 1Project 2 Task 1.1 Subtask Work Package Level Task 1.2 Subtask Work Package

u What are the tools? –Work breakdown structure –Network diagram –Gantt charts –Risk management

Key Decisions u Deciding which projects to implement u Selecting a project manager u Selecting a project team u Planning and designing the project u Managing and controlling project resources u Deciding if and when a project should be terminated

Project Manager Responsibility WorkQuality Human ResourcesTime CommunicationsCosts

Project Control: Gantt Chart Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Time a b a b c c d d d

17-9 PERT and CPM PERT: Program Evaluation and Review Technique CPM: Critical Path Method u Graphically displays project activities u Estimates how long the project will take u Indicates most critical activities u Show where delays will not affect project

17-10 The Network Diagram u Network (precedence) diagram – diagram of project activities that shows sequential relationships by the use of arrows and nodes. u Activity-on-arrow (AOA) – a network diagram convention in which arrows designate activities. u Activity-on-node (AON) – a network diagram convention in which nodes designate activities. u Activities – steps in the project that consume resources and/or time. u Events – the starting and finishing of activities, designated by nodes in the AOA convention.

17-11 The Network Diagram (cont’d) u Path –Sequence of activities that leads from the starting node to the finishing node u Critical path –The longest path; determines expected project duration u Critical activities –Activities on the critical path u Slack –Allowable slippage for path; the difference the length of path and the length of critical path

17-12 Project Network – Activity on Arrow Locate facilities Order furniture Furniture setup Interview Hire and train Remodel Move in Figure 17.4 AOA

17-13 Project Network – Activity on Node Locate facilities Order furniture Furniture setup Interview Remodel Move in 4 Hire and train 7S Figure 17.4 AON

17-14 Network Conventions a b ca b c a b c d a b c Dummy activity

Questions answered by PERT/CPM 1. When will the entire project be completed? 2. What are the critical activities or tasks in the project, that is, the ones that will delay the entire project if they are late? 3. Which are the non-critical activities, that is, the ones that can run late without delaying the entire project’s completion? 4. What is the probability that the project will be completed by a specific date?

Questions answered by PERT/CPM 5. At any particular date, is the project on schedule, behind schedule, or ahead of schedule? 6. On any given date, is the money spent equal to, less than, or greater than the budgeted amount? 7. Are there enough resources available to finish the project on time? 8. If the project is to be finished in a shorter amount of time, what is the best way to accomplish this at the least cost?

To Find Critical Path ??? To find the critical path, need to determine the following quantities for each activity in the network: 1. Earliest start time (ES): the earliest time an activity can begin without violation of immediate predecessor requirements. 2. Earliest finish time (EF): the earliest time at which an activity can end. 3. Latest start time (LS): the latest time an activity can begin without delaying the entire project. 4. Latest finish time (LF): the latest time an activity can end without delaying the entire project.

CPM with Three Activity Time Estimates

Expected Times