Project Management Chapter 17 1

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 Project Management §How is it different? l Limited time frame l Narrow focus, specific objectives l Less bureaucratic §Why is it used? l Special needs l Pressures for new or improves products or services

4 Project Management §What are the Key Metrics l Time l Cost l Performance objectives §What are the Key Success Factors? l Top-down commitment l Having a capable project manager l Having time to plan l Careful tracking and control l Good communications

5 Project Management §What are the Major Administrative Issues? l Executive responsibilities Project selection Project manager selection Organizational structure l Organizational alternatives Manage within functional unit Assign a coordinator Use a matrix organization with a project leader

6 Project Management §What are the tools? l Work breakdown structure l Network diagram l Gantt charts l Risk management

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

Project Manager Responsible for: 8 WorkQuality Human ResourcesTime CommunicationsCosts

Project Life Cycle 9 Concept Feasibility Planning Execution Termination Management

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Planning and Scheduling 14 Gantt Chart

PERT and CPM Networks 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 15

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

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

Network Conventions for PERT and CPM Networks (AOA) 18 a b ca b c a b c d a b c Dummy activity

Project Network Locate facilities Order furniture Furniture setup Interview Hire and train Remodel Move in

20 Project Network with Activity Times and Activities Labeled

Example weeks 6 weeks 3 weeks 4 weeks 9 weeks 11 weeks 1 week

Example Solution 22 Critical Path

23 §Network activities l ES: earliest start l EF: earliest finish l LS: latest start l LF: latest finish §Used to determine l Expected project duration l Slack time l Critical path Computing Algorithm

24 §Computer aided design (CAD) §Groupware (Lotus Notes) §CA Super Project §Harvard Total Manager §MS Project §Sure Track Project Manager §Time Line Project Management Software

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29 §Imposes a methodology §Provides logical planning structure §Enhances team communication §Flag constraint violations §Automatic report formats §Multiple levels of reports §Enables what-if scenarios §Generates various chart types Advantages of PM Software

30 Summary §Projects are a unique set of activities §Projects go through life cycles §PERT and CPM are two common techniques §Network diagrams §Project management software available

Advantages of Gantt Charts and Networks Forces managers to organize Provides graphic display of activities Identifies – Critical activities – Slack activities 31 Build A A Done Build B B Done Build C C Done Build D Ship JANFEBMARAPRMAYJUN On time!

Limitations of Networks Important activities may be omitted Precedence relationships may not be correct Estimates may include a fudge factor weeks

33 §Temptation to understate costs §Withhold information §Misleading status reports §Falsifying records §Comprising workers’ safety §Approving substandard work Ethical Issues

34 Homework Problem Do problem 5 (part a only) on p While the solution is given in the following slides, be sure that you take the time to try to solve this problem prior to looking at the solution.

Network before doing the critical path method Problem 5a

36 LS ES LF EF a. Key  Network after doing the critical path method (Activity slacks are given in the table on the next slide)

37 5a (continued)

38 End of slides for Project Management