1. PROJECT MANAGEMENT

2. 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.

3. 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

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

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

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

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

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

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

10. Gantt Chart

11. 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

12. 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?

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

14. 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

15. 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

16. 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

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

18. 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

19. 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”

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 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

27. 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

28. 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

29. 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)

30. 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