1. 01 - 1 planning, preparing, and coordinating efforts to a accomplish a specific set of objectives Lesson 01 Project Management

2. 01 - 2 A Project is a unique one time operation designed to accomplish a specific set of tasks in a limited time frame.. Olympic Games. Producing a movie. Software development. Product development. ERP implementation Leadership/Participation in a successful project will enhance your opportunities for career advancement! Typically success is defined by. On time. Within budget Project

3. 01 - 3 Managers have day to day operations as well as routine projects with which to deal. Some typical projects include:. New product design. Updating old products. Marketing and advertising campaigns. Information system development. Quality improvement. Process improvement. Location selection, etc. Doing day to day activities and routine projects will get you a “met expectations” on your performance review. Day To Day Activities & Projects

4. 01 - 4 Those projects which are non-routine continual improvement projects are usually undertaken as a company initiative. However, no matter what your position in the organization, you have an opportunity to develop projects within your sphere of influence. These non-routine projects which add value to your organization will also add value to your career. Projects which are undertaken outside of the normal routine day to day activities will set you apart from your peers. It is also what many superiors will use to evaluate you as a person who “exceeds expectations” or “does superior work”. In my opinion, this is the secret to success! Continual Improvement Projects

5. 01 - 5 Size - some projects are larger than others and have thousands of complex, large components requiring careful planning and coordination. Projects typically have a specified time-frame and a budget for costs. All projects require. Goals. Priorities. Activities & tasks.. time estimates.. responsibility assignments. Planning. Scheduling. Coordinating. Resolving conflict. Monitoring Project Issues

6. 01 - 6 JANFEBMARAPRMAYJUN On time! Build A A Done Build B B Done Build C C Done Build D Ship Project Tasks & Timelines

7. 01 - 7 Project Phases - projects have a life-cycle of phases which may require a different set of skills for each phase or task within phase. The major phases of a project are:. Concept. Feasibility. Planning. Execution. Phase out Project Phases

8. 01 - 8 Project Life Cycle

9. 01 - 9 Key Decisions in Project Management - :. Which projects are most important? ( Pareto ). Project manager. Project Team. Planning and designing the project. Managing and controlling the project resources(personnel, technology, money, etc.). Deciding if and when a project should be terminated Project Management Decisions

10. 01 - 10 Project Issues Projects may be departmental or company wide. In either case selection of the project participants is extremely important.. Team members.. Departmental.. From many departments within the company. Matrix organization … because the project member may be assigned to the project effort on a part time basis he/she may wind up with two supervisors. Conflicts will have to be resolved.. Project manager

11. 01 - 11 WorkQuality Human ResourcesTime CommunicationsCosts Project Manager The project manager is key to the project success. Many hard decisions will have to be made and it will test their leadership abilities. Many young managers are given projects to tests leadership ability.

12. 01 - 12 Complexity of projects - because large projects usually involve a very large number of activities, project managers and project planners must break down a project into the tasks and sequence them according to priority, timing, task length, and costs. Visual aids are very important for communicating the project tasks to all persons involved and interested in the project. Two key tools to accomplish this are:. Work Breakdown Structures. Gantt Charts (named for Henry Gantt) Project Issues

13. 01 - 13 A work breakdown structure is a hierarchical listing of what must be done during a project Work Breakdown Structure

14. 01 - 14 MARAPRMAYJUNJULAUGSEPOCTNOVDEC Locate new facilities Interview staff Hire and train staff Select and order furniture Remodel and install phones Move in/startup Gantt Chart A Gantt chart is a simple chart showing major tasks and time lines.

15. 01 - 15 The simplicity of the Gantt chart is very useful for communication of a project status; however, it does not contain details showing relationships between tasks. Two of the most popular and widely used techniques for planning and coordinating tasks in projects are:. Project Evaluation and Review Technique (PERT) U.S. Navy Special Projects Office (1958) Polaris Missile Project. Critical Path Method (CPM) J. E. Kelly - Remington-Rand & M. R. Walker - Du Pont (1957) Scheduling maintenance of chemical processing plants PERT & CPM

16. 01 - 16 These methods show. Project network diagrams which are graphical displays of project activities (tasks)indicating preceding and following activities. Length of time each activity takes. Estimates of how long the project (all activities) will take. An indication of which activities are the most critical to timely project completion. An indication of how long any activity can be delayed without lengthening the project PERT & CPM

17. 01 - 17 1 2 3 4 56 Locate facilities Order furniture Furniture setup Interview Hire and train Remodel Move in A project network diagram is a precedence relationship showing project activities showing sequential relationships by use of arrows and nodes Project Network Diagram

18. 01 - 18 Activities - project steps that consume resources and/or time Path - a sequence of activities that leads from the starting node to the finishing node Critical Path - the longest path determines the expected project duration Critical Activities - activities on the critical path Slack - allowable slippage for a path (the difference between the length of a path and the length of a critical path) Deterministic time estimates - estimates that can be made with a high degree of certainty Probabilistic time estimates - estimates of times that allow for probable variation Project Network Diagram Terminology

19. 01 - 19 Activity On Arrow (AOA) Activity On Node (AON) Network Conventions S T U 1 2 3 T S 4 U

20. 01 - 20 a b c Both activities a and b have to be completed before activity c can begin. Activities a and b are independent of each other. Network Conventions (AOA)

21. 01 - 21 a b c Activity a must precede activities b and c. Activities b and c are independent of each other. Network Conventions (AOA)

22. 01 - 22 a b c d Both activities a and b have to be completed before activity c or d can begin. Activities a, b, c, and d are independent of each other. Network Conventions (AOA)

23. 01 - 23 a b c Dummy activity Independent activities a and b both have the same ending node. To preserve the independence a dummy node and activity must be created. The time allocated to a dummy activity is 0. Network Conventions (AOA)

24. 01 - 24 AON Network Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J

25. 01 - 25 AON Network Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AON Network BA

26. 01 - 26 AON Network Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AON Network BACDEFI

27. 01 - 27 AON Network Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AON Network BACGHKDJEFI

28. 01 - 28 AON Network Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AON Network BACGHKDJEFI

29. 01 - 29 Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AOA Network

30. 01 - 30 Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AOA Network A B 2 4 1

31. 01 - 31 Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AOA Network A B C D 2 3 5 4 1

32. 01 - 32 Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AOA Network F A B C D H E G I 8 2 3 7 65 4 1

33. 01 - 33 Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AOA Network F A B C D H E G J I 8 2 3 7 65 4 1

34. 01 - 34 Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AOA Network F A B C D H E G J I Dummy 8 2 3 7 65 4 1 AOA Network

35. 01 - 35 Immediate Activity Predecessor(s) A— B— CA DB EB FA GC HD IA JE,G,H KF,I,J AOA Network F A B C D H E G K J I Dummy 8 2 3 7 65 4 9 1 AOA Network

36. 01 - 36 Fixed (Deterministic) Time Estimates

37. 01 - 37 *Predecessors*Duration Times *Task*Start123"O""M""P"*Task* A0 8Locate facilities C A 6Order furniture D A 11Remodel E C 3Furniture Setup G EDF1Move in B0 4Interview F B 9Hire and train

38. 01 - 38 A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week Draw the. AOA network diagram

39. 01 - 39 Locate facilities 8 Weeks Order furniture 6 Weeks Furniture setup 3 Weeks Interview 4 Weeks Hire and train 9 Weeks Remodel 11 Weeks Move in 1 Week CA B E G F D Locate facilities 8 Weeks Order furniture 6 Weeks Furniture setup 3 Weeks Interview 4 Weeks Hire and train 9 Weeks Remodel 11 Weeks Move in 1 Week CA B E GEnd F StartD Draw the. AON network diagram

40. 01 - 40 A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week Determine the. length of each path

41. 01 - 41 A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week A C E G 18

42. 01 - 42 A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week A D G 20

43. 01 - 43 A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week B F G 14

44. 01 - 44 A C E G 18 A D G 20 B F G14 Determine the. critical path. project duration A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week

45. 01 - 45 Determine the. slack for each path A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week

46. 01 - 46 A C E G 2 A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week

47. 01 - 47 A D G 0 A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week

48. 01 - 48 B F G6 A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week

49. 01 - 49 A 8 Weeks C 6 Weeks E 3 Weeks B 4 Weeks F 9 Weeks D 11 Weeks G 1 Week Determine the earliest start time and the earliest finish time for each activity. 08 814 17 819 20 4 13 04 Forward Pass ESEF ES = max(preceeding tasks) EF = ES + Time

50. 01 - 50 13.04.0F 0.0B 20.019.0G 17.014.0E 19.08.0D 14.08.0C 0.0A FinishStartTask Early A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week

51. 01 - 51 Determine the latest start time and the latest finish time for each activity. A 8 Weeks C 6 Weeks E 3 Weeks B 4 Weeks F 9 Weeks D 11 Weeks G 1 Week 08 1016 19 8 20 10 19 610 Backward Pass LSLF LF = min(following tasks) LS = LF - Time

52. 01 - 52 19.010.0F 6.0B 20.019.0G 16.0E 19.08.0D 16.010.0C 8.00.0A FinishStartTask Late A Locate facilities 8 Weeks C Order furniture 6 Weeks E Furniture setup 3 Weeks B Interview 4 Weeks F Hire and train 9 Weeks D Remodel 11 Weeks G Move in 1 Week

53. 01 - 53 Slack = Late Start – Early Start or Slack = Late Finish – Early Finish Determine the. Slack for each task 6.019.010.013.04.0F 6.010.06.04.00.0B 20.019.020.019.0G 2.019.016.017.014.0E 0.019.08.019.08.0D 2.016.010.014.08.0C 0.08.00.08.00.0A SlackFinishStartFinishStartTask LateEarly

54. 01 - 54 Variable (Probabilistic) Time Estimates

55. 01 - 55 *Predecessors*Duration Times *Task*Start123"O""M""P"*Task* A0 4810Locate facilities C A 368Order furniture D A 91112Remodel E C 135Furniture Setup G EDF111Move in B0 246Interview F B 7912Hire and train

56. 01 - 56 Task Times - Beta (  ) Distribution O P M Task Time Variance Task Time Standard Deviation Expected Task Time Task Times

57. 01 - 57 Path Times O M P Task 1Task 2Task n = Path Normal Expected Path Time Path standard deviation Path Times

58. 01 - 58 A Locate facilities 4 – 8 - 10 C Order furniture 3 – 6 - 8 E Furniture setup 1 – 3 - 5 B Interview 2 – 4 - 6 F Hire and train 7 – 9 - 12 D Remodel 9 – 11 - 12 G Move in 1 – 1 - 1 Determine the expected time, variance and standard deviation for each task Task  A7.71.0 C5.80.70.8 D10.80.30.5 E3.00.40.7 G1.00.0 B4.00.40.7 F9.20.70.8 Refer to  distribution formulae

59. 01 - 59 Determine the expected duration (time) for each path A Locate facilities 4 – 8 - 10 C Order furniture 3 – 6 - 8 E Furniture setup 1 – 3 - 5 B Interview 2 – 4 - 6 F Hire and train 7 – 9 - 12 D Remodel 9 – 11 - 12 G Move in 1 – 1 - 1 17.51.03.05.87.7  GECA 19.51.010.87.7  GDA 14.21.09.24.0  GFB Refer to path times formulae

60. 01 - 60 Determine the critical path and expected project duration A Locate facilities 4 – 8 - 10 C Order furniture 3 – 6 - 8 E Furniture setup 1 – 3 - 5 B Interview 2 – 4 - 6 F Hire and train 7 – 9 - 12 D Remodel 9 – 11 - 12 G Move in 1 – 1 - 1 19.51.010.87.7  GDA Choose longest path time

61. 01 - 61 Determine the standard deviation for each path A Locate facilities 4 – 8 - 10 C Order furniture 3 – 6 - 8 E Furniture setup 1 – 3 - 5 B Interview 2 – 4 - 6 F Hire and train 7 – 9 - 12 D Remodel 9 – 11 - 12 G Move in 1 – 1 - 1 1.462.10.00.40.71.0  GECA 1.121.30.00.31.0  GDA 1.071.10.00.70.4  GFB Refer to path times formulae Variability on Path A C E G is greater than variability of the Critical Path (A D G)

62. 01 - 62 Path Probabilities The probability that a path can be completed in less than a specified time (ST) The probability under the normal path distribution less than the specified time = Path Normal  ST P ( < ST)

63. 01 - 63 0.0434P > ST8 0.9566P < ST7 6 20 (ST) Specified Time5 4 1.46Std Dev3 17.5Mean2 Path1 BA =NORMDIST(B5,B2,B3,TRUE) =1-B7 Determine the probability that Path – A C E G can be completed in. less than 20 weeks. more than 20 weeks 17.51.03.05.87.7  GECA 1.462.10.00.40.71.0  GECA

64. 01 - 64 Determine the probability that Path – A D G can be completed in. less than 20 weeks. more than 20 weeks 0.3276P > ST8 0.6724P < ST7 6 20 (ST) Specified Time5 4 1.12Std Dev3 19.5Mean2 Path1 BA =NORMDIST(B5,B2,B3,TRUE) =1-B7 19.51.010.87.7  GDA 1.121.30.00.31.0  GDA

65. 01 - 65 0.0000P > ST8 1.0000P < ST7 6 20 (ST) Specified Time5 4 1.07Std Dev3 14.2Mean2 Path1 BA =NORMDIST(B5,B2,B3,TRUE) =1-B7 Determine the probability that Path – B F G can be completed in. less than 20 weeks. more than 20 weeks 14.21.09.24.0  GFB 1.071.10.00.70.4  GFB

66. 01 - 66 Project Probabilities There is a possibility that the variation on the critical path is not the largest or the variation on another path may extend to the right of the critical path variation; therefore, we must consider the other paths when determining project probability. 20 Path A C E G 17.5 P ( < 20) =.9566 Path A D G 19.5 P ( < 20) =.6724 Path B F G 14.2 P ( < 20) = 1.0000

67. 01 - 67 The probability that a project can be completed in less than a specified time (ST) = The product of all path probabilities less than the specified time The project probability discussion relies on path independence (i.e. path duration times are independent of each other). The assumption of independent paths is considered to be met if only a few activities in a large project are on multiple paths. If the paths are determined to be independent then,

68. 01 - 68 Determine the probability that the project can be completed in. less than 20 weeks. more than 20 weeks P(Project < 20) = P(A C E G < 20) * P( A D G < 20) * P(B F G < 20) =.9566 *.6724 * 1 =.6432 P(Project > 20) = 1 – P (Project < 20) =.3568 Since there is only 1 task which overlaps paths we will determine that the paths are independent; therefore,

69. 01 - 69 To be 99% sure that complete the project in the scheduled amount of time, how many days should be scheduled? The solution requires that a schedule time (ST) should be such that the product of the path probabilities is <.99. The answer is 23 days.

70. 01 - 70 Project Management Software Specialized software used to help manage projects Assign resources Compare project plan versions Evaluate changes Track performance Advantages: Imposes a methodology and common project management terminology Provides a logical planning structure May enhance communication among team members Can flag the occurrence of constraint violations Automatically formats reports Can generate multiple levels of summary and detail reports Enables “what if” scenarios Can generate a variety of chart types

71. 01 - 71 Choose Project Plan

72. 01 - 72 Project Plan Menu Options

73. 01 - 73 ED (Enter Tasks and Times) Worksheet Options Clear Data 1. Enter/Modify Tasks 2. Enter/Modify Preceding Tasks Data can also be entered directly in cells B through P and T. Cells Q, R, and S are locked. or using option1 then 2 (follow the dialogue boxes)

74. 01 - 74 Hire and train1297 B F Interview642 0B Move in111FDE G Furniture Setup531 C E Remodel12119 A D Order furniture863 A C Locate facilities1084 0A *Task*"P""M""O"321Start*Task* Duration Times*Predecessors*

75. 01 - 75 Completed ED Worksheet If all three times (optimistic, most likely, and pessimistic) are entered the then the Beta Distribution calculations are made; otherwise, the Beta Distribution calculations are blank.

76. 01 - 76 CP Worksheet Select the time estimate for the analysis you wish to perform from the drop down box at the upper left.

77. 01 - 77 All paths in the project network diagram are automatically calculated showing the expected duration, variance, slack and tasks for each path. The Critical Path is also identified. Here, we see there are 3 paths, 1 critical path, and 7 tasks in the project. If the “Expected” time estimate was chosen, the Project Summary shows the expected project duration (same as critical path), and provides a warning of whether the critical path variance is maximum.

78. 01 - 78 If the “Expected” time estimate was chosen, the Project Summary also shows project probability estimates. Here, we see that the probability of completion in less than a specified time of 20 days is 64.33%. The slider increments can be used to change the specified time.

79. 01 - 79 SF Worksheet Shows each task early and late start finish times, slack, and whether or not the task is a Critical Task.

80. 01 - 80 For each path (selected by the slider increment in the upper left corner), it also show a GANTT Chart with the early start – early finish (bright green) and late start – late finish (bright orange) on the same graph. The slider increments at the graph upper right can be used to adjust spacing in the graph.

81. 01 - 81 PERT Worksheet Shows the AON project network diagram which may need to be adjusted (Adjust Task Y Plot Points) to minimize the overlapping lines. You can also scroll (select path increment slider in upper left corner) through each of the paths in the project.

82. 01 - 82 Adjusted AON project network diagram showing Path (A C E G) in highlighted (green)

83. 01 - 83 GANTT Worksheet Can be used to track the project status by path task (Update Task Status). The project day (slider increment below paths) to the current project day. Here we see task A can start (CS in yellow above task).

84. 01 - 84 Here we see for Project Day 5, Path (A C E G) that Task A has started at time 0 (yellow) and 5 days have been completed (blue). None of the other tasks on this path can start because preceding tasks have not been completed.

85. 01 - 85 Here we see for Project Day 5, Path (A D G) that Task A has started at time 0 (yellow) and 5 days have been completed (blue). None of the other tasks on this path can start because preceding tasks have not been completed.

86. 01 - 86 Here we see for Project Day 5, Path (B F G) that Task B is complete (blue). It started at time 0 (yellow) and 4 days have been completed (blue). We also see that Task F started at time 4 (yellow) and 1 day (blue) has been completed. None of the other tasks on this path can start because preceding tasks have not been completed.

87. 01 - 87 Homework Read and understand all material in the chapter. Discussion and Review Questions Do not begin the homework until you have recreated and understand all the examples in this presentation. Exercises on chapter web page