1. Chapter 17 Project Management 1Saba Bahouth – UCO

2. Single unit Many related activities Difficult production planning control General purpose equipment; high labor skills Project Characteristics Project organization works best when: Work can be defined with a specific goal and deadline The job is unique or somewhat unfamiliar to the existing organization The work contains complex interrelated tasks requiring specialized skills The project is temporary but critical to the organization Time Cost Performance/Quality 2Saba Bahouth – UCO

3. Examples of Projects Saba Bahouth – UCO3 A project is a temporary customized initiative consisting of smaller activities that must be coordinated to finish the entire project on time, within budget, while meeting requirements. Project management: 1. Cost 2. Time 3. Performance/Quality Projects fail due to schedule overruns, use of unproven technology, poor estimates, weak definitions of objectives, and supplier problems.

4. Project Stages Saba Bahouth – UCO4 1.Define: clearly understand the goal of the project, responsibilities, deliverables, and what must be accomplished. 2.Plan: determine the steps needed to execute the project, delegate tasks, and identify start and completion dates. 3.Organize: coordinating the resources to execute the plan cost- effectively. 4.Control: collecting and assessing status reports and managing changes to baselines. 5.Close: compiling statistics, reassigning people, and preparing “lessons learned”.

5. Management of Large Projects Planning Goal setting, project definition, team organization Scheduling Relating activities to each other Relating people, money, and supplies to specific activities Controlling Monitoring resources, schedule, costs, quality, and budgets Revising plans and shifting resources to meet time and cost demands 5Saba Bahouth – UCO

6. Project Planning, Scheduling, and Control Work Breakdown Structure 1.Project 2. Major tasks in the project 3.Subtasks in the major tasks 4. Activities to be completed 6Saba Bahouth – UCO

7. Project Manager Requirements Saba Bahouth – UCO7 Four key skills: 1.Bias towards task completion, 2.Technical and administrative credibility, 3.Interpersonal and political sensitivity, 4.Leadership ability. manage people as a team reinforce excitement of the team keep everyone informed - Communication build agreements and consensus empower the project team encourage risk-taking and creativity Have a Project Champion

8. © 1984-1994 T/Maker Co. Project Management Techniques 1. Gantt Charts 2. Network techniques: developed in 1950’s Consider precedence relationships and interdependencies CPM by DuPont for chemical plants (1957) PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958) CPM and PERT are essentially the same (we will see the difference later) 8Saba Bahouth – UCO

9. Project Management Software Microsoft “Project” 9Saba Bahouth – UCO

10. Activity Network, AON & AOA Format Important: AOA Needs dummy activities to show all relationships 10

11. Saba Bahouth – UCO When Activity c is Not Required for e Important: AOA Needs dummy activities to show all relationships Wrong!Right! 11

12. Saba Bahouth – UCO When activity f does not need activity a to be completed first 12

13. A Comparison of AON and AOA 13Saba Bahouth – UCO

14. Relocating an Office – Gantt Chart 14

15. Saba Bahouth – UCO Relocating an Office: Network 9w 1w 3w 6w 11w 8w 4w Locate Facilities - 8w Interview Staff – 4w Hire and Train – 9w Order Furniture – 6w Remodel/phones - 11w Furniture set up – 3w Move in – 1w 15

16. AON -> AOA -> ! G B F A DH C E Page 1 of 3 St 16Saba Bahouth – UCO

17. TRAIN Design AOA - Example ActivityImmediateActivity PredecessorDuration a - Design TRAIN-20 b - Build Prototype a10 c - Perform Tests on Prototypeb8 d - Estimate Material Costsa11 e - Refine TRAIN Design c,d 7 f - Demonstrate to Customerse6 g - Estimate Labor Cost d12 h - Prepare Technical Proposal e13 i - Deliver Proposal to Customerg,h5 17Saba Bahouth – UCO

18. 1. PERT Program Evaluation and Review Technique Booz-Allen Hamilton/Lockheed/Navy Probabilistic R & D Less popular with time Focus on time analysis (later also cost) PMI (2005) ADM / PERT: Arrow Diagram Method 2. CPM Critical Path Method DuPont/Rand Deterministic Construction More popular with time Focus on time and cost analysis PDM / CPM: Precedence Diagram Method Methods of Network Graphical Representation 1. AOA (ADM) 2. AON (PDM) Methods of Network Analysis

19. Example Activity Duration Preceded by a 12 --- b 13 --- c 10 --- d 16 c e 4 a f 14 b, d g 7 b, d h 8 c i 22 e, f j 16 e, f k 25 g l 8 b, d, h m 12 i n 14 j, k o 10 l p 8 m, n, o 19Saba Bahouth – UCO