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Lecture 4 Project Management Chapter 17.

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Presentation on theme: "Lecture 4 Project Management Chapter 17."— Presentation transcript:

1 Lecture 4 Project Management Chapter 17

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

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

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

5 Planning and Scheduling
Gantt Chart Locate new facilities Interview staff Hire and train staff Select and order furniture Remodel and install phones Move in/startup MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

6 Key Decisions 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

7 Project Manager Responsible for: Work Quality Human Resources Time
Communications Costs

8 Ethical Issues Temptation to understate costs Withhold information
Misleading status reports Falsifying records Compromising workers’ safety Approving substandard work

9 Project Life Cycle Concept Feasibility Planning Execution Termination

10 Work Breakdown Structure

11 PERT and CPM 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

12 The Network Diagram Network (precedence) diagram
Activity-on-arrow (AOA) Activity-on-node (AON) Activities consume resources and/or time Events points in time

13 Project Network – Activity on Node
Figure 17.4 1 2 3 5 6 Locate facilities Order furniture Furniture setup Interview Remodel Move in 4 Hire and train 7 S AON

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

15 Time Estimates Deterministic Probabilistic
Time estimates that are fairly certain Probabilistic Estimates of times that allow for variation

16 Project Network – Activity on Node
Figure 17.4 6 weeks 1 2 3 5 6 Locate facilities Order furniture Furniture setup Interview Remodel Move in 4 Hire and train 7 S 3 weeks 8 weeks AON 11 weeks 1 week 9 weeks 4 weeks

17 Management Scientist Solution
Critical Path

18 Example 1: Activity on Arc (AOA) Representation
Figure 17.5 6 weeks Deterministic time estimates 4 Order furniture 3 weeks 2 8 weeks Furniture setup Locate facilities Remodel Move in 11 weeks 1 5 6 1 week Interview Hire and train 4 weeks 9 weeks 3

19 Computing Algorithm Network activities Used to determine
ES: early start EF: early finish LS: late start LF: late finish Used to determine Expected project duration Slack time Critical path

20 Advantages of PERT Forces managers to organize
Provides graphic display of activities Identifies Critical activities Slack activities 1 2 3 4 5 6

21 Limitations of PERT Important activities may be omitted
Precedence relationships may not be correct Estimates may include a fudge factor May focus solely on critical path

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