1. Irwin/McGraw-Hill Project Management  Project series of related jobs usually directed toward some major output and requiring a significant period of time to perform.  Project Management planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of the project. Project or Program?

2. Project Management Management of Projects Functional Structure Pure Project Structure Matrix Structure Project Development Time Cost Models Inferences about duration Identify the Critical Path Find Activity Variance Find Expected Activity Times Three Time EstimateSingle Time Estimate Early Start Schedule Late Start Schedule Activity Slack Work Breakdown Structure Gantt Chart Critical Path Scheduling Network Diagram Identify the Critical Path

3. Irwin/McGraw-Hill Work Breakdown Structure Program Level Project 1Project 21 Task 1.12Task 1.2Subtask 1.1.13Subtask 1.1.2Work Package 1.1.1.14Work Package 1.1.1.2

4. Irwin/McGraw-Hill Work Breakdown Structure  Requirements Elements may be worked on independently Elements are manageable in size Program can be monitored and measured The required resources are provided

5. Irwin/McGraw-Hill Organizational Structure: Pure Project--Advantages The project manager has full authority over the project Team members report to one boss Shortened communication lines Team pride, motivation, and commitment are high

6. Irwin/McGraw-Hill Organizational Structure: Pure Project--Disadvantages Duplication of resources Organizational goals and policies are ignored (also an advantage!) Lack of technology transfer Team members have no functional area "home"

7. Irwin/McGraw-Hill Functional Project

8. Irwin/McGraw-Hill Organizational Structure: Functional Project-- Advantages A team member can work on several projects Technical expertise is maintained within the functional area The functional area is a home after the project is completed Critical mass of specialized knowledge

9. Irwin/McGraw-Hill Organizational Structure: Functional Project--Disadvantages Aspects of the project that are not directly related to the functional area get short- changed Motivation of team members is often weak Needs of the client are secondary and are responded to slowly

10. Irwin/McGraw-Hill Matrix Project

11. Irwin/McGraw-Hill Organizational Structure: Matrix--Advantages Enhanced inter-functional communications Pinpointed responsibility Duplication of resources is minimized Functional home for team members Policies of the parent organization are followed (also a disadvantage!)

12. Irwin/McGraw-Hill Organizational Structure: Matrix--Disadvantages Two bosses Depends on Project Manager’s negotiating skills Less flexibility for “pure project” Potential for sub-optimization

13. Project Management Management of Projects Project Development Three Time Estimate Single Time Estimate Early Start Schedule Late Start Schedule Activity Slack Work Breakdown Structure Gannt Chart Critical Path Scheduling Network Diagram Identify the Critical Path

14. Irwin/McGraw-Hill Network-Planning Models A project is made up of a sequence of activities that form a network representing a project. The path taking longest time through this network of activities is called the “critical path.” The critical path provides a wide range of scheduling information useful in managing a project. Critical Path Method (CPM) helps to identify the critical path(s) in the project networks.

15. Irwin/McGraw-Hill Critical Path Scheduling: PERT and CPM CPM (critical path method) J. E. Kelly of Remington-Rand and M. R. Walker of Du Pont (1957) Scheduling maintenance shutdowns of chemical processing plants PERT (program evaluation & review technique) U.S. Navy Special Projects Office (1958) Polaris missile project

16. Irwin/McGraw-Hill Critical Path Scheduling A project must have: well-defined jobs or tasks whose completion marks the end of the project; independent jobs or tasks; and tasks that follow a given sequence.

17. Irwin/McGraw-Hill CPM with Single Time Estimate Consider the following consulting project: Develop a critical path diagram and determine the duration of the critical path and slack times for all activities Activity Designation Immed. Pred.Time (Weeks) Assess customer's needsANone2 Write and submit proposalBA1 Obtain approvalCB1 Develop service vision and goalsDC2 Train employeesEC5 Quality improvement pilot groupsFD, E 5 Write assessment reportGF1

18. Irwin/McGraw-Hill First draw the network A, 2B, 1 C, 1 D, 2 E, 5 F, 5 G, 1

19. Irwin/McGraw-Hill Gannt Chart

20. Irwin/McGraw-Hill Determine early start and early finish times ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 ? A, 2B, 1 C, 1 D, 2 E, 5 F, 5 G, 1

21. Irwin/McGraw-Hill When I can start depends on when predecessors finish ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A, 2B, 1 C, 1 D, 2 E, 5 F, 5 G, 1

22. Irwin/McGraw-Hill Determine late starts and late finish times ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A, 2B, 1 C, 1 D, 2 E, 5 F, 5 G, 1 LS=14 LF=15 LS=9 LF=14 LS=4 LF=9 LS=7 LF=9 ?

23. Irwin/McGraw-Hill Don’t delay the project ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A, 2B, 1 C, 1 D, 2 E, 5 F, 5 G, 1 LS=14 LF=15 LS=9 LF=14 LS=4 LF=9 LS=7 LF=9 LS=3 LF=4 LS=2 LF=3 LS=0 LF=2

24. Irwin/McGraw-Hill Critical Path & Slack ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A, 2B, 1 C, 1 D, 2 E, 5 F, 5 G, 1 LS=14 LF=15 LS=9 LF=14 LS=4 LF=9 LS=7 LF=9 LS=3 LF=4 LS=2 LF=3 LS=0 LF=2 Duration = 15 weeks Slack=(7-4)=(9-6)= 3 Wks

25. Project Management Management of Projects Project Development Inferences about duration Identify the Critical Path Find Activity Variance Find Expected Activity Times Three Time Estimate Single Time Estimate Work Breakdown Structure Gannt Chart Critical Path Scheduling Network Diagram

26. Irwin/McGraw-Hill CPM with Three Activity Time Estimates

27. Irwin/McGraw-Hill Expected Times

28. A, 7 B 5.333 C, 14 D, 5 E, 11 F, 7 H, 4 G, 11 I, 18 Duration = 54 Days 54 Days 41 Days 34.3 Days

29. What is the probability of finishing this project in less than 53 days? t T E = 54 p(t < D) D=53

30. (Sum the variance along the critical path.) TaskOptimisticMost LikelyPessimisticVariance A36154 B2414 C6123016 D258 E511174 F3615 G3927 H1471 I4192816

31. t T E = 54 D=53 p(t < D) p(Z < -.156) =.5 -.0636 =.436, or 43.6 % (Appendix D) There is a 43.6% probability that this project will be completed in less than 53 weeks.

32. Irwin/McGraw-Hill Exercise: What is the probability that the project duration will exceed 56 weeks? t T E = 54 p(t < D) D=56 p(Z >.312) =.5 -.1217 =.378, or 37.8 % (Appendix D)

33. Irwin/McGraw-Hill Problem 5 - What is the probability of completing the project in less that 16 days?

34. Project Management Project Development Time Cost Models Inferences about duration Identify the Critical Path Find Activity Variance Find Expected Activity Times Three Time EstimateSingle Time Estimate Early Start Schedule Late Start Schedule Activity Slack Work Breakdown Structure Gannt Chart Critical Path Scheduling Network Diagram Identify the Critical Path Functional Structure Pure Project Structure Matrix Structure Management of Projects

35. Irwin/McGraw-Hill Time-Cost Models Basic Assumption: Relationship between activity completion time and project cost Time Cost Models: Determine the optimum point in time-cost tradeoffs Activity direct costs Project indirect costs Activity completion times

36. Problem – Crashing a Project