1. Project Management Chapter 3 BUSI 2106 – Operations Management

2. Projects and Project Management What is a project? What is project management? Why is project management so important? What three basic activities are in project management?

3. Projects and Project Management What is a project? A “unique event” with a unique goal With a start, end, work, inputs and outputs. Work, outside of the defined production system What is project management entail? Planning – activities to be done Scheduling - work Controlling – resources

4. Projects and Project Management

5. Why is project management so important? Projects can be complex The track record for project success is actually low (at cost, on time, to spec) Must coordinate resources across functional lines

6. Planning Work Breakdown Structure (WBS) – hierarchical representation of project work, broken down into individual activities

7. Scheduling Gantt chart – shows sequences of activities, start and end dates.

8. Controlling Controlling Costs and Time Use of software Microsoft Project Fast Track MacProject OpenWorkBench

9. PERT/CPM Diagram Representation of a project, its activities and sequence Six Steps 1.Define Project, Build WBS 2.Develop sequences – what tasks must be complete before another one starts 3.Draw network diagram connecting all activities 4.Assign time and cost estimates for each activity 5.Compute critical path 1.Why is it critical? 6.Use the diagram to help plan, schedule, monitor, etc.

10. PERT/CPM: Step 2 Develop sequences

11. PERT/CPM: Step 3 Draw network diagram

12. PERT/CPM: Step 4 Assign time and cost

13. PERT/CPM: Step 5 Compute critical path Substeps 1.Forward Pass: Assign earliest start (ES) and earliest finish (EF) to each activity 2.Backward Pass: Assign latest finish (LF) and latest start (LS) to each activity 3.Calculate slack time for each activity 4.Identify critical path activities (activities where slack = 0)

14. PERT/CPM: Step 5 Page 70 (the one with the transparencies)

15. Variability in Activity Times Many techniques to make more accurate estimations Three time estimates (optimistic (a), pessimistic (b), most likely (m)) Time = (a + 4m + b)/6 Variance = ([b + a]/6)^2

16. Probability of Project Completion When you need to know the probability that a project will be completed at/before a certain time

17. Probability of Project Completion “what is the probability that my this project, estimated to be finished in 15 weeks, will be complete in under 16 weeks?” Find the z-score of 16 weeks

18. Project Crashing Sometimes you need to add extra resources to speed up Steps 1.Compute crash cost per time pd (week, day, etc) for each activity 2.Find critical path 3.On critical path, select the activity with the smallest crash cost. 1.Crash this activity by one pd 2.May need to check other activities on other critical paths 4.Update all activity times. Repeat from step 2 if needed.

19. Project Management Software – MS Project