1. Department of Industrial Engineering 1 Project Management Kim LaScola Needy, Ph.D., P.E., CFPIM University of Pittsburgh 1041 Benedum Hall Pittsburgh, PA 15261 412-624-9838 (ofc) kneedy@engr.pitt.edu March 5, 2008

2. Department of Industrial Engineering 2 Project Management Outline  What exactly is a project?  What is the role of the project manager?  Statement of Work  Project Charter  Project Milestones  Work Breakdown Structure  Linear Responsibility Chart  Scheduling  Why do I need to know this stuff about project management?

3. Department of Industrial Engineering 3 What exactly is a project?  (1) a proposal of something to be done; plan; scheme; (2) an organized undertaking; specifically, (a) a special unit of work, research, etc., as in school, a laboratory, etc. (b) an extensive public undertaking in conservation, construction, etc.  A project Has a defined beginning and ending Has a set of completion criteria Is non-repetitive, it is done one time Usually involves something more complicated than which was originally envisioned

4. Department of Industrial Engineering 4 What is the role of the project manager?  The person who manages and controls a project by planning, estimating, scheduling, administering, and monitoring tasks.

5. Department of Industrial Engineering 5 Project Management Project CostSchedule Technical Performance

6. Department of Industrial Engineering 6 Statement of Work (SOW)  Defines exactly what is to be done in the project  SOW establishes “Contract” of who does what and when Baseline for changes in the work Communication channel Sometimes defined by the contractor other times by the customer  Other names – Request for Proposal (RFP), Request for Services (RFS), Purchase Order (PO)

7. Department of Industrial Engineering 7 SOW Contents  Purpose  Scope  Deliverables  Cost Estimates  Schedule Estimates  Project Organization  Responsibilities  Assumptions

8. Department of Industrial Engineering 8 SOW Example New Home Construction

9. Department of Industrial Engineering 9 SOW Example New Home Construction

10. Department of Industrial Engineering 10 Project Charter  Purpose of the project  Assignment of the project manager  General management support of the project  Written in memorandum form

11. Department of Industrial Engineering 11 Project Charter Example New Home Construction

12. Department of Industrial Engineering 12 Project Milestones  Key start and end dates for major project phases or activities  Very useful for detailed planning  Examples: Project Start Date Completion of Phase 1 Start of Beta Test Final Design Review Implementation

13. Department of Industrial Engineering 13 Project Milestones Example New Home Construction

14. Department of Industrial Engineering 14 Work Breakdown Structure (WBS)  Describes the total project effort  Provides a level-by-level subdivision of work  Can be depicted in a “tree” or outline format  Defines the work packages – task to be performed and their interrelationships  Includes all end items (deliverables) such as equipment, facility and services

15. Department of Industrial Engineering 15 WBS (cont.)  Includes the major tasks which are essential for the conception, design, creation, operation, test and disposal of these end items  Plan and schedule effort  Estimate costs and budgets  Support network schedule construction  Assign responsibilities and authorize work  Track time, cost, and performance - controlling

16. Department of Industrial Engineering 16 WBS Example New Home Construction Tier 1 1.0Acquire Site 2.0Select House Plan 3.0Hire & Schedule Subcontractors and Obtain Permits 4.0Break Ground 5.0Build Foundation 6.0Build Frame 7.0Install Utilities 8.0Complete Exterior Work 9.0Complete Interior Work 10.0Perform Landscaping 11.0Final Walk Through

17. Department of Industrial Engineering 17 WBS Example New Home Construction Tier 2 1.0Acquire Site 1.1Determine desired area where you want to live 1.2Determine budget 1.3Pick desired lot 1.4Acquire lot 1.5Start loan process

18. Department of Industrial Engineering 18 WBS Example New Home Construction Tier 2 2.0Select House Plan 2.1Determine needs/wants of house design 2.2Consult local architects or floor plan services 2.3Pick a floor plan that fits your needs and the lot 2.4Purchase blueprints

19. Department of Industrial Engineering 19 WBS Example New Home Construction Tier 2 3.0Hire & Schedule Subcontractors and Obtain Permits 3.1Determine subcontractors that are needed 3.2Get recommendations on subcontractors 3.3Pick subcontractors 3.4Make preliminary schedule for subcontractors 3.5Contact local municipality about permits 3.6Obtain and pay for permits 3.7Finalize loan

20. Department of Industrial Engineering 20 WBS Example New Home Construction Tier 2 4.0Break Ground 4.1Prepare Ground 4.2Excavate Soil

21. Department of Industrial Engineering 21 WBS Example New Home Construction Tier 3 4.1Prepare Ground 4.1.1Clear trees 4.1.2Survey land 4.2Excavate Soil 4.2.1Excavate level area 4.2.2Excavate trenches for plumbing and gas 4.2.3Dig hole

22. Department of Industrial Engineering 22 Creation, Use, and Control of the WBS  Creation Top-down Get input Identify for each work package – resources, procurement methods, authority and responsibility for completion, specifications, budgets, and schedule Get feedback

23. Department of Industrial Engineering 23 Creation, Use, and Control of the WBS (cont.)  Use Record dates, expenditures, etc. for each work element Compare actual to planned Corrective action – make adjustments

24. Department of Industrial Engineering 24 Creation, Use, and Control of the WBS (cont.)  Control Decide who can change the WBS and how Establish communication channels

25. Department of Industrial Engineering 25 Interface Between the Work Package and the Organizational Position Organizational Position Work Package Conduct Design Review Director, Systems Engineering P Key: P – Primary S – Secondary A – Approve N – Notify

26. Department of Industrial Engineering 26 Linear Responsibility Chart (LRC)  Also called the linear organizational chart and the matrix responsibility chart  Shows what’s involved, who participates, and to what degree  Shows the extent or type of authority especially when two or more people have overlapping responsibility/authority  Gets a dialogue going  LRC is a plan – compare to actual

27. Department of Industrial Engineering 27 LRC (cont.)  Three main components 1.A series of position titles listed along the top (columns). 2.A list of responsibilities, authorities, activities, functions, work packages listed down the side (rows). 3.A symbol indicating the degree or extent of authority.

28. Department of Industrial Engineering 28 LRC Example New Home Construction Key: P – Primary S – Secondary A – Approve N - Notify

29. Department of Industrial Engineering 29 Linear Responsibility Chart (cont.)  Rules of Thumb Everyone isn’t involved with every work package Try to only have one “P” per work package Only assign responsibility for the work package (i.e., not the levels above) Maintain the numbering scheme used on the WBS for the LRC

30. Department of Industrial Engineering 30 Scheduling  Non-Networking – Gantt Chart or Bar Charts Microsoft Project is a very effective tool  Networking – PERT/CPM will not discuss today

31. Department of Industrial Engineering 31 Non-Networking Techniques  Example – Building a Gantt Chart for “Getting Ready for Work”

32. University of Pittsburgh 3232 Schedule Example (Top Level) GET READY FOR BED SLEEP “GETTING READY FOR WORK WORK WATCH T.V.

33. University of Pittsburgh 3 Getting to Work Ground Rules and Assumptions You have to wake up before doing anything else. ( No sleepwalking to accomplish tasks) You want to have a cup of coffee prior to shaving. (Safety consideration) Before driving to work, all other tasks must be completed.

34. University of Pittsburgh 3434 Getting to Work ACTIVITY NUMBER ACTIVITY DESCRIPTIONACTIVITY DURATION 1 WAKE UP15 MIN 2 SHOWER15 MIN 3 SHAVE/MAKE UP10 MIN 4 DRESS10 MIN 5 BREW COFFEE10 MIN 6 MAKE BREAKFAST10 MIN 7 EAT BREAKFAST10 MIN 8 DRIVE TO WORK20 MIN TOTAL TIME100 MIN

35. University of Pittsburgh 3535 Getting to Work Gantt Chart ACTIVITY DESCRIPTION 102030405060708090100 WAKE UP SHOWER BREW COFFEE SHAVE/MAKE UP DRESS MAKE BREAKFAST EAT BREAKFAST DRIVE TO WORK TIME (MINUTES)

36. University of Pittsburgh 3636 Getting to Work Gantt Chart (Successor Float) ACTIVITY DESCRIPTION 102030405060708090100 WAKE UP SHOWER BREW COFFEE SHAVE/MAKE UP DRESS MAKE BREAKFAST EAT BREAKFAST DRIVE TO WORK TIME (MINUTES) FLOAT

37. Department of Industrial Engineering 37 Why do I need to know this stuff about project management?  To help get the project in the first place  To successfully manage the project once you get it  See examples