Project Management Chapter 17

Projects Build A A Done Build B B Done Build C C Done Build D Ship JAN FEB MAR APR MAY JUN On time! The above chart is called a Gantt Chart (or sometimes a Bar Chart). We will discuss a Gantt Chart in a later slide. Unique, one-time operations designed to accomplish a specific set of objectives in a limited time frame.

Project Management How is it different? Why is it used? Limited time frame Narrow focus, specific objectives Less bureaucratic Why is it used? Special needs Pressures for new or improves products or services Note that new product development is a project, and new product development and project management have some common terminology.

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 Remember, metrics refers to measurable outcomes. In a sense, if you can’t measure, you can’t manage it, according to the management at HP.

Project Management What are the Major Administrative Issues? Executive responsibilities Project selection Project manager selection Organizational structure Organizational alternatives Manage within functional unit Assign a coordinator Use a matrix organization with a project leader Top down support is important for successful projects.

Project Management What are the tools? Work breakdown structure Network diagram Gantt charts Risk management Many tools are software based. We will be discussing the concepts of one– the Critical Path Method (CPM).

Summary of 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 Remember, management is decision making.

Project Manager Responsible for: Work Quality Human Resources Time Communications Costs The project manager is usually the project champion.

Concept Project Life Cycle Feasibility Planning Execution Termination Management First we try to understand the concepts, and then we try to implement them. Implementation is always very difficult.

Much of the life cycle effort is in the middle, as shown above.

Project managers must be tough and strong.

The rewards for a successful project can be great both for the company, and for the project manager.

Planning and Scheduling Gantt Chart Planning and Scheduling The above is a Gantt Chart for planning and scheduling for a bank’s new marketing department. This example appears in you book on pp. 784, but continues all the way to p. 793.

PERT and CPM Networks 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 PERT and CPM networks are the same network, but the activity times in CPM are deterministic, while the activity times in PERT are probabilistic. We will deal with only CPM, and not PERT. The TOM department offers a project management course that would cover PERT.

The Network Diagram Network (precedence) diagram – diagram of project activities that shows sequential relationships by the use of arrows and nodes. Activity-on-arrow (AOA) – a network diagram convention in which arrows designate activities. Activity-on-node (AON) – a network diagram convention in which nodes designate activities. Activities – steps in the project that consume resources and/or time. Events – the starting and finishing of activities, designated by nodes in the AOA convention. Note that we will not cover AON networks in our readings and assignments. Hence, only worry about the AOA network.

The Network Diagram (cont’d) Path Sequence of activities that leads from the starting node to the finishing node 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 Note the longest path is the critical path because any delays on the longest path will delay the entire project.

Network Conventions for PERT and CPM Networks (AOA) b c d Dummy activity For the first network above, note that c cannot begin until a and b are completed. Can you figure out the others? Note that all arrows represent the time it takes to complete the activity represented by the arrow. However, a Dummy Activity takes no time. So how would we use Dummy Activities?

Project Network 1 2 3 4 5 6 Order furniture Furniture setup Locate facilities Order furniture Furniture setup Interview Hire and train Remodel Move in This is the same example in the book about the bank’s new marketing department (p. 771). However, while on a previous slide we showed it as a Gantt Chart, we now show it above as a network.

Project Network with Activity Times and Activities Labeled

Example 1 2 3 4 5 6 6 weeks 3 weeks 8 weeks 11 weeks 1 week 4 weeks Same as the previous slide, but now we show it with the activity times only.

Example Solution Critical Path Can you see how we got these number from the network in the previous slide? Note that this is the same example in the book.

Computing Algorithm Network activities Used to determine ES: earliest start EF: earliest finish LS: latest start LF: latest finish Used to determine Expected project duration Slack time Critical path The Computing Algorithm will be discussed during our class lecture. Be sure to prepare for this lecture by reading this topic in the textbook. Otherwise, you might get lost during the discussion.

Project Management Software Computer aided design (CAD) Groupware (Lotus Notes) CA Super Project Harvard Total Manager MS Project Sure Track Project Manager Time Line Software is the key to project management. But understanding this chapter will help you figure out how to use the software. The most popular software in use today is MS Project (i.e., Microsoft Project). You do not have to worry about the four slides that follow for your quiz or test. These are included to illustrate that the web can be used to find a large number of project management software packages.

This is an example of an EXCEL template for project management.

Advantages of PM Software Imposes a methodology Provides logical planning structure Enhances team communication Flag constraint violations Automatic report formats Multiple levels of reports Enables what-if scenarios Generates various chart types

Summary Projects are a unique set of activities Projects go through life cycles PERT and CPM are two common techniques Network diagrams Project management software available

Advantages of Gantt Charts and Networks Forces managers to organize Provides graphic display of activities Identifies Critical activities Slack activities Build A A Done Build B B Done Build C C Done Build D Ship JAN FEB MAR APR MAY JUN On time!

Limitations of Networks Important activities may be omitted Precedence relationships may not be correct Estimates may include a fudge factor 1 2 3 4 5 6 142 weeks

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

Homework Problem Do problem 5 (part a only) on p. 819. While the solution is given in the following slides, be sure that you take the time to try to solve this problem prior to looking at the solution.

5a. LS ES LF EF 1 2 5 8 9 6 3 12 11 26 19 28 21 4 10 16 20 25 31 18 24 13 7 5 26 18 Key 4 7 9 2 12 4 28 21 11 4 8 2 3 4 7 19 12 10 6 To read the numbers on the network, resize the window to 100% and then center the network using the scrolling bars. 5 6 4

5a (continued) Usually, you do not have to put your answers for a problem such as problem 5a in a table such as the above. This follows because the previous slide gives the same information (i.e., the key and the corresponding brackets on the network in the previous slide convey the same information as the table above).

End of slides for Project Management