2 Project Management  Management of work to develop and implement an innovation or change in an existing organization Examples: –New buildings –Weapon systems –Automotive, Ship, Aircraft –Planning a concert –New Products

3 Project Management  Elements Project Team Project Planning Project Control

4 Project Team

5 Project Planning  Precedence Relationship Sequential relationship of activities in a project  Project planning Define project objective(s) Identify activities Establish precedence relationships Make time estimates Determine project completion time Compare project schedule objectives Determine resource requirements to meet objectives

6 Project Planning  Project Network Building a sidewalk

7 Project Control  Control Activities are identified Activities are completed in order Resource needs Schedule changes and corrections  Main Goal – maintaining project schedule so project in on-time and close to budget

8 Project Control  Work Breakdown Structure (WBS) Method for project planning and control Breaks down components, sub- components, activities, and tasks

9 Work Break Down Structure  Good way to identify activities and determine tasks  Helps identify relationships between modules and activities  Cancels out unnecessary duplication of activities

10 Gantt Chart  Helps identify start of activities end of activities slack time –amount of time an activity can be delayed without delaying the project precedence relationships between activities

11 CPM - Critical Path Method  Definition: In CPM activities are shown as a network of precedence relationships using activity-on-node network construction Single estimate of activity time Deterministic activity times

12 PERT - Project Evaluation & Review Techniques  Definition: In PERT activities are shown as a network of precedence relationships using activity-on-arrow network construction Multiple time estimates Probabilistic activity times

13 Critical Path  Longest path through a network  minimum project completion time

14 Benefits of CPM/PERT  Useful at many stages of project management  Mathematically simple  Give critical path and slack time  Provide project documentation  Useful in monitoring costs

15 Limitations to CPM/PERT  Clearly defined, independent and stable activities  Specified precedence relationships  Subjective time estimates  Over emphasis on critical paths

16 Questions Answered by CPM & PERT  Completion date?  On Schedule?  Within Budget?  Critical Activities?  How can the project be finished early at the least cost?

17 ANY QUESTIONS???