PROJECT MANAGEMENT PART SIX Chapter Eighteen Project Management

Unique, one-time operations designed to accomplish a specific set of objectives in a limited time frame. Build A A Done Build B B Done Build C C Done Build D Ship JANFEBMARAPRMAYJUN On time! Projects

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 Key Decisions

Project Manager Responsible for: WorkQuality Human ResourcesTime CommunicationsCosts

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

Project Life Cycle Concept Feasibility Planning Execution Termination Management

Risk: occurrence of events that have undesirable consequences –Delays –Increased costs –Inability to meet specifications –Project termination Project Risk

Identify potential risks Analyze and assess risks Work to minimize occurrence of risk Establish contingency plans Risk Management

Work Breakdown Structure Project X Level 1 Level 2 Level 3 Level 4 Figure 18-3

MARAPRMAYJUNJULAUGSEPOCTNOVDEC Locate new facilities Interview staff Hire and train staff Select and order furniture Remodel and install phones Move in/startup Planning and Scheduling Gantt Chart

PERT and CPM 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

Project Network – Activity on Arrow Locate facilities Order furniture Furniture setup Interview Hire and train Remodel Move in

Project Network – Activity on Node Locate facilities Order furniture Furniture setup Interview Remodel Move in 4 Hire and train 7S

Network Conventions a b ca b c a b c d a b c Dummy activity

Example weeks 6 weeks 3 weeks 4 weeks 9 weeks 11 weeks 1 week Locate facilities Order furniture Furniture setup Interview Hire and train Remodel Move in

Example 1 Solution Critical Path

Network activities –ES: early start –EF: early finish –LS: late start –LF: late finish Used to determine –Expected project duration –Slack time –Critical path Computing Algorithm

Probabilistic Estimates Activity start Optimistic time Most likely time (mode) Pessimistic time opmtete Figure 18-8

Example a d e f b h g i c Optimistic time Most likely time Pessimistic time

17 Weeks a-b-c d-e-f g-h-i Example 6

Computer aided design (CAD) Groupware (Lotus Notes) Project management software –CA Super Project –Harvard Total Manager –MS Project –Sure Track Project Manager –Time Line Technology

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 Advantages of PM Software

A project consists of 10 activities, lettered A through J, as shown in the accompanying precedence diagram, with the activities on the arrows. For each activity, the deterministic time estimate in weeks is shown in the following table. Advantages of PM Software

A project consists of 10 activities, lettered A through J, as shown in the accompanying precedence diagram, with the activities on the arrows. For each activity, the deterministic time estimate in weeks is shown in the following table. Activity Time Activity Time ABCDE FGHIJ List all of the paths through the network. What is the duration of each of the paths? What is the critical path? What is the second-most critical path? What is the slack time for each activity? Calculate the ES, Ef, LS and LF times for each activity. Advantages of PM Software

Time-Cost Trade-Offs: Crashing Total cost Shorten Cumulative cost of crashing Expected indirect costs Optimum CRASH Figure 18-11

6a6a 4d4d 5c5c 10 b 9e9e 2f2f Example 7

Advantages of PERT Forces managers to organize Provides graphic display of activities Identifies –Critical activities –Slack activities

Limitations of PERT Important activities may be omitted Precedence relationships may not be correct Estimates may include a fudge factor weeks