Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Projects and Project management Sections: 1.Projects 2.Project Management 3.Project Scheduling Techniques 4.Project Crashing 5.Software for Projects Chapter 7

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project A temporary undertaking directed at accomplishing some major output, usually requiring substantial resources and significant time to complete  Examples:  Construction job  Military weapons system  New product design  Development of new medicine  A project is a work system

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project Work vs. Operations Work  Operations work  Consists mostly of repetitive activities  Work cell production  Assembly line production  Routine office work  Project work  Activities are nonrepetitive

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project Management Planning, scheduling, organizing, monitoring, and controlling the project activities so that the PCTS objectives are achieved to the satisfaction of the customer or sponsor  PCTS objectives:  P - Performance - quality of the output  C - Cost - budget that is established  T - Time - the planned schedule  S - Scope - defining the tasks that will and will not be done during the project

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Hierarchy of Project Levels Program - very large undertaking, consisting of several projects Six levels are shown below but some programs and projects have many more levels

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project Life Cycle 1.Concept and feasibility phase - preliminary phase to assess feasibility and relevance 2.Definition phase - problem definition step 3.Planning phase - detailed planning of the project including work breakdown 4.Execution phase - actual work on the project is accomplished  Consumes most of the time and cost 5.Closeout - turning over the outcome or product to the customer or sponsor

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Typical Project Life Cycle

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project Team  Management of a project is accomplished through the use of a project team  Team is usually cross-functional  Team members are selected from a variety of departments and fields  Project manager - responsible for the project and the project team  Greater risk than operations manager because operations are concerned with ongoing activities, whereas a project is unique and temporary

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project Planning Concerned with the development of a formal document that will be used to direct the execution and control of the project  Principal uses of the project plan:  Document the assumptions and decisions underlying the plan  Facilitate communication among those involved  Document the PCTS objectives

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Activities in Project Planning  Work breakdown structure  Project scheduling

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Work Breakdown Structure (WBS) Defines and organizes the project into increasingly more detailed task descriptions in each descending level of the project hierarchy  Work packages (lowest level of WBS)  Defines relationships among work packages and how they fit together in each level of the project hierarchy  Does not indicate sequence in which work packages will be accomplished  This is done in project scheduling

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project Scheduling Concerned with:  Estimating times for work packages  Determining sequence of work packages  Planning the dates to perform the work packages and meeting milestones

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project Control Concerned with:  Monitoring progress of the work activities  Comparing the progress with the schedule  Taking corrective action when activities are found to be behind schedule

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project Control Techniques  Performance reviews - meetings to assess project status  Variance analysis - compares progress to schedule  Schedule and cost are most common measures  Earned value analysis - plot showing actual cumulative cost to budgeted cumulative cost  Trend analysis - tries to identify activities that are at risk of falling behind schedule

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Plot in Earned Value Analysis

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project Scheduling Techniques  Gantt charts  Network diagrams:  Critical Path Method (CPM)  Program Evaluation and Review Technique (PERT)

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Gantt Charts A graphical display of schedule project activities on a time axis  Project activities are listed on a vertical axis  Activity time durations are shown as horizontal bars with starting and ending times

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Gantt Chart: Planned Activities Shows planned activities for a construction project

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Gantt Chart: Progress Shows actual work accomplished at some point during week 7

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Gantt Chart Showing Precedence Arrows can be used to indicate precedence relationships among activities

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. CPM and PERT Network Diagrams Components in CPM and PERT network diagrams: nodes and arrows

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. CPM and PERT Differences  Arrow and node conventions:  Activity-on-node (AON) - used with CPM  Activity-on-arrow (AOA) - originally used with PERT  Time estimates:  CPM uses constant time estimates  PERT uses a probability distribution consisting of the most optimistic, most likely, and most pessimistic time estimates

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Critical Path Method  Objective is to identify the total time duration of the longest sequence of activities in the network (the longest path through the network diagram)  The longest path is called the critical path T cp = where T cp = total project time, T ai = activity time for activity i, and the summation is carried out only along the critical path

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Example: Construction Project Activity Time Preceded byDescription 1 5 days-Clear land, excavate 2 14 days1Pour foundation 3 8 days2Frame house 4 3 days3Roofing work 5 10 days3Electrical and heating work 6 9 days 3Plumbing work 7 11 days3Siding and brickwork 8 22 days 4, 5, 6Finish interior 9 6 days7Landscaping 10 2 days 8, 9Move in

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. CPM Diagram for Example Project

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Network Analysis Procedure - 1  Forward pass through network (start with first node and proceed toward last node)  Determine earliest start times (ES) and earliest finish times (EF) for each node ES i = EF i = ES i + T ai where FP i = longest forward path leading from node 1 to node i, T aj = activity time for node j

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. ES and EF Times for Example Activity Longest path FP i ES i T ai EF i

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Network Analysis Procedure - 2  Backward pass through network (starting with last node and proceeding backward toward first node)  Determine latest finish times (LF) and latest start times (LS) for each node LF i = T cp - LS i = LF i - T ai where BP i = longest backward path leading from the last node to node i, and T aj = activity time for node j

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. LF and LS Times for Example ActivityLongest path BP i LF i T ai LS i

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Network Analysis Procedure - 3  Determine the slack time for each activity  Slack time = the amount of time that the activity can be delayed without delaying the subsequent activities in the project S i = LS i - ES i = LF i - EF i where S i = slack time for activity i

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Slack Times for Example Activity LS i ES i LF i EF i Slack S i

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. CPM Diagram with Slack Displayed Critical path = path with zero slack

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. PERT  PERT deals with the uncertainty in the time estimates using three estimates of time for each activity T ai = where T min = optimistic time, T ml = most likely time, T max = pessimistic time,

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Project Crashing Reasons to complete a project in less time than T cp  The scheduled deadline is sooner than T cp  Incentives for finishing early  Penalties for finishing late  The benefits of the project outcome must be achieved sooner  Indirect costs of resources used on the project must be reduced  The sooner the project is finished, the sooner the resources can be used on the next project

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Normal Distribution of T cp

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Activity Costs  The cost of a given project activity typically increases as the time to accomplish it is reduced  Time and cost factors:  T ai = activity time for activity i  C ai = normal cost of activity i  ET ai = expedited time of activity i  EC ai = expedited cost of activity i

Work Systems and the Methods, Measurement, and Management of Work by Mikell P. Groover, ISBN ©2007 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. Cost vs. Time for Expedited Activity