1. Project Management Chapter 17

2. 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.

3. 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.

4. 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.

5. 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.

6. 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).

7. 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.

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

9. 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.

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

11. Project managers must be tough and strong.

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

14. 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.

15. 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.

16. 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.

17. 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.

18. 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?

19. 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.

20. Project Network with Activity Times and Activities Labeled

21. 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.

22. 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.

23. 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.

24. 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.

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

29. 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

30. 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

31. 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!

32. 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

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

34. Homework Problem
Do problem 5 (part a only) on p 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.

35. 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

36. 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).

37. End of slides for Project Management