1. ME 414W/415W Project Management Project Management

2. ME 414W/415W Project Management Project Management DILBERT’S BOSS

3. ME 414W/415W Project Management A Balancing Act u Deliverables u Cost u Quality

4. ME 414W/415W Project Management Learning How u ME 414W/415W - http://www.me.psu.edu/sommer/me415/ http://www.me.psu.edu/sommer/me415/ u MBA u Industrial training programs

5. ME 414W/415W Project Management Planning u Technical u Time u Resources –Personnel –Equipment and Facilities –Budget

6. ME 414W/415W Project Management Benefits of Planning u Framework for communication –Clients and coworkers u Allocate resources –Personnel, equipment and facilities, budget u Benchmark to measure progress

7. ME 414W/415W Project Management Planning - Fundamentals u Establish Performance Standards at the BEGINNING u Use Decision Trees/Matrices, QFD, Taguchi Methods u Assure Performance Standards as Project Progresses u Verify Final Performance Against Standards u NO SUPRISES!

8. ME 414W/415W Project Management Time Planning u Identify TASKS u Estimate DURATION of Tasks u Establish PRECEDENCE of Tasks u Record MILESTONES (Performance and Dated) u Plan Start and Finish DATES for Tasks

9. ME 414W/415W Project Management Models u Gantt Charts - Bar Charts u CPM/PERT - Network u Control Charts - Planned versus Actual u http://www.mne.psu.edu/me415/resources/doc s/gantt chart.pdf http://www.mne.psu.edu/me415/resources/doc s/gantt chart.pdf

10. ME 414W/415W Project Management Example Gantt Chart

11. ME 414W/415W Project Management Gantt Chart u Tabulate Project Tasks –Title and ID Number for Each Task –Estimate Duration of Each Task –Estimate Resource Requirements for Each Task (May Need Dummy Tasks for Critical Resources) u Identify Prerequisite Tasks for Each Task u Layout Bar Chart with One Bar per Task based on Time u Add Dated Milestones

12. ME 414W/415W Project Management Example Gantt Chart

13. ME 414W/415W Project Management Gantt Chart - Pros and Cons u Strengths –See Status of Each Task at Any Point in Time –See Overlapping and Parallel Tasks u Weaknesses –Unable to Tell if the Entire Project is on Time for Highly Dependent Projects –Difficult to Show Critical Path

14. ME 414W/415W Project Management CPM/PERT u Critical Path Method u Program Evaluation and Review Technique

15. ME 414W/415W Project Management Example PERT Chart

16. ME 414W/415W Project Management CPM/PERT u Tabulate Project Tasks –Title and ID Number for Each Task –Estimate Duration for Each Task D=(O+4M+P)/6 v O = Optimistic, M = Most Likely, P = Pessimistic –Estimate Resource Requirements for Each Task (May Need Dummy Tasks for Critical Resources) u Identify Prerequisite Tasks for Each Task u Layout Flowchart of Tasks Based on Dependencies NOT Time u Indicate Performance Milestones on Flowchart

17. ME 414W/415W Project Management CPM/PERT - continued u Calculate Earliest Completion Time and Latest Completion Time –Beginning at start of project, ECT for task = ECT for preceding node + duration –Beginning at end of project, LCT for task = LCT for following node - duration u Calculate Slack Time for Each Task –Slack for Task= ECT - LCT u Determine Critical Path –Longest Time Path –Zero Slack

18. ME 414W/415W Project Management Example PERT Chart

19. ME 414W/415W Project Management CPM/PERT – Pros and Cons u Strengths –Shows Task Dependencies –Predicts Critical Path –Identifies Slack Time for Resources u Weaknesses –Assumes Subsequent Task Starts Immediately After Prerequisite Concludes –Difficult to Visualize Timing

20. ME 414W/415W Project Management Control Charts u Quality –Statistical Process Control u Schedule –Gantt, Milestone, PERT u Budget –Commitment –Performance –Cash Flow

21. ME 414W/415W Project Management Budget Control Chart

22. ME 414W/415W Project Management Resource Planning u LINK TO TIME PLANNING u Personnel –In-House –Vendors and Subcontractors –Circle-dot chart

23. ME 414W/415W Project Management Circle-dot Chart

24. ME 414W/415W Project Management Resource Planning - continued u Equipment and Facilities –May Need to Add Dummy Tasks for Critical Resources –Downtime for Expected Maintenance or Failure u Budget –Often Not Under Direct Control of Project Team –Contingency Funds –Variable Value of Money v Inflation v International Currency

25. ME 414W/415W Project Management Project Management is …

26. ME 414W/415W Project Management … a Balancing Act