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Opermgt 345 Shannon January, 2001 1 Project Management Basic Concepts Opermgt 345 January, 2001.

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Presentation on theme: "Opermgt 345 Shannon January, 2001 1 Project Management Basic Concepts Opermgt 345 January, 2001."— Presentation transcript:

1 Opermgt 345 Shannon January, 2001 1 Project Management Basic Concepts Opermgt 345 January, 2001

2 Opermgt 345 Shannon January, 2001 2 What is a Project? A Project is a series of activities and tasks that: Have a specific objective to be completed with certain objectives Have a defined start and end dates Have funding limits (if applicable) Consume Resources

3 Opermgt 345 Shannon January, 2001 3 Typical Project Structure Project Definition Project Definition Project Planning Project Planning Project Implementation Project Implementation Project Monitoring Project Monitoring Project Adjustment Project Adjustment Project Evaluation Project Evaluation

4 Opermgt 345 Shannon January, 2001 4 Project Life Cycle Resources and Effort Phase 1 Goals Scope Baseline Requirements Feasibility Desirability Conceptual Design Phase 2 Advanced Development Plan Budget Schedule Management Commitment Phase 3 Detailed Design Define Responsibility Team Organization Structure Detailed Plan Kickoff Phase 4 Project Implementation Manage Measure Control Update and Modify Plan Problem Solve Project Termination Phase 5 Closeout Document Suggest Improvements Reassign Dissolve Project Team

5 Opermgt 345 Shannon January, 2001 5 Successful Projects A successful project is one which achieves the following objectives: –Completed On Time –Completed Within Cost –Meets Performance Criteria –Minimum Disruption of the Main Work of the Organization –Effective Utilization of Resources

6 Opermgt 345 Shannon January, 2001 6 The Triple Play of Project Management Constraints TimeCost Performance

7 Opermgt 345 Shannon January, 2001 7 Triple Constraint Trade-offs Budget Schedule EarlyLate TIME $ Performance Specifications Better Worse

8 Opermgt 345 Shannon January, 2001 8 Major causes of failure ØSelection of a unsound project ØSelecting the wrong person as a project manager ØLack of support from upper management ØMisused management techniques ØProject termination not planned

9 Opermgt 345 Shannon January, 2001 9 Project Definition Build Canoe Rental Building on Coeur d A’lene Lake

10 Opermgt 345 Shannon January, 2001 10 Form Project Team Select Project Leader Identify Key People Gain Management Commitment Define Project Team Operating Rules

11 Opermgt 345 Shannon January, 2001 11 The Top Level Project Tasks Brainstorm the Major Tasks Brainstorm the Major Tasks Establish Work Flow Establish Work Flow A B C DEF G

12 Opermgt 345 Shannon January, 2001 12 Define Top Level Tasks Canoe Example Site Preparation Build Dock Build Building Finish and Ready for Business

13 Opermgt 345 Shannon January, 2001 13 Sequence Top Level Tasks Site Preparation Build Dock Build Building Finish

14 Opermgt 345 Shannon January, 2001 14 Sub-Tasks A B C DEF G Detailed Tasks Detailed Tasks Develop Work Sequence

15 Opermgt 345 Shannon January, 2001 15 Brainstorm Sub-Tasks Site Preparation Build Dock Build Building Finish Dock Site Building Site Install Pilings Build Dock Foundation Frame Roof Power Siding Paint Order Canoes Landscape Assemble Canoes Open for Business

16 Opermgt 345 Shannon January, 2001 16 Work Breakdown Structure Top Level Task 2nd Level Task 2nd Level Task 2nd Level Task 2nd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task Lower Level Tasks

17 Opermgt 345 Shannon January, 2001 17 Sequence Sub-Tasks TaskDescriptionImmediate Predecessor APrepare Dock Site- BPrepare Hut Site- CInstall Dock PilingsA DFoundation for HutB EBuild DockC FFrame HutD GPower to HutD HSide the HutF IRoof the HutF JOrder Canoes and Receive Canoes- K Paint HutH LAssemble CanoesJ MFinish Landscaping L,I,K,E,G NOpen for BusinessM

18 Opermgt 345 Shannon January, 2001 18 Build Network Diagram (PERT Chart) (Activities on Arrows) 1 A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

19 Opermgt 345 Shannon January, 2001 19 Build Network Diagram (PERT Chart) 13 A Prep Dock Site A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

20 Opermgt 345 Shannon January, 2001 20 Build Network Diagram (PERT Chart) 13 A Prep Dock Site 2 Order Canoes J A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

21 Opermgt 345 Shannon January, 2001 21 Build Network Diagram (PERT Chart) 13 A Prep Dock Site 2 Order Canoes 4 J B Prepare Hut Site 6 D Hut Foundation A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

22 Opermgt 345 Shannon January, 2001 22 Build Network Diagram (PERT Chart) 13 A Prep Dock Site 2 Order Canoes 4 J B Prepare Hut Site 6 D Hut Foundation 5 C Install Pilings 9 E Build Dock A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

23 Opermgt 345 Shannon January, 2001 23 Build Network Diagram (PERT Chart) 13 A Prep Dock Site 2 Order Canoes 4 J B Prepare Hut Site 6 D Hut Foundation 5 C Install Pilings 9 E Build Dock G Power To Hut A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

24 Opermgt 345 Shannon January, 2001 24 Build Network Diagram (PERT Chart) 13 A Prep Dock Site 2 Order Canoes 4 J B Prepare Hut Site 6 D Hut Foundation 5 C Install Pilings 9 E Build Dock G Power To Hut L Assemble Canoes A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

25 Opermgt 345 Shannon January, 2001 25 Build Network Diagram (PERT Chart) 13 A Prep Dock Site 2 Order Canoes 4 J B Prepare Hut Site 6 D Hut Foundation 5 C Install Pilings 9 E Build Dock G Power To Hut L Assemble Canoes 7 F Frame Hut Roof I A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

26 Opermgt 345 Shannon January, 2001 26 Build Network Diagram (PERT Chart) 13 A Prep Dock Site 2 Order Canoes 4 J B Prepare Hut Site 6 D Hut Foundation 5 C Install Pilings 7 F Frame Hut 8 H Side Hut 9 E Build Dock G Power To Hut I Roof K Paint Hut L Assemble Canoes A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

27 Opermgt 345 Shannon January, 2001 27 Build Network Diagram (PERT Chart) 13 A Prep Dock Site 2 Order Canoes 4 J B Prepare Hut Site 6 D Hut Foundation 5 C Install Pilings 7 F Frame Hut 8 H Side Hut 9 E Build Dock G Power To Hut I Roof K Paint Hut L Assemble Canoes 10 M Finish Landscape 11 N Open for Business A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

28 Opermgt 345 Shannon January, 2001 28 Build Network Diagram (PERT Chart) Canoe Example Add Times 13 A (3) Prep Dock Site 2 Order Canoes 4 J (2) B (4) Prepare Hut Site 6 D (3) Hut Foundation 5 C (6) Install Pilings 7 F (3) Frame Hut 8 H (2) Side Hut 9 E (4) Build Dock G (2) Power To Hut I (2) Roof K (4) Paint Hut L (10) Assemble Canoes 10 M (4) Finish Landscape 11 N (2) Open for Business A Prepare Dock Site 3 d B Prepare Hut Site 4 d C Install Dock Pilings 6 d D Foundation for Hut 3 d E Build Dock 4 d F Frame Hut 3 d G Power to Hut 2 d H Side the Hut 2 d I Roof the Hut 3 d J Order Canoes 2 d K Paint Hut 4 d L Assemble Canoes 10 d M Finish Landscaping 4 d NOpen for Business 2 d Task Description Time

29 Opermgt 345 Shannon January, 2001 29 Build Network Diagram (PERT Chart) 13 A Prep Dock Site 2 Order Canoes 4 J B Prepare Hut Site 6 D Hut Foundation 5 C Install Pilings 7 F Frame Hut 8 H Side Hut 9 E Build Dock G Power To Hut I Roof K Paint Hut L Assemble Canoes 10 M Finish Landscape 11 N Open for Business A Prepare Dock Site- B Prepare Hut Site- C Install Dock PilingsA D Foundation for HutB E Build DockC F Frame HutD G Power to HutD H Side the HutF I Roof the HutF J Order Canoes and Receive Canes- K Paint HutH L Assemble CanoesJ M Finish Landscaping L,I,K,E,G N Open for BusinessM TaskPredecessor

30 Opermgt 345 Shannon January, 2001 30 Build Network Diagram (PERT Chart) Canoe Example Add Times 13 A (3) Prep Dock Site 2 Order Canoes 4 J (2) B (4) Prepare Hut Site 6 D (3) Hut Foundation 5 C (6) Install Pilings 7 F (3) Frame Hut 8 H (2) Side Hut 9 E (4) Build Dock G (2) Power To Hut I (2) Roof K (4) Paint Hut L (10) Assemble Canoes 10 M (4) Finish Landscape 11 N (2) Open for Business A Prepare Dock Site 3 d B Prepare Hut Site 4 d C Install Dock Pilings 6 d D Foundation for Hut 3 d E Build Dock 4 d F Frame Hut 3 d G Power to Hut 2 d H Side the Hut 2 d I Roof the Hut 3 d J Order Canoes 2 d K Paint Hut 4 d L Assemble Canoes 10 d M Finish Landscaping 4 d NOpen for Business 2 d Task Description Time

31 Opermgt 345 Shannon January, 2001 31 Determining Project Length Option 1: Sum all the task durations: APrepare Dock Site-3 d BPrepare Hut Site-4 d CInstall Dock PilingsA6 d DFoundation for HutB3 d EBuild DockC4 d FFrame HutD3 d GPower to HutD2 d HSide the HutF2 d IRoof the HutF3 d JOrder Canoes and Receive Canoes-2 d K Paint HutH4 d LAssemble CanoesJ10 d MFinish Landscaping L,I,K,E,G4 d NOpen for BusinessM2 d Sum = 52 days Anything wrong with this approach?

32 Opermgt 345 Shannon January, 2001 32 Determining Project Length Option 2: Determine duration of each network path

33 Opermgt 345 Shannon January, 2001 33 Network Diagram Project Paths 13 A (3) Prep Dock Site 2 Order Canoes 4 J (2) B (4) Prepare Hut Site 6 D (3) Hut Foundation 5 C (6) Install Pilings 7 F (3) Frame Hut 8 H (2) Side Hut 9 E (4) Build Dock G (2) Power To Hut I (2) Roof K (4) Paint Hut L (10) Assemble Canoes 10 M (4) Finish Landscape 11 N (2) Open for Business Paths: A-C-E-M-N = 19 days

34 Opermgt 345 Shannon January, 2001 34 13 A (3) Prep Dock Site 2 Order Canoes 4 J (2) B (4) Prepare Hut Site 6 D (3) Hut Foundation 5 C (6) Install Pilings 7 F (3) Frame Hut 8 H (2) Side Hut 9 E (4) Build Dock G (2) Power To Hut I (2) Roof K (4) Paint Hut L (10) Assemble Canoes 10 M (4) Finish Landscape 11 N (2) Open for Business Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days Network Diagram Project Paths

35 Opermgt 345 Shannon January, 2001 35 13 A (3) Prep Dock Site 2 Order Canoes 4 J (2) B (4) Prepare Hut Site 6 D (3) Hut Foundation 5 C (6) Install Pilings 7 F (3) Frame Hut 8 H (2) Side Hut 9 E (4) Build Dock G (2) Power To Hut I (2) Roof K (4) Paint Hut L (10) Assemble Canoes 10 M (4) Finish Landscape 11 N (2) Open for Business Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-I-M-N = 18 days Network Diagram Project Paths

36 Opermgt 345 Shannon January, 2001 36 13 A (3) Prep Dock Site 2 Order Canoes 4 J (2) B (4) Prepare Hut Site 6 D (3) Hut Foundation 5 C (6) Install Pilings 7 F (3) Frame Hut 8 H (2) Side Hut 9 E (4) Build Dock G (2) Power To Hut I (2) Roof K (4) Paint Hut L (10) Assemble Canoes 10 M (4) Finish Landscape 11 N (2) Open for Business Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-J-M-N = 18 days B-D-G-M-N= 15 days Network Diagram Project Paths

37 Opermgt 345 Shannon January, 2001 37 13 A (3) Prep Dock Site 2 Order Canoes 4 J (2) B (4) Prepare Hut Site 6 D (3) Hut Foundation 5 C (6) Install Pilings 7 F (3) Frame Hut 8 H (2) Side Hut 9 E (4) Build Dock G (2) Power To Hut J (2) Roof K (4) Paint Hut L (10) Assemble Canoes 10 M (4) Finish Landscape 11 N (2) Open for Business Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-J-M-N = 18 days B-D-G-M-N= 15 days J-L-M-N= 18 days Network Diagram Project Paths

38 Opermgt 345 Shannon January, 2001 38 Critical Path The Critical Path is the Longest Path Through the Network.

39 Opermgt 345 Shannon January, 2001 39 13 A (3) Prep Dock Site 2 Order Canoes 4 J (2) B (4) Prepare Hut Site 6 D (3) Hut Foundation 5 C (6) Install Pilings 7 F (3) Frame Hut 8 H (2) Side Hut 9 E (4) Build Dock G (2) Power To Hut I (2) Roof K (4) Paint Hut L (10) Assemble Canoes 10 M (4) Finish Landscape 11 N (2) Open for Business Network Diagram Canoe Example Critical Path Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-J-M-N = 18 days B-D-G-M-N= 15 days J-L-M-N= 18 days

40 Opermgt 345 Shannon January, 2001 40 Completed Task Timetable Task Description Immediate Predecessor Time ES LS EF LF APrepare Dock Site-3 d 0 3 3 6 BPrepare Hut Site-4 d0 0 4 4 CInstall Dock PilingsA6 d3 6 9 12 DFoundation for HutB3 d4 4 7 7 EBuild DockC4 d9 12 13 16 FFrame HutD3 d7 7 10 10 GPower to HutD2 d7 14 9 16 HSide the HutF2 d10 10 12 12 IRoof the HutF3 d10 13 13 16 JOrder Canoes and Receive Canoes-2 d0 4 2 6 K Paint HutH4 d12 12 16 16 LAssemble CanoesJ10 d 2 6 12 16 MFinish Landscaping L,I,K,E,G4 d16 16 20 20 NOpen for BusinessM2 d 20 20 22 22

41 Opermgt 345 Shannon January, 2001 41 Slack Time Total Slack = The length of time an activity can be delayed without affecting the project completion time. Total Slack = Late Start - Early Start Total Slack = Late Finish - Early Finish For Critical Activities Free Slack = The time a task can be delayed without delaying another task.

42 Opermgt 345 Shannon January, 2001 42 Slack Time Task Description Immediate Predecessor Time ES LS EF LF Slack APrepare Dock Site-3 d 0 3 3 6 3 BPrepare Hut Site-4 d0 0 4 4 0 CInstall Dock PilingsA6 d3 6 9 12 3 DFoundation for HutB3 d4 4 7 7 0 EBuild DockC4 d9 12 13 16 3 FFrame HutD3 d7 7 10 10 0 GPower to HutD2 d7 14 9 16 7 HSide the HutF2 d10 10 12 12 0 IRoof the HutF3 d10 13 13 16 3 JOrder Canoes and Receive Canoes-2 d0 4 2 6 4 K Paint HutH4 d12 12 16 16 0 LAssemble CanoesJ10 d 2 6 12 16 4 MFinish Landscaping L,I,K,E,G4 d16 16 20 20 0 NOpen for BusinessM2 d 20 20 22 22 0

43 Opermgt 345 Shannon January, 2001 43 Critical Path Tasks Critical Path = All tasks with slack = zero

44 Opermgt 345 Shannon January, 2001 44 Critical Path Tasks Task Description Immediate Predecessor Time ES LS EF LF Slack APrepare Dock Site-3 d 0 3 3 6 3 BPrepare Hut Site-4 d0 0 4 4 0 *** CInstall Dock PilingsA6 d3 6 9 12 3 DFoundation for HutB3 d4 4 7 7 0 *** EBuild DockC4 d9 12 13 16 3 FFrame HutD3 d7 7 10 10 0 *** GPower to HutD2 d7 14 9 16 7 HSide the HutF2 d10 10 12 12 0 *** IRoof the HutF3 d10 13 13 16 3 JOrder Canoes and Receive Canoes-2 d0 4 2 6 4 K Paint HutH4 d12 12 16 16 0 *** LAssemble CanoesJ10 d 2 6 12 16 4 MFinish Landscaping L,I,K,E,G4 d16 16 20 20 0 *** NOpen for BusinessM2 d 20 20 22 22 0 *** Critical Path = B - D - F - H - K - M - N

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