1. Project Management Chapter 13 OPS 370

2. Projects

3. Project Management Five Phases 1. Initiation 2. Planning 3. Execution 4. Control 5. Closure

4. Project Initiation

5. Project Planning A. Creation of a Number of Planning Documents: – Project Plan Activities, Interdependencies, Time Estimates – Resource Plan What Resources Are Required – Financial Plan Estimated Costs – Quality Plans Quality Targets, Control and Improvement Techniques – Communications Plan Updates to Stakeholders – Risk Plan Assessment of Risks and Uncertainties

6. Project Execution

7. Project Control

8. Project Closure

9. Project Management Tools and Techniques Project Management has a Number of Tools Available: – Precedence Relationship and Time Estimates – Network Diagram – Critical Path Method (CPM) – Cost and Time Tradeoff Analysis – Program Evaluation and Review Technique (PERT)

10. Precedence Relationships and Time Estimates A. Precedence Relationship Analysis: – a. Identification of Relationships and Sequences of Activities Within a Project B. Take Great Care to Estimate the Completion Time for Each Activity. C. Project Schedule, Cost, and Resource Requirements  Depend on the Precedence Relationships and Time Estimates

11. Network Diagrams

12. Cables By Us is bringing a new product on line to be manufactured in their current facility in some existing space. The owners have identified 11 activities and their precedence relationships. Develop an AON for the project.

13. Diagram the Network for Cables By Us

14. Construct a Network Project Information (Different project) – ActivityImmediate Predecessor A-- B-- CA DA EB FC, D, E GC, D, E HF, G IF, G JH, I

15. Construct a Network

16. Critical Path Method

17. Identifying the Critical Path

18. Calculate the Path Completion Times

19. Some Network Definitions

20. Project Network

21. ES, EF Network

22. LS, LF Network LF = 41 LS = 39 LF = 39 LS = 35 LF = 35 LS = 32 LF = 35 LS = 33 LF = 32 LS = 30 LF = 30 LS = 16 LF = 30 LS = 25 LF = 25 LS = 22 LF = 16 LS = 10 LF = 10 LS = 4 LF = 4 LS = 0

23. Completed Network Diagram

24. Calculating Slack ActivityLateEarly FinishFinish A 4 4 B 10 10 C 25 7 D 16 16 E 30 30 F 30 12 G 32 32 H 35 34 I 35 35 J 39 39 K 41 41 Slack [weeks] 0 0 18 0 0 0 1 0 0 0

25. Reducing the Time of a Project (Crashing) ActivityNormal Time (wk) Normal Cost ($) Crash Time Crash Cost ($) Max. weeks of reduction Reduce cost per week A48,000311,00013,000 B630,000535,00015,000 C36,0003 00 D624,000428,00022,000 E1460,0001272,00026,000 F55,00046,50011500 G26,0002 00 H24,0002 00 I3 25,00011,000 J44,00026,40021,200 K25,0002 00

26. Reducing the Time of a Project (crashing) ActivityNormal Time (wk) Normal Cost ($) Crash Time Crash Cost ($) Max. weeks of reduction Reduce cost per week A48,000311,00013,000 B630,000535,00015,000 C36,0003 00 D624,000428,00022,000 E1460,0001272,00026,000 F55,00046,50011500 G26,0002 00 H24,0002 00 I3 25,00011,000 J44,00026,40021,200 K25,0002 00 Crash costs are assumed to be linear …

27. Crashing Example: Suppose the Cables By Us project manager wants to reduce the new product project from 41 to 36 weeks.

28. Crashed Network Diagram

29. PERT A. Program Evaluation and Review Technique: Addresses the Impact of Uncertainties in Activity Time Estimates on the Duration of the Entire Project B. Different Estimates for Activity Times are Developed:

30. PERT

32. Example

34. 1. Longest Path (Using Expected Activity Times) – A. BCDFGK  Length of 36.3 (Variance of 6.67) – B. Standard Deviation = Sqrt(6.67) = 2.58 2. Can Now Answer Questions

35. Example 1. Continued – A. With 95% Probability, What Is the Date the Project Can Be Expected to Be Completed?