1. Operations Management Project Management
Definition of Project Management
Work Breakdown Structure
Project Control
Organizational Structures
Critical Path Scheduling
CPM with a Single Time
CPM with Three Activity Time Estimates
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2. Project Management Project
series of _______ jobs usually directed toward some ________ output and requiring a ______________ period of time to perform.
Project Management
planning, directing, and controlling __________ (people, equipment, material) to meet the technical, cost, and time ______________ of the project.
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3. Construction of a new building Installing a large computer system
Project Management Examples
Construction of a new building
Installing a large computer system
Introducing a new product
Hosting a business conference
Moving a department to a new building
Earning a graduate degree
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4. Work Breakdown Structure
Program
Project 1
Project 2
Task 1.1
Subtask 1.1.1
Work Package
Level 1 2 3 4
Task 1.2
Subtask 1.1.2
Work Package
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5. Work Breakdown Structure
Allow the elements to be worked on _______________
Make them ________________ in size
Give _____________ to carry out the program
Monitor and ____________ the program
Provide the required _____________
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6. Organizational Structure Pure Project--Advantages
The project manager has ______ authority over the project
Team members report to ______ boss
Shortened communication lines
Team pride, motivation, and commitment are _____
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7. Organizational Structure Pure Project--Disadvantages
Duplication of resources
Organizational goals and policies are ___________
______ of technology transfer
Team members have no functional area ”_______ "
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8. Functional Project President Research and Development Engineering
Manufacturing
Project A B C
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9. Organizational Structure Functional Project--Advantages
A team member can work on ___________ projects
Technical expertise is _________________ within the functional area
The functional area is a ______ after the project is completed
Critical mass of specialized knowledge
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10. Organizational Structure Functional Project--Disadvantages
Aspects of the project that are not directly related to the functional area get ____________________
Motivation of team members is often __________ .
Needs of the client are __________________ and are responded to slowly
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11. Matrix Project President Research and Development Engineering
Manufacturing
Marketing
Manager
Project A
Project B
Project C
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12. Organizational Structure Matrix--Advantages
Enhanced inter-functional communications
Pinpointed responsibility
Duplication of resources is _________________
Functional ________ for team members
Policies of the parent organization are ______________
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13. Organizational Structure Matrix--Disadvantages
_______ _________
Depends on PM’s ___________________ skills
Potential for sub-optimization
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14. Program evaluation and review technique (PERT)
Project Management Network Planning Methods
Program evaluation and review technique (PERT)
network technique typically used to schedule R & D projects.
developed by U.S. Navy Special Projects Office (1958) for the Polaris missile project
uses ______________ activity time estimates to control time aspects.
usually illustrated with __________________ (AOA) technique.
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15. Critical Path Method (CPM)
Project Management Network Planning Methods
Critical Path Method (CPM)
Network technique typically used to schedule maintenance shutdowns of chemical processing plants
J. E. Kelly of Remington-Rand and M. R. Walker of Du Pont (1957)
uses _________________ time estimates to control both time and costs.
usually illustrated with _________________ (AON) technique
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16. Precedence Relationship
Project Management Network Analysis Terms
Activity
the ______________ unit of effort that the project manager can schedule and control
Precedence Relationship
a sequencing __________ between related activities.
it states that one activity cannot start until a preceding activity has been ___________.
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17. a network diagram representation of sequencing relationships
Project Management Network Analysis Terms
Precedence Diagram
a network diagram representation of sequencing relationships
Critical Path
the sequence of activities that determines the __________ possible time for completing a project
Crashing
analyzing time versus cost ___________ for speeding up individual activities in the project
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18. immediate predecessors time estimates Diagram the network
Project Management Steps in Network Planning
Describe the project
activities
immediate predecessors
time estimates
Diagram the network
Estimate the time of completion
Analyze the model
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19. Nodes (circles) and arcs (arrows) Activity on Arc
Network Planning Diagram the Network
Nodes (circles) and arcs (arrows)
Activity on Arc
arcs are _________ and nodes are _______
event oriented - any point at which one or more activities are to be completed and one or more other activities are to begin
event consumers no time or resources
Activity on Node
nodes are ____________ and arcs show _____________ relationships
activity oriented
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20. Activity Relationship:
Network Planning Diagram the Network
Activity Relationship:
S precedes T, which precedes U.
AOA
AON 1 2 S 3 T 4 U
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21. Activity Relationship:
Network Planning Diagram the Network
Activity Relationship:
S and T must be completed before U can be started.
AOA
AON 1 S S U T 3 4 U 2 T
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22. Activity Relationship:
Network Planning Diagram the Network
Activity Relationship:
T and U cannot begin until S has been completed.
AOA
AON 3 T T S 1 2 S U 4 U
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23. ES = Max [EF times of all immediately preceding activities]
Network Planning Estimate Completion Time
Earliest finish time
the earliest start time _____ the time, t, needed to complete the activity
EF = ES + t
Earliest start time
the earliest possible time an activity can begin without ___________ any precedence restrictions
ES = Max [EF times of all immediately preceding activities]
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24. the latest finish time ________ the time, t, required for the activity
Network Planning Estimate Completion Time
Latest start time
the latest finish time ________ the time, t, required for the activity
LS = LF - t
Latest finish time
the latest time an activity an activity can end without ___________ the overall completion of the project.
LF = Min [LS times for all immediately following activities]
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25. Network Planning Estimate Completion Time
Forward pass
determining the ES and EF dates for each activity, and the _____________ possible completion date for the project.
Backward pass
determining the LS and LF dates for each activity to ensure that the project ________ the earliest completion date set by the forward pass
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26. Activity slack (SLACK)
Network Planning Estimate Completion Time
Activity slack (SLACK)
the maximum time the start of an activity can be ___________ without delaying the entire project
the critical path is also the sequence of activities with _______ slack.
SLACK = LS - ES = LF - EF
Critical Path
the sequence of activities between the start and finish of a project that takes the __________ time to complete
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27. Consider the following pipeline project:
Network Planning Diagram the Network
Consider the following pipeline project:
Develop a critical path diagram and determine the
duration of the critical path and slack times for all
activities ....
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28. Keep the following points in mind when constructing a network diagram:
Network Planning Diagram the Network
Keep the following points in mind when constructing a network diagram:
Always have _________ and _________ nodes.
Avoid __________ paths to keep the diagram simple
Use only one arrow to directly connect any two nodes
Put activities with no predecessors at the left and point the arrows from ______ to right.
Be prepared to _________ the diagram several times before you create a correct and uncluttered diagram
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29. Start Finish Network Planning Diagram the Network A t ES EF LS LF
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30. Critical Path: ___________ Completion Time: _______
Network Planning Diagram the Network
ES, EF, LS, LF, and SLACKs:
Critical Path: ___________
Completion Time: _______
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31. Project Management
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32. Project Management
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33. Completion time with a set amount of risk
Project Management Probabilistic Time Estimates
What is the probability that the project will be completed by the deadline?
Address _________________ cause by labor shortages, weather, supply delays, or accidents.
Completion time with a set amount of risk
Use ________________ time estimates to incorporate uncertainty into the network model.
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34. Activity times are stated in terms of three reasonable time estimates:
Project Management Probabilistic Time Estimates
Activity times are stated in terms of three reasonable time estimates:
_________________ time (a): - shortest time an activity can be completed
_________________ time (m): - best estimate of average time
_________________ time (b): - longest time an activity can take
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35. Activity’s mean time (te) and variance (2) with beta distribution
Project Management Probabilistic Time Estimates
Activity’s mean time (te) and variance (2) with beta distribution
Mean m a b
Time
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36. Probabilistic Time Estimates Calculating Time Statistics
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37. If the random variable xi has: Mean = i Variance = i2
Probabilistic Time Estimates Central Limit Theorem Corollary
If the random variable xi has: Mean = i Variance = i2
the total T of n independent observations of xi is
T = x1 + x xn , and is NORMALLY DISTRIBUTED with _______ of T = 1 +  n __________ of T = 12 +  n2
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38. Probabilistic Time Estimates Path B - D - E Time Estimate
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39. Exercise # 1a
What is the probability that the project duration  25 days?
p(t < D) t
TE = 22
D=____
P ( z  _____ ) = ________ , or %
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40. Exercise # 1b
What is the probability that the project duration > 25 days?
p(t < D) t
TE = 22
D=25
P ( z > 1.05) = _____ - _________, or %
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41. Exercise # 2
What is the probability of finishing this project in  21 days?
p(t < D) t
TE = 22
D= ____
P( z  ) = ___ - ________ = , or 36.3 %
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42. Probability of completion in 25 days or less
Probabilistic Time Estimates All Path Time Estimates
Probability of completion in 25 days or less
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43. Probability of Completing = Project in 25 days or less
Probabilistic Time Estimates Completion in 25 Days or Less
Probability of Completing = Project in 25 days or less
Probability All Paths < 25 days
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44. P( C-E  25 days) = ________ P( B-D-E  25 days) = ________
Project Management Probabilistic Time Estimates
P( C-E  25 days) = ________ P( B-D-E  25 days) = ________
The probability of non-critical path C E being completed in 25 days or less is ____________ the probability of critical path B D E being completed in 25 days.
It is possible for the non-critical path to have _____ likelihood of being completed than the critical path.
What does this mean?....
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45. Network simulation is not worth the additional expense
Project Management Probabilistic Time Estimates
Projects will probably be ______ relative to the deterministic critical path
Network simulation is not worth the additional expense
Use deterministic time estimates
Look at path _______________ .
Intensively manage critical and non-critical activities that are _________ to critical times
Schonberger, R.J., “Why Projects are Always Late: A Rationale Based on Manual Simulation of a PERT/CPM Network.” Interfaces, Oct
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46. Activities have a clear beginning and end __________ ______ _______
Project Management Cautions on PERT and CPM
Activities have a clear beginning and end
__________ ______ _______
Sequential relationships can be specified and networked
ordering may be ________________ (contingencies)
Focus on the critical path
not always true - “ _______ ” critical path
Beta distribution
10% error; 5% variance; arriving at “ _____ ” activity time
Can cost % of total project cost
benefit from ___________ scheduling and ___________ project time
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47. Importance of ________________
Project Management Conclusions
Importance of ________________
Clearly identifying project ____________________
Simple and timely progress _____________ system
good ___________-management practices
Why do projects _______ ?
_________________ Planning
________ of top management commitment
_____________ of talented project manager
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48. Project Management
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