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Types of Projects Corporate Mergers, systems conversions, relocations, new business ventures, new products, start—ups… Department Quality improvement, work-flow modifications, new technology/ equipment, automation, new products…
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BUAD306
Chapter 17 – Project Management
Life is a Project
You are already a project manager!Fraternity/sorority projectsSport-related activitiesFamily eventsWork-related projects
Types of Projects
CorporateMergers, systems conversions,
relocations, new business ventures, new products, start—ups…
DepartmentQuality improvement, work-flow
modifications, new technology/ equipment, automation, new products…
Project Plan
The roadmap for your project Designates who does what, when, where Shows sequence of activities and
schedule of when they occur Analyzed regularly (daily) to identify
issues and gauge timeliness of project
Conveying the “why” is critical to the Project manager’s job!
Gantt Charts
Visual display of project tasksSpecific tasksTimeframe to completeSequenceAssignments of Responsibility
Pros/ConsSimple, easy to createDoesn’t show interdependencies
Gantt Chart
WK1 WK2 WK3 WK4 WK5 WK6 WK7 WK8 WK9 WK10
Paint
Develop Floor Plan
Buy Furniture, etc.
Hang fixtures
Install lighting
Arrange Furniture
Display Inventory
Open Store
Gantt Chart
PERT and CPM
PERT – Program Evaluation and Review Technique
CPM – Critical Path Method Together, Project Managers can do the
following: See a graphical display of activities Estimate length of project Identify tasks most critical to completion Determine how long any activity can be
delayed without delaying the project
Network Diagram
1 32
Branch
Network consists of branches & nodes
Node
Predecessor Activity
Network Conventions (AOA)
a
b
c ab
c
a
b
c
d
a
b
c
Dummyactivity
Project Network
1
2
3
4
5 6
Paint
Hang Fixtures
Display Inventory/Goods
Develop Floor Plan
Buy Furniture
Install Lighting
Arrange Furniture
Critical Path
A path is a sequence of connected activities running from start to end node in network
The critical path is the path with the longest duration in the network
Project cannot be completed in less than the time of the critical path
Find the Critical Path
1
2
3
4
5 6
4 weeks
3 weeks
3 weeks
2 weeks9 weeks
5 weeks
2 weeks
Slack
Represents time available for getting a path completed as compared to the critical path
is the “wiggle room” you have on that path
Example 1
A B C
E FD
G
H
Act Time
A 4
B 1
C 6
D 5
E 2
F 4
G 2
H 1
Example 2
A B
C
E F
D
G H
Act Time Crash $
A 2 5000
B 3 2000
C 1 --
D 5 3000
E 6 6000
F 3 8000
G 2 1000
H 1 --
*Max you can crash any activity is one week*For each week crashed, can earn $2500
Expediting Your Project?
Why?Save $Make $Improve customer satisfactionGovernment requirements
Crashing
Use of additional resources, which typically cost money, to shorten the original length of the overall project
Conditions:Activity crashed must be on the critical
path(s)Benefit of crashing must outweigh the
cost of crashing
Should We Crash?
1
2
3
4
5 6
4 weeks
3 weeks
3 weeks
2 weeks9 weeks
5 weeks
2 weeks
$500/week; maximum = 3
$500/week; maximum = 1
Can earn $700 for each week opened early
Should We Crash?
1
2
3
4
5 6
4 weeks
3 weeks
3 weeks
2 weeks9 weeks
5 weeks
2 weeks
$500/week; maximum = 3
What if $100/week; maximum = 1
Can earn $700 for each week opened early
Example 2 – Part 2
A B
C
E F
D
G H
Act Time Crash $
A 2 5000
B 3 2000
C 1 --
D 5 3000
E 6 6000
F 3 8000
G 2 1000
H 1 --
*Max you can crash any activity is one week*For each week crashed, can earn $2500
Example 3
A B C
E
F
D
G
H
Act Time Crash $
A 4 4000
B 3 2000
C 1 --
D 1 3000
E 4 2500
F 5 3000
G 2 1000
H 4 1000
I 3 1000
J 1 --
*Max you can crash any activity is one week*For each week crashed, can earn $2000
I
J
Handout #1:
Given the project diagram below and the table of info:
1)Calculate the critical path and slacks2)If the company wants to shorten the project by 3 weeks and spend no more than $5,000, is it possible? Assume no task can be crashed more than twice. Explain3)Using original data: if activity D is delayed by 5 weeks, is there a delay in the entire project? If so, by how much?
A B
C
D
E F
G
H
Activ TimeCrash
$A 4 $2000
B 2 --
C 11 $2000
D 9 $1500
E 1 --
F 7 $2000
G 4 $500
H 1 --
Handout #2:
Given the project diagram below and the table of info:
1)Calculate the critical path and slacks2)The company has crash costs as shown (costs are listed for 1st week crash and 2nd week. If no cost shown, it cannot be crashed). The company would like to crash the project by 4 weeks. How much will it cost to do this and what tasks will be crashed and by how much?
A
C
B
D
E
F
G
H
Activ TimeCrash $ - 1
Crash $ - 2
A 2 -- --
B 5 $500 $1000
C 3 $200 --
D 2 -- --
E 4 $400 $800
F 8 $1000 $2000
G 2 -- --
H 5 $800 $1500
I 3 $600 --
J 1 -- --
I J
Handout #2: - ALTERNATIVE!!!!!!!!!!
Given the project diagram below and the table of info:
1)Calculate the critical path and slacks2)The company has crash costs as shown (costs are listed for 1st week crash and 2nd week. If no cost shown, it cannot be crashed). The company would like to crash the project by 4 weeks. How much will it cost to do this and what tasks will be crashed and by how much?
A
C
B
D
E
F
G
H
Activ TimeCrash $ - 1
Crash $ - 2
A 2 -- --
B 5 $500 $1000
C 3 $200 --
D 2 -- --
E 4 $400 $800
F 8 $1000 $2000
G 2 -- --
H 5 $1800 $1500
I 3 $600 --
J 1 -- --
I J
Handout #3:
Given the project diagram below and the table of info:
1)Calculate the critical path and slacks2)If task D were to slip by 4 weeks, would there be a delay in the project? If so, by how much?3)Given the original info, the company must complete the project in 20 weeks or else be fined $2000 for each week beyond 20. Is it possible for the company to complete the project and NOT be fined? If so, how would they do so?
A
C
B
D
E
F
G H
Activ TimeCrash $ (max 1)
A 5 $3000
B 3 $1500
C 4 $1500
D 1 --
E 3 $3200
F 6 $2000
G 3 --
H 3 $800
I 1 --
I
Microsoft Project
Powerful business tool Easily entry and organization of
project tasks PERT/CPM flexibility Standard project communications Custom reporting
Risk Management
Types of RisksProject Risks – overall projectTask Risks – individual componentsDecision Risks – strategic
Cost Benefit Analysis
Read Text
Key Project Tasks
Project Designation Project Manager Selection Project Team Designation Project Planning Managing Resources/Activities Issues Management Communication Post-Mortem/Analysis
Project Manager
Ultimately responsible for success/failure of project
Manages: work effort, resources, communications, quality, timetables, and costs
Requires strategic management, “juggling” & prioritization skills, etc.
Can be certified (PMI)
Project Management Issues
Time Considerations Quality Factors Conflicts of Interest Limited Resources Perception within Organization STRESS!