Lean Project Management

Project Management Overview

► A temporary endeavor to create a unique product, service, or result.

► Characteristics:► Specific goal or deadline► Complex, interrelated tasks, special skills► Critical to organization► Cross-functional

What is a Project?

► Construction► Software development► New product development► Research► New business

Examples of Projects

Management of Projects

1. Initiating - goal setting, defining the project, project charter team organization

2. Planning – scope statement, estimates, approval

3. Executing – project team, accomplish tasks of the project, manage expectations, test

4. Monitoring and Controlling - monitor resources, costs, quality, and budgets; revise plans and shift resources to meet time and cost demands

5. Closing – contract closure, project closePMBOK

► Gantt chart► Critical Path Method

(CPM)► Program Evaluation and

Review Technique (PERT)► Critical Chain Project

Management (CCPM)► Lean Project Management

Project Management Techniques

► Horizontal bar chart showing time and task► Developed in 1910s by Henri Gantt► Can consider precedence relationships ► Can use multiple or single task time

estimates

Gantt Charts

► Network techniques► Developed in 1950s

► CPM by DuPont for chemical plants (1957)► PERT by Booz, Allen & Hamilton with the U.S.

Navy, for Polaris missile (1958)

► Consider precedence relationships and interdependencies

► Each uses a different estimate of activity times

PERT and CPM

Six Steps PERT & CPM

1. Define the project and prepare the work breakdown structure

2. Develop relationships among the activities - decide which activities must precede and which must follow others

3. Draw the network connecting all of the activities

Six Steps PERT & CPM

4. Assign time and/or cost estimates to each activity

5. Compute the longest time path through the network – this is called the critical path

6. Use the network to help plan, schedule, monitor, and control the project

PERT and CPM: Network Analysis

From the caketalkblog

1. When will the entire project be completed?

2. What are the critical activities or tasks in the project?

3. Which are the noncritical activities?

4. What is the probability the project will be completed by a specific date?

Questions PERT & CPM Can Answer

5. Is the project on schedule, behind schedule, or ahead of schedule?

6. Is the money spent equal to, less than, or greater than the budget?

7. Are there enough resources available to finish the project on time?

8. If the project must be finished in a shorter time, what is the way to accomplish this at least cost?

Questions PERT & CPM Can Answer

Software for Managing Projects

Cost–Time Trade-Offs and Project Crashing

It is not uncommon to face the following situations:

► The project is behind schedule► The completion time has been

moved forward

Shortening the duration of the project is called project crashing

1. Late

2. Slow

3. Expensive

Problems with Traditional PM

1. Moving buffers out of individual tasks

2. Two questions: 1.What task do I work on next?

2.When do I take actions to accelerate the project?

3. Emphasis on speed

Critical Chain Project Management

1. Project System

2. Leading People

3. Charter

4. Right Solution

Lean Project ManagementEight Principles

5. Managing Variation

6. Project Risk Management

7. Project Plan

8. Executing

Lean Project ManagementEight Principles

Project Management Body of Knowledge(PMBOK)