Upload
suzan-hubbard
View
226
Download
1
Tags:
Embed Size (px)
Citation preview
OMProject Management
18
COLLIER/EVANS
5
Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part.
LEARNING OUTCOMES
2Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
1 Explain the key issues associated with project management
2 Describe how to apply the Critical Path Method (CPM)
3 Explain how to make time/cost tradeoff decisions in projects
4 Describe how to calculate probabilities for project completion time using PERT
3Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Project
• Temporary and customized initiative that consists of many smaller tasks and activities that must be coordinated and completed • To finish the entire initiative on time and within
budget• Project management: Involves all activities
associated with planning, scheduling, and controlling projects
4Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
The Scope of Project Management
Define• Understand the goal of the project, responsibilities, deliverables, and what
must be accomplished
Plan• Determine the steps needed to execute the project, delegate tasks, and
identify start and completion dates
Organize
• Coordinate the resources to execute the plan cost-effectively
Control
• Collect and assess status reports and changes to baselines
Close
• Compile statistics, reassign people, and a lessons learned list
5Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Principles for Project Managers
• Manage people individually and as a project team
• Reinforce the commitment and excitement of the project team
• Keep everyone informed• Build agreements and consensus among the
team• Empower the project team
6Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Organizational Structure
• Pure project structure with team members assigned exclusively to projects and report to a project manager• Results in duplication of resources
• Pure functional structure charters projects exclusively within functional departments• Ignores cross-functional issues
7Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Organizational Structure
• Matrix structure lends resources to projects while still maintaining functional control• Minimizes duplication of resources and
facilitates communication
8Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5| CH18
Exhibit
18.2 Contributors and Impediments to Project Success
9Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Techniques for Planning, Scheduling, and Controlling Projects
• Factors that affect all project management decisions• Time• Resources• Cost
10Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Techniques for Planning, Scheduling, and Controlling Projects
Project definition
• Identifying the activities that must be completed and the sequence to perform them
Resource planning
• Determining resource needs for each activity
Project scheduling
• Specifying a time schedule for the completion of each activity
Project control
• Establishing controls for determining progress and responding to problems
11Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Project Definition
• Activities: Discrete tasks that consume resources and time
• Immediate predecessors: Activities that must be completed immediately before an activity may start• Precedence relationships ensure that activities
are performed in the proper sequence when they are scheduled
12Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5| CH18
Exhibit
18.3 Project Activities and Precedence Relationships
13Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Project Definition
• Work breakdown structure: Hierarchical tree of end items that will be accomplished by the project team during the project
• Project network: Consists of nodes and arcs, which define the precedence relationships between activities• Nodes: Set of circles or boxes, which represent
activities• Arcs: Set of arrows• This is called an activity-on-node (AON) network
representation
14Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5| CH18
Exhibit
18.4 Project Network for the Software Integration Project
15Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Resource Planning
• Developing time estimates for each activity and allocating resources that will be required
• Cost control is a vital part of project management, and resource planning aids in good budgeting
16Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Project Scheduling With the Critical Path Method
• Critical path: Sequence of activities that takes the longest time and defines the total project completion time• Assumptions
- Project network defines a correct sequence of work in terms of technology and workflow
- Activities are to be independent of one another with clearly defined start and finish dates
17Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Project Scheduling With the Critical Path Method
• Assumptions- Activity time estimates are accurate and
stable- Once an activity is started it continues
uninterrupted until it is completed
18Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Project Scheduling With the Critical Path Method
• Earliest start (ES) and earliest finish (EF) times are computed by moving through the project network in a forward fashion
• Rules for calculating activity times• Rule 1 - EF = ES + T• Rule 2 - ES time for an activity equals the largest
EF time of all immediate predecessors• Rule 3 - LS = LF - T• Rule 4 - LF time for an activity is the smallest LS
of all immediate successors
19Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5| CH18
Exhibit
18.6 Activity-on-Node Format and Definitions
20Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Project Control
• Schedule: Specifies when activities are to be performed• Due to uncertainty of task times, unavoidable
delays, or other problems, projects rarely progress on schedule
• Gantt charts graphically depict the project schedule
• Project management software can assist in allocating limited resources, that are shared among all the activities
21Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5| CH18
Figure
18.1 Gantt Chart Symbols
22Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Time/Cost Trade-Offs
• Crashing a project: Reducing the total time to complete the project to meet a revised due date• Crash time: Shortest possible time the activity
can realistically be completed• Crash cost: Total additional cost associated with
completing an activity in its crash time rather than in its normal time
23Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Time/Cost Trade-Offs
• Crash cost per unit of time = Crash cost - normal cost/normal time -
crash time• Crashing an activity: Reducing its normal
time, possibly up to its limit, the crash time
24Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5| CH18
Exhibit
18.12 Normal Versus Crash Activity Analysis
25Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Uncertainty in Project Management
• Project evaluation and review technique (PERT) is another approach to project management
• PERT was developed to handle uncertainties in activity completion times
• In contrast, CPM assumes that activity times are constant
26Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Uncertainty in Project Management
• PERT estimates are obtained for each activity• Optimistic time - Activity time under ideal
conditions• Most probable time - Most likely activity time
under normal conditions• Pessimistic time - Activity time if breakdowns or
serious delays occur
27Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Uncertainty in Project Management
• Expected Time = (a + 4m + b)/6• Variance = (b – a)2/36• Where,
- a is the optimistic time estimate- m is most likely or probable- b is the pessimistic time estimate
• PERT assumes a beta probability distribution
28Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
Uncertainty in Project Management
• Critical path is found using the expected times in the same fashion as in the critical path method
• PERT allows us to investigate the effects of uncertainty of activity times on the project completion time
SUMMARY
29Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
• Project is temporary and customized initiative that consists of many smaller tasks and activities that must be coordinated and completed • To finish the entire initiative on time and within
budget• Project management which involves all
activities associated with planning, scheduling, and controlling projects
KEY TERMS
30Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
• Activities• Arcs• Crash cost• Crash time• Crashing a project• Crashing an activity• Critical path• Immediate predecessors• Nodes
KEY TERMS
31Copyright ©2016 Cengage Learning. Al l Rights Reserved. May not be scanned, copied or dupl icated, or posted to a publ icly accessible website, in whole or in part. OM5 | CH18
• Project• Project management• Project network• Schedule• Work breakdown structure