POM Proj Mngmt

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Project Management

Project ManagementOBJECTIVES Definition of Project ManagementWork Breakdown StructureProject Control ChartsStructuring ProjectsCritical Path Scheduling

Project Management DefinedProject is a series of related jobs usually directed toward some major output and requiring a significant period of time to perform Project Management are the management activities of planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project

Activity 1Activity 2Activity 3Activity 4Activity 5Activity 6TimeVertical Axis: Always Activities or JobsHorizontal Axis: Always TimeHorizontal bars used to denote length of time for each activity or job.Gantt Chart

Pure Project: AdvantagesPure ProjectA pure project is where a self-contained team works full-time on the projectThe project manager has full authority over the projectTeam members report to one bossShortened communication linesTeam pride, motivation, and commitment are high

Structuring Projects

Pure Project: DisadvantagesDuplication of resourcesOrganizational goals and policies are ignoredLack of technology transferTeam members have no functional area "home"


Functional ProjectPresidentResearch andDevelopmentEngineeringManufacturingProjectAProjectBProjectCProjectDProjectEProjectFProjectGProjectHProjectIA functional project is housed within a functional divisionExample, Project B is in the functional area of Research and Development.


Functional Project: AdvantagesA team member can work on several projectsTechnical expertise is maintained within the functional areaThe functional area is a home after the project is completedCritical mass of specialized knowledge Structuring Projects

Functional Project: DisadvantagesAspects of the project that are not directly related to the functional area get short-changedMotivation of team members is often weakNeeds of the client are secondary and are responded to slowly Structuring Projects

Matrix Project Organization StructurePresidentResearch andDevelopmentEngineeringManufacturingMarketingManagerProject AManagerProject BManagerProject C

Matrix: AdvantagesEnhanced communications between functional areasPinpointed responsibilityDuplication of resources is minimizedFunctional home for team membersPolicies of the parent organization are followed Structuring Projects

Matrix: DisadvantagesToo many bossesDepends on project managers negotiating skillsPotential for sub-optimization Structuring Projects

ProgramProject 1Project 2Task 1.1Subtask 1.1.1Work Package 1.1.1.1Level1234Task 1.2Subtask 1.1.2Work Package 1.1.1.2A work breakdown structure defines the hierarchy of project tasks, subtasks, and work packagesWork Breakdown Structure

A project is made up of a sequence of activities that form a network representing a project The path taking longest time through this network of activities is called the critical path The critical path provides a wide range of scheduling information useful in managing a projectCritical Path Method (CPM) helps to identify the critical path(s) in the project networksNetwork-Planning Models

A project must have: well-defined jobs or tasks whose completion marks the end of the project; independent jobs or tasks; and tasks that follow a given sequence.Prerequisites for Critical Path Methodology

CPM with a Single Time EstimateUsed when activity times are known with certaintyUsed to determine timing estimates for the project, each activity in the project, and slack time for activities CPM with Three Activity Time EstimatesUsed when activity times are uncertain Used to obtain the same information as the Single Time Estimate model and probability informationTime-Cost ModelsUsed when cost trade-off information is a major consideration in planningUsed to determine the least cost in reducing total project time Types of Critical Path Methods

1. Activity Identification2. Activity Sequencing and Network Construction3. Determine the critical pathFrom the critical path all of the project and activity timing information can be obtainedSteps in the CPM with Single Time Estimate

Consider the following consulting project:ActivityDesignationImmed. Pred.Time (Weeks)Assess customer's needsANone2Write and submit proposalBA1Obtain approvalCB1Develop service vision and goalsDC2Train employeesEC5Quality improvement pilot groupsFD, E 5Write assessment reportGF1Develop a critical path diagram and determine the duration of the critical path and slack times for all activities. CPM with Single Time Estimate

First draw the networkA(2)B(1)C(1)D(2)E(5)F(5)G(1)ANone2BA1CB1DC2EC5FD,E5GF1Act. Imed. Pred. Time

Determine early starts and early finish timesES=9EF=14ES=14EF=15ES=0EF=2ES=2EF=3ES=3EF=4ES=4EF=9ES=4EF=6A(2)B(1)C(1)D(2)E(5)F(5)G(1)Hint: Start with ES=0 and go forward in the network from A to G.

Determine late starts and late finish timesES=9EF=14ES=14EF=15ES=0EF=2ES=2EF=3ES=3EF=4ES=4EF=9ES=4EF=6A(2)B(1)C(1)D(2)E(5)F(5)G(1)LS=14LF=15LS=9LF=14LS=4LF=9LS=7LF=9LS=3LF=4LS=2LF=3LS=0LF=2Hint: Start with LF=15 or the total time of the project and go backward in the network from G to A.

Critical Path & SlackES=9EF=14ES=14EF=15ES=0EF=2ES=2EF=3ES=3EF=4ES=4EF=9ES=4EF=6A(2)B(1)C(1)D(2)E(5)F(5)G(1)LS=14LF=15LS=9LF=14LS=4LF=9LS=7LF=9LS=3LF=4LS=2LF=3LS=0LF=2Duration=15 weeksSlack=(7-4)=(9-6)= 3 Wks

Example 2. CPM with Three Activity Time Estimates

Example 2. Expected Time CalculationsET(A)= 3+4(6)+15 6ET(A)=42/6=7

Ex. 2. Expected Time Calculations

ET(B)=32/6=5.333ET(B)= 2+4(4)+14 6

Ex 2. Expected Time Calculations

ET(C)= 6+4(12)+30 6ET(C)=84/6=14

Example 2. NetworkA(7)B(5.333)C(14)D(5)E(11)F(7)H(4)G(11)I(18)Duration = 54 DaysCan it be finished earlier ?

Example 2.Probability ExerciseWhat is the probability of finishing this project in less than 53 days?

Example 2.Probability ExerciseWhat is the probability of finishing this project in less than 53 days?

TE = 54

tD=53

(Sum the variance along the critical path.)

There is a 43.8% probability that this project will be completed in less than 53 weeks.p(Z < -.156) = .438, or 43.8 %TE = 54

tD=53

Ex 2. Additional Probability ExerciseWhat is the probability that the project duration will exceed 56 weeks?

Time-Cost ModelsBasic Assumption: Relationship between activity completion time and project cost

Time Cost Models: Determine the optimum point in time-cost tradeoffsActivity direct costsProject indirect costsActivity completion times

CPM Assumptions/Limitations Project activities can be identified as entities (There is a clear beginning and ending point for each activity.) Project activity sequence relationships can be specified and networked Project control should focus on the critical pathThe activity times follow the beta distribution, with the variance of the project assumed to equal the sum of the variances along the critical path

End

Sheet1TaskImmediate PredecesorsOptimisticMost LikelyPessimisticTaskImmediate PredecesorsExpected TimeANone3615ANone7BNone2414BNone5.333CA61230CA14DA258DA5EC51117EC11FD3615FD7GB3927GB11HE,F147HE,F4IG,H41928IG,H18TaskOptimisticMost LikelyPessimisticVarianceA36154B2414C6123016D258E511174F3615G3927H1471I4192816

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