Project management@ ppt doms

1,999 views
1,793 views

Published on

Project management@ ppt doms

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,999
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
114
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Project management@ ppt doms

  1. 1. Chapter 9 Project Management
  2. 2. Lecture Outline <ul><li>Project Planning </li></ul><ul><li>Project Scheduling </li></ul><ul><li>Project Control </li></ul><ul><li>CPM/PERT </li></ul><ul><li>Probabilistic Activity Times </li></ul><ul><li>Microsoft Project </li></ul><ul><li>Project Crashing and Time-Cost Trade-off </li></ul>Copyright 2011 John Wiley & Sons, Inc. 9-
  3. 3. Project Management Process <ul><li>Project </li></ul><ul><ul><li>unique, one-time operational activity or effort </li></ul></ul>9-
  4. 4. Project Management Process Copyright 2011 John Wiley & Sons, Inc. 9-
  5. 5. Project Management Process 9-
  6. 6. Project Elements <ul><li>Objective </li></ul><ul><li>Scope </li></ul><ul><li>Contract requirements </li></ul><ul><li>Schedules </li></ul><ul><li>Resources </li></ul><ul><li>Personnel </li></ul><ul><li>Control </li></ul><ul><li>Risk and problem analysis </li></ul>9-
  7. 7. Project Team and Project Manager <ul><li>Project team </li></ul><ul><ul><li>made up of individuals from various areas and departments within a company </li></ul></ul><ul><li>Matrix organization </li></ul><ul><ul><li>a team structure with members from functional areas, depending on skills required </li></ul></ul><ul><li>Project manager </li></ul><ul><ul><li>most important member of project team </li></ul></ul>9-
  8. 8. Scope Statement <ul><li>Scope statement </li></ul><ul><ul><li>a document that provides an understanding, justification, and expected result of a project </li></ul></ul><ul><li>Statement of work </li></ul><ul><ul><li>written description of objectives of a project </li></ul></ul>9-
  9. 9. Work Breakdown Structure <ul><li>Work breakdown structure (WBS) </li></ul><ul><ul><li>Breaks a project into components, subcomponents, activities, and tasks </li></ul></ul>9-
  10. 10. Copyright 2011 John Wiley & Sons, Inc. 9- Work Breakdown Structure for Computer Order Processing System Project
  11. 11. Responsibility Assignment Matrix <ul><li>Organizational Breakdown Structure (OBS) </li></ul><ul><ul><li>a chart that shows which organizational units are responsible for work items </li></ul></ul><ul><li>Responsibility Assignment Matrix (RAM) </li></ul><ul><ul><li>shows who is responsible for work in a project </li></ul></ul>9-
  12. 12. 9- Responsibility Assignment Matrix
  13. 13. Global and Diversity Issues in Project Management <ul><li>Global project teams are formed from different genders, cultures, ethnicities, etc. </li></ul><ul><li>Diversity among team members can add an extra dimension to project planning </li></ul><ul><li>Cultural research and communication are important elements in the planning process </li></ul>9-
  14. 14. Project Scheduling <ul><li>Steps </li></ul><ul><ul><li>Define activities </li></ul></ul><ul><ul><li>Sequence activities </li></ul></ul><ul><ul><li>Estimate time </li></ul></ul><ul><ul><li>Develop schedule </li></ul></ul><ul><li>Techniques </li></ul><ul><ul><li>Gantt chart </li></ul></ul><ul><ul><li>CPM/PERT </li></ul></ul><ul><li>Software </li></ul><ul><ul><li>Microsoft Project </li></ul></ul>9-
  15. 15. Gantt Chart <ul><li>Graph or bar chart </li></ul><ul><li>Bars represent the time for each task </li></ul><ul><li>Bars also indicate status of tasks </li></ul><ul><li>Provides visual display of project schedule </li></ul><ul><li>Slack </li></ul><ul><ul><li>amount of time an activity can be delayed without delaying the project </li></ul></ul>9-
  16. 16. Example of Gantt Chart 9- | | | | | Activity Design house and obtain financing Lay foundation Order and receive materials Build house Select paint Select carpet Finish work 0 2 4 6 8 10 Month Month 1 3 5 7 9
  17. 17. Project Control <ul><li>Time management </li></ul><ul><li>Cost management </li></ul><ul><li>Performance management </li></ul><ul><ul><li>Earned Value Analysis – standard procedure to </li></ul></ul><ul><ul><ul><li>numerically measure a project’s progress </li></ul></ul></ul><ul><ul><ul><li>forecast its completion date and cost </li></ul></ul></ul><ul><ul><ul><li>measure schedule and budget variation </li></ul></ul></ul>9-
  18. 18. Project Control <ul><li>Quality management </li></ul><ul><li>Communication </li></ul><ul><li>Enterprise project management </li></ul>9-
  19. 19. CPM/PERT <ul><li>Critical Path Method (CPM) </li></ul><ul><ul><li>DuPont & Remington-Rand </li></ul></ul><ul><ul><li>Deterministic task times </li></ul></ul><ul><ul><li>Activity-on-node network construction </li></ul></ul><ul><li>Project Evaluation and Review Technique (PERT) </li></ul><ul><ul><li>US Navy and Booz, Allen & Hamilton </li></ul></ul><ul><ul><li>Probabilistic task time estimates </li></ul></ul><ul><ul><li>Activity-on-arrow network construction </li></ul></ul>9-
  20. 20. Project Network <ul><li>Activity-on-node (AON) </li></ul><ul><ul><li>nodes represent activities </li></ul></ul><ul><ul><li>arrows show precedence relationships </li></ul></ul><ul><li>Activity-on-arrow (AOA) </li></ul><ul><ul><li>arrows represent activities </li></ul></ul><ul><ul><li>nodes are events for points in time </li></ul></ul><ul><li>Event </li></ul><ul><ul><li>completion or beginning of an activity in a project </li></ul></ul>9- 1 3 2 Branch Node
  21. 21. AOA Project Network for a House 9- 3 2 0 1 3 1 1 1 1 2 4 6 7 3 5 Lay foundation Design house and obtain financing Order and receive materials Dummy Finish work Select carpet Select paint Build house
  22. 22. Concurrent Activities <ul><li>Dummy </li></ul><ul><ul><li>two or more activities cannot share same start and end nodes </li></ul></ul>9- 2 3 Lay foundation Order material (a) Incorrect precedence relationship (b) Correct precedence relationship 3 4 2 Dummy Lay foundation Order material 1 2 0
  23. 23. AON Network for House Building Project 9- 1 3 2 2 4 3 3 1 5 1 6 1 7 1 Start Design house and obtain financing Order &receive materials Select paint Select carpet Lay foundation Build house Finish work Activity Number Activity Time
  24. 24. Critical Path 9- <ul><li>Critical path </li></ul><ul><ul><li>Longest path through a network </li></ul></ul><ul><ul><li>Minimum project completion time </li></ul></ul>A: 1-2-4-7 3 + 2 + 3 + 1 = 9 months B: 1-2-5-6-7 3 + 2 + 1 + 1 + 1 = 8 months C: 1-3-4-7 3 + 1 + 3 + 1 = 8 months D: 1-3-5-6-7 3 + 1 + 1 + 1 + 1 = 7 months 1 3 2 2 4 3 3 1 5 1 6 1 7 1 Start
  25. 25. Activity Start Times 9- 1 3 2 2 4 3 3 1 5 1 6 1 7 1 Start Start at 3 months Start at 6 months Start at 5 months Finish at 9 months Finish
  26. 26. Node Configuration 9- 1 0 3 3 0 3 Activity duration Activity number Earliest start Latest start Latest finish Earliest finish
  27. 27. Activity Scheduling <ul><li>Earliest start time (ES) </li></ul><ul><ul><li>earliest time an activity can start </li></ul></ul><ul><ul><li>ES = maximum EF of immediate predecessors </li></ul></ul><ul><li>Forward pass </li></ul><ul><ul><li>starts at beginning of CPM/PERT network to determine earliest activity times </li></ul></ul><ul><li>Earliest finish time (EF) </li></ul><ul><ul><li>earliest time an activity can finish </li></ul></ul><ul><ul><li>earliest start time plus activity time </li></ul></ul><ul><ul><li>EF= ES + t </li></ul></ul>9-
  28. 28. Earliest Activity Start and Finish Times 9- 1 0 3 1 2 3 5 2 3 3 4 1 5 5 6 1 4 5 8 3 6 6 7 1 7 8 9 1 Start Design house and obtain financing Select paint Lay foundation Select carpet Build house Finish work Order and receive materials
  29. 29. Activity Scheduling <ul><li>Latest start time (LS) </li></ul><ul><ul><li>Latest time an activity can start without delaying critical path time </li></ul></ul><ul><ul><li>LS= LF - t </li></ul></ul><ul><li>Latest finish time (LF) </li></ul><ul><ul><li>latest time an activity can be completed without delaying critical path time </li></ul></ul><ul><ul><li>LF = minimum LS of immediate predecessors </li></ul></ul><ul><li>Backward pass </li></ul><ul><ul><li>Determines latest activity times by starting at the end of CPM/PERT network and working forward </li></ul></ul>9-
  30. 30. Latest Activity Start and Finish Times 9- 0 3 1 0 3 1 3 5 2 3 5 2 4 5 3 3 4 1 6 7 5 5 6 1 5 8 4 5 8 3 6 7 6 6 7 1 8 9 7 8 9 1 Start Design house and obtain financing Select paint Lay foundation Select carpet Build house Finish work Order and receive materials
  31. 31. Activity Slack 9- * Critical Path 0 9 9 8 8 *7 1 7 8 6 7 6 1 6 7 5 6 5 0 8 8 5 5 *4 1 4 5 3 4 3 0 5 5 3 3 *2 0 3 3 0 0 *1 Slack S EF LF ES LS Activity
  32. 32. Probabilistic Time Estimates <ul><li>Beta distribution </li></ul><ul><ul><li>probability distribution traditionally used in CPM/PERT </li></ul></ul>9- a = optimistic estimate m = most likely time estimate b = pessimistic time estimate where Mean (expected time): t = a + 4 m + b 6 Variance:   2 = 2 b - a 6
  33. 33. Examples of Beta Distributions 9- P (time) P (time) P (time) Time a m t b a m t b m = t Time Time b a
  34. 34. Project with Probabilistic Time Estimates 9- Finish 2 3,6,9 3 1,3,5 1 6,8,10 5 2,3,4 6 3,4,5 4 2,4,12 7 2,2,2 8 3,7,11 9 2,4,6 10 1,4,7 11 1,10,13 Equipment installation System development Position recruiting Equipment testing and modification Manual testing Job Training Orientation System training System testing Final debugging System changeover Start
  35. 35. Activity Time Estimates 9- 1 6 8 10 8 0.44 2 3 6 9 6 1.00 3 1 3 5 3 0.44 4 2 4 12 5 2.78 5 2 3 4 3 0.11 6 3 4 5 4 0.11 7 2 2 2 2 0.00 8 3 7 11 7 1.78 9 2 4 6 4 0.44 10 1 4 7 4 1.00 11 1 10 13 9 4.00 TIME ESTIMATES (WKS) MEAN TIME VARIANCE ACTIVITY a m b t б 2
  36. 36. Activity Early, Late Times & Slack 9- ACTIVITY t б  ES EF LS LF S 1 8 0.44 0 8 1 9 1 2 6 1.00 0 6 0 6 0 3 3 0.44 0 3 2 5 2 4 5 2.78 8 13 16 21 8 5 3 0.11 6 9 6 9 0 6 4 0.11 3 7 5 9 2 7 2 0.00 3 5 14 16 11 8 7 1.78 9 16 9 16 0 9 4 0.44 9 13 12 16 3 10 4 1.00 13 17 21 25 8 11 9 4.00 16 25 16 25 0
  37. 37. Earliest, Latest, and Slack 9- 1 0 8 8 1 9 3 0 3 3 2 5 4 8 13 5 16 21 6 3 7 4 5 9 7 3 5 2 14 16 9 9 13 4 12 16 10 13 17 1 0 3 2 0 6 6 0 6 5 6 9 3 6 9 8 9 16 7 9 16 11 16 25 9 16 25 Critical Path 2-5-8-11 Finish Start
  38. 38. Total Project Variance 9- <ul><li>2 = б 2 2 + б 5 2 + б 8 2 + б 11 2 </li></ul><ul><li>= 1.00 + 0.11 + 1.78 + 4.00 </li></ul><ul><li>= 6.89 weeks </li></ul>
  39. 39. CPM/PERT With OM Tools 9-
  40. 40. Probabilistic Network Analysis 9- Determine probability that project is completed within specified time where  = t p = project mean time  = project standard deviation x = proposed project time Z = number of standard deviations that x is from the mean Z = x -  
  41. 41. Normal Distribution of Project Time 9-  = t p Time x Z  Probability
  42. 42. Southern Textile 9- What is probability that project is completed within 30 weeks?  2 = 6.89 weeks  = 6.89  = 2.62 weeks Z = = = 1.91 x -   30 - 25 2.62 From Table A.1, (appendix A) a Z score of 1.91 corresponds to a probability of 0.4719. Thus P (30) = 0.4719 + 0.5000 = 0.9719  = 25 Time (weeks) x = 30 P ( x  30 weeks)
  43. 43. Southern Textile 9- What is probability that project is completed within 22 weeks?  2 = 6.89 weeks  = 6.89  = 2.62 weeks Z = = = -1.14 x -   22 - 25 2.62 From Table A.1, (appendix A) a Z score of 1.14 corresponds to a probability of 0.3729. Thus P (22) = 0.5000 - 0.3729 = 0.1271  = 25 Time (weeks) x = 22 P ( x  22 weeks) = 0.1271 0.3729
  44. 44. Microsoft Project <ul><li>Popular software package for project management and CPM/PERT analysis </li></ul><ul><li>Relatively easy to use </li></ul>9-
  45. 45. Microsoft Project 9- Click on “Tasks” First step; Start Date
  46. 46. Microsoft Project 9- Precedence relationships Click on “Format” then ”Timescale” to scale Gantt chart. Gantt chart; click on “View” to activate Create precedence relationships; click on predecessor activity, then holding “Ctrl” Key, click on successor activity.
  47. 47. Microsoft Project 9- Click on “View” then Network Diagram Critical path in red
  48. 48. Microsoft Project – Zoom View 9-
  49. 49. Microsoft Project – Task Information 9- Enter % completion
  50. 50. Microsoft Project – Degree of Completion 9- Activities 1, 2 and 3 100% complete Black bars show degree of completion
  51. 51. PERT Analysis with Microsoft Project 9- Click on PERT Entry Sheet to enter 3 time estimates Click on PERT calculator to compute activity duration
  52. 52. PERT Analysis with Microsoft Project 9-
  53. 53. PERT Analysis with Microsoft Project 9-
  54. 54. Project Crashing <ul><li>Crashing </li></ul><ul><ul><li>reducing project time by expending additional resources </li></ul></ul><ul><li>Crash time </li></ul><ul><ul><li>an amount of time an activity is reduced </li></ul></ul><ul><li>Crash cost </li></ul><ul><ul><li>cost of reducing activity time </li></ul></ul><ul><li>Goal </li></ul><ul><ul><li>reduce project duration at minimum cost </li></ul></ul>9-
  55. 55. Project Network – Building a House 9- 1 12 2 8 4 12 3 4 5 4 6 4 7 4
  56. 56. Normal Time and Cost vs. Crash Time and Cost Copyright 2011 John Wiley & Sons, Inc. 9- $7,000 – $6,000 – $5,000 – $4,000 – $3,000 – $2,000 – $1,000 – – | | | | | | | 0 2 4 6 8 10 12 14 Weeks Normal activity Normal time Normal cost Crash time Crashed activity Crash cost Slope = crash cost per week
  57. 57. Project Crashing 9- TOTAL NORMAL CRASH ALLOWABLE CRASH TIME TIME NORMAL CRASH CRASH TIME COST PER ACTIVITY (WEEKS) (WEEKS) COST COST (WEEKS) WEEK 1 12 7 $3,000 $5,000 5 $400 2 8 5 2,000 3,500 3 500 3 4 3 4,000 7,000 1 3,000 4 12 9 50,000 71,000 3 7,000 5 4 1 500 1,100 3 200 6 4 1 500 1,100 3 200 7 4 3 15,000 22,000 1 7,000 $75,000 $110,700
  58. 58. 9- Project Duration: 36 weeks FROM … Project Duration: 31 weeks Additional Cost: $2000 TO… 1 12 2 8 3 4 5 4 6 4 7 4 $400 $500 $3000 $7000 $200 $200 $7000 12 4 1 7 2 8 3 4 5 4 6 4 7 4 $400 $500 $3000 $7000 $200 $200 $7000 12 4
  59. 59. Time-Cost Relationship 9- <ul><li>Crashing costs increase as project duration decreases </li></ul><ul><li>Indirect costs increase as project duration increases </li></ul><ul><li>Reduce project length as long as crashing costs are less than indirect costs </li></ul>
  60. 60. Time-Cost Tradeoff 9- Cost ($) Project duration Crashing Time Minimum cost = optimal project time Total project cost Indirect cost Direct cost

×