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Project management@ ppt doms

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Project management@ ppt doms

Project management@ ppt doms

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Project management@ ppt doms Project management@ ppt doms Presentation Transcript

  • Chapter 9 Project Management
  • Lecture Outline
    • Project Planning
    • Project Scheduling
    • Project Control
    • CPM/PERT
    • Probabilistic Activity Times
    • Microsoft Project
    • Project Crashing and Time-Cost Trade-off
    Copyright 2011 John Wiley & Sons, Inc. 9-
  • Project Management Process
    • Project
      • unique, one-time operational activity or effort
    9-
  • Project Management Process Copyright 2011 John Wiley & Sons, Inc. 9-
  • Project Management Process 9-
  • Project Elements
    • Objective
    • Scope
    • Contract requirements
    • Schedules
    • Resources
    • Personnel
    • Control
    • Risk and problem analysis
    9-
  • Project Team and Project Manager
    • Project team
      • made up of individuals from various areas and departments within a company
    • Matrix organization
      • a team structure with members from functional areas, depending on skills required
    • Project manager
      • most important member of project team
    9-
  • Scope Statement
    • Scope statement
      • a document that provides an understanding, justification, and expected result of a project
    • Statement of work
      • written description of objectives of a project
    9-
  • Work Breakdown Structure
    • Work breakdown structure (WBS)
      • Breaks a project into components, subcomponents, activities, and tasks
    9-
  • Copyright 2011 John Wiley & Sons, Inc. 9- Work Breakdown Structure for Computer Order Processing System Project
  • Responsibility Assignment Matrix
    • Organizational Breakdown Structure (OBS)
      • a chart that shows which organizational units are responsible for work items
    • Responsibility Assignment Matrix (RAM)
      • shows who is responsible for work in a project
    9-
  • 9- Responsibility Assignment Matrix
  • Global and Diversity Issues in Project Management
    • Global project teams are formed from different genders, cultures, ethnicities, etc.
    • Diversity among team members can add an extra dimension to project planning
    • Cultural research and communication are important elements in the planning process
    9-
  • Project Scheduling
    • Steps
      • Define activities
      • Sequence activities
      • Estimate time
      • Develop schedule
    • Techniques
      • Gantt chart
      • CPM/PERT
    • Software
      • Microsoft Project
    9-
  • Gantt Chart
    • Graph or bar chart
    • Bars represent the time for each task
    • Bars also indicate status of tasks
    • Provides visual display of project schedule
    • Slack
      • amount of time an activity can be delayed without delaying the project
    9-
  • 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
  • Project Control
    • Time management
    • Cost management
    • Performance management
      • Earned Value Analysis – standard procedure to
        • numerically measure a project’s progress
        • forecast its completion date and cost
        • measure schedule and budget variation
    9-
  • Project Control
    • Quality management
    • Communication
    • Enterprise project management
    9-
  • CPM/PERT
    • Critical Path Method (CPM)
      • DuPont & Remington-Rand
      • Deterministic task times
      • Activity-on-node network construction
    • Project Evaluation and Review Technique (PERT)
      • US Navy and Booz, Allen & Hamilton
      • Probabilistic task time estimates
      • Activity-on-arrow network construction
    9-
  • Project Network
    • Activity-on-node (AON)
      • nodes represent activities
      • arrows show precedence relationships
    • Activity-on-arrow (AOA)
      • arrows represent activities
      • nodes are events for points in time
    • Event
      • completion or beginning of an activity in a project
    9- 1 3 2 Branch Node
  • 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
  • Concurrent Activities
    • Dummy
      • two or more activities cannot share same start and end nodes
    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
  • 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
  • Critical Path 9-
    • Critical path
      • Longest path through a network
      • Minimum project completion time
    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
  • 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
  • Node Configuration 9- 1 0 3 3 0 3 Activity duration Activity number Earliest start Latest start Latest finish Earliest finish
  • Activity Scheduling
    • Earliest start time (ES)
      • earliest time an activity can start
      • ES = maximum EF of immediate predecessors
    • Forward pass
      • starts at beginning of CPM/PERT network to determine earliest activity times
    • Earliest finish time (EF)
      • earliest time an activity can finish
      • earliest start time plus activity time
      • EF= ES + t
    9-
  • 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
  • Activity Scheduling
    • Latest start time (LS)
      • Latest time an activity can start without delaying critical path time
      • LS= LF - t
    • Latest finish time (LF)
      • latest time an activity can be completed without delaying critical path time
      • LF = minimum LS of immediate predecessors
    • Backward pass
      • Determines latest activity times by starting at the end of CPM/PERT network and working forward
    9-
  • 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
  • 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
  • Probabilistic Time Estimates
    • Beta distribution
      • probability distribution traditionally used in CPM/PERT
    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
  • 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
  • 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
  • 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
  • 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
  • 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
  • Total Project Variance 9-
    • 2 = б 2 2 + б 5 2 + б 8 2 + б 11 2
    • = 1.00 + 0.11 + 1.78 + 4.00
    • = 6.89 weeks
  • CPM/PERT With OM Tools 9-
  • 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 -  
  • Normal Distribution of Project Time 9-  = t p Time x Z  Probability
  • 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)
  • 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
  • Microsoft Project
    • Popular software package for project management and CPM/PERT analysis
    • Relatively easy to use
    9-
  • Microsoft Project 9- Click on “Tasks” First step; Start Date
  • 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.
  • Microsoft Project 9- Click on “View” then Network Diagram Critical path in red
  • Microsoft Project – Zoom View 9-
  • Microsoft Project – Task Information 9- Enter % completion
  • Microsoft Project – Degree of Completion 9- Activities 1, 2 and 3 100% complete Black bars show degree of completion
  • PERT Analysis with Microsoft Project 9- Click on PERT Entry Sheet to enter 3 time estimates Click on PERT calculator to compute activity duration
  • PERT Analysis with Microsoft Project 9-
  • PERT Analysis with Microsoft Project 9-
  • Project Crashing
    • Crashing
      • reducing project time by expending additional resources
    • Crash time
      • an amount of time an activity is reduced
    • Crash cost
      • cost of reducing activity time
    • Goal
      • reduce project duration at minimum cost
    9-
  • Project Network – Building a House 9- 1 12 2 8 4 12 3 4 5 4 6 4 7 4
  • 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
  • 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
  • 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 $7000 12 4
  • Time-Cost Relationship 9-
    • Crashing costs increase as project duration decreases
    • Indirect costs increase as project duration increases
    • Reduce project length as long as crashing costs are less than indirect costs
  • Time-Cost Tradeoff 9- Cost ($) Project duration Crashing Time Minimum cost = optimal project time Total project cost Indirect cost Direct cost