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Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
Project management
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Project management

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Operations and execution.

Operations and execution.

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  • 1. Project Management Direxions Marketing Solutions Pvt Ltd The Gateway Hotel Ambad Nashik 29 April 2010
  • 2. Agenda
    • Project elements
    • Scheduling techniques
    • Theory
    • Collaborative analyses
    • Case study
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 3. Project
    • “ A project is a series of activities directed to accomplishment of a desired objective.”
    Plan your work first…..then work your plan Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 4. Some Examples of a Project
    • Construction of retail development
      • 25 retails outlets and a supermarket in a complex at the centre of a large town
      • Coordination with various contractors to ensure the project is completed to specification, within budget and on time
    • Trial of a new drug on behalf a pharmaceutical company
      • Design the experiments and ensure adherence to proper scientific and legal procedures for independent statistical analyses of results
    • Introduction of a multimedia kit for teachers’ training
      • Purchase and/or development of appropriate resource
      • Ensure acceptance of the kit by lecturers and students of the college
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 5. Definition of a Project
    • Project is not defined by the type of outcome it is set up to achieve
    • A project is a temporary endeavour involving a connected sequence of activities and a range of resources, which is designed to achieve
      • a specific and unique quality/quantity outcome (specification)
      • which operates within a certain cost constraints (budget)
      • for delivery on time (timeline)
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 6. Triple Constraints Copyright © 2010 Direxions Marketing Solutions Pvt Ltd R Resources Time Specification Risk?
  • 7.
    • A unique, one-time operational activity of effort
    • Requires the completion of a large number of interrelated activities
    • Established to achieve specific objective
    • Resources, such as time and/or money, are limited
    • Typically has its own management structure
    • Need leadership
    Characteristics of a Project Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 8. What is Project Management
    • The application of a collection of tools and techniques to direct the use of diverse resources towards the accomplishment of a unique, complex, one time task within time, cost and quality constraints.
    • Its origins lie in World War II, when the military authorities used the techniques of operational research to plan the optimum use of resources.
    • One of these techniques was the use of networks to represent a system of related activities
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 9. Project Management Process
    • Project planning
    • Project scheduling
    • Project control
    • Project team
      • Made up of individuals from various areas and departments within an organisation
    • Matrix organisation
      • A team structure with members from functional areas, depending on skills required
    • Project Manager
      • The most important member of project team
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 10. Project Management Process
    • 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
    • Organisational breakdown structure
      • a chart that shows which organisational units are responsible for work items
    • Responsibility Assignment Matrix
      • Shows who is responsible for work in a project
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 11. Why Projects Succeed?
    • Project sponsorship at executive level
    • Good project charter
    • The right mix of team players
    • Good decision making structure
    • Good communication
    • Team members are working toward common goals
    • Strong project management
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 12. Why Projects Fail?
    • Failure to align project with organisational objectives
    • Poor scope
    • Unrealistic expectations
    • Lack of executive sponsorship
    • Inability to move beyond individual and personality conflicts
    • Politics
    • Lack of project management
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 13. Why This Matters to You?
    • Most of us get to where we are by some technical or specific set of skills
    • If you want to get things done, you need a good blend of
      • Skill sets
      • Business knowledge
      • People management
      • AND Project Management
    • Those are the people that make things happen
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 14. Project Manager’s Role
    • Leadership
    • Organisation
    • Communication
    • Finance
    • Technology savvy
    • Team building
    • Praising
    • Punishing
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 15. Project Planning & Scheduling Techniques and Analyses
  • 16. Project Planning
    • Resource Availability and/or Limits
      • Due date, late penalties, early completion incentives
      • Budget
    • Activity Information
      • Identify all required activities
      • Estimate the resources required (time) to complete each activity
      • Immediate predecessor(s) to each activity needed to create interrelationships
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 17. Work Breakdown Structure
    • A method of breaking down a project into individual elements (components, subcomponents, activities and tasks) in a hierarchical structure which can be scheduled and cost
    • It defines tasks that can be completed independently of other tasks, facilitating resource allocation, assignment of responsibilities and measurement and control of the project
    • It is foundation of project planning
    • It is developed before identification of dependencies and estimation of activity durations
    • It can be used to identify the tasks in the CPM and PERT
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 18. DM Process Client Brief Take brief, evaluate jobs, present estimates CS Client Creative Brief, Project Briefs for Mailing, Data Center Print Production etc. Approvals and sign-offs on budgets and timelines CS CS Develop Creative Ideas, Copy, Artwork Build Mailer Database Data Cleanup Creative Options, feedback Finalisation of Creative approach Develop Artwork, Creative Creative, CS Studio DC Client feedback, Finalisation of Creative, Dummy and Estimate CS, Client Client Approval Printing of DM elements Mailer assembly Franking, mailing/ Courier Delivery status, reports Client Reports, Feedback Print Vendor Fulfilment Fulfilment CS Personalisation coding DC Yes No Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 19. WBS Diagram Copyright © 2010 Direxions Marketing Solutions Pvt Ltd Client Client Servicing Creative Studio Data Centre Production Fulfilment Direct Mailer Campaign Brief Approval Take brief, evaluate jobs, present estimates Approvals and Sign-offs on budgets and timelines Creative Brief, Project Briefs for Mailing, Data Center Print Production etc. Develop Artwork, Develop Creative Ideas, Copy, Artwork Feedback Creative feedback Client feedback, Finalisation of Creative, Dummy and Estimate Client report Build Mailer Database Data Cleanup Personalisation coding Coordination for Printing of DM elements Outsource manage Mailer assembly Outsource manage Franking Mailing/ Courier Delivery status Manage RTO Reports
  • 20. Objective of Project Scheduling
      • Completing the project within timeline by determining the earliest start and finish of each activity
    • Investigating the results of possible delays in activity’s completion time
    • Calculating the likelihood a project will be completed within a certain time period
    • Finding the minimum cost schedule needed to complete the project by a certain date
    • Progress control
    • Optimise resource allocation over the duration of the project
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 21. Project Scheduling & Control Techniques
    • Gantt Chart
    • Critical Path Method (CPM)
    • Project Evaluation and Review Technique (PERT)
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 22. Gantt Chart
    • A Gantt Chart is a graphical presentation that displays activities as follows:
      • Time is measured on the horizontal axis
      • A horizontal bar is drawn proportionately to an activity’s expected completion time.
      • Each activity is listed on the vertical axis.
    • Gantt charts are used as a tool to monitor and control the project progress.
    • In an earliest time Gantt chart each bar begins and ends at the earliest start  finish the activity can take place
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 23. Gantt Chart (DM Campaign)
    • Advantages
    • Provide an easy graphical representation of when activities (might) take place
    • Limitations
    • Do not clearly indicate details regarding the progress of activities
    • Do not give a clear indication of interrelation ship between activities
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd Sl No Activity Wk1 Wk2 Wk3 Wk4 Wk5 1 Client brief to Direxions 2 Direxions revert with design options 3 Client approval on design, cost and timeline 4 Client approval on artwork for print production 5 Print production 6 Data clean-up, merge, purge and de-dupe 7 Member wise stuffing and labelling 8 Mailing, couriering and ePoD
  • 24. Critical Path Method
    • A mathematically based algorithm for scheduling a set of project activities
      • List of all activities to complete a project
      • Time duration for completion of each activity
      • Dependencies between activities
    • Developed by DuPont Corp in 1957 for plant construction
      • Trade off between cost and timeline
    • Typically used in production management
      • Jobs of repetitive nature where
      • Activity time estimates can be predicted with considerable certainty due to the existence of past experience
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 25. Project Evaluation & Review Techniques
    • A model for project management designed to analyse and represent the tasks involved in completing a project
      • Time needed to complete each task and minimum time needed to complete the total project
      • Numbers the project events (milestones) in logical sequence linked with activities (arrows)
      • No event can commence until its immediately preceding event is over
    • Developed by US Navy in 1958 for a missile programme
      • Multiple task time estimates (probabilistic in nature)
    • Typically used in project management
      • Non-repetitive jobs where the time and cost estimates tend to be uncertain
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 26. PERT Network Chart
    • A project with five Milestones (10 to 50) and six Activities (A to F)
    • The project has two Critical Paths
      • B & C or A, D & F
    • A minimum project time of 7 months with fast tracking
    • Activity E is sub-critical and has Float of 2 months
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 27. CPM Terminology & Equations
    • Activity – a time consuming effort that is required to perform a part of the work; represented by an
    • Milestone – A point in time when one or more activities start and/or finish (also called Event); represented by a
    • Critical Path – The longest path (time) determining project duration; all the Activities on it are Critical Activities
    • ES – earliest time an Activity can start
    • EF – earliest time an Activity can finish
    • EF = ES + t
    • ES = Maximum EF of immediate predecessors
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 28. CPM Terminology & Equations
    • LS – Latest time an Activity can start without delaying Critical Path time
    • LF – Latest time an Activity can be completed without delaying Critical Path time
    • LS = LF – t
    • Float = LS – ES = LF – EF; the amount of time an Event can be delayed without delaying the project (also called Slack)
    • For Critical Path, ES = LS and EF = LF for all Activities in the path; there is no Slack
    • A delay in Critical Path delays the project
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 29. Situations in Network Diagram
    • A must finish before either B or C can start
    • Both A and B must finish before C can start
    • Both A and B must finish before either C or D can start
    • A must finish before B can start
    • Both A and C must finish before D can start
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A B C D Dummy A B C C A B A B C D
  • 30. CPM Network Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A, 6 F, 15 B, 8 C, 5 E, 9 D, 13 G, 17 H, 9 I, 6 J, 12
  • 31. ES and EF Times (Day) Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A, 6 F, 15 B, 8 C, 5 E, 9 D, 13 G, 17 H, 9 I, 6 J, 12 0 6 0 8 0 5
  • 32. ES and EF Times (Day) Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A, 6 F, 15 B, 8 C, 5 E, 9 D, 13 G, 17 H, 9 I, 6 J, 12 0 6 0 8 0 5 5 14 8 21 6 23 6 21
  • 33. ES and EF Times (Day) Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A, 6 F, 15 B, 8 C, 5 E, 9 D, 13 G, 17 H, 9 I, 6 J, 12 0 6 0 8 0 5 5 14 8 21 21 33 6 23 21 30 23 29 6 21 Project’s EF = 33
  • 34. LS & LF Times (Day) Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A, 6 F, 15 B, 8 C, 5 E, 9 D, 13 G, 17 H, 9 I, 6 J, 12 0 6 0 8 0 5 5 14 8 21 21 33 6 23 21 30 23 29 6 21 21 33 27 33 24 33
  • 35. LS & LF Times (Day) Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A, 6 F, 15 B, 8 C, 5 E, 9 D, 13 G, 17 H, 9 I, 6 J, 12 0 6 0 8 0 5 5 14 8 21 21 33 6 23 21 30 23 29 6 21 12 21 21 33 27 33 8 21 10 27 24 33 9 24
  • 36. LS & LF Times (Day) Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A, 6 F, 15 B, 8 C, 5 E, 9 D, 13 G, 17 H, 9 I, 6 J, 12 0 6 0 8 0 5 5 14 8 21 21 33 6 23 21 30 23 29 6 21 3 9 0 8 7 12 12 21 21 33 27 33 8 21 10 27 24 33 9 24
  • 37. Float/Slack (Day) Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A, 6 F, 15 B, 8 C, 5 E, 9 D, 13 G, 17 H, 9 I, 6 J, 12 0 6 0 8 0 5 5 14 8 21 21 33 6 23 21 30 23 29 6 21 4 9 0 8 7 12 12 21 21 33 27 33 8 21 10 27 24 33 9 24 3 4 3 3 4 0 0 7 7 0
  • 38. Critical Path Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A, 6 F, 15 B, 8 C, 5 E, 9 D, 13 G, 17 H, 9 I, 6 J, 12
  • 39. PERT Terminology
    • Activity’s duration follows a probability distribution instead of a single value
    • Three time estimates are required to compute the parameters of an Activity’s duration distribution
    • Pessimistic Time (t p ) - the time the activity would take if things did not go well
      • Most Likely Time (t m ) - the consensus best estimate of the activity’s duration
      • Optimistic Time (t o ) - the time the activity would take if things did go well
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 40. PERT Equation Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 41. PERT Analysis
    • Draw the network.
    • Analyse the paths through the network and find the critical path
    • The length of the critical path is the mean of the project duration probability distribution (assumed to be normal)
    • The standard deviation of the project duration probability distribution is computed by adding the variances of the Critical Activities and taking the square root of that sum
    • Probability computations can now be made using the normal distribution table
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 42. Probability Computation
    • Probability that the project is completed within specified time
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd where  = t e = project mean time  = project standard mean time x = (proposed) specified time Z = x -  
  • 43. Normal Distribution of Project Time Copyright © 2010 Direxions Marketing Solutions Pvt Ltd  = t e Time x Z Probability
  • 44. PERT Data Copyright © 2010 Direxions Marketing Solutions Pvt Ltd Activity Predecessor t o (hour) t m (hour) t p (hour) A --- 4 6 8 B --- 1 4.5 5 C A 3 3 3 D A 4 5 6 E A 0.5 1 1.5 F B, C 3 4 5 G B, C 1 1.5 5 H E, F 5 6 7 I E, F 2 5 8 J D, H 2.5 2.75 4.5 K G, I 3 5 7
  • 45. PERT Network Copyright © 2010 Direxions Marketing Solutions Pvt Ltd A D C B F E G I H K J
  • 46. PERT Data Copyright © 2010 Direxions Marketing Solutions Pvt Ltd Activity t e (hour) Variance A 6 4/9 B 4 4/9 C 3 0 D 5 1/9 E 1 1/36 F 4 1/9 G 2 4/9 H 6 1/9 I 5 1 J 3 1/9 K 5 4/9
  • 47. PERT Data Copyright © 2010 Direxions Marketing Solutions Pvt Ltd Activity ES EF LS LF Slack A 0 6 0 6 0 B 0 4 5 9 5 C 6 9 6 9 0 D 6 11 15 20 9 E 6 7 12 13 6 F 9 13 9 13 0 G 9 11 16 18 7 H 13 19 14 20 1 I 13 18 13 18 0 J 19 22 20 23 1 K 18 23 18 23 0
  • 48. Probability Computation Copyright © 2010 Direxions Marketing Solutions Pvt Ltd V path = V A + V C + V F + V I + V K = 4/9 + 0 + 1/9 + 1 + 4/9 = 2  path = 1.414 z = (24 – 23) /  (24 – 23)/1.414 = 0.71 From the Standard Normal Distribution table: P(z < 0.71) = 0.5 + 0.2612 = 0.7612 ≈ 76%
  • 49. Benefits of CPM/PERT
    • Especially useful when scheduling and controlling large projects.
    • Straightforward concept and not mathematically complex.
    • Graphical networks aid perception of relationships among project activities.
    • Critical path & slack time analyses help pinpoint activities that need to be closely watched.
    • Project documentation and graphics point out who is responsible for various activities.
    • Applicable to a wide variety of projects.
    • Useful in monitoring schedules and costs.
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 50. Questions Answered by CPM & PERT
    • Completion date?
    • On Schedule?
    • Within Budget?
    • Critical Activities?
    • How can the project be finished early at the least cost?
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 51. Limitations of CPM/PERT
    • Assumes clearly defined, independent, & stable activities
    • Specified precedence relationships
    • Subjective time estimates
    • Over-emphasis on critical path
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 52. Project Costing Time Cost Trade Off
  • 53. Cost Consideration in a Project
    • Project managers may have the option or requirement to crash the project, or accelerate the completion of the project
    • This is done by reducing the length of the critical path(s)
    • The length of the critical path is reduced by reducing the duration of the activities on the critical path.
    • If each activity requires certain spend to reduce its duration by one unit of time, then the project manager selects the least cost Critical Activity, reduces it by one time unit, and traces that change through the remainder of the network
    • A new critical path may be created
    • When there is more than one critical path, each of the critical paths must be reduced.
    • If the length of the project needs to be reduced further, the process is repeated
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 54. 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
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 55. Activity Crashing
    • 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
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd Activity cost Activity time Crashing activity Crash time Crash cost Normal Activity Normal time Normal cost Slope = crash cost per unit time
  • 56. Time Cost Trade-off Copyright © 2010 Direxions Marketing Solutions Pvt Ltd Cost Time Direct cost Indirect cost Total project cost Min total cost = optimal project time
  • 57. Time Cost Data Copyright © 2010 Direxions Marketing Solutions Pvt Ltd Activity Normal time Normal cost (Rs) Crash time Crash cost (Rs) Allowance Slope 1 2 3 4 5 6 7 12 8 4 12 4 4 4 3,000 2,000 4,000 50,000 500 500 1,500 7 5 3 9 1 1 3 5,000 3,500 7,000 71,000 1,100 1,100 22,000 5 3 1 3 3 3 1 400 500 3,000 7,000 200 200 7,000 75,000 1,10,700
  • 58. Project Crashing Example Copyright © 2010 Direxions Marketing Solutions Pvt Ltd From….. To…..
  • 59. Case Study DM + Fulfilment WBS, Gantt Chart Network Diagram using PERT/CPM Project Costing
  • 60. Campaign Parameters
    • Concept, Creative, Data, Print, Stuffing, Mailing & Fulfilment
      • Fulfilment is advertiser’s response to consumer response
      • Process of fulfilling promise of offer made in the advertisement
      • The process is better viewed as Relationship Marketing
    • 8 Metros
    • 26,316 recipients
    • 3 different age groups I / II / III
    • 3 / 4 / 5 elements
      • Personalised letter
      • Enrolment Form
      • Product samples (1 / 2 / 3) for age group I / II / III
    • 2 couriers and India Post
    • 5 weeks timeline
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 61. Sample Data Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
    • For 100 gm package
    • ePoD available for all
    • Physical PoD from Blue Dart and First Flight for disputes
    City Recipient Ahmedabad 1,623 Bangalore 1,968 Chennai 2,223 Delhi 5,673 Hyderabad 1,914 Kolkata 6,570 Mumbai 4,692 Pune 1,653 Element Weight (gm) 3 100 4 250 5 400 Element Packging (Rs) 3 6.00 4 10.75 5 13.25 Age Group Count 18 – 25 (I) 5,814 26 – 35 (II) 14,157 35 plus (III) 6,345 Production Cost (Rs) Letter 1.25 Form 1.85 Sample By client Courier Intra City (Rs) Pan India (Rs) Blue Dart 27.25 55.75 First Flight 21.46 40.50 Speed Post 25.00 52.50
  • 62. Tasks
    • Prepare data
      • Make necessary (logical) assumptions
      • Cost, timeline etc
    • Make different clusters
    • Role assignment for different functional groups
    • Process flow
    • PERT chart with CPM
    • Project costing
    • Present the approach
    Copyright © 2010 Direxions Marketing Solutions Pvt Ltd
  • 63. Thank you!

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