Project Management
Introduction
Previous Examples of Projects <ul><li>Transporting Olympic Flame (Chapter 1) </li></ul><ul><li>Mercedes-Benz facility loca...
Viper Development Project <ul><li>Project team given 3 years to go from concept to roadster. </li></ul><ul><ul><li>Needed ...
Viper Development Project  con’t <ul><li>Project team members hand-picked. </li></ul><ul><li>Artemis Prestige selected to ...
Viper Development Project:  An Overwhelming Success <ul><li>First test engine required less than a year to develop. </li><...
Zeneca Pharmaceuticals <ul><li>Mission is the development of new drugs for the medical community. </li></ul><ul><li>The de...
Zeneca Pharmaceuticals:  Major Steps in Drug Development <ul><li>Preclinical Testing </li></ul><ul><li>Investigational New...
Differences Between Pharmaceutical R&D Projects and Other Industries <ul><li>Final product is information rather than a ph...
Background <ul><li>Project management concerned with managing organizational activities. </li></ul><ul><li>Often used to i...
Defining a Project <ul><li>Projects are processes that are performed infrequently and ad hoc, with a clear specification o...
Examples of Projects <ul><li>Constructing highways, bridges, tunnels and dams </li></ul><ul><li>Erecting skyscrapers, stee...
Reasons for Growth in Project Operations <ul><li>More Sophisticated Technology </li></ul><ul><li>Better-Educated Citizens ...
Planning the Project
Life Cycle of a Project (Stretched-S) & (Exponential)
Organizing the Project Team <ul><li>Ad Hoc Project Form </li></ul><ul><li>Weak Functional Matrix </li></ul><ul><li>Strong ...
Types of Project Team Members <ul><li>Those having a long-term relationship with the project. </li></ul><ul><li>Those that...
Project Plans
Work Breakdown Structure
Project Master Schedule
Complexity of Scheduling Project Activities <ul><li>Large number of activities </li></ul><ul><li>Precedence relationships ...
Planning and Scheduling Projects <ul><li>Planning.   Determining what must be done and which tasks must precede others. </...
Scheduling the Project: PERT and CPM
Terminology <ul><li>Activity </li></ul><ul><li>Event </li></ul><ul><li>Network </li></ul><ul><li>Path </li></ul><ul><li>Cr...
Project Planning When Activity Times are Known <ul><li>Inputs </li></ul><ul><ul><li>list of the activities that must be co...
Project Planning When Activity Times are Known continued <ul><li>Outputs </li></ul><ul><ul><li>graphical representation of...
Example
Network Diagram
Early Start and Finish Times
Latest Start and Finish Times
Activity Slack Time <ul><li>T ES  = earliest start time for activity  </li></ul><ul><li>T LS  = latest start time for acti...
Path Slack <ul><li>Duration of Critical Path </li></ul><ul><li>-  Path Duration </li></ul><ul><li>Path Slack </li></ul>
Activity Slack Times
Project Planning When Activity Times are Uncertain <ul><li>Inputs </li></ul><ul><ul><li>Optimistic ( t o ), most likely ( ...
Expected Activity Time and Variance of Activity Time
Example
Network Diagram with Expected Activity Times and Variances 1 2 3 4 5 6 [5.5, 0.694] [7.0, 0.444] [4.83, 0.250] [10, 0.0] [...
Expected Completion Time and Variance of Path A-D-F <ul><li>Expected completion time = 5.5 + 10 + 11.5=27 </li></ul><ul><l...
Path Expected Times and Variances
Probabilities of Completion
Probability of Project Being Completed on or Before Time 25 Only path A-D-F has reasonable chance of taking 25 or more: Fr...
Probability of Path A-D-F being Completed on or Before Time 25 5.82%
Plan E Project Operations Network
Proper Use of Dummy Activities
Activity Expected Times and Variances
Simulating Project Completion Times with Spreadsheets A B C D E F
Simulating Project Completion Times
 
 
Project Management Software Capabilities
Microsoft Project’s Gantt Chart
Pert Chart Generated by Microsoft Project
Calendar of Activities Created by Microsoft Project
Controlling the Project: Cost and Performance
Variance Report <ul><li>Cost standard determined using engineering estimates or analysis of past performance </li></ul><ul...
Cost-Schedule Reconciliation Charts
Earned Value Chart
Goldratt’s Critical Chain
Introduction <ul><li>Similar issues that trouble people about working on projects regardless of type of project </li></ul>...
Three Project Scenarios
Project Completion Time Statistics
Observations <ul><li>Average Completion Times </li></ul><ul><li>Implications of Assuming Known Activity Times </li></ul><u...
Multitasking
Alternative Gantt Charts for Projects A and B
Common Chain of Events <ul><li>Underestimate time needed to complete project </li></ul><ul><ul><li>assumption of known act...
Common Chain of Events  continued <ul><li>Safety time misused </li></ul><ul><li>Misused safety time results in missed dead...
Common Chain of Events  concluded <ul><li>Poor multitasking increases task durations </li></ul><ul><li>Uneven demand on re...
Reversing the Cycle <ul><li>Reduce number of projects assigned to each individual </li></ul><ul><li>Schedule start of new ...
The Critical Chain <ul><li>Longest chain of consecutively dependent events </li></ul><ul><ul><li>considers both precedence...
Sample Network Diagram
Project and Feeder Buffers
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Project management ppt @ bec doms

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Project management ppt @ bec doms

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Project management ppt @ bec doms

  1. 1. Project Management
  2. 2. Introduction
  3. 3. Previous Examples of Projects <ul><li>Transporting Olympic Flame (Chapter 1) </li></ul><ul><li>Mercedes-Benz facility location (Chapter 5) </li></ul>
  4. 4. Viper Development Project <ul><li>Project team given 3 years to go from concept to roadster. </li></ul><ul><ul><li>Needed to develop new 8.0-litter V-10 aluminum engine and new high performance six-speed transmission. </li></ul></ul><ul><ul><li>Comparable projects usually require five years at Chrysler. </li></ul></ul>
  5. 5. Viper Development Project con’t <ul><li>Project team members hand-picked. </li></ul><ul><li>Artemis Prestige selected to help manage project </li></ul><ul><ul><li>ability to track several projects concurrently </li></ul></ul><ul><ul><li>interactive use </li></ul></ul><ul><ul><li>provide broad picture of entire project </li></ul></ul><ul><ul><li>help identify the impact of each activity on the ultimate completion of the project </li></ul></ul>
  6. 6. Viper Development Project: An Overwhelming Success <ul><li>First test engine required less than a year to develop. </li></ul><ul><li>Transmission developed in 1.5 years compared to the usual 5 to 6 years. </li></ul><ul><li>Many important innovations in the frame, body, and brakes were incorporated . </li></ul>
  7. 7. Zeneca Pharmaceuticals <ul><li>Mission is the development of new drugs for the medical community. </li></ul><ul><li>The development of a new drug is a complex project with typical durations of 10 years. </li></ul>
  8. 8. Zeneca Pharmaceuticals: Major Steps in Drug Development <ul><li>Preclinical Testing </li></ul><ul><li>Investigational New Drug </li></ul><ul><li>Human Clinical Testing </li></ul><ul><ul><li>three separate phases </li></ul></ul><ul><li>New Drug Application </li></ul><ul><li>Approval </li></ul>
  9. 9. Differences Between Pharmaceutical R&D Projects and Other Industries <ul><li>Final product is information rather than a physical product. </li></ul><ul><li>Long duration, extreme costs, and high chances for failure. </li></ul>
  10. 10. Background <ul><li>Project management concerned with managing organizational activities. </li></ul><ul><li>Often used to integrate and coordinate diverse activities. </li></ul><ul><li>Projects are special types of processes. </li></ul>
  11. 11. Defining a Project <ul><li>Projects are processes that are performed infrequently and ad hoc, with a clear specification of the desired objective. </li></ul>
  12. 12. Examples of Projects <ul><li>Constructing highways, bridges, tunnels and dams </li></ul><ul><li>Erecting skyscrapers, steel mills, and homes </li></ul><ul><li>Organizing conferences and conventions </li></ul><ul><li>Managing R&D projects </li></ul><ul><li>Running political campaigns, war operations, and advertising campaigns </li></ul>
  13. 13. Reasons for Growth in Project Operations <ul><li>More Sophisticated Technology </li></ul><ul><li>Better-Educated Citizens </li></ul><ul><li>More Leisure Time </li></ul><ul><li>Increased Accountability </li></ul><ul><li>Higher Productivity </li></ul><ul><li>Faster Response to Customers </li></ul><ul><li>Greater customization for customers </li></ul>
  14. 14. Planning the Project
  15. 15. Life Cycle of a Project (Stretched-S) & (Exponential)
  16. 16. Organizing the Project Team <ul><li>Ad Hoc Project Form </li></ul><ul><li>Weak Functional Matrix </li></ul><ul><li>Strong Project Matrix </li></ul>
  17. 17. Types of Project Team Members <ul><li>Those having a long-term relationship with the project. </li></ul><ul><li>Those that the PM will need to communicate with closely. </li></ul><ul><li>Those with rare skills necessary to project success. </li></ul>
  18. 18. Project Plans
  19. 19. Work Breakdown Structure
  20. 20. Project Master Schedule
  21. 21. Complexity of Scheduling Project Activities <ul><li>Large number of activities </li></ul><ul><li>Precedence relationships </li></ul><ul><li>Limited time of the project </li></ul>
  22. 22. Planning and Scheduling Projects <ul><li>Planning. Determining what must be done and which tasks must precede others. </li></ul><ul><li>Scheduling . Determining when the tasks must be completed; when they can and when they must be started; which tasks are critical to the timely completion of the project; and which tasks have slack and how much. </li></ul>
  23. 23. Scheduling the Project: PERT and CPM
  24. 24. Terminology <ul><li>Activity </li></ul><ul><li>Event </li></ul><ul><li>Network </li></ul><ul><li>Path </li></ul><ul><li>Critical Path </li></ul><ul><li>Critical Activities </li></ul>
  25. 25. Project Planning When Activity Times are Known <ul><li>Inputs </li></ul><ul><ul><li>list of the activities that must be completed </li></ul></ul><ul><ul><li>activity completion times </li></ul></ul><ul><ul><li>activity precedence relationships </li></ul></ul>
  26. 26. Project Planning When Activity Times are Known continued <ul><li>Outputs </li></ul><ul><ul><li>graphical representation of project </li></ul></ul><ul><ul><li>time to complete project </li></ul></ul><ul><ul><li>identification of critical path(s) and activities </li></ul></ul><ul><ul><li>activity and path slack </li></ul></ul><ul><ul><li>earliest and latest time each activity can be started </li></ul></ul><ul><ul><li>earliest and latest time each activity can be completed </li></ul></ul>
  27. 27. Example
  28. 28. Network Diagram
  29. 29. Early Start and Finish Times
  30. 30. Latest Start and Finish Times
  31. 31. Activity Slack Time <ul><li>T ES = earliest start time for activity </li></ul><ul><li>T LS = latest start time for activity </li></ul><ul><li>T EF = earliest finish time for activity </li></ul><ul><li>T LF = latest finish time for activity </li></ul><ul><li>Activity Slack = T LS - T ES = T LF - T EF </li></ul>
  32. 32. Path Slack <ul><li>Duration of Critical Path </li></ul><ul><li>- Path Duration </li></ul><ul><li>Path Slack </li></ul>
  33. 33. Activity Slack Times
  34. 34. Project Planning When Activity Times are Uncertain <ul><li>Inputs </li></ul><ul><ul><li>Optimistic ( t o ), most likely ( t m ), and pessimistic ( t p ) time estimate for each activity </li></ul></ul><ul><ul><li>activity precedence relationships </li></ul></ul><ul><li>Outputs </li></ul><ul><ul><li>graphical representation of project </li></ul></ul><ul><ul><li>expected activity and path completion times </li></ul></ul><ul><ul><li>variance of activity and path completion times </li></ul></ul><ul><ul><li>probability that project completed by specified time </li></ul></ul>
  35. 35. Expected Activity Time and Variance of Activity Time
  36. 36. Example
  37. 37. Network Diagram with Expected Activity Times and Variances 1 2 3 4 5 6 [5.5, 0.694] [7.0, 0.444] [4.83, 0.250] [10, 0.0] [4.0, 0.111] [4.33, 1.0] [11.5, 0.913] A B C D E F G
  38. 38. Expected Completion Time and Variance of Path A-D-F <ul><li>Expected completion time = 5.5 + 10 + 11.5=27 </li></ul><ul><li>Path Variance = 0.694 + 0 + 0.913 = 1.607 </li></ul>
  39. 39. Path Expected Times and Variances
  40. 40. Probabilities of Completion
  41. 41. Probability of Project Being Completed on or Before Time 25 Only path A-D-F has reasonable chance of taking 25 or more: From standard normal table in Appendix A, there is a 5.82% chance of completing project on or before time 25.
  42. 42. Probability of Path A-D-F being Completed on or Before Time 25 5.82%
  43. 43. Plan E Project Operations Network
  44. 44. Proper Use of Dummy Activities
  45. 45. Activity Expected Times and Variances
  46. 46. Simulating Project Completion Times with Spreadsheets A B C D E F
  47. 47. Simulating Project Completion Times
  48. 50. Project Management Software Capabilities
  49. 51. Microsoft Project’s Gantt Chart
  50. 52. Pert Chart Generated by Microsoft Project
  51. 53. Calendar of Activities Created by Microsoft Project
  52. 54. Controlling the Project: Cost and Performance
  53. 55. Variance Report <ul><li>Cost standard determined using engineering estimates or analysis of past performance </li></ul><ul><li>Actual cost monitored and compared with cost standard </li></ul><ul><li>Project manager can exert control if difference between standard and actual (called a variance ) is considered significant. </li></ul>
  54. 56. Cost-Schedule Reconciliation Charts
  55. 57. Earned Value Chart
  56. 58. Goldratt’s Critical Chain
  57. 59. Introduction <ul><li>Similar issues that trouble people about working on projects regardless of type of project </li></ul><ul><ul><li>unrealistic due dates </li></ul></ul><ul><ul><li>too many changes </li></ul></ul><ul><ul><li>resources and data not available </li></ul></ul><ul><ul><li>unrealistic budget </li></ul></ul><ul><li>These issues/problems related to need to make trade-offs </li></ul><ul><li>To what extent are these problems caused by human decisions and practices? </li></ul>
  58. 60. Three Project Scenarios
  59. 61. Project Completion Time Statistics
  60. 62. Observations <ul><li>Average Completion Times </li></ul><ul><li>Implications of Assuming Known Activity Times </li></ul><ul><li>Shape of the Distribution </li></ul><ul><li>Worker Time Estimates </li></ul><ul><li>Impact of Inflated Time Estimates </li></ul><ul><li>Student Syndrome </li></ul>
  61. 63. Multitasking
  62. 64. Alternative Gantt Charts for Projects A and B
  63. 65. Common Chain of Events <ul><li>Underestimate time needed to complete project </li></ul><ul><ul><li>assumption of known activity times and independent paths </li></ul></ul><ul><li>Project team members inflate time estimates </li></ul><ul><li>Work fills available time </li></ul><ul><ul><li>student syndrome </li></ul></ul><ul><ul><li>early completions not reported </li></ul></ul>
  64. 66. Common Chain of Events continued <ul><li>Safety time misused </li></ul><ul><li>Misused safety time results in missed deadlines </li></ul><ul><li>Hidden safety time complicates task of prioritizing project activities </li></ul><ul><li>Lack of clear priorities results in poor multitasking </li></ul>
  65. 67. Common Chain of Events concluded <ul><li>Poor multitasking increases task durations </li></ul><ul><li>Uneven demand on resources also results due to poor multitasking </li></ul><ul><li>More projects undertaken to ensure all resources fully utilized </li></ul><ul><li>More projects further increases poor multitasking </li></ul>
  66. 68. Reversing the Cycle <ul><li>Reduce number of projects assigned to each individual </li></ul><ul><li>Schedule start of new projects based on availability of bottleneck resources </li></ul><ul><li>Reduce amount of safety time added to individual tasks and then add some fraction back as project buffer </li></ul><ul><ul><li>activity durations set so that there is a high probability the task will not be finished on time </li></ul></ul>
  67. 69. The Critical Chain <ul><li>Longest chain of consecutively dependent events </li></ul><ul><ul><li>considers both precedence relationships and resource dependencies </li></ul></ul><ul><li>Project Buffer </li></ul><ul><li>Feeding Buffer </li></ul>
  68. 70. Sample Network Diagram
  69. 71. Project and Feeder Buffers

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