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EO notes Lecture 27 Project Management 2.ppt
- 1. Project Management Source: CASEmaterial and online sources
- 2. Recap What isa Project Project Management Modern Tools and Techniques Project Selection Models Project Life Cycle Project manager and functional manager Project organizations Benefits of Project management Causes of failure of projects
- 3. Outline PERT andCPM Framework of PERT/CPM Terminology Drawing Network Diagrams Calculation of expected time Identification of critical path Gantt charts, Resource loading and leveling Work Breakdown Structures Linear Responsibility Charts
- 4. PERT AND CPM •RERT (program evaluation and review technique) and CPM (critical path method) are two of the most widely used techniques for planning and coordinating large scale projects. • By using PERT or CPM managers are able to obtain: – A graphical display of the project activities – An estimate of how long the project will take – An indication of which activities are most critical – An indication of how long an activity can be delayed without lengthening the project
- 5. The framework ofPERT and CPM • For proceeding with PERT/CPM following common six points have to be followed: – Define the project with significant activities or tasks – Develop relationship among the activities – Draw network connecting all activities – Assign time and/or cost estimates to each activity – Compute the critical path – Use network to help plan, schedule, monitor and control the project
- 6. Terminology • PERT: Atechnique for planning, scheduling and controlling the activities • Activity: A specific or set of tasks required by the project. Actions taken to accomplish a task are called activities which consumes time and other organizational sources. Activities are represented by arrows. • Event: Outcome of one or more activities. The starting and ending point of an activity is called event. It is a statement of accomplished task from where another activity starts. Events are represented by circles called nodes.
- 7. Terminology • Network: Combinationof all activities and events. A systematic diagram showing the logical sequence and interrelationships between events and activities. • Path: Series of connected activities or events • Critical path: Longest – Critical path is the path which has longest total duration of the project. Any delay would delay the project • Slack/float: Allowable slippage for a path
- 8. A simple projectnetwork diagram 1 2 3 4 5 6 Locate facilities Interview Order furniture Remodel Furniture setup Hire & train Move in
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- 11. Activity Preceding ActivityTime A - 10 B - 12 C A 11 D B 16 E C, D 8
- 12. Expected time Expected time= t = a + 4m + b 6 a = Optimistic time: Time taken if every thing progress in an ideal manner with nothing going wrong m = Most probable time: This is most likely activity time under the normal conditions b = This is the pessimistic time if there are abnormal conditions for any significant breakdown or delay
- 13. Activity Immediate Predecessors Time Estimates (Week) OptimisticMost Probable Pessimistic A - 4 5 12 B - 1 1.5 5 C A 2 3 4 D A 3 4 11 E A 2 3 4 F C 1.5 2 2.5 G D 1.5 3 4.5 H B, E 5 3.5 5 I H 1.5 2 2.5 J F, G, I 1 2 3
- 14. Activity Immediate Predecessor Time Estimates (Week) Expectedtime = t =(a + 4m + b)/6 A - 6 B - 2 C A 3 D A 5 E A 3 F C 2 G D 3 H B, E 4 I H 2 J F, G, I 2
- 16. 2 5 7 1 48 3 6 Routing (C) Product Design (A) Market Research Plan (B) Prototype (D) Marketing Brochure (E) Cost Estimates (F) Testing (G) Market Survey (H) Pricing and Forecast (I) Final Report (J) COMPLETION Activity list for the Daugherty Porta-Vac Project Activity Description Immediate Predecessors A R&D product design - B Plan market research - C Routing (manufacturing engineering) A D Build prototype model A E Prepare marketing brochure A F Cost estimates (industrial engineering) C G Preliminary product testing D H Market survey B, E I Pricing and forecast report H J Final report F, G, I
- 17. 2 4 5 1 3 (A) (B) (C)(D) (E) Activity List for a Two-Machine Maintenance Project Activity Description Expected Time (in days) A Overhaul machine I 7 B Adjust machine I 3 C Overhaul machine II 6 D Adjust machine II 3 E Test system 2
- 18. PERT Diagram Activity PrecedingActivity A -- B -- C -- D A E A F C G C H E, B, F I E, B, F J D, H K G, I, J
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- 20. Activities of aproject Activity Predecessor Activity a - b - c - d a e b,c f b,c g b,c h c I g,h j d,e
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- 22. Make a NetworkDiagram Activity Time (days) Preceding Activity A 6 -- B 2 -- C 2 -- D 3 -- E 8 A F 5 B, E G 9 C, F, D H 3 -- I 2 P, H J 3 B, E K 10 G L 1 D M 10 I, J, K N 3 L, Q O 5 M, N P 4 A Q 5 G
- 23. 1 3 4 2 6 7 5 8 9 10 11 A,6 H,3 B, 2 C, 2 D, 3 L, 1 Q, 5 G, 9 N, 3 K, 10 J, 3 I, 2 O, 5 Dum1 P, 4 M, 10 E, 8 F, 5
- 27. Resource loading describesthe amount of individual resource an existing schedule requires during specific time periods. The PERT/CPM network technique is well suited for the job of generating time-phased resource requirements. Resource Loading Resource Leveling Resource leveling aims to minimize the period-by-period variations in resource lading by shifting tasks within their slack allowances.
- 28. The Work BreakdownStructure & Linear Responsibility Charts Pictures a project subdivided into hierarchical units of task, subtasks, work packages, etc. The project management software actually creates WBSs automatically, given that the action plans have been input. WBSs are usually in the form of outlines with the first level tasks at the left, and successive levels appropriately indented.
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- 30. Cont. It mayillustrate: How each project contributes to the whole in terms performance, responsibility, budget, schedule. List the vendors and sub contractors associated with specific tasks. Documentation of that all parties have signed-off on their various commitments to the projects. Any specifications for any work package, establish account numbers, specify hardware/software to be used, and identify resource needs. The basis for making cost estimates.
- 31. Procedure for designingand using the WBS 1. Using information from the action plan, list the task breakdown in successively finer levels of detail. Continue until all meaningful tasks or work packages have been identified and each task can be individually planned, budgeted, scheduled, monitored, and controlled. 2. For each work package, identify the data relevant to the WBS. List the personnel and organizations responsible for each task.
- 32. Cont. It is helpfulto construct a linear responsibility chart (sometimes called a responsibility matrix) to show who is responsible for what. This chart also shows critical interfaces between units that may require special managerial coordination. With it, the PM can keep track of who must approve what and who must report to whom.
- 33. Linear Responsibility Chart Legend: Responsible Support Notification Approval
- 34. Subproject Task Project Manager Contract Admin. Project Eng. Industrial Eng. Determine Need A1 A2 Solicit Quotations B1 Write Approp. Request C1 C2 C3 “ “ “ “ “ “ WBS Responsibility Project Office Field Oper. Field Manager
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- 36. Vice-president General manager Project manager Manager engineering Manager software Manager manfrg Manager mrktg Subprogram manager mafrg Subprogram Manager software Subprogram Manager hardware Subprogram Manager services Establish project plan6 2 1 3 3 3 3 4 4 4 4 Define WBS 5 1 3 3 3 3 3 3 3 3 Establish hardware specs 2 3 1 4 4 4 Establish software specs 2 3 4 1 4 Establish interface specs 2 3 1 4 4 4 Establish manufacturing specs 2 3 4 4 1 4 Define documentation 2 1 4 4 4 4 1 Actual responsibility, 2 General supervision, 3 Must be consulted, 4 May be consulted, 5 Must be noted, 6 Final Approach
- 37. Vice-president General manager Project manager Manager engineering Manager software Manager manfrg Manager mrktg Subprogram manager mafrg Subprogram Manager software Subprogram Manager hardware Subprogram Manager services Establish project plan6 2 1 3 3 3 3 4 4 4 4 Define WBS 5 1 3 3 3 3 3 3 3 3 Establish hardware specs 2 3 1 4 4 4 Establish software specs 2 3 4 1 4 Establish interface specs 2 3 1 4 4 4 Establish manufacturing specs 2 3 4 4 1 4 Define documentation 2 1 4 4 4 4 1 Actual responsibility, 2 General supervision, 3 Must be consulted, 4 May be consulted, 5 Must be noted, 6 Final Approach
- 38. Verbal Responsibility Chart Legend: IA,ILI, IHI: Product lines LOB: Line of business MC: Management committee M-A Cttee: Marketing administration committee S&S: Sales and service MP&R: Marketing planning and research
- 39. Clear Action with Activities Responsible Individuals Workwith Initiate Action Distribution System And its Administration 1. Recommend distribution system to be used. Mktg Officer Mktg Officer Mktg Officer LIL & IHI LOB MCs M-A Cttee VP & Agcy Dir Group LOB MC M-A Cttee VP & Agcy Dir IA LOB MC M-A Cttee VP & Agcy Dir Sr VP Mktg Sr VP Mktg Sr VP Mktg Compensation 2. Determine provisions of sales compensation programs (e.g., commissions, subsidies, fringes). 3. Ensure cost-effectiveness testing of sales compensation programs. Compensation Task Force Compensation Task Force Compensation Task Force Compensation Task Force Mktg, S&S & Eqty Prod Offrs Mktg, S&S & Eqty Prod Offrs Mktg, S&S & Eqty Prod Offrs Mktg, S&S & Eqty Prod Offrs President President President Territory 4. Establish territorial strategy for our primary distribution system. VP & Agcy Dir Dir MP&R M-A Cttee Sr VP Mktg
- 40. Clear Action with Activities Responsible Individuals Workwith Initiate Action Territory 5. Determine territories for agency locations and establish priorities for standing. 6. Determine agencies in Which advanced sales personnel Are to operate. VP & Agcy Dir Dir Ret Pln Sls Dir Adv Sls Dir MP&R M-A Cttee VP S&S Sr VP Mktg Sr VP Mktg