course material

1. (Mt) – Project Research
Unformatted Preview Project Management Copyright ©2018 McGraw-Hill Higher
Education. All rights reserved. No reproduction or distribution without the prior written
consent of McGraw-Hill Education 17-1 You should be able to: LO 17.1 LO 17.2 Describe the
project life cycle Discuss the behavioral aspects of projects in terms of project personnel
and the project manager LO 17.3 Explain the nature and importance of a work breakdown
structure in project management LO 17.4 Name the six key decisions in project
management LO 17.5 Give a general description of PERT/CPM techniques LO 17.6 Construct
simple network diagrams LO 17.7 Analyze networks with deterministic times LO 17.8
Analyze networks with probabilistic times LO 17.9 Describe activity ‘crashing’ and solve
typical problems LO 17.10 Discuss the advantages of using PERT and potential sources of
error LO 17.11 Discuss the key steps in risk management Copyright ©2018 McGraw-Hill
Higher Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education 17- -time operations
velopment
-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education 17- – a life cycl
together people with a diversity of knowledge and skills, most of whom remain associated
managed LO 17.1 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No
reproduction or distribution without the prior written consent of McGraw-Hill Education
17-4 1. 2. 3. 4. 5. Initiating Planning Executing Monitoring and Controlling Closing LO 17.1
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or
distribution without the prior written consent of McGraw-Hill Education 17-
manager must effectively mana
-Hill Higher Education. All
rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education 17-6 Quality Performance Objectives LO 17.2 Copyright ©2018
McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without
the prior written consent of McGraw-Hill Education 17-

2. negotiation can be an important part of a project manager’s job LO 17.2 Copyright ©2018
McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without
the prior written consent of McGraw-Hill Education 17-
or mitigated by
17.2 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction
or distribution without the prior written consent of McGraw-Hill Education 17-
managers who might be asked to share resources with the project team as well as
be critical to the success of a project LO 17.2 Copyright ©2018 McGraw-Hill Higher
Education. All rights reserved. No reproduction or distribution without the prior written
consent of McGraw-Hill Education 17-
activities for the project 1. 2. 3. LO 17.3 Identify the major elements of the project Identify
the major supporting activities for each of the major elements Break down each major
supporting activity into a list of the activities that will be needed to accomplish it Copyright
©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution
without the prior written consent of McGraw-Hill Education 17-11 LO 17.3 Copyright
©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution
without the prior written consent of McGraw-Hill Education 17-
Deciding if and when a project should be terminated LO 17.4 Copyright ©2018 McGraw-Hill
Higher Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education 17-
technique) and CPM (critical path method) are two techniques used to manage large-scale
1. 2. 3. 4. LO 17.5 A graphical display
of project activities An estimate of how long the project will take An indication of which
activities are most critical to timely project completion An indication of how long any
activity can be delayed without delaying the project Copyright ©2018 McGraw-Hill Higher
Education. All rights reserved. No reproduction or distribution without the prior written
consent of McGraw-Hill Education 17-
that shows sequential rel
steps that consume re
LO 17.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No
reproduction or distribution without the prior written consent of McGraw-Hill Education

3. 17-15 LO 17.6 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No
reproduction or distribution without the prior written consent of McGraw-Hill Education
17-
estimates that allow for variation LO 17.7 Copyright ©2018 McGraw-Hill Higher Education.
All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education 17-
network d
-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education 17-
The latest starting time for each activity is equal to its latest finishing time minus its
–
node equals the LS of the leaving ar
arrows entering node equals the smallest of the leaving arrows LO 17.7 Copyright ©2018
McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without
the prior written consent of McGraw-Hill Education 17-
– –
by the activities with zero slack LO 17.7 Copyright ©2018 McGraw-Hill Higher Education.
All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education 17-
toward
slack times are based on the assumption that all of the activities on the same path will be
es are on the
same path and have the same slack, this will be the total slack available to both LO 17.7
Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or
distribution without the prior written consent of McGraw-Hill Education 17-
time required LO 17.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill
Education 17-22 LO 17.8 Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education 17- an activity is a weighted average of the three

4. activities on the path LO 17.8 Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education 17- -sixth
of the difference between the pessimistic and optimistic time estimates. The variance is the
Copyright
©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution
without the prior written consent of McGraw-Hill Education 17-
expected path times and their standard deviations enables managers to compute
its expected completion time LO 17.8 Copyright ©2018 McGraw-Hill Higher Education. All
rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education 17-
he beta distribution, the
path distribution can be represented by a normal distribution LO 17.8 Copyright ©2018
McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution without
the prior written consent of McGraw-Hill Education 17-27 z= LO 17.8 Specified time – Path
mean Path standard deviation Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education 17-
risky to only consider the critical path when assessing the probability of completing a
within a particular time fr
probability that the project will be completed within the specified time LO 17.8 Copyright
©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution
without the prior written consent of McGraw-Hill Education 17-
Activ
independence is usually considered to be met if only a few activities in a large project are on
multiple paths LO 17.8 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill
Education 17-
oject
prepare a
are made based on this frequency distribution LO 17.8 Copyright ©2018 McGraw-Hill
Higher Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education 17-

5. -
Hill Higher Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education 17-
may be shortened by increasing direct expenses, thereby realizing savings in indirect
project costs LO 17.9 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill
Education 17- ing crashing requires information about: 1.
Regular time and crash time estimates for each activity 2. Regular cost and crash cost
activities are potential ca -critical path activities would
not have an impact on overall project duration LO 17.9 Copyright ©2018 McGraw-Hill
Higher Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education 17-
one period at a time 2. Crash the least expensive activity that is on the critical path 3. When
there are multiple critical paths, find the sum of crashing the least expensive activity on
the least expensive cost of crashing a common activity shared by critical paths with the sum
for the separate critical paths Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education 17-35 LO 17.9 Copyright ©2018 McGraw-Hill Higher Education. All rights
reserved. No reproduction or distribution without the prior written consent of McGraw-Hill
Education 17-
organize and quantify available information and to identify where additional information is
needed 2. It provides the a graphic display of the project and its major activities 3. It
identifies a. Activities that should be closely watched b. Activities that have slack time LO
17.10 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction
or distribution without the prior written consent of McGraw-Hill Education 17-
Potential sources of error: 1. The project network may be incomplete 2. Precedence
relationships may not be correctly expressed 3. Time estimates may be inaccurate 4. There
may be a tendency to focus on critical path activities to the exclusion of other important
project activities 5. Major risk events may not be on the critical path LO 17.10 Copyright
©2018 McGraw-Hill Higher Education. All rights reserved. No reproduction or distribution
without the prior written consent of McGraw-Hill Education 17-
LO 17.11 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No
reproduction or distribution without the prior written consent of McGraw-Hill Education
17-
Analyzing a

6. LO 17.11 Copyright ©2018 McGraw-Hill Higher Education. All rights reserved. No
reproduction or distribution without the prior written consent of McGraw-Hill Education
17-40