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Chapter 11: Project Management 1
Chapter 11: Project Management 1
Introduction
Needed to develop new 8.0-litter V-10 aluminum engine and new high performance six-speed transmission. Comparable projects usually require five years at Chrysler.
Project team members hand-picked. Artemis Prestige selected to help manage project
ability to track several projects concurrently interactive use provide broad picture of entire project help identify the impact of each activity on the ultimate completion of the project
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First test engine required less than a year to develop. Transmission developed in 1.5 years compared to the usual 5 to 6 years. Many important innovations in the frame, body, and brakes were incorporated .
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Zeneca Pharmaceuticals
Mission is the development of new drugs for the medical community. The development of a new drug is a complex project with typical durations of 10 years.
Final product is information rather than a physical product. Long duration, extreme costs, and high chances for failure.
Background
Project management concerned with managing organizational activities. Often used to integrate and coordinate diverse activities. Projects are special types of processes.
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Defining a Project
Projects are processes that are performed infrequently and ad hoc, with a clear specification of the desired objective.
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Examples of Projects
Constructing highways, bridges, tunnels and dams Erecting skyscrapers, steel mills, and homes Organizing conferences and conventions Managing R&D projects Running political campaigns, war operations, and advertising campaigns
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More Sophisticated Technology Better-Educated Citizens More Leisure Time Increased Accountability Higher Productivity Faster Response to Customers Greater customization for customers
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Those having a long-term relationship with the project. Those that the PM will need to communicate with closely. Those with rare skills necessary to project success.
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Project Plans
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Planning. Determining what must be done and which tasks must precede others. 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.
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Terminology
Inputs
list of the activities that must be completed activity completion times activity precedence relationships
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Outputs graphical representation of project time to complete project identification of critical path(s) and activities activity and path slack earliest and latest time each activity can be started earliest and latest time each activity can be completed
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Example
Activity Time Preceded By A 10 -B 7 -C 5 A D 13 A E 4 B,C F 12 D G 14 E
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Network Diagram
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Path Slack
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Inputs
Optimistic (to), most likely (tm), and pessimistic (tp) time estimate for each activity activity precedence relationships graphical representation of project expected activity and path completion times variance of activity and path completion times probability that project completed by specified time Chapter 11: Project Management
Outputs
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te =
t o + 4t m + t p 6
2
t p to = 6
2
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Example
Activity Preceded By
A B C D E F G --A A B,C D E
to
2 5 3 10 3 8 2
tm
6 7 5 10 4 12 4
tp
7 9 6 10 5 13 8
te
5.50 7.00 4.83 10.0 4.0 11.5 4.33
2
.694 .444 .250 0.000 .111 .694 1.000
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[5.5, 0.694]
2 [10, 0.0]
D C [4.83, 0.250]
4
F [11.5, 0.913]
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[7.0, 0.444]
A B
6
E
G [4.33, 1.0]
[4.0, 0.111]
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Probabilities of Completion
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Probability of Project Being Completed on or Before Time 25 Only path A-D-F has reasonable chance of taking 25 or more:
25 27 z= = 157 . 1.27
From standard normal table in Appendix A, there is a 5.82% chance of completing project on or before time 25.
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5.82%
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C A D E F
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Activity A B C D E F
Activity F
Minimum Maximum
Path1 Path 2 (A-C-F) (B-D-F) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Path 3 (B-E) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Project Finish Time 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
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Variance Report
Cost standard determined using engineering estimates or analysis of past performance Actual cost monitored and compared with cost standard Project manager can exert control if difference between standard and actual (called a variance) is considered significant.
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Introduction
Similar issues that trouble people about working on projects regardless of type of project
unrealistic due dates too many changes resources and data not available unrealistic budget
These issues/problems related to need to make trade-offs To what extent are these problems caused by human decisions and practices?
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Observations
Average Completion Times Implications of Assuming Known Activity Times Shape of the Distribution Worker Time Estimates Impact of Inflated Time Estimates Student Syndrome
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Multitasking
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Project team members inflate time estimates Work fills available time
Safety time misused Misused safety time results in missed deadlines Hidden safety time complicates task of prioritizing project activities Lack of clear priorities results in poor multitasking
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Poor multitasking increases task durations Uneven demand on resources also results due to poor multitasking More projects undertaken to ensure all resources fully utilized More projects further increases poor multitasking
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Reduce number of projects assigned to each individual Schedule start of new projects based on availability of bottleneck resources Reduce amount of safety time added to individual tasks and then add some fraction back as project buffer
activity durations set so that there is a high probability the task will not be finished on time
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Copyright
Copyright 2006 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that named in Section 117 of the United States Copyright Act without the express written consent of the copyright owner is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. Adopters of the textbook are granted permission to make back-up copies for their own use only, to make copies for distribution to students of the course the textbook is used in, and to modify this material to best suit their instructional needs. Under no circumstances can copies be made for resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.
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