Project Management: Planning, Scheduling, and Controlling

OVERVIEW OF PROJECT MANAGEMENT

ST CO

TIM E

RESOURCES

PERFORMANCE/TECHNOLOGY

Project Characteristics
Have a specific objective (which may be unique or one-of-a-kind) to be completed within certain specifications Have defined start and end dates Have funding limits (if applicable) Consume human and nonhuman resources (i.e., money, people, equipment) Be multifunctional (cut across several functional lines)

Project Management
Project Planning
Definition of work requirements Definition of quantity and quality of work Definition of resources needed

Project monitoring
Tracking progress Comparing actual outcome to predicted outcome Analyzing impact Making adjustments

PROJECT MANAGEMENT IS THE ART OF CREATING THE ILLUSION THAT ANY OUTCOME IS THE RESULT OF A SERIES OF PREDETERMINED, DELIBERATE ACTS WHEN IN FACT IT WAS DUMB LUCK !

Multiple Boss Reporting

SPONSOR

GM

PM

LM

LM

LM

APM APM

PM = Project Manager APM = Assistant Project Manager LM = Line or Functional Manager

Management Functions

Definitions
Measuring: determining through formal and informal reports the degree to which progress toward objectives is being made. Evaluating: determining cause of and possible ways to act on significant deviations from planned performance. Correcting: taking control action to correct an unfavorable trend or to take advantage of an unusually favorable trend.

Directing
Staffing: seeing that a qualified person is selected for each position. Training: teaching individuals and groups how to fulfill their duties and responsibilities. Supervising: giving others day-to-day instruction, guidance, and discipline as required so that they can fulfill their duties and responsibilities. Delegating: assigning work, responsibility, and authority so others can make maximum utilization of their abilities.

Directing (Continued)
Motivating: encouraging others to perform by fulfilling or appealing to their needs. Counseling: holding private discussion with another about how he might do better work, solve a personal problem, or realize his ambitions. Coordinating: seeing that activities are carried out in relation to their importance and with a minimum of conflict.

Project Management

Ti m e

Resources

Quality/Technology

s Co t

Benefits
Identification of functional responsibilities to ensure that all activities are accounted for, regardless of personnel turnover. Minimizing the need for continuous improvement Identification of time limits for scheduling Identification of a methodology for tradeoff analysis Measurement of accomplishment against plans

Benefits (continued)
Early identification of problems so that corrective action may follow Improved estimating capability for future planning Knowing when objectives cannot be met or will be exceeded

Obstacles
Project complexity Customers special requirements and scope changes Organizational restructuring Project risks Changes in technology Forward planning and pricing

Classical Management
Planning Organizing Staffing Controlling Directing Which of the above is Usually NOT performed by the project manager?

Interface Management
Managing human interrelationships within the project team Managing human interrelationships between the project team and the functional organization Managing human interrelationships between the project team and senior management Managing human interrelationships between the project team and the customers organization, whether an internal or external organization

As part of interface management, the project managers role also includes integration management.

Integration Management
Resources
Capital Materials Equipment Inputs Facilities Information Personnel

Integration Management

Integrated Processes

Products Services Outputs Profits

Organizational Structures

Pure Project Structure

General Manager

Project A Manager

Project B Manager

Project C Manager

ENG.

MFG.

ENG.

MFG.

ENG.

MFG.

The Matrix Management Structure

General Manager

Engineering

Operations

Finance

Others

Functional Responsibility

Project Mgr. X Project Mgr. Y Project Mgr. Z

Project Responsibility

The Matrix Management Structure

(With a Director of Project Management)
General Manager

Director: Project Mgmt.

Director: Engineering

Director: Manufacturing

Director: Finance/Admin.

Project Mgr. X Project Mgr. Y Project Mgr. Z

Network Scheduling Techniques

The Planning & Scheduling Process

Define Project Activities Estimate Activity Duration
Develop activities sequencing Develop Schedule
Review and analyze the Schedule

OK?

NO

Yes

Implement the Schedule

Scheduling Techniques
Gantt or bar charts Milestone charts Line of balance Networks
Program Evaluation and Review Technique (PERT) Arrow Diagram Method (ADM) [Sometimes called the Critical Path Method (CPM)] Graphical Evaluation and Review Technique (GERT) Precedence Diagram Method (PDM)

Bar (Gantt) Chart

TASKS 1 2 3 4 5 MONTHS AFTER GO-AHEAD 1 2 3 4 5

Milestone Chart
ACTIVITY TESTING ANALYSIS REPORT PRESENTATION TIME

Standard PERT Nomenclature

6
COMPLETE TESTING

3 WEEKS

3
COMPLETE FINAL REPORT

LEGEND LEGEND EVENT ACTIVITY

Dependencies
31 26 18 7 BURST POINT 31 18 7 SINK 26

Conversion From Bar To PERT

1 2 3 6 TIME 4 5 7

BAR CHART

1 PERT CHART
1

2
2 2

3
1

2 4

Sample of Network Construction

AON AOA

Simplified PERT Network

3 1 2 4
LEGEND: (TIME = WEEKS) EVENT ACTIVITY CRITICAL PATH ACTIVITY

Network Elements and their features: Critical path

2 4 6 8 4 4 3 4 3 1 5 2 1 4 2 4 4

48 24 2 9 18 27
4 7

36

12

7 Critical path It is the longest route through the plan from start to finish through all the critical activities. The path through the plan includes all the activities that you should concentrate on. Delays to the critical path delay the plan end date. There can often be more than one critical path.

Dummy Activities
D A DUMMY B C
PRECEDING ACTIVITY ACTIVITY

A B C D

B A,B

Networking Concurrent Activities

Activity c Not Required for e

Showing Precedents

a precedes d; a & b precede e; b & c precede f; a does not precede f

Slack Identification
ACTIVITY EARLIEST START TIME EARLIEST FINISH TIME

C (8,10) 2 (15,17)
LATEST FINISH TIME TIME LATEST START TIME

Types Of Slack

[ 20, 26 ] [ 24, 30 ] POSITIVE SLACK

[ 30, 36 ] [ 24, 30 ] NEGATIVE SLACK

Negative Slack
FORWARD PASS

3
BACKWARD PASS

1
CUSTOMERS START DATE

2
CUSTOMERS FINISH DATE

Schedule Compression
Elimination of some parts of the project Addition of more resources Substitution of less time-consuming components or activities Parallelization of activities Shortening critical path activities Shortening early activities Shortening longest activities

Schedule Compression
(Continued) Shortening easiest activities Shortening activities that are least costly to speed up Shortening activities for which you have more resources Increasing the number of work hours per day

Planning Objectives (Primary)

Best time Least cost Least risk

Planning Objectives (Secondary)

Studying alternatives Optimum schedules Effective use of resources Communications Refinement of the estimating process Ease of project control Ease of time or cost revisions

Planning Objectives (Limitations)

Calendar completion Cash or cash flow restrictions Limited resources Management approvals

Precedence Network
TASKS 1 2 3 4 5 MONTHS AFTER GO-AHEAD 1 2 3 4 5

Types Of Precedence Charts

FINISH FINISH-TO-START START

ACTIVITY 1

ACTIVITY 2

START START-TO-START

ACTIVITY 1
START

ACTIVITY 2

Types Of Precedence Charts

FINISH FINISH-TO-FINISH FINISH

ACTIVITY 1 ACTIVITY 2

PERCENT COMPLETE

ACTIVITY 1
50 % 20 %

ACTIVITY 2

ACTIVITY INFORMATION

EARLY START 01/06/97

TIME DURATION 2 WORK-WEEKS TOTAL SLACK(TS)

EARLY FINISH 14/06/97

ACTIVITY 4

FREE SLACK (FS) COST/PROFIT CENTER 2810

$250,000

LATE START 15/06/97

LATE FINISH 28/06/97