Controlling Project Management: Planning, Scheduling, and Controlling OVERVIEW OF PROJECT MANAGEMENT T I M E C O S T PERFORMANCE/TECHNOLOGY RESOURCES Project Characteristics 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) 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 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 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 ! PM LM LM LM PM = Project Manager APM = Assistant Project Manager LM = Line or Functional Manager APM APM SPONSOR GM Multiple Boss Reporting Multiple Boss Reporting Management Functions Management Functions Definitions 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. 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 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. 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) 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. 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 Project Management T i m e T i m e Resources Resources C o s t C o s t Quality/Technology Quality/Technology Benefits 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 trade- off analysis Measurement of accomplishment against plans 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 trade- off analysis Measurement of accomplishment against plans Benefits (continued) 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 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 Obstacles Project complexity Customers special requirements and scope changes Organizational restructuring Project risks Changes in technology Forward planning and pricing Project complexity Customers special requirements and scope changes Organizational restructuring Project risks Changes in technology Forward planning and pricing Classical Management Classical Management Planning Organizing Staffing Controlling Directing Planning Organizing Staffing Controlling Directing Which of the above is Usually NOT performed by the project manager? Interface Management 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 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. As part of interface management, the project managers role also includes integration management. Integrated Processes Integrated Processes Integration Management Integration Management Capital Materials Equipment Facilities Information Personnel Capital Materials Equipment Facilities Information Personnel Resources Resources Inputs Inputs Integration Management Integration Management Products Services Profits Products Services Profits Outputs Outputs Organizational Structures 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 Engineering Operations Finance Others Project Mgr. X Project Mgr. Y Project Mgr. Z General Manager Project Responsibility F u n c t i o n a l
R e s p o n s i b i l i t y The Matrix Management Structure (With a Director of Project Management) Director: Project Mgmt. Director: Engineering Director: Manufacturing Director: Finance/Admin. Project Mgr. X Project Mgr. Y Project Mgr. Z General Manager Network Scheduling Techniques 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 I mpl ement t he Sc hedul e Yes Scheduling Techniques 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) 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 Bar (Gantt) Chart TASKS 1 2 3 4 5 4 MONTHS AFTER GO-AHEAD 3 2 1 5 Milestone Chart Milestone Chart ACTIVITY TESTING ANALYSIS REPORT PRESENTATION TIME Standard PERT Nomenclature Standard PERT Nomenclature 6 3 COMPLETE TESTING COMPLETE FINAL REPORT 3 WEEKS LEGEND LEGEND EVENT ACTIVITY Dependencies Dependencies 7 26 18 31 7 18 31 26 BURST POINT SINK Conversion From Bar To PERT Conversion From Bar To PERT 4 2 3 1 5 6 7 3 2 2 2 2 1 1 1 4 1 2 3 4 5 6 7 TIME BAR CHART PERT CHART Sample of Network Construction Sample of Network Construction AON AON AOA AOA Simplified PERT Network Simplified PERT Network 1 9 3 4 2 8 7 6 5 LEGEND: (TIME = WEEKS) EVENT ACTIVITY CRITICAL PATH ACTIVITY Network Elements and their features: Critical path 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. 2 4 5 2 1 4 12 8 6 4 3 1 4 2 4 4 3 7 4 4 7 18 24 27 29 36 48 48 Dummy Activities Dummy Activities A B C D DUMMY ACTIVITY PRECEDING ACTIVITY A - B - C B D A,B Networking Concurrent Activities Networking Concurrent Activities Activity c Not Required for e Activity c Not Required for e Showing Precedents Showing Precedents a precedes d; a & b precede e; b & c precede f; a does not precede f Slack Identification Slack Identification C (8,10) 2 (15,17) EARLIEST START TIME EARLIEST FINISH TIME LATEST FINISH TIME LATEST START TIME ACTIVITY TIME Types Of Slack Types Of Slack [ 20, 26 ] [ 24, 30 ] [ 30, 36 ] [ 24, 30 ] POSITIVE SLACK NEGATIVE SLACK Negative Slack Negative Slack FORWARD PASS BACKWARD PASS CUSTOMERS CUSTOMERS START DATE FINISH DATE 3 2 4 1 Schedule Compression 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 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) 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 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) Planning Objectives (Primary) Best time Least cost Least risk Best time Least cost Least risk Planning Objectives (Secondary) 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 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) Planning Objectives (Limitations) Calendar completion Cash or cash flow restrictions Limited resources Management approvals Calendar completion Cash or cash flow restrictions Limited resources Management approvals Precedence Network Precedence Network TASKS 1 2 3 4 5 4 MONTHS AFTER GO-AHEAD 3 2 1 5 Types Of Precedence Charts Types Of Precedence Charts ACTIVITY 1 ACTIVITY 1 ACTIVITY 2 ACTIVITY 2 FINISH-TO-START START-TO-START FINISH START START START Types Of Precedence Charts Types Of Precedence Charts ACTIVITY 1 ACTIVITY 1 ACTIVITY 2 ACTIVITY 2 FINISH-TO-FINISH PERCENT COMPLETE FINISH FINISH 20 % 50 % ACTIVITY INFORMATION EARLY START 01/06/97 TIME DURATION 2 WORK-WEEKS EARLY FINISH 14/06/97 ACTIVITY 4 TOTAL SLACK(TS) $250,000 LATE START 15/06/97 COST/PROFIT CENTER 2810 LATE FINISH 28/06/97 FREE SLACK (FS)