Professional Documents
Culture Documents
Project
Management
McGraw-Hill/Irwin
Learning Objectives
Learning Objectives
17-3
Projects
JAN
FEB
MAR
APR
MAY
JUN
Build A
A Done
Build B
B Done
Build C
C Done
Build D
On time!
Ship
Project Management
How is it different?
Limited time frame
Narrow focus, specific objectives
Less bureaucratic
Why is it used?
Special needs
Pressures for new or improves products or
services
17-5
Project Management
What are the Key Metrics
Time
Cost
Performance objectives
Top-down commitment
Having a capable project manager
Having time to plan
Careful tracking and control
Good communications
17-6
Project Management
What are the Major Administrative Issues?
Executive responsibilities
Project selection
Project manager selection
Organizational structure
Organizational alternatives
Manage within functional unit
Assign a coordinator
Use a matrix organization with a project leader
17-7
Project Management
What are the tools?
17-8
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Locate new
facilities
Interview staff
Hire and train staff
Select and order
furniture
Remodel and install
phones
Move in/startup
17-9
Key Decisions
Deciding which projects to implement
Selecting a project manager
Selecting a project team
Planning and designing the project
Managing and controlling project
resources
Deciding if and when a project should be
terminated
17-10
Project Manager
Responsible for:
Work
Human Resources
Communications
Quality
Time
Costs
17-11
Ethical Issues
Temptation to understate costs
Withhold information
Misleading status reports
Falsifying records
Comprising workers safety
Approving substandard work
17-12
Concept
Planning
Execution
Management
Feasibility
Termination
17-13
Level 1
Level 2
Level 3
Level 4
17-14
17-15
Critical path
The longest path; determines expected project
duration
Critical activities
Activities on the critical path
Slack
Allowable slippage for path; the difference the
length of path and the length of critical path
17-17
Order
furniture
4
Furniture
setup
2
Remodel
6
Move
in
Interview
Hire and
train
17-18
AON
Locate
facilities
Furniture
setup
Move
in
Remodel
Interview
Hire and
train
17-19
Network Conventions
a
c
a
a
c
b
Dummy
activity
17-20
Time Estimates
Deterministic
Time estimates that are fairly certain
Probabilistic
Estimates of times that allow for variation
17-21
Example 1
Figure 17.5
Deterministic
time estimates
8 weeks
6 weeks
4
3 weeks
2
11 weeks
Move
in
1 week
4 weeks
9 weeks
17-22
Example 1 Solution
Critical Path
Path
Length
Slack
(weeks)
1-2-3-4-5-6
1-2-5-6
1-3-5-6
18
20
14
2
0
6
17-23
Computing Algorithm
Network activities
Used to determine
Expected project duration
Slack time
Critical path
17-24
Pessimistic time
Time required under worst conditions
17-25
Probabilistic Estimates
Figure 17.8
Beta Distribution
to
Activity
start
Optimistic
time
tm
te
Most likely
time (mode)
tp
Pessimistic
time
17-26
Expected Time
te
t
+
4t
+t
o
m
p
=
6
te = expected time
to = optimistic time
tm = most likely time
tp = pessimistic time
17-27
Variance
2
2
(t
t
)
= p o
36
2 = variance
to = optimistic time
tp = pessimistic time
17-28
Example 5
Optimistic
time
Most likely
time
Pessimistic
time
2-4-6
b
3-4-5
d
3-5-7
e
5-7-9
f
4-6-8
h
17-29
4.00
b
4.00
d
5.0
e
7.0
f
6.0
h
17-30
Path Probabilities
Z =
17-31
Example 6
17
Weeks
1.00
a-b-c
Weeks
10.0
d-e-f
16.0
Weeks
1.00
g-h-i
13.5
Weeks
17-32
17-33
Shorten
CRASH
Cumulative
cost of
crashing
Shorten
Optimum
17-34
Example 7
2
f
4
d
17-35
Advantages of PERT
Forces managers to organize
Critical activities
Slack activities
2
1
17-36
Limitations of PERT
Important activities may be omitted
Precedence relationships may not be
correct
Estimates may include
a fudge factor
4
2
142 weeks
3
17-37
17-38
17-39
Advantages of PM Software
Imposes a methodology
Provides logical planning structure
Enhances team communication
Flag constraint violations
17-41
Risk Management
Identify potential risks
17-42
Summary
Projects are a unique set of activities
Projects go through life cycles
PERT and CPM are two common
techniques
Network diagrams
Project management software available
17-43