G E N E R AL E D U C AT I O N D E PAR TM E N T

U N I V E R S I T Y O F S C I E N C E AN D T E C H N O L O G Y O F H AN O I ( U S TH )

Course on Project Management – Lecture 2

Project Management Tools and Steps

Academic Year 2021-2022 1

Project Management Frameworks To Keep Projects On Track

1. WATERFALL PROJECT MANAGEMENT

2. AGILE PROJECT MANAGEMENT

3. SCRUM PROJECT MANAGEMENT

4. LEAN PROJECT MANAGEMENT

5. KANBAN PROJECT MANAGEMENT

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•WATERFALL PROJECT MANAGEMENT

3
•AGILE PROJECT MANAGEMENT

4
5
•SCRUM PROJECT MANAGEMENT

6
7
•LEAN PROJECT MANAGEMENT

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9
10
KANBAN PROJECT MANAGEMENT

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WHAT IS MANAGED? THE
THREE GOALS OF A PROJECT
Figure 1-1: Performance, Cost, and Time Project Targets
You can’t have it all!
Performance-Cost-Time-Scope (PCTS) constraints can be written as
C = f(P,T,S)
A triangle: P, C, and T are the sides, and S is the area
The sponsor can assign values to any 3 variables, but the project manager must determine the
remaining one.
THE LIFE CYCLES OF PROJECTS
 Steps in Managing a Project
Steps in Managing a Project
Define the problem

Develop solution options

Plan the Project : what must be done ?, who will do it?, How will it be done ?
How much will it cost? ,what do we need to do?

Execute the plan

Monitor & Control Progress

Close Project
What was done well?
What should be improved?

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Project Life Cycles
Man Hours

Conceptualization Planning Execution Termination

Project Life Cycle Stages

 Project Life Cycle

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 Project Life Cycle

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Project Life Cycles and Their Effects
 Elements of Project Management
Work Breakdown Structure (WBS)
■ WBS breaks down project into major components (modules).

■ Modules are further broken down into subcomponents,

components, activities, and finally, into individual tasks.

■ Identifies activities, tasks, resource requirements and

relationships between modules and activities.

■ Helps avoid duplication of effort.

■ Basis for project development, management , schedule

resources and modifications.

■ Approaches for WBS development:

1. Top down process 2. Brainstorm entire project
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Work Breakdown Structure

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A Work Breakdown Structure (three levels)
for a new business
Elements of Project Management
Work Breakdown Structure
Figure 1-2: The Project Life Cycle
Construction Project Lifecycle
Figure 1-3: An Alternate Project Life Cycle
Figure 1-4: Appropriate project life cycle
 Project Lifecycle

Cost and
Intermediate
Staffing
Phases (one
level
or more) Final
Initial
Phase Phase

Time
Start Finish

Milestones :
• defined state of the project
• decision point
 The Project Life Cycle (PLC) the time
distribution of project activity
Level of activity

Develop it
Design it
Define it

Time Do it
 The Project Life Cycle (PLC) the time
cumulative expenditure
Cumulative Expenditure

Develop it
Design it
Define it

Time Do it (Maylor 2003)

STEPS IN MANAGING A PROJECT
 Gantt Chart
• Visual scheduling tool
• Graphical representation of information
• Show dependencies between tasks, personnel,
and other resources allocations
• Track progress towards completion

15-Dec-21 DR.BOKKASAM SASIDHAR

 Building a Gantt Chart
• List all tasks and milestones from the
project along the vertical axis
• List time frame along the horizontal axis
Activity 1
Activity 2
Milestone

Time Frame: day 1 day 2 day3

15-Dec-21 DR.BOKKASAM SASIDHAR

 Building a Gantt Chart
• Activities: Create box the length of each activity time
duration
– E.g., activity one is scheduled from day1-day3

Activity 1
Activity 2

Time Frame: day 1 day 2 day3

15-Dec-21 DR.BOKKASAM SASIDHAR

 Building a Gantt Chart
• Dependencies: Show dependencies between
activities with arrows
– E.g., activity 2 cannot start until activity 1 is complete

Activity 1
Activity 2

Time Frame: day 1 day 2 day3…

15-Dec-21 DR.BOKKASAM SASIDHAR

 Sequence of Activities of The Project - House Building
Number Activity Predecessor Duration
1 Design house and obtain -- 3 months
financing
2 Lay foundation 1 2 months

3 Order and receive materials 1 1 month

4 Build house 2,3 3 months

5 Select paint 2, 3 1 month

6 Select carper 5 1 month
7 Finish work 4, 6 1 month

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 Gantt Chart for House Building Project

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 Gantt Charts
 Establish a time-phased network
 Can be used as a tracking tool

Benefits of Gantt charts

1. Easy to create and comprehend
2. Identify the schedule baseline network
3. Allow for updating and control
4. Identify resource needs
 Gantt Charts – Example
Consider the Gantt chart shown below where the time scale is in minutes and
all activities are performed on an early start basis. How much slack is available
in the project?
Answer: Nil

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 Gantt Charts – Resource Allocation Example
Use the Gantt chart and the activity list to determine when
resource 5 is free.
Activity Resources Activity Resources

A 1 F 1

B 5 G 2

C 4 H 5

D 3 J 3

E 2 K 4

A) between 0 and 15
B) between 15 and 30
C) between 30 and 45
D) between 45 and 60
Answer: D

15-Dec-21
 Gantt Charts – Resource Allocation Example
Use the Gantt chart and the activity list to determine when
resource 2 is free.

Activity Resources Activity Resources

A 1 F 1

B 5 G 2

C 4 H 5

D 3 J 3

E 2 K 2

A) between 0 and 15
B) between 15 and 30
C) between 30 and 45
D) between 45 and 60
Answer: A

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CORE PROJECT
MANAGEMENT TOOLS
 Project charter
What must be done?
◦ What are the required resources
◦ What are the constraints
◦ What are the short and long term implications?
Why do it?
When it must be done?
Where must it be done?
Who does what?
◦ Who is behind the project?
◦ Who is funding the project?
◦ Who is performing the work of the project?
 Project charter – basic project questions
What? The project Plan a corporate picnic
during June this year
When?
T.O.R

Who? for corporate employees and family

Why? The Mission to bolster employee and company

relations at the local park
Where?
How? by coordinating family activities and food
The Goal to accommodate the size of the group
Project charter
• Project goals and objectives
Assumptions
• Sponsor(s) Risks
• Stakeholders Business process changes

• Timeline Project manager

Project team
• Resources required
Budget
• Deliverables Signatures
• Decision making
 Good and not so good : goal criteria of a project
Good goals are: Not so good goals are:

1. Quantitative or measurable 1. Qualitative or not so easy to measure

2. Result concerned 2. Cost concerned
3. Realistic 3. Based on minimum or maximum levels
4. Simple 4. Complex
5. Individual 5. Divided among many
6. Motivating 6. Boring
SELECTING PROJECTS
Nonnumeric Selection Methods
The Operating/Competitive Necessity
Comparative Benefits
Numeric Selection Methods
Financial Assessment Methods
◦ payback period
◦ discounted cash flow
Scoring Methods
◦ unweighted 0-1 factor method
◦ weighted factor scoring method
Payback Period

Initial Fixed Investment

Annual Net Cash Inflows
Discounted Cash Flow

n
Ft
NPV (project)  - I 0  
t 1 (1  k ) t

where
I0 = the initial investment
Ft = the net cash flow in period t
k = the required rate of return or hurdle rate
The Weighted Scoring Model

n
S i   sij w j
j 1

where
Si = the total score of the ith project
sij = the score of the ith project on the jth criterion
wj = the weight or importance of the jth criterion