PROJECT MANAGEMENT

PROJECT MANAGEMENT
• Introduction

• Structuring Projects

• Work Breakdown Structure

• Network-Planning Models

• Time Cost Models

• Project Team management

• Managing Resources
 Project

• “A project is a series of activities directed to

accomplishment of a desired objective.”

Plan your work first…..then work your plan

 Definitions

A project is a temporary endeavour undertaken to

create a unique product or service.

It is
• performed by people

• constrained by limited resources ??

• planned, executed and controlled…PDCA

 Examples
• developing a new product or service
• effecting change in a structure, staffing or style of an organisation
• designing a new transportation vehicle
• developing or acquiring a new or modified information system
• constructing a building or facility
• building a water system for a community in a developing country
• running at campaign for political office
• implementing a new business procedure or process

• Metro railway in New Delhi

• Implementing SAP in multi-sites company
• Commonwealth games in New Delhi
• From 8 to 10 digits numbering in a phone system
•Project Y2K
 Project features (1)

Temporary
• A project has a definite beginning and definite end
• The duration of a project is finite
• The opportunity or market window is usually temporary, most projects
have a limited time frame in which to produce the product or service
• The project team - as a team - seldom outlives the project. Most
projects are performed by a team created for the sole purpose of
performing the project

Unique result
• Projects involve doing something that has not been done before in the
same environment
• The project may require some innovation to be completed
 Project features (2)

Progressive elaboration
• A project occurs step by step to define the product or service, in a so
called “progressive elaboration” process.
• for instance, the development of a chemical processing plant begins
with the process engineering to define the characteristics of the process,
and ends with the final assembly.
Development of a chemical processing plant
Define the Mechanical
chemical characteristics of
characteristics the process units Detailed Manufacturing
of the process (pumps..etc) drawings of the parts
Final
General plant Assembly
layout
 PROJECT MANAGEMENT
 Introduction

• Structuring Projects

• Work Breakdown Structure

• Network-Planning Models

• Time Cost Models

• Project Team management

• Managing Resources
 STRUCTURING PROJECTS
• Three major types to structure a project:
– Pure Project…a separate team works full time on the
project
– Functional Project..team within a division
– Matrix Project…cross functional team
CEO

R&D ENGG MFG MKTG

Manager
Project A

Manager
Project B
Manager
Project C
 PURE PROJECT
• Advantages
– Project Mgr has full authority over the project
– Team members report to one boss
– Shorter lines of communication….faster decisions
– High team pride, motivation & commitment
• Disadvantages
– Duplication of resources
– Org goals & policies may be ignored
– Functional teams weakened
– Members may worry….what happens on
completion
 FUNCTIONAL PROJECT
• Advantages
– Team member can work on several projects
– Tech expertise maintained within functional area
– No worry post project completion
• Disadvantages
– Aspects of project not directly related to
functional area gets compromised
– Motivation of team members often weak
– Client needs are secondary & responded to
slowly
 MATRIX PROJECT
• Advantages
– Communication between divisions enhanced
– Duplication of resources minimized
– No worry post project completion
– Parent org policies followed, hence more support
• Disadvantages
– Problem of dual reporting
– PM must have strong negotiating skills, else failure
– Sub-optimization is a danger as PM’s hoard resources for
their own project, thus harming other projects.
R&D ENGG MFG MKTG
Manager
Project A

Manager
Project B
Manager
Project C
 GROUP TASK # 7
• For your resp companies……

Think of one project of each type…

1. Pure Project
2. Functional Project
3. Matrix Project
 PROJECT MANAGEMENT
 Introduction

 Structuring Projects

• Work Breakdown Structure

• Network-Planning Models

• Time Cost Models

• Project Team management

• Managing Resources
 Work Breakdown Structure (WBS)
• WBS defines the hierarchy of project tasks,
sub tasks and work packages
• Completion of one or more packages results in
completion of a sub-task
• Completion of one or more sub-tasks results
results in completion of a task
• Completion of all tasks is required to complete
the project.
 WBS Illustrated…

Level Program
- - - - - - - - - - - - - - - - - - - - - -

1 Project 1 Project 2
- - - - - - - - - - - - - - - - - - - - - -

2 Task 1.1 Task 1.2

- - - - - - - - - - - - - - - - - - - - - -
3 Subtask 1.1.1 Subtask 1.1.2

- - - - - - - - - - - - - - - - - - - - - -

4 Work package 1.1.1.1 Work package 1.1.1.2

WHY WBS?
 PROJECT MANAGEMENT
 Introduction

 Structuring Projects

 Work Breakdown Structure

• Network-Planning Models

• Time Cost Models

• Project Team management

 PROJECT CONTROL CHARTS
• GANTT CHARTS….Bar chart showing both the amount of
time involved & the sequence in which activities can be
performed.

• CPM..Critical path Method…A single time estimate is used

for each activity…project critical path gets highlighted.

• MS PROJECT….. Excel sheet similar to Gantt Chart but

factoring in linkages of activities.
 What is a Gantt Chart?

• A Gantt Chart is a visual tool to help Plan,

Manage, and Track a project or projects.
Sample Gantt Chart
 Gantt Chart Project Timeline
Task 1 Here
Jan 5 - Jun 1

Task 2 Here
Mar 2 - Jul 14

Task 3 Here
Mar 14 - Oct 2

Task 4 Here
Apr 25 - Oct 20

Task 5 Here
Aug 29 - Nov 30

Project Milestone 1 Milestone 2 Milestone 3 Project

Kickoff Here Here Here Close
Jan 10 Apr 14 Jun 29 Sep 4 Nov 30

2013 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

Today
 Gantt chart
Advantages
- Gantt charts are quite commonly
used. They provide an easy graphical
representation of when activities
(might) take place.
Originated by H.L.Gantt in 1918
Limitations
- Do not clearly indicate details
regarding the progress of activities
- Do not give a clear indication of
interrelation ship between the
separate activities
 CPM - Critical Path Method
• Definition: In CPM activities are shown as a network of
precedence relationships using activity-on-node
network construction
– Single estimate of activity time
– Deterministic activity times

USED IN : Production management - for the jobs of

repetitive in nature where the activity time
estimates can be predicted with considerable
certainty due to the existence of past experience.
 PERT -
Project Evaluation & Review Techniques
• Definition: In PERT activities are shown as a network of
precedence relationships using activity-on-arrow
network construction
– Multiple time estimates
– Probabilistic activity times

USED IN : Project management - for non-repetitive jobs

(research and development work), where the time
and cost estimates tend to be quite uncertain. This
technique uses probabilistic time estimates.
 CPM/PERT

These deficiencies can be eliminated to a large extent by

showing the interdependence of various activities by
means of connecting arrows called network technique.

• Overtime CPM and PERT became one technique

• ADVANTAGES:
– Precedence relationships
– large projects
– more efficient
 The Project Network
• Use of nodes and arrows

Arrows  An arrow leads from tail to head directionally

– Indicate ACTIVITY, a time consuming effort that is required to perform
a part of the work.

Nodes  A node is represented by a circle

- Indicate EVENT, a point in time where one or more activities start
and/or finish.
 Activity on Node & Activity on Arrow
Activity on Node Activity on Arrow

- A completion of an activity is - An arrow represents a task,

represented by a node while a node is the completion
of a task
- Arrows represent order of events
 Activity Slack
Each event has two important times associated with it :

- Earliest time , Te , which is a calendar time when a event can

occur when all the predecessor events completed at the earliest
possible times
- Latest time , TL , which is the latest time the event can occur
with out delaying the subsequent events and completion of
project.

• Difference between the latest time and the earliest time of an

event is the slack time for that event
Positive slack : Slack is the amount of time an event can be
delayed without delaying the project completion. Therefore, if
reqd. resources can be reallocated to critical path, if needed.
 Critical Path

• Is that the sequence of activities and events where

there is no “slack” i.e.. Zero slack

• Longest path through a network

• Minimum project completion time
 Benefits of CPM/PERT

• Useful at many stages of project management

• Mathematically simple

• Give critical path and slack time

• Provide project documentation

• Useful in monitoring costs

 Questions Answered by CPM & PERT

• Completion date?

• On Schedule?

• Within Budget?

• Critical Activities?

• How can the project be finished early at the least cost?

 Example
Illustration of network analysis of a minor redesign of a product and
its associated packaging.

The key question is: How long will it take to complete this project ?
For clarity, this list is kept to a minimum by specifying only
immediate relationships, that is relationships involving activities
that "occur near to each other in time".
 Before starting any of the above activity, the questions
asked would be

•"What activities must be finished before this activity can start"

•could we complete this project in 30 weeks?

•could we complete this project in 2 weeks?

One answer could be, if we first do activity 1, then activity 2, then activity
3, ...., then activity 10, then activity 11 and the project would then take the sum
of the activity completion times, 30 weeks.

“What is the minimum possible time in which we can complete this project ? “
We shall see below how the network analysis diagram/picture we construct
helps us to answer this question.

Critical Path ??
CRITICAL PATH TAKES 24 WEEKS FOR THE COMPLETION OF THE PROJECT
Immediate Predecessor Time in weeks
- 1
A 4 a) Draw the Network Diagram
A 3
b) Compute Early Start & Early Finish Times
B 2 and find the Project Duration Time
C,D 5
D 2 c) Draw & indicate the Critical path
F 2
E,G 3