Opermgt 345: Project Management Basic Concepts

Opermgt 345
January, 2001
Project Management
Basic Concepts
1
Opermgt 345 Shannon January, 2001
What is a Project?
A Project is a series of activities and tasks

that:
Have a specific objective to be completed with
certain objectives
Have a defined start and end dates
Have funding limits (if applicable)
Consume Resources
2
Typical Project Structure
Project
Project
Definition
Definition
Project
Project
Monitoring
Monitoring
Project
Project
Planning
Planning
Project
Project Project
Project
Implementation
Implementation Evaluation
Evaluation
Project
Project
Adjustment
Adjustment 3
Resources and Effort Project Life Cycle
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Conceptual Advanced Detailed Project Project
Design Development Design Implementation Termination
•Goals •Plan •Define •Manage •Closeout

•Scope •Budget Responsibility •Measure •Document
•Baseline •Schedule •Team •Control •Suggest
•Requirements •Management •Organization •Update and Improvements
•Feasibility Commitment Structure Modify Plan •Reassign
•Desirability •Detailed Plan •Problem Solve •Dissolve Project
•Kickoff Team
4
Successful Projects
A successful project is one which achieves the

following objectives:
– Completed On Time
– Completed Within Cost
– Meets Performance Criteria
– Minimum Disruption of the Main Work of the
Organization
– Effective Utilization of Resources
5
The Triple Play of
Project Management
Time Cost
Constraints
Performance
6
Triple Constraint Trade-offs
$
Budget Better
Performance
Worse Specifications
Early Schedule Late TIME

7
Major causes of failure
 Selection of a unsound project

 Selecting the wrong person as a project
manager
 Lack of support from upper management
 Misused management techniques
 Project termination not planned
8
Project Definition
Build Canoe Rental Building on

Coeur d A’lene Lake
9
Form Project Team
•Select Project Leader
•Identify Key People
•Gain Management Commitment
•Define Project Team Operating Rules
10
The Top Level Project Tasks
Brainstorm
Brainstorm
the
the
Major
MajorTasks
Tasks
C
B G
Establish
Establish A
Work
WorkFlow
Flow
D E F
11
Define Top Level Tasks
Canoe Example
Site Preparation
Build Dock
Build Building
Finish and Ready for Business
12
Sequence Top Level Tasks
Build Dock
Site Preparation Finish
Build Building
13
Detailed
Sub-Tasks
Tasks
C
G
B
D E F
Develop Work Sequence

Detailed
Tasks
14
Brainstorm Sub-Tasks
Site Preparation Build Dock Build Building Finish
Dock Site Install Pilings Foundation Order Canoes
Frame
Landscape
Building Site Build Dock
Roof
Assemble
Power
Canoes
Siding Open for

Business
Paint
15
Work Breakdown Structure
Top Level Task
2nd Level 2nd Level 2nd Level 2nd Level

Task Task Task Task
3rd Level 3rd Level 3rd Level 3rd Level

Task Task Task Task
3rd Level 3rd Level 3rd Level 3rd Level 3rd Level
Task Task Task Task Task
16
Opermgt 345 Shannon January, 2001 Lower Level Tasks
Sequence Sub-Tasks
Task Description Immediate Predecessor
A Prepare Dock Site -
B Prepare Hut Site -
C Install Dock Pilings A
D Foundation for Hut B
E Build Dock C
F Frame Hut D
G Power to Hut D
H Side the Hut F
I Roof the Hut F
J Order Canoes and Receive Canoes -
K Paint Hut H
L Assemble Canoes J
M Finish Landscaping L,I,K,E,G
N Open for Business M
17
Build Network Diagram
(PERT Chart)
(Activities on Arrows)
Task Predecessor
E Build Dock C
F Frame Hut D
G Power to Hut D
H Side the Hut F
I Roof the Hut F
J Order Canoes and Receive Canes -
K Paint Hut H
L Assemble Canoes J
18
(PERT Chart)
A
1 3
Prep Dock
Site
Task Predecessor
E Build Dock C
F Frame Hut D
G Power to Hut D
H Side the Hut F
I Roof the Hut F
K Paint Hut H
L Assemble Canoes J
19
(PERT Chart)
2
J es
a no
derC
Or
A
1 3
Prep Dock
Site
Task Predecessor
E Build Dock C
F Frame Hut D
G Power to Hut D
H Side the Hut F
I Roof the Hut F
K Paint Hut H
L Assemble Canoes J
20
(PERT Chart)
2
J es
a no
derC
Or
A
1 3
Prep Dock
Site
B Task Predecessor
Prep te
Hut S

are

i

4 E Build Dock
F Frame Hut
C
D
D G Power to Hut D
H Side the Hut F
Hut I Roof the Hut F
Foundation 6 J Order Canoes and Receive Canes -
K Paint Hut H
L Assemble Canoes J
21
(PERT Chart)
2
J es
a no
derC
Or
A C E
1 3 5 9
Prep Dock Install Pilings Build Dock
Site
B Task Predecessor
Prep te
Hut S

are

i

4 E Build Dock
F Frame Hut
C
D
D G Power to Hut D
H Side the Hut F
K Paint Hut H
L Assemble Canoes J
22
(PERT Chart)
2
J es
a no
derC
Or
A C E
1 3 5 9
Site
B Task Predecessor
Prep te
Hut S
G Hut A Prepare Dock Site

B Prepare Hut Site
-
-
o
are
rT C Install Dock Pilings A

i
o we D Foundation for Hut B

4 P E Build Dock C
F Frame Hut D
D G Power to Hut D
H Side the Hut F
K Paint Hut H
L Assemble Canoes J
23
(PERT Chart)
2
Ass L
J oe s e mb
Can le C
r der ano
es
O
A C E
1 3 5 9
Site
B Task Predecessor
Prep te
Hut S

B Prepare Hut Site
-
-
o
are

i
o we D Foundation for Hut B

4 P E Build Dock C
F Frame Hut D
D G Power to Hut D
H Side the Hut F
K Paint Hut H
L Assemble Canoes J
24
(PERT Chart)
2
Ass L
J oe s e mb
Can le C
r der ano
es
O
A C E
1 3 5 9
Site
B Task Predecessor
Prep te
Hut S

B Prepare Hut Site
-
-
o
are

i
we D Foundation for Hut B
of
Po
4
Ro
E Build Dock C
D I F Frame Hut D
G Power to Hut D
H Side the Hut F
Hut F I Roof the Hut F
Foundation 6 7 J Order Canoes and Receive Canes -
Frame Hut K Paint Hut H
L Assemble Canoes J
25
Task Predecessor
Build Network Diagram C Install Dock Pilings

D Foundation for Hut
E Build Dock
A
B
C
(PERT Chart) F Frame Hut

G Power to Hut
D
D
H Side the Hut F
I Roof the Hut F
2 K Paint Hut H
L Assemble Canoes J
Ass L
oe s
J e mb
Can le C
r der ano
es
O
A C E
1 3 5 9
Site
B
Prep te
Hut S
G Hut
o
are
rT
i
we
of
Po K Paint
4
Ro
D I Hut
Hut F H
Foundation 6 7 8
Frame Hut Side Hut
26
Task Predecessor
Build Network A Prepare Dock Site

B Prepare Hut Site
C Install Dock Pilings
D Foundation for Hut
-
-
A
B
Diagram
E Build Dock C
F Frame Hut D
G Power to Hut D
H Side the Hut F
I Roof the Hut F
(PERT Chart)
2
J Order Canoes and Receive Canes
K Paint Hut
L Assemble Canoes
M Finish Landscaping
-
H
J
L,I,K,E,G
Ass L
oe s
J e mb
Can le C
r der ano
es
O
A C E M N
1 3 5 9 10 11
Prep Dock Install Pilings Build Dock Finish Open for
Site Landscape Business
B
Prep te
Hut S
G Hut
o
are
rT
i
we
of
Po K Paint
4
Ro
D I Hut
Hut F H
Foundation 6 7 8
Frame Hut Side Hut
27
Build Network Diagram Task Description Time
(PERT Chart) Canoe Example A Prepare Dock Site

B Prepare Hut Site
3d
4d
C Install Dock Pilings 6d
Add Times D Foundation for Hut
E Build Dock
3d
4d
F Frame Hut 3d
G Power to Hut 2d
2 H Side the Hut
I Roof the Hut
2d
3d
J Order Canoes 2d
Ass L (10) K Paint Hut 4d
J (2) oe s e mb L Assemble Canoes 10 d
Can le C M Finish Landscaping 4d
r der ano
es
NOpen for Business 2d
O
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
G (2) Hut
o
are
rT
i
we
of
Po Paint
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
28
Build Network
Task Predecessor
Diagram D Foundation for Hut

E Build Dock
F Frame Hut
G Power to Hut
B
C
D
D
(PERT Chart)
H Side the Hut F
I Roof the Hut F
2 K Paint Hut H
L Assemble Canoes J
Ass L
oe s
J e mb
Can le C
r der ano
es
O
A C E M N
1 3 5 9 10 11
B
Prep te
Hut S
G Hut
o
are
rT
i
we
of
Po K Paint
4
Ro
D I Hut
Hut F H
Foundation 6 7 8
Frame Hut Side Hut
29
Build Network Diagram Task Description Time
(PERT Chart) Canoe Example A Prepare Dock Site

B Prepare Hut Site
3d
4d
C Install Dock Pilings 6d
Add Times D Foundation for Hut
E Build Dock
3d
4d
F Frame Hut 3d
G Power to Hut 2d
2 H Side the Hut
I Roof the Hut
2d
3d
J Order Canoes 2d
Ass L (10) K Paint Hut 4d
J (2) oe s e mb L Assemble Canoes 10 d
Can le C M Finish Landscaping 4d
r der ano
es
NOpen for Business 2d
O
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
G (2) Hut
o
are
rT
i
we
of
Po Paint
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
30
Determining Project Length
Option 1: Sum all the task durations:

A Prepare Dock Site - 3d
B Prepare Hut Site - 4d
C Install Dock Pilings A 6d
D Foundation for Hut B 3d
E Build Dock C 4d
F Frame Hut D 3d
G Power to Hut D 2d
H Side the Hut F 2d
I Roof the Hut F 3d
J Order Canoes and Receive Canoes - 2d
K Paint Hut H 4d
L Assemble Canoes J 10 d
M Finish Landscaping L,I,K,E,G 4d
N Open for Business M 2d
Sum = 52 days
Anything wrong with this approach?
31
Determining Project Length
Option 2: Determine duration of each network path
32
Paths:
Network Diagram
A-C-E-M-N = 19 days
Project Paths
2
Ass L (10)
J (2) oe s e mb
Can le C
r der ano
es
O
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
G (2) Hut
o
are
rT
i
we
of
Po Paint
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
33
Paths:
Network Diagram
A-C-E-M-N = 19 days
B-D-F-H-K-M-N = 22 days Project Paths
2
Ass L (10)
J (2) oe s e mb
Can le C
r der ano
es
O
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
G (2) Hut
o
are
rT
i
we
of
Po Paint
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
34
Paths:
Network Diagram
A-C-E-M-N
B-D-F-H-K-M-N
= 19 days
= 22 days Project Paths
B-D-F-I-M-N = 18 days
2
Ass L (10)
J (2) oe s e mb
Can le C
r der ano
es
O
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
G (2) Hut
o
are
rT
i
we
of
Po Paint
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
35
Paths:
Network Diagram
A-C-E-M-N
B-D-F-H-K-M-N
= 19 days
B-D-F-J-M-N = 18 days
B-D-G-M-N = 15 days
2
Ass L (10)
J (2) oe s e mb
Can le C
r der ano
es
O
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
G (2) Hut
o
are
rT
i
we
of
Po Paint
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
36
Paths:
Network Diagram
A-C-E-M-N
B-D-F-H-K-M-N
= 19 days
B-D-G-M-N = 15 days
J-L-M-N = 18 days 2
Ass L (10)
J (2) oe s e mb
Can le C
r der ano
es
O
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
G (2) Hut
o
are
rT
i
we
of
Po Paint
4
Ro
J (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
37
Critical Path
The Critical Path is the Longest Path

Through the Network.
38
Paths:
Network Diagram Canoe Example
A-C-E-M-N = 19 days
B-D-F-H-K-M-N = 22 days
Critical Path
B-D-G-M-N = 15 days
J-L-M-N = 18 days
2
Ass L (10)
J (2) oe s e mb
Can le C
r der ano
es
O
A (3) C (6) E (4) M (4) N (2)
1 3 5 9 10 11
B (4)
Prep te
Hut S
G (2) Hut
o
are
rT
i
we
of
Po Paint
4
Ro
I (2) K (4) Hut
D (3)
Hut F (3) H (2)
Foundation 6 7 8
Frame Hut Side Hut
39
Completed
Task Timetable
Task Description Immediate Predecessor Time ES LS EF LF
A Prepare Dock Site - 3d 0 3 3 6

B Prepare Hut Site - 4d 0 0 4 4
C Install Dock Pilings A 6d 3 6 9 12
D Foundation for Hut B 3d 4 4 7 7
E Build Dock C 4d 9 12 13 16
F Frame Hut D 3d 7 7 10 10
G Power to Hut D 2d 7 14 9 16
H Side the Hut F 2d 10 10 12 12
I Roof the Hut F 3d 10 13 13 16
J Order Canoes and Receive Canoes - 2d 0 4 2 6
K Paint Hut H 4d 12 12 16 16
L Assemble Canoes J 10 d 2 6 12 16
M Finish Landscaping L,I,K,E,G 4d 16 16 20 20
N Open for Business M 2d 20 20 22 22
40
Slack Time
Total Slack = The length of time an activity can be

delayed without affecting the project
completion time.
Total Slack = Late Start - Early Start

For Critical
Activities
Total Slack = Late Finish - Early Finish
Free Slack = The time a task can be delayed without

delaying another task. 41
Slack Time
Task Description Immediate Predecessor Time ES LS EF LF Slack
A Prepare Dock Site - 3d 0 3 3 6 3

B Prepare Hut Site - 4d 0 0 4 4 0
C Install Dock Pilings A 6d 3 6 9 12 3
D Foundation for Hut B 3d 4 4 7 7 0
E Build Dock C 4d 9 12 13 16 3
F Frame Hut D 3d 7 7 10 10 0
G Power to Hut D 2d 7 14 9 16 7
H Side the Hut F 2d 10 10 12 12 0
I Roof the Hut F 3d 10 13 13 16 3
J Order Canoes and Receive Canoes - 2d 0 4 2 6 4
K Paint Hut H 4d 12 12 16 16 0
L Assemble Canoes J 10 d 2 6 12 16 4
M Finish Landscaping L,I,K,E,G 4d 16 16 20 20 0
N Open for Business M 2d 20 20 22 22 0
42
Critical Path Tasks
Critical Path = All tasks with slack = zero
43
Critical Path Tasks
Task Description Immediate Predecessor Time ES LS EF LF Slack
A Prepare Dock Site - 3d 0 3 3 6 3

B Prepare Hut Site - 4d 0 0 4 4 0 ***
C Install Dock Pilings A 6d 3 6 9 12 3
D Foundation for Hut B 3d 4 4 7 7 0 ***
E Build Dock C 4d 9 12 13 16 3
F Frame Hut D 3d 7 7 10 10 0 ***
G Power to Hut D 2d 7 14 9 16 7
H Side the Hut F 2d 10 10 12 12 0 ***
I Roof the Hut F 3d 10 13 13 16 3
J Order Canoes and Receive Canoes - 2d 0 4 2 6 4
K Paint Hut H 4d 12 12 16 16 0 ***
L Assemble Canoes J 10 d 2 6 12 16
M Finish Landscaping L,I,K,E,G 4d 16 16 20 20 0 ***
N Open for Business M 2d 20 20 22 22 0 ***
Critical Path = B - D - F - H - K - M - N
44

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Opermgt 345

A Project is a series of activities and tasks

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

•Goals •Plan •Define •Manage •Closeout

A successful project is one which achieves the

Early Schedule Late TIME

 Selection of a unsound project

Build Canoe Rental Building on

•Select Project Leader

•Identify Key People

•Gain Management Commitment

•Define Project Team Operating Rules

Finish and Ready for Business

Site Preparation Finish

Develop Work Sequence

Dock Site Install Pilings Foundation Order Canoes

Siding Open for

Top Level Task

2nd Level 2nd Level 2nd Level 2nd Level

3rd Level 3rd Level 3rd Level 3rd Level

A Prepare Dock Site -

C Install Dock Pilings A

D Foundation for Hut B

A Prepare Dock Site -

C Install Dock Pilings A

D Foundation for Hut B

G Hut A Prepare Dock Site

rT C Install Dock Pilings A

o we D Foundation for Hut B

G Hut A Prepare Dock Site

rT C Install Dock Pilings A

o we D Foundation for Hut B

G Hut A Prepare Dock Site

rT C Install Dock Pilings A

we D Foundation for Hut B

Build Network Diagram C Install Dock Pilings

(PERT Chart) F Frame Hut

Build Network A Prepare Dock Site

(PERT Chart) Canoe Example A Prepare Dock Site

Diagram D Foundation for Hut

(PERT Chart) Canoe Example A Prepare Dock Site

Option 1: Sum all the task durations:

Option 2: Determine duration of each network path

The Critical Path is the Longest Path

A Prepare Dock Site - 3d 0 3 3 6

Total Slack = The length of time an activity can be

Total Slack = Late Start - Early Start

Free Slack = The time a task can be delayed without

A Prepare Dock Site - 3d 0 3 3 6 3

Critical Path = All tasks with slack = zero

A Prepare Dock Site - 3d 0 3 3 6 3

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