3 - 1© 2011 Pearson Education, Inc. publishing as Prentice Hall Complex and temporary task of many...

3 - 1© 2011 Pearson Education, Inc. publishing as Prentice Hall

Complex and temporary task of many related activities.(not ‘business as usual’)

May disrupt normal operations.(Mgt has to complete project AND keep business going)

Will have time pressure and budget limits. (work smarter not harder)

Project CharacteristicsProject Characteristics


Project Management Institute : Project Life Cycle model


Is a temporary structure

Uses specialists from many departments in a matrix organisation.

Headed by project manager who Coordinates activities

Monitors time schedule and costs

Accepts responsibility for project completion

Is the ‘one-point-of-contact’.

Project OrganizationProject Organization


Project Organization needed when . . .

1. Work is defined with a specific goal and deadline (SMART)

2. Work is unique or unfamiliar to the existing organization (one-off)

3. Work contains complex tasks requiring specialized skills and team work.(coordination & communication )

4. Work is temporary and critical to the organization (high priority/change management)

5. Work cuts across department boundaries. (involves staff working in teams)


The Role of the Project ManagerThe Role of the Project Manager

Highly visible / project leadership / project Highly visible / project leadership / project responsibility responsibility

1. All activities are finished in order and on time (planning, coordinating, organising)

2. The project is complete within budget (monitoring)

3. The project meets quality goals (controlling)

4. The project people are motivated, directed, and informed (leading)


PlanningObjectives

Resources

Work break-down structure

Organization

SchedulingProject activities

Start & end times

Network

ControllingMonitor, compare, revise, action

Project Management Project Management ActivitiesActivities


Project Planning, Project Planning, Scheduling, and ControllingScheduling, and Controlling

Figure 3.1

Before Start of project Duringproject Timeline project



Figure 3.1




Figure 3.1




Figure 3.1




Figure 3.1


BudgetsDelayed activities reportSlack activities report

Time/cost estimatesBudgetsEngineering diagramsCash flow chartsMaterial availability details

CPM/PERTGantt chartsMilestone chartsCash flow schedules


Establishing business objectives

Defining project (scope)

Creating work breakdown structure

Determining resources

Forming organization

Project PlanningProject Planning


Work Breakdown StructureWork Breakdown Structure

Level

1. Project

2. Major tasks in the project

3. Subtasks in the major tasks

4. Activities (or work packages)to be completed


Level 4 Compatible with Windows ME

Compatible with Windows Vista

Compatible with Windows XP 1.1.2.3

1.1.2.2

1.1.2.1

(Work packages)

Level 3 Develop GUIs Planning

Module Testing

Ensure Compatibility with Earlier Versions

Cost/Schedule Management

Defect Testing

1.1.1

1.2.2 1.3.2

1.3.11.2.1

1.1.2

Work Breakdown StructureWork Breakdown Structure

Figure 3.3

Level 2 Software Design

Project Management

System Testing1.1 1.2 1.3

Level 1 Develop Windows 7 Operating System 1.0


Project SchedulingProject Scheduling Identifying precedence relationships

Sequencing activities

Determining activity times & costs

Estimating material & worker requirements

Determining critical activities


Gantt chart

Critical Path Method (CPM)

Program Evaluation and Review Technique (PERT)

Project Management Project Management Techniques for schedulingTechniques for scheduling


A Simple Gantt ChartA Simple Gantt Chart

TimeJ F M A M J J A S

Design

Prototype

Test

Revise

Production


Network planning techniques

Developed in 1950’s CPM by DuPont for chemical plants (1957)

PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958)

uncovers precedence and interdependence of stages.

Difference is CPM has fixed times for each stage

PERT has a statistical range for times for each stage

PERT and CPMPERT and CPM


Six Steps PERT & CPMSix Steps PERT & CPM1. Define the project and prepare the work

breakdown structure

2. Identify which activities must precede and/or follow other activities.

3. Draw the network connecting the activities

4. Assign times & costs to each activity

5. Find the longest time path through the network – this is called the critical path

6. Use the network to help plan, schedule, monitor, and control the project


1. When will the project be completed?

2. What are the critical activities or tasks in the project? (no float time / must be finished on time or cause delay)

3. Which are the noncritical activities?(some float time / can be delayed without changing time for whole project)

4. What is the probability the project will be completed by a specific date? (PERT not CPM)

Questions PERT & CPM Questions PERT & CPM Can AnswerCan Answer


5. Is the project on schedule, behind schedule, or ahead of schedule?(timing of milestones)

6. Is the money spent equal to, less than, or greater than the budget?

7. Are there enough resources available to finish the project on time?

8. If the project must be finished in a shorter time, what is the way to accomplish this at least cost?

Questions PERT & CPM Questions PERT & CPM Can AnswerCan Answer


Critical Path Example Critical Path Example

Activity DescriptionImmediate

Predecessors

A Build internal components —

B Modify roof and floor —

C Construct collection stack A

D Pour concrete and install frame A, B

E Build high-temperature burner C

F Install pollution control system C

G Install air pollution device D, E

H Inspect and test F, G

Milwaukee Paper Manufacturing'sMilwaukee Paper Manufacturing'sActivities and PredecessorsActivities and Predecessors

Table 3.1


AON Network for AON Network for Milwaukee PaperMilwaukee Paper

G

E

F

H

CA

Start

DB

Arrows Show Precedence Relationships Figure 3.8


H

(Inspect/ Test)

7Dummy Activity

AOA Network for AOA Network for Milwaukee PaperMilwaukee Paper

6

F(Install

Controls)E

(Bu

i ld B

urn

er)G

(Insta

ll

Pollutio

n

Device)

5D

(Pour Concrete/

Install Frame)

4C

(Construct Stack)

1

3

2

B(Modify

Roof/Floor)

A(B

uild In

tern

al

Componen

ts)

Figure 3.9


Determining the Project Determining the Project ScheduleSchedule

Perform a Critical Path AnalysisPerform a Critical Path Analysis The critical path is the longest path through the

network

The critical path is the shortest time in which the project can be completed

Any delay in critical path activities delays the whole project

Critical path activities have no slack (float) time



Perform a Critical Path AnalysisPerform a Critical Path Analysis

Table 3.2

Activity Description Time (weeks)A Build internal components 2B Modify roof and floor 3C Construct collection stack 2D Pour concrete and install frame 4E Build high-temperature burner 4F Install pollution control system 3G Install air pollution device 5H Inspect and test 2

Total Time (weeks) 25




Table 3.2

Activity Description Time (weeks)A Build internal components 2B Modify roof and floor 3C Construct collection stack 2D Pour concrete and install frame 4E Build high-temperature burner 4F Install pollution control system 3G Install air pollution device 5H Inspect and test 2

Total Time (weeks) 25

Earliest start (ES) =earliest time at which an activity can start, assuming all predecessors have been completed

Earliest finish (EF) =earliest time at which an activity can be finished

Latest start (LS) =latest time at which an activity can start so as to not delay the completion time of the entire project

Latest finish (LF) =latest time by which an activity has to be finished so as to not delay the completion time of the entire project




Figure 3.10

A

Activity Name or Symbol

Earliest Start ES

Earliest FinishEF

Latest Start

LS Latest Finish

LF

Activity Duration

2


Forward PassForward Pass

Begin at starting event and work forwardBegin at starting event and work forward

Earliest Start Time Rule:

If an activity has only a single immediate predecessor, its ES equals the EF of the predecessor

If an activity has multiple immediate predecessors, its ES is the maximum of all the EF values of its predecessors

ES = Max {EF of all immediate predecessors}


Forward PassForward Pass

Begin at starting event and work forwardBegin at starting event and work forward

Earliest Finish Time Rule:

The earliest finish time (EF) of an activity is the sum of its earliest start time (ES) and its activity time

EF = ES + Activity time


ES/EF Network for ES/EF Network for Milwaukee PaperMilwaukee Paper

Start

0

0

ES

0

EF = ES + Activity time



Start0

0

0

A

2

2

EF of A = ES of A + 2

0

ESof A


B

3


Start0

0

0

A

2

20

3

EF of B = ES of B + 3

0

ESof B


C

2

2 4


B

3

0 3

Start0

0

0

A

2

20


C

2

2 4


B

3

0 3

Start0

0

0

A

2

20

D

4

73= Max (2, 3)


D

4

3 7

C

2

2 4


B

3

0 3

Start0

0

0

A

2

20


E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

D

4

3 7

C

2

2 4


B

3

0 3

Start0

0

0

A

2

20

Figure 3.11


Backward PassBackward Pass

Begin with the last event and work backwardsBegin with the last event and work backwards

Latest Finish Time Rule:

If an activity is an immediate predecessor for just a single activity, its LF equals the LS of the activity that immediately follows it

If an activity is an immediate predecessor to more than one activity, its LF is the minimum of all LS values of all activities that immediately follow it

LF = Min {LS of all immediate following activities}


Backward PassBackward Pass

Begin with the last event and work backwardsBegin with the last event and work backwards

Latest Start Time Rule:

The latest start time (LS) of an activity is the difference of its latest finish time (LF) and its activity time

LS = LF – Activity time


LS/LF Times for LS/LF Times for Milwaukee PaperMilwaukee Paper

E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

D

4

3 7

C

2

2 4

B

3

0 3

Start0

0

0

A

2

20

LF = EF of Project

1513

LS = LF – Activity time



E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

D

4

3 7

C

2

2 4

B

3

0 3

Start0

0

0

A

2

20

LF = Min(LS of following activity)

10 13



E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start0

0

0

A

2

20

LF = Min(4, 10)

42



E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start0

0

0

A

2

20

42

84

20

41

00


Computing Slack TimeComputing Slack Time

After computing the ES, EF, LS, and LF times for all activities, compute the slack or free time for each activity

Slack is the length of time an activity can be delayed without delaying the entire project

Slack = LS – ES or Slack = LF – EF


Computing Slack TimeComputing Slack Time

Table 3.3

Earliest Earliest Latest Latest OnStart Finish Start Finish Slack Critical

Activity ES EF LS LF LS – ES Path

A 0 2 0 2 0 YesB 0 3 1 4 1 NoC 2 4 2 4 0 YesD 3 7 4 8 1 NoE 4 8 4 8 0 YesF 4 7 10 13 6 NoG 8 13 8 13 0 YesH 13 15 13 15 0 Yes


Critical Path for Critical Path for Milwaukee PaperMilwaukee Paper

E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start0

0

0

A

2

20

42

84

20

41

00



ES – EF Gantt ChartES – EF Gantt Chartfor Milwaukee Paperfor Milwaukee Paper

A Build internal components

B Modify roof and floor

C Construct collection stack

D Pour concrete and install frame

E Build high-temperature burner

F Install pollution control system

G Install air pollution device

H Inspect and test

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16


LS – LF Gantt ChartLS – LF Gantt Chartfor Milwaukee Paperfor Milwaukee Paper

A Build internal components

B Modify roof and floor

C Construct collection stack

D Pour concrete and install frame

E Build high-temperature burner

F Install pollution control system

G Install air pollution device

H Inspect and test

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16



Trade-Offs and Project Trade-Offs and Project CrashingCrashing

The project is behind schedule

The completion time has been moved forward

It is not uncommon to face the It is not uncommon to face the following situations:following situations:

Shortening the duration of the project is called project crashing


Factors to Consider When Factors to Consider When Crashing a ProjectCrashing a Project

The amount by which an activity is crashed is, in fact, permissible

Taken together, the shortened activity durations will enable us to finish the project by the due date

The total cost of crashing is as small as possible


Steps in Project CrashingSteps in Project Crashing

1. Compute the crash cost per time period. If crash costs are linear over time:

Crash costper period =

(Crash cost – Normal cost)

(Normal time – Crash time)

2. Using current activity times, find the critical path and identify the critical activities


Steps in Project CrashingSteps in Project Crashing3. For only one critical path, select the

activity on this critical path that

(a) can still be crashed,

(b) has the smallest crash cost per period.

4. For more than one critical path, select one activity from each critical path so

that

(a) each selected activity can still be crashed,

(b) the total crash cost of all selected activities is the smallest.


Steps in Project CrashingSteps in Project Crashing

4. Update all activity times. If the desired due date has been reached, stop. If not, return to Step 2.


Crashing The ProjectCrashing The Project

Table 3.5

Time (Wks) Cost ($)Crash Cost Critical

Activity Normal Crash Normal Crash Per Wk ($) Path?

A 2 1 22,000 22,750 750 YesB 3 1 30,000 34,000 2,000 NoC 2 1 26,000 27,000 1,000 YesD 4 2 48,000 49,000 1,000 NoE 4 2 56,000 58,000 1,000 YesF 3 2 30,000 30,500 500 NoG 5 2 80,000 84,500 1,500 YesH 2 1 16,000 19,000 3,000 Yes


Crash and Normal Times Crash and Normal Times and Costs for Activity Band Costs for Activity B

| | |1 2 3 Time (Weeks)

$34,000 —

$33,000 —

$32,000 —

$31,000 —

$30,000 —

—

Activity Cost

Crash

Normal

Crash Time Normal Time

Crash Cost

Normal Cost

Crash Cost/Wk = Crash Cost – Normal CostNormal Time – Crash Time

=$34,000 – $30,000

3 – 1

= = $2,000/Wk$4,0002 Wks

Figure 3.16


Critical Path and Slack Times Critical Path and Slack Times for Milwaukee Paperfor Milwaukee Paper

Figure 3.17

E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start0

0

0

A

2

20

42

84

20

41

00

Slack = 1 Slack = 1

Slack = 0 Slack = 6

Slack = 0

Slack = 0

Slack = 0

Slack = 0



Ethical IssuesEthical Issues

1. Offers of gifts from contractors

2. Pressure to alter status reports to mask delays

3. False reports for charges of time and expenses

4. Pressure to compromise quality to meet schedules

Project managers face many ethical decisions on a daily basis

The Project Management Institute has established an ethical code to deal with problems such as:

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