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Chapter 17

Project Management

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Single unitMany related activitiesDifficult production planning controlGeneral purpose equipment; high labor skills

Project Characteristics

Project organization works best when:Work can be defined with a specific goal and deadlineThe job is unique or somewhat unfamiliar to the existing organizationThe work contains complex interrelated tasks requiring specialized skillsThe project is temporary but critical to the organization

TimeCostPerformance/Quality

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Examples of ProjectsA project is a temporary customized initiative consisting of smaller activities that must be coordinated to finish the entire project on time, within budget, while meeting requirements.

Project management: 1. Cost2. Time3. Performance/Quality

Projects fail due to schedule overruns, use of unproven technology, poor estimates, weak definitions of objectives, and supplier problems.

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Project Stages

1. Define: clearly understand the goal of the project, responsibilities, deliverables, and what must be accomplished.

2. Plan: determine the steps needed to execute the project, delegate tasks, and identify start and completion dates.

3. Organize: coordinating the resources to execute the plan cost-effectively.

4. Control: collecting and assessing status reports and managing changes to baselines.

5. Close: compiling statistics, reassigning people, and preparing “lessons learned”.

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Management of Large Projects

PlanningGoal setting, project definition, team organization

Scheduling Relating activities to each otherRelating people, money, and supplies to specific activities

ControllingMonitoring resources, schedule, costs, quality, and budgetsRevising plans and shifting resources to meet time and cost

demands

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Project Planning, Scheduling, and ControlWork Breakdown Structure1. Project2. Major tasks in the project3. Subtasks in the major

tasks4. Activities to be

completed

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Project Manager Requirements

Four key skills:1. Bias towards task completion,2. Technical and administrative credibility,3. Interpersonal and political sensitivity,4. Leadership ability.

• manage people as a team• reinforce excitement of the team• keep everyone informed - Communication • build agreements and consensus• empower the project team• encourage risk-taking and creativity• Have a Project Champion

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© 1984-1994 T/Maker Co.

Project Management Techniques

1. Gantt Charts

2. Network techniques: developed in 1950’s Consider precedence relationships and interdependencies

CPM by DuPont for chemical plants (1957)PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958)

CPM and PERT are essentially the same (we will see the difference later)

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Project Management SoftwareMicrosoft “Project”

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Activity Network, AON & AOA Format

Important: AOA Needs

dummy activities to

show all relationship

s

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When Activity c is Not Required for e

Important: AOA Needs dummy activities to show all

relationships

Wrong! Right!

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When activity f does not need activity a to be completed first

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A Comparison of AON and AOA

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Relocating an Office – Gantt Chart

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Relocating an Office: Network

9w

1w

3w

6w

11w8w

4w

Locate Facilities - 8w

Interview Staff – 4w

Hire and Train – 9w

Order Furniture – 6w

Remodel/phones - 11w

Furniture set up – 3w

Move in – 1w

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AON -> AOA -> !

G

B

F

A

D H

C

E

Page 1 of 3

St

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TRAIN Design AOA - Example

Activity ImmediateActivity Predecessor

Duration• a - Design TRAIN - 20• b - Build Prototype a 10• c - Perform Tests on Prototype b 8• d - Estimate Material Costs a 11• e - Refine TRAIN Design c,d 7• f - Demonstrate to Customers e 6• g - Estimate Labor Cost d 12

• h - Prepare Technical Proposal e 13• i - Deliver Proposal to Customer g,h 5

1. PERTProgram Evaluation and Review TechniqueBooz-Allen Hamilton/Lockheed/NavyProbabilisticR & DLess popular with timeFocus on time analysis (later also cost)

PMI (2005)ADM / PERT: Arrow Diagram Method

2. CPMCritical Path MethodDuPont/RandDeterministicConstructionMore popular with timeFocus on time and cost analysis

PDM / CPM: Precedence Diagram Method

Methods of Network Graphical Representation1. AOA (ADM)2. AON (PDM)

Methods of Network Analysis

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ExampleActivity Duration Preceded by

a 12 ---

b 13 ---c 10 ---d 16 ce 4 af 14 b , dg 7 b , dh 8 ci 22 e , fj 16 e , fk 25 gl 8 b , d , hm 12 in 14 j , ko 10 lp 8 m , n , o