department of industrial engineering 1 project management kim lascola needy, ph.d., p.e., cfpim...

Department of Industrial Engineering 1

Project Management

Kim LaScola Needy, Ph.D., P.E., CFPIMUniversity of Pittsburgh

1041 Benedum HallPittsburgh, PA 15261

412-624-9838 (ofc)[email protected]

March 5, 2008


Project ManagementOutline

What exactly is a project? What is the role of the project manager? Statement of Work Project Charter Project Milestones Work Breakdown Structure Linear Responsibility Chart Scheduling Why do I need to know this stuff about project

management?


What exactly is a project?

(1) a proposal of something to be done; plan; scheme; (2) an organized undertaking; specifically, (a) a special unit of work, research, etc., as in school, a laboratory, etc. (b) an extensive public undertaking in conservation, construction, etc.

A project• Has a defined beginning and ending• Has a set of completion criteria• Is non-repetitive, it is done one time• Usually involves something more complicated than which was

originally envisioned


What is the role of the project manager?

The person who manages and controls a project by planning, estimating, scheduling, administering, and monitoring tasks.


Project Management

Project

Cost Schedule

Technical Performance


Statement of Work (SOW)

Defines exactly what is to be done in the project SOW establishes

• “Contract” of who does what and when• Baseline for changes in the work• Communication channel• Sometimes defined by the contractor other times by the

customer

Other names – Request for Proposal (RFP), Request for Services (RFS), Purchase Order (PO)


SOW Contents Purpose Scope Deliverables Cost Estimates Schedule Estimates Project Organization Responsibilities Assumptions


SOW ExampleNew Home Construction

Purpose: Build a new predesigned house. Scope: A vacant lot in a neighborhood plan to build

a 2-story, 4-bedroom, 2-1/2-bath home. House will also have a 2-car garage, driveway, basement, dining room, living room, family room, and an entrance hallway.

Deliverables: House in move-in condition. Materials and supplies

Cost Estimates:

$50,000 for 1/3 acre of land in Bridgeville that is located in the South Hills of Pittsburgh. $100,000 for colonial style brick house with some vinyl siding. We will mortgage $120,000 for our house through Dollar Bank with a 30-year 6.875% fixed rate mortgage with zero points. There will be a 20% down payment ($30,000), $307 in closing costs, and 30 days prepaid interest. The monthly payment (principal and interest) and without taxes will be $788.31.


SOW ExampleNew Home Construction

Schedule Estimates:

From beginning to end (getting a loan until the house is completely finished) of building the house, it should take 10 months.

Project Organization:

Will need to have carpenters, painters, plumbers, electricians, roofers, and landscapers.

Responsibilities: We are the customer and the general contractor. We will plan, organize, and supervise to make sure everything is run smoothly to our satisfaction.

Assumptions: 1. There are no children. 2. Ground is thawed. 3. We have a good credit history. 4. We save the 20% markup general contractor services,

since we are the contractors. 5. Subcontractors are following the schedule. 6. Lot is level. 7. There will be no initial interior wall decorating,

landscaping of shrubbery, or walkway and driveway paving until ground settles.

8. The cost for the land and building of the house is realistic and representative of the area.

9. 3-point estimates are calculated in days. 10. The working days are Monday through Friday,

inclusive.


Project Charter

Purpose of the project Assignment of the project manager General management support of the

project Written in memorandum form


Project Charter ExampleNew Home Construction

Date: 10/01/2003 To: All Subcontractors From: Team Name CC: Dr. Kim Needy Subject: New Home Construction The purpose of this project is to build a new predesigned house that is ready to be moved into at the conclusion of the project. This team will serve as the general contractors, which are also known as the project managers. The manger of the construction company is in full support of the building of this new home. Additionally, we have the support of valued subcontractors such as electricians, roofers, and plumbers.


Project Milestones

Key start and end dates for major project phases or activities

Very useful for detailed planning Examples:

• Project Start Date• Completion of Phase 1• Start of Beta Test• Final Design Review• Implementation


Project Milestones ExampleNew Home Construction

1. Site Acquisition......................................March through May 2. Selection of House Plan........................March through May 3. Hire & Schedule Subcontractors...........May through August 4. Obtain Permits.......................................May through August 5. Ground Breaking....................................August & September 6. Foundation.............................................September & October 7. Build Frame............................................October & November 8. Install Utilities.........................................November 9. Complete Exterior Work.........................November 10. Complete Interior Work..........................November 11. Landscaping...........................................November 12. Final Walk Through................................November & December


Work Breakdown Structure (WBS)

Describes the total project effort Provides a level-by-level subdivision of work Can be depicted in a “tree” or outline format Defines the work packages – task to be

performed and their interrelationships Includes all end items (deliverables) such as

equipment, facility and services


WBS (cont.)

Includes the major tasks which are essential for the conception, design, creation, operation, test and disposal of these end items

Plan and schedule effort Estimate costs and budgets Support network schedule construction Assign responsibilities and authorize work Track time, cost, and performance - controlling


WBS ExampleNew Home Construction

Tier 11.0 Acquire Site

2.0 Select House Plan

3.0 Hire & Schedule Subcontractors and Obtain Permits

4.0 Break Ground

5.0 Build Foundation

6.0 Build Frame

7.0 Install Utilities

8.0 Complete Exterior Work

9.0 Complete Interior Work

10.0 Perform Landscaping

11.0 Final Walk Through



Tier 21.0 Acquire Site

1.1 Determine desired area where you want to live

1.2 Determine budget

1.3 Pick desired lot

1.4 Acquire lot

1.5 Start loan process



Tier 22.0 Select House Plan

2.1 Determine needs/wants of house design

2.2 Consult local architects or floor plan services

2.3 Pick a floor plan that fits your needs and the lot

2.4 Purchase blueprints



Tier 23.0 Hire & Schedule Subcontractors and Obtain

Permits3.1 Determine subcontractors that are needed

3.2 Get recommendations on subcontractors

3.3 Pick subcontractors

3.4 Make preliminary schedule for subcontractors

3.5 Contact local municipality about permits

3.6 Obtain and pay for permits

3.7 Finalize loan



Tier 24.0 Break Ground

4.1 Prepare Ground

4.2 Excavate Soil



Tier 34.1 Prepare Ground

4.1.1 Clear trees

4.1.2 Survey land

4.2 Excavate Soil

4.2.1 Excavate level area

4.2.2 Excavate trenches for plumbing and gas

4.2.3 Dig hole


Creation, Use, and Control of the WBS

Creation• Top-down• Get input• Identify for each work package –

resources, procurement methods, authority and responsibility for completion, specifications, budgets, and schedule

• Get feedback


Creation, Use, and Control of the WBS (cont.)

Use• Record dates, expenditures, etc. for each

work element• Compare actual to planned• Corrective action – make adjustments


Creation, Use, and Control of the WBS (cont.)

Control• Decide who can change the WBS and how• Establish communication channels


Interface Between the Work Package and the Organizational Position

Organizational Position

Work Package Conduct Design Review

Dire

cto

r,S

yste

ms

En

gin

ee

ring

P

Key:P – PrimaryS – SecondaryA – ApproveN – Notify


Linear Responsibility Chart (LRC)

Also called the linear organizational chart and the matrix responsibility chart

Shows what’s involved, who participates, and to what degree

Shows the extent or type of authority especially when two or more people have overlapping responsibility/authority

Gets a dialogue going LRC is a plan – compare to actual


LRC (cont.)

Three main components1. A series of position titles listed along the

top (columns).

2. A list of responsibilities, authorities, activities, functions, work packages listed down the side (rows).

3. A symbol indicating the degree or extent of authority.


LRC ExampleNew Home Construction

Key:

P – Primary

S – Secondary

A – Approve

N - Notify

Head Contractor

Financial Institution

Real Estate

Co.

General Contractors

…

1.0 Acquire Site 1.1 Determine desired area to live

P N

1.2 Determine budget P S N 1.3 Pick desired lot P N 1.4 Acquire lot P S 1.5 Start loan process P S 2.0 Select House Plan 2.1 Determine needs/wants of house design

P

2.2 Consult local architects or floor plan services

P S

2.3 Pick a floor plan that fits your needs and the lot

P S

2.4 Purchase blueprints P N 3.0 Hire/Schedule Subcontractors and Obtain Permits

3.1 Determine subcontractors that are needed

P

3.2 Get recommendations on subcontractors

P

3.3 Pick subcontractors P N …


Linear Responsibility Chart (cont.)

Rules of Thumb• Everyone isn’t involved with every work

package• Try to only have one “P” per work

package• Only assign responsibility for the work

package (i.e., not the levels above)• Maintain the numbering scheme used on

the WBS for the LRC


Scheduling

Non-Networking – Gantt Chart or Bar Charts• Microsoft Project is a very effective tool

Networking – PERT/CPM will not discuss today


Non-Networking Techniques

Example – Building a Gantt Chart for “Getting Ready for Work”

University of Pittsburgh32

Schedule Example(Top Level)

GET READY FOR BED

SLEEP

“GETTING READY FOR WORK

WORK

WATCH T.V.


Getting to WorkGround Rules and Assumptions

• You have to wake up before doing anything else.

(No sleepwalking to accomplish tasks)

• You want to have a cup of coffee prior to shaving.(Safety consideration)

• Before driving to work, all other tasks must be completed.


Getting to WorkACTIVITY NUMBER

ACTIVITY DESCRIPTION ACTIVITY DURATION

1 WAKE UP 15 MIN

2 SHOWER 15 MIN

3 SHAVE/MAKE UP 10 MIN

4 DRESS 10 MIN

5 BREW COFFEE 10 MIN

6 MAKE BREAKFAST 10 MIN

7 EAT BREAKFAST 10 MIN

8 DRIVE TO WORK 20 MIN

TOTAL TIME 100 MIN


Getting to WorkGantt Chart

ACTIVITY DESCRIPTION

10 20 30 40 50 60 70 80 90 100

WAKE UP

SHOWER

BREW COFFEE

SHAVE/MAKE UP

DRESS

MAKE BREAKFAST

EAT BREAKFAST

DRIVE TO WORK

TIME (MINUTES)


Getting to WorkGantt Chart (Successor Float)

ACTIVITY DESCRIPTION

10 20 30 40 50 60 70 80 90 100

WAKE UP

SHOWER

BREW COFFEE

SHAVE/MAKE UP

DRESS

MAKE BREAKFAST

EAT BREAKFAST

DRIVE TO WORK

TIME (MINUTES)

FLOAT


Why do I need to know this stuff about project management?

To help get the project in the first place To successfully manage the project

once you get it See examples

department of industrial engineering 1 project management kim lascola needy, ph.d., p.e., cfpim...

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