Download - Project Management S
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Project Management
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Project Management Process
Project unique, one-time operational activity or effort
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Project Management Process
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Project Management Process
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Project Elements
Objective Scope
Contract requirements
Schedules
Resources
Personnel
Control
Risk and problem analysis
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Project Team and Project Manager
Project team made up of individuals from various areas and
departments within a company
Matrix organization
a team structure with members from functionalareas, depending on skills required
Project manager
most important member of project team
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Scope Statement
Scope statement a document that provides an understanding,justification, and expected result of a project
Statement of work
written description of objectives of a project
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Work Breakdown Structure
Work breakdown structure (WBS) Breaks a project into components,
subcomponents, activities, and tasks
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Work Breakdown Structure for Computer OrderProcessing System Project
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Responsibility Assignment Matrix
Organizational Breakdown Structure (OBS) a chart that shows which organizational units are
responsible for work items
Responsibility Assignment Matrix (RAM)
shows who is responsible for work in a project
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Responsibility Assignment Matrix
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Global and Diversity Issues in ProjectManagement
Global project teams are formed from differentgenders, cultures, ethnicities, etc.
Diversity among team members can add anextra dimension to project planning
Cultural research and communication areimportant elements in the planning process
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Project Scheduling
Steps
Define activities
Sequence activities
Estimate time
Develop schedule
Techniques
Gantt chart
CPM/PERT
Software
Microsoft Project
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Gantt Chart
Graph or bar chart
Bars represent the time for each task
Bars also indicate status of tasks
Provides visual display of project schedule
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Example -1
construction of a house1. Design a house and get finance 3 months
2. Lay foundation
Order and receive material
2 months
1 month
3. Build house
Select paint and after that
select carpet
3 months
1 month
1 month
4. Finish work 1 month
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Example of Gantt Chart
| | | | |
Activity
Design houseand obtainfinancing
Lay foundation
Order and
receivematerials
Build house
Select paint
Select carpet
Finish work
0 2 4 6 8 10Month
Month1 3 5 7 9
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Project Control
Time management Cost management
Performance management
Earned Value Analysis standard procedure to
numerically measure a projects progress
forecast its completion date and cost
measure schedule and budget variation
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Project Control
Quality management Communication
Enterprise project management
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CPM/PERT
Critical Path Method (CPM) DuPont & Remington-Rand Deterministic task times
Activity-on-node network construction
Project Evaluation and Review Technique (PERT) US Navy and Booz, Allen & Hamilton
Probabilistic task time estimates
Activity-on-arrow network construction
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Project Network
Activity-on-node (AON) nodes represent activities arrows show precedence
relationships
Activity-on-arrow (AOA) arrows represent activities
nodes are events forpoints in time
Event completion or beginning
of an activity in a project
1 32
Branch Node
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AON Network for House BuildingProject
1
3
2
2
4
3
3
1
5
1
6
1
7
1Start
Design houseand obtainfinancing
Order &receivematerials
Selectpaint
Selectcarpet
Layfoundation
Buildhouse
Finish work
Activity Number
Activity Time
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AOA Project Network for a House
3
2 0
1
3
1 1
11 2 4 6 7
3
5
Layfoundation
Design houseand obtainfinancing
Order andreceivematerials
Dummy
Finishwork
Selectcarpet
Selectpaint
Buildhouse
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Concurrent Activities
Dummy two or more activities cannot share same start andend nodes
2 3
Lay foundation
Order material
(a) Incorrect precedencerelationship
(b) Correct precedencerelationship
3
42
DummyLayfoundation
Order material
1
2 0
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SUM-1 Draw (AOA) network diagram for thedata given below
Activity Immediate predecessor activity
A -
B A
C A
D B
E C
F D
G E
H F ,G
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SUM-2 Draw a network diagram andfind critical path
Activity Immediatepredecessor activity
Duration ofactivity
A - 12B A 8C A 4D A 3E B 12F C 18
G C 5H E ,F 4I D ,G 9J H ,I 6
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AON network
1
3
2
2
4
3
3
1
5
1
6
1
7
1
Start
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Critical Path
Critical path
Longest path through anetwork
Minimum projectcompletion time
A: 1-2-4-73 + 2 + 3 + 1 = 9 months
B: 1-2-5-6-73 + 2 + 1 + 1 + 1 = 8 months
C: 1-3-4-73 + 1 + 3 + 1 = 8 months
D: 1-3-5-6-73 + 1 + 1 + 1 + 1 = 7 months
1
3
2
2
4
3
3
1
5
1
6
1
7
1Start
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Activity Start Times
13
22
43
31
51
61
71
Start
Start at 3 months Start at 6 months
Start at 5 months
Finish at 9 months
Finish
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Activity Scheduling
Earliest start time (ES) earliest time an activity can start ES = maximum EF of immediate predecessors
Forward pass
starts at beginning of CPM/PERT network to determineearliest activity times
Earliest finish time (EF) earliest time an activity can finish
earliest start time plus activity time EF= ES + t
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Activity Scheduling
Latest start time (LS) Latest time an activity can start without delaying criticalpath time
LS= LF - t
Latest finish time (LF) latest time an activity can be completed without delayingcritical path time
LF = minimum LS of immediate predecessors
Backward pass Determines latest activity times by starting at the end ofCPM/PERT network and working forward
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Activity Slack
* Critical Path
09988*7
178676
167565
08855*4
145343
05533*2
03300*1
Slack SEFLFESLSActivity
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Probabilistic Time Estimates
Beta distribution probability distribution traditionally used in CPM/PERT
a = optimistic estimatem = most likely time estimateb= pessimistic time estimate
where
Mean (expected time): t=a + 4m + b
6
Variance: 2 =
2b - a
6
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Activity Time Estimates
1 6 8 10 8 0.442 3 6 9 6 1.003 1 3 5 3 0.44
4 2 4 12 5 2.785 2 3 4 3 0.116 3 4 5 4 0.117 2 2 2 2 0.008 3 7 11 7 1.789 2 4 6 4 0.44
10 1 4 7 4 1.0011 1 10 13 9 4.00
TIME ESTIMATES (WKS) MEAN TIME VARIANCEACTIVITY a m b t 2
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Activity Early, Late Times & Slack
ACTIVITY t ES EF LS LF S
1 8 0.44 0 8 1 9 12 6 1.00 0 6 0 6 03 3 0.44 0 3 2 5 24 5 2.78 8 13 16 21 85 3 0.11 6 9 6 9 06 4 0.11 3 7 5 9 27 2 0.00 3 5 14 16 118 7 1.78 9 16 9 16 09 4 0.44 9 13 12 16 3
10 4 1.00 13 17 21 25 8
11 9 4.00 16 25 16 25 0
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Total Project Variance
2 = 22 + 52 + 8
2 + 112
= 1.00 + 0.11 + 1.78 + 4.00
= 6.89 weeks
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Probabilistic Network Analysis
Determine probability that project iscompleted within specified time
where = tp = project mean time = project standard deviation
x = proposed project time
Z = number of standard deviations thatx is from the mean
Z=x -
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Normal Distribution of Project Time
= tp Timex
Z
Probability
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Southern Textile
What is probability that project is completed within 30 weeks?
2 = 6.89 weeks
= 6.89
= 2.62 weeks
Z=
=
= 1.91
x -
30 - 252.62
From Table A.1, (appendix A) aZscore of 1.91 corresponds to aprobability of 0.4719. Thus P(30) = 0.4719 + 0.5000 = 0.9719
= 25 Time (weeks)x = 30
P(x 30 weeks)
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Southern Textile
What is probability that project is completed within 22 weeks?
2 = 6.89 weeks
= 6.89
= 2.62 weeks
Z=
=
= -1.14
x -
22 - 252.62
From Table A.1, (appendix A) aZscore of 1.14 corresponds to aprobability of 0.3729. Thus P(22) = 0.5000 - 0.3729 = 0.1271
= 25 Time (weeks)x = 22
P(x 22 weeks)= 0.1271
0.3729
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Project Crashing
Crashing reducing project time by expending additionalresources
Crash time
an amount of time an activity is reduced Crash cost cost of reducing activity time
Goal
reduce project duration at minimum cost
P j t N t k B ildi H
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Project Network Building a House
112
2
8
412
3
4
5
4
6
4
7
4
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Project Crashing
TOTAL
NORMAL CRASH ALLOWABLE CRASHTIME TIME NORMAL CRASH CRASH TIME COST PERACTIVITY (WEEKS) (WEEKS) COST COST (WEEKS) WEEK
1 12 7 $3,000 $5,000 5 $400
2 8 5 2,000 3,500 3 500
3 4 3 4,000 7,000 1 3,000
4 12 9 50,000 71,000 3 7,000
5 4 1 500 1,100 3 200
6 4 1 500 1,100 3 200
7 4 3 15,000 22,000 1 7,000
$75,000 $110,700
$500 $7000
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Project Duration:
36 weeks1
12
2
8
3
4 5
4
6
4
7
4
$400
$500
$3000
$7000
$200
$200
$700012
4FROM
1
7
2
8
3
4 5
4
6
4
7
4
$400
$500
$3000
$7000
$200
$200
$700012
4
Project Duration:
31 weeksAdditional Cost:
$2000
TO
C
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Time-Cost Relationship
Crashing costs increase as project durationdecreases
Indirect costs increase as project durationincreases
Reduce project length as long as crashing costsare less than indirect costs