project management s

7/30/2019 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 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


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


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

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