b526 ops pm lecture_t009_rf
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School of Business – Operations and Project Management; Topic 9: Project Management
Course Week [Term]Operations and Project Management
Topic 9: Project Management
School of Business – Operations and Project Management; Topic 9: Project Management
Learning outcomes:
What is project management?
How are projects planned and controlled?
What is network planning?
Learning Outcomes
School of Business – Operations and Project Management; Topic 9: Project Management
Project Management
• Project
o Series of related jobs or tasks focused on the completion of an overall objective.
• Project Management
o Planning, directing, and controlling resources to meet the technical, cost, and time constraints of the project.
• Program
o Synonym for a large project, although it also can consist of several interrelated projects.
School of Business – Operations and Project Management; Topic 9: Project Management
Projects
Unique, one-time operations designed to accomplish a specific set of
objectives in a limited time frame.
School of Business – Operations and Project Management; Topic 9: Project Management
Project Management
• How is it different?
o Limited time frame
o Narrow focus, specific objectives
o Less bureaucratic
• Why is it used?
o Special needs
o Pressures for new or improved products or services
School of Business – Operations and Project Management; Topic 9: Project Management
The Three Project Objectives of Quality, Cost and Time
Quality
TimeCost
New aircraft project
Music festival
Fixed grant research project
School of Business – Operations and Project Management; Topic 9: Project Management
Project Management
• What are the Key Metrics
o Time
o Cost
o Performance objectives
• What are the Key Success Factors?
o Top-down commitment
o Having a capable project manager
o Having time to plan
o Careful tracking and control
o Good communications
School of Business – Operations and Project Management; Topic 9: Project Management
Key Decisions
• Deciding which projects to implement
• Selecting a project manager
• Selecting a project team
• Planning and designing the project
• Managing and controlling project resources
• Deciding if and when a project should be terminated
School of Business – Operations and Project Management; Topic 9: Project Management
Project Manager
Responsible for:
•Work
•Quality
•Human Resources
•Time
•Communications
•Costs
School of Business – Operations and Project Management; Topic 9: Project Management
Stages in Project Management
Figure 16.3 The project management modelUnderstanding the
project environment
Project definition
Project planning
Changes
Corrective
action
Project controlTechnical execution
Stage 1
Stage 2
Stage 3
Stage 4
Stage 5
School of Business – Operations and Project Management; Topic 9: Project Management
Project Life Cycle
Concept
FeasibilityFeasibility
PlanningPlanning
ExecutionExecution
TerminationTermination
Man
ag
em
en
t
School of Business – Operations and Project Management; Topic 9: Project Management
Work Breakdown Structure
Method by which a project is divided into tasks and subtasks. Project XProject X
Level 1
Level 2
Level 3
Level 4
School of Business – Operations and Project Management; Topic 9: Project Management
WBS House Project
CivilCivil
Walls/RoofWalls/RoofFoundationFoundation SewerageSeweragePipingPiping
ElectricalElectrical
AppliancesAppliancesWiringWiring
PlumbingPlumbing
HouseHouse
School of Business – Operations and Project Management; Topic 9: Project Management
Figure 9.14 WBS Sub-Division by Numbering System
Civil1.1.0Civil1.1.0
Walls/Roof1.1.2
Walls/Roof1.1.2
Foundation1.1.1
Foundation1.1.1
Sewerage1.2.2
Sewerage1.2.2
Piping1.2.1
Piping1.2.1
Electrical1.3.0
Electrical1.3.0
Appliances1.3.2
Appliances1.3.2
Wiring1.3.1
Wiring1.3.1
Plumbing1.2.0
Plumbing1.2.0
House1.0.0
House1.0.0Level 0
Level 2
Level 1
School of Business – Operations and Project Management; Topic 9: Project Management
Work Breakdown Structure
Figure 16.7 A work breakdown structure for a simple domestic project
Produce boiled eggProduce
boiled eggObtain egg cupObtain egg cup
Produce toast
Produce toast
Obtain butter
Obtain butter
Obtain plates and cutlery
Obtain plates and cutlery
Obtain tray
Obtain tray
Obtain egg
Obtain egg
Obtain water
Obtain water
Obtain bread
Obtain bread
Arrange trayArrange trayProduce buttered toast
Produce buttered toast
Produce boiled egg in egg cup
Produce boiled egg in egg cup
Produce glass of orange drink
Produce glass of orange drink
Serve breakfast in bed
Serve breakfast in bed
Obtain juiceObtain juice Obtain glass
Obtain glass
School of Business – Operations and Project Management; Topic 9: Project Management
Work Breakdown Structure (Continued)
Work breakdown structure for a project to design an information interface for a new
sales knowledge management system in an insurance company.
Training Installation Testing
Design information interface for new sales
knowledge management system
Form and train user
group
Install systems
Specify sales
training
Design initial screen
interface
Test interface in pilot area
Modify interface
School of Business – Operations and Project Management; Topic 9: Project Management
Gantt Chart
Move in/startup
Remodel and install phones
Select and order furniture
Hire and train staff
Interview staff
Locate new facilities
School of Business – Operations and Project Management; Topic 9: Project Management
Gantt Charts
A Gantt chart for the project to design an information interface for a new sales knowledge management system in an
insurance company
a Form and train user group
b Install systems
c Specify sales training
d Design initial screen interface
e Test interface in pilot area
f Modify interface
0 10 20 30 40 50 60
Activity
Time (days)
School of Business – Operations and Project Management; Topic 9: Project Management
Hammocked Barchart
Activity Description Mon1
Tue2
Wed3
Thu4
Fri5
Sat6
Sun7
Mon8
Tue9
Wed10
Thu11
Fri12
Sat13
Sun14
Mon15
Lay Foundations
Dig Footings
Throw concrete
Build Walls
Brickwork
Fit Windows
Fit Roof
Fit Roof Trusses
Fit Tiles
School of Business – Operations and Project Management; Topic 9: Project Management
The Network Diagram
• Network (precedence) diagram – diagram of project activities that shows sequential relationships by the use of
arrows and nodes.
• Activity-on-arrow (AOA) – a network diagram convention in which arrows designate activities.
• Activity-on-node (AON) – a network diagram convention in which nodes designate activities.
• Activities – steps in the project that consume resources and/or time.
• Events – the starting and finishing of activities, designated by nodes in the AOA convention.
School of Business – Operations and Project Management; Topic 9: Project Management
Project Network – Activity on Arrow
Figure 17.4
2
1
3
4
5 6
Locatefacilities
Orderfurniture
Furnituresetup
InterviewHire andtrain
Remodel
Move in
AOA
School of Business – Operations and Project Management; Topic 9: Project Management
Project Network – Activity on Node
Figure 17.4
AON
1
S
3
2
5
6
Locatefacilities
Orderfurniture
Furnituresetup
Interview
RemodelMove in
4
Hire andtrain
7
School of Business – Operations and Project Management; Topic 9: Project Management
Activities in Series
School of Business – Operations and Project Management; Topic 9: Project Management
Figure 10.2 Activities in Parallel
A400 (Task4)
PLUMBING
A500 (Task 5)
ELECTRICAL
A600 (Task 6)
PAINTING
A600 (Task 3)
ROOF
School of Business – Operations and Project Management; Topic 9: Project Management
CPM
• CPM (Critical Path Method)
o Identifies the longest time-consuming path through a network of tasks required to complete a project (i.e., the
shortest time in which the project can be completed).
School of Business – Operations and Project Management; Topic 9: Project Management
Example 1
2
1
3
4
5 6
8 weeks
6 weeks
3 weeks
4 weeks9 weeks
11 weeks
1 week
Locate
facilities
Order
furniture Fu
rnitu
re
setu
p
InterviewHire
and train
Remodel
Move in
Time estimates
Figure 17.5
School of Business – Operations and Project Management; Topic 9: Project Management
Example 1 Solution
Path Length
(weeks) Slack
1-2-3-4-5-6 18 2
1-2-5-6 20 0
1-3-5-6 14 6
Critical Path
School of Business – Operations and Project Management; Topic 9: Project Management
Essential Work to be Completed for Next Week
• Please consult the OLE for details of the:
o Seminar preparation work*
o Essential readings*
o Recommended readings
o Further readings
*Essential readings and seminar preparation work MUST always be completed in time for the next seminar
School of Business – Operations and Project Management; Topic 9: Project Management
References
School of Business – Operations and Project Management; Topic 9: Project Management
End of presentation