ch 17 (project management).ppt

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ProjectManagement

McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.



You should be able to:1. Discuss the behavioral aspects of projects in terms of

project personnel and the project manager2. Explain the nature and importance of a work breakdown

structure in project management

3. Give a general description of PERT/CPM techniques4. Construct simple network diagrams5. List the kinds of information that a PERT or CPM analysis

can provide6. Analyze networks with deterministic times7. Analyze networks with probabilistic times

8. Describe activity ‘crashing’ and solve typical problems

Instructor Slides 17-2



ProjectsUnique, one-time operations designed to

accomplish a specific set of objectives in alimited time frame

Examples: The Olympic Games

Producing a movieSoftware development

Product developmentERP implementation




Projects go through a series of stages– a lifecycle

Projects bring together people with adiversity of knowledge and skills, most of whom remain associated with the project forless than its full life

Organizational structure affects how projectsare managed




The project manager is ultimately responsible forthe success or failure of the project

The project manager must effectively manage: The work

The human resources Communications

Quality

Time

Costs




Behavioral problems can be created orexacerbated byDecentralized decision making Stress of achieving project milestones on time and

within budget Surprises

The team must be able to function as a unit Interpersonal and coping skills are very important

Conflict resolution and negotiation can be an important

part of a project manager’s job




Many problems can be avoided or mitigatedby: Effective team selection Leadership

MotivationMaintaining an environment of

Integrity Trust

Professionalism

Being supportive of team efforts




Project championA person who promotes and supports a projectUsually resides within the organization

Facilitate the work of the project by ‘talking up’ the

project to other managers, and who might beasked to share resources with the project team aswell as employees who might be asked to work onparts of the project

The project champion can be critical to the success

of a project




Planning Planning

ObjectivesObjectives

ResourcesResources

Work break-downWork break-downscheduleschedule

OrganizationOrganization

Scheduling Scheduling

Project activitiesProject activities

Start & end timesStart & end times

Network Network

Controlling Controlling

Monitor, compare, revise, actionMonitor, compare, revise, action



WBSA hierarchical listing of what must be done

during a projectEstablishes a logical framework for identifying the

required activities for the project1. Identify the major elements of the project

2. Identify the major supporting activities for each of the major elements

3. Break down each major supporting activity into a

list of the activities that will be needed toaccomplish it




PERT (program evaluation and reviewtechnique) and CPM (critical path method)are two techniques used to manage large-scale projects

By using PERT or CPM Managers can obtain:1. A graphical display of project activities

2. An estimate of how long the project will take

3. An indication of which activities are most critical totimely project completion

4. An indication of how long any activity can be delayedwithout delaying the project




Network diagram Diagram of project activities that shows sequential

relationships by use of arrows and nodes

Activity on arrow (AOA)Network diagram convention in which arrows designate

activities Activity on node (AON)

Network convention in which nodes designate activitiesActivities

Project steps that consume resources and/or time

Events The starting and finishing of activities




Deterministic Time estimates that are fairly certain

Probabilistic Time estimates that allow for variation




Finding ES and EF involves a forwardpass through the network diagram Early start (ES)

The earliest time an activity can startAssumes all preceding activities start as early as possible For nodes with one entering arrow ES = EF of the entering arrow

For activities leaving nodes with multiple entering arrows ES = the largest of the largest entering EF

Early finish (EF) The earliest time an activity can finish

EF = ES + t

Instructor Slides

17-18



Finding LS and LF involves a backward passthrough the network diagram Late Start (LS)

The latest time the activity can start and not delay theproject

The latest starting time for each activity is equal to its latestfinishing time minus its expected duration: LS = LF - t

Late Finish (LF) The latest time the activity can finish and not delay the

project For nodes with one leaving arrow, LF for nodes entering that

node equals the LS of the leaving arrow For nodes with multiple leaving arrows, LF for arrows entering

node equals the smallest of the leaving arrows

Instructor Slides

17-19



Slack can be computed one of two ways:Slack = LS – ESSlack = LF – EF

Critical path The critical path is indicated by the activities

with zero slack

Instructor Slides

17-20



Knowledge of slack times providesmanagers with information for planningallocation of scarce resources

Control efforts will be directed toward those activitiesthat might be most susceptible to delaying the project

Activity slack times are based on the assumption that allof the activities on the same path will be started asearly as possible and not exceed their expected time

If two activities are on the same path and have the

same slack, this will be thetotal slack

available to both

Instructor Slides

17-21



Activity Activity DescriptionDescriptionImmediateImmediate

PredecessorsPredecessors

A A Build internal componentsBuild internal components ——

BB Modify roof and floor Modify roof and floor ——

C C Construct collection stack Construct collection stack A A

DD Pour concrete and install framePour concrete and install frame A, B A, B

E E Build high-temperature burner Build high-temperature burner C C

F F Install pollution control systemInstall pollution control system C C

G G Install air pollution deviceInstall air pollution device D, E D, E

H H Inspect and test Inspect and test F, G F, G

Milwaukee Paper Manufacturing's Activities andMilwaukee Paper Manufacturing's Activities andPredecessorsPredecessors



A

Start

BStart Activity

Activity A(Build Internal Components)

Activity B(Modify Roof and Floor)



C

D

A

Start

B

Activity A Precedes Activity C

Activities A and B Precede Activity D



G

E

F

H

C A

Start

DB

Arrows Show PrecedenceRelationships



HH

(Inspect/(Inspect/Test)Test)

77DummyDummy Activity Activity

66

F F ( I n s t a l l

( I n s t a l l

C o n t r o l s )

C o n t r o l s ) E E

( B

u i l d

B u r n

e r

)

( B

u i l d

B u r n

e r

)

G G

( I n s t a

l l

( I n s t a

l l

P o l l u

t i o n

P o l l u

t i o n

D e v i c

e )

D e v i c

e )

55DD

(Pour (Pour Concrete/Concrete/

Install Frame)Install Frame)

44CC

(Construct(ConstructStack)Stack)

11

33

22

B B ( M o d i f y

( M o d i f y

R o o f / F l o o r )

R o o f / F l o o r )

A A

( B u i l d

I n t e r n a

l

( B u i l d

I n t e r n a

l

C o m

p o n e

n t s )

C o m

p o n e

n t s )



Perform a Critical Path AnalysisPerform a Critical Path Analysis

The critical path is the longest pathThe critical path is the longest path

through the networkthrough the network The critical path is the shortest time inThe critical path is the shortest time in

which the project can be completedwhich the project can be completed

Any delay in critical path activities delays Any delay in critical path activities delaysthe projectthe project

Critical path activities have no slack timeCritical path activities have no slack time




Activity Description Time (weeks)

A Build internal components 2B Modify roof and floor 3

C Construct collection stack 2

D Pour concrete and install frame 4

E Build high-temperature burner 4

F Install pollution control system 3

G Install air pollution device 5

H Inspect and test 2

Total Time (weeks) 25




Activity Description Time (weeks)

A Build internal components 2

B Modify roof and floor 3C Construct collection stack 2

D Pour concrete and install frame 4

E Build high-temperature burner 4

F Install pollution control system 3

G Install air pollution device 5

H Inspect and test 2

Total Time (weeks) 25

Earliest start (ES) = earliest time atwhich an activity can start, assuming allpredecessors have been completed

Earliest finish (EF) = earliest time atwhich an activity can be finished

Latest start (LS) = latest time atwhich an activity can start so as to notdelay the completion time of the entire

project

Latest finish (LF) = latest time bywhich an activity has to be finished so asto not delay the completion time of theentire project




A

Activity Name or Symbol

EarliestStart ES

EarliestFinishEF

LatestStart

LS LatestFinish

LF

Activity Duration

2



Begin at starting event and work forwardBegin at starting event and work forward

Earliest Finish Time Rule:

The earliest finish time (EF) of an activity isthe sum of its earliest start time (ES) and itsactivity time

EF = ES + Activity time



Start

0

0

ES

0

EF = ES + Activity time



Start

0

0

0

A

2

2

EF of A =ES of A + 2

0

ESof A



B

3

Start

0

0

0

A

2

20

3

EF of B =ES of B + 3

0

ESof B



C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20



C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

D

4

73

= Max (2, 3)



D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20



E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20



Begin with the last event and work backwardsBegin with the last event and work backwards

Latest Finish Time Rule:

If an activity is an immediate predecessor for just a single activity, its LF equals the LS of theactivity that immediately follows it

If an activity is an immediate predecessor tomore than one activity, its LF is the minimum

of all LS values of all activities thatimmediately follow it

LF = Min {LS of all immediate following activities}



Begin with the last event and work backwardsBegin with the last event and work backwards

Latest Start Time Rule:

The latest start time (LS) of an activity is thedifference of its latest finish time (LF) and itsactivity time

LS = LF – Activity time



E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

LF = EFof Project

1513

LS = LF – Activity time



E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

LF = Min(LS of followingactivity)

10 13



E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

LF = Min(4, 10)

42



E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

42

84

20

41

00



After computing the ES, EF, LS, and LF times for After computing the ES, EF, LS, and LF times for all activities, compute the slack or free time for all activities, compute the slack or free time for each activityeach activity

Slack is the length of time an activitycan be delayed without delaying theentire project

Slack = LS – ES or Slack = LF – EF



Earliest Earliest Latest Latest OnStart Finish Start Finish Slack Critical

Activity ES EF LS LF LS – ES Path

A 0 2 0 2 0 Yes

B 0 3 1 4 1 No

C 2 4 2 4 0 Yes

D 3 7 4 8 1 No

E 4 8 4 8 0 Yes

F 4 7 10 13 6 No

G 8 13 8 13 0 Yes

H 13 15 13 15 0 Yes



E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

42

84

20

41

00



Activity Predecessor Durationa -- 5 days

b -- 4

c a 3

d a 4

e a 6

f b, c 4

g d 5

h d, e 6

i f 6

j g, h 4

ch 17 (project management).ppt

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