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McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc., All

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Chapter 3

Project Management


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Definition of Project Management

Work Breakdown Structure

Project Control Charts

Structuring Projects

Critical Path Scheduling

OBJECTIVES


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Projectis a series of related jobs usually

directed toward some major output and

requiring a significant period of time to

perform Project Managementare the

management actiities of planning!

directing! and controlling resources"people! equipment! material# to meet the

technical! cost! and time constraints of a

project

Project Management

Defined


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Gantt hart

Activity 1

Activity 2

Activity 3

Activity 4

Activity 5Activity 6

Time

Vertical Axis:Always Activities

or Jobs

Vertical Axis:Always Activities

or Jobs

Horizontal Axis: Always Time

Horizontal Axis: Always Time

Horizontal bars use to enote len!t"

o# time #or eac" activity or $ob%

Horizontal bars use to enote len!t"

o# time #or eac" activity or $ob%


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Structuring Projects Pure Project:

Adv n ges

Pure Project

Apure project is where a self-contained teamwors full-time on the project

$he project manager has full authorityoer the project

$eam members report to one boss Shortened communication lines $eam pride! motiation! and commitment

are high


7/36McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc., All

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Structuring Projects Pure

Project:

Dis dv n ges

Duplication of resources %rgani&ational goals and policies

are ignored 'ack of technology transfer

$eam members hae no functionalarea (home(



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Functional Project

&resient

'esearc" an

(evelo)ment*n!ineerin! +anu#acturin!

&ro$ect

A

&ro$ect

,

&ro$ect

-

&ro$ect

(

&ro$ect

*

&ro$ect

.

&ro$ect

/

&ro$ect

H

&ro$ect

0

) functional projectis housed withina functional diision

*xam)le &ro$ect , is in t"e #unctional

area o# 'esearc" an (evelo)ment%

*xam)le &ro$ect , is in t"e #unctional

area o# 'esearc" an (evelo)ment%



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Functional Project:

Adv n ges

) team member can work on

seeral projects $echnical e*pertise is maintained

within the functional area

$he functional area is a +home,after the project is completed Critical mass of speciali&ed

knowledge



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Functional Project:

Disadvantages

)spects of the project that are notdirectly related to the functional

area get short-changed Motiation of team members is

often weak .eeds of the client are secondary

and are responded to slowly



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Matrix Project rgani!ation

Structure

&resient

'esearc" an(evelo)ment *n!ineerin! +anu#acturin! +aretin!

+ana!er

&ro$ect A

+ana!er

&ro$ect ,

+ana!er

&ro$ect -



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Matrix: Advantages

/nhanced communications between functionalareas

Pinpointed responsibility

Duplication of resources is minimi&ed 0unctional +home, for team members

Policies of the parent organi&ation are followed



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Matrix: Disadvantages

$oo many bosses

Depends on project manager1s

negotiating skills

Potential for sub-optimi&ation



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"or# $rea#do%n Structure

&ro!ram

&ro$ect 1 &ro$ect 2

Tas 1%1

ubtas 1%1%1

or &aca!e 1%1%1%1

7evel

1

2

3

4

Tas 1%2

ubtas 1%1%2

or &aca!e 1%1%1%2

)work breakdown structuredefines thehierarchy of project tasks! subtasks! andwork packages

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&et%or#'Planning Models

) project is made up of a sequence of actiitiesthat form a network representing a project

$he path taking longest time through thisnetwork of actiities is called the +critical path,

$he critical path proides a wide range ofscheduling information useful in managing aproject

Critical Path Method "CPM# helps to identify thecritical path"s# in the project networks

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Prere(uisites for ritical

Path Methodolog)

) project must hae2

well-defined jobs or tasks whosecompletion marks the end of the project3

independent jobs or tasks3

and tasks that follow a gien sequence4

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*)pes of ritical Path

Methods

CPM with a Single $ime /stimate8 5sed when actiity times are known with certainty

8 5sed to determine timing estimates for the project! each

actiity in the project! and slack time for actiities CPM with $hree )ctiity $ime /stimates

8 5sed when actiity times are uncertain

8 5sed to obtain the same information as the Single $ime/stimate model and probability information

$ime-Cost Models8 5sed when cost trade-off information is a major

consideration in planning

8 5sed to determine the least cost in reducing total projecttime

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Steps in the PM %ith Single

*ime +stimate

64 )ctiity 7dentification

84 )ctiity Sequencing and .etworkConstruction

94 Determine the critical path

8 0rom the critical path all of the projectand actiity timing information can be

obtained

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PM %ith Single *ime

+stimate

-onsier t"e #ollowin! consultin! )ro$ect:Acti!it" #esi$nation Immed% Pred% Time &'ees(

Assess customer's needs A None 2

Write and submit proposal B A 1btain appro!al " B 1

#e!elop ser!ice !ision and $oals # " 2

%rain emplo&ees " 5

(ualit& impro!ement pilot $roups ) #* 5

Write assessment report + ) 1

Develop a critical path diagram and determine

the duration of the critical path and slack times

for all activities.

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First dra% the net%or#

A,2- B,1- ",1-

#,2-

,5-

),5-+,1-

A None 2

B A 1

" B 1

# " 2

" 5

) #* 5

+ ) 1

Act. /med. red. %ime

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Determine earl) starts and earl)

finish times

9)14

14)15

0)2 2)3 3)4

4

)9

4

)6

A,2- B,1- ",1-

#,2-

,5-

),5- +,1-

int tart it 0

and $o orard in te

netor rom A to +.

int tart it 0

and $o orard in te

netor rom A to +.

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Determine late

starts and late

finish times

9

)14

14

)15

0

)2

2

)3

3

)4

4

)9

4

)6

A,2- B,1- ",1-

#,2-

,5-

),5- +,1-

14

)15

9

)14

4

)9

7

)9

3

)4

2

)3

0

)2

int tart it )15

or te total time o te

pro:ect and $obacard in te

netor rom + to A.

int tart it )15

or te total time o te

pro:ect and $obacard in te

netor rom + to A.

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ritical Path , Slac#

9

)14

14

)15

0

)2

2

)3

3

)4

4

)9

4)6

A,2- B,1- ",1-

#,2-

,5-

),5- +,1-

14

)15

9

)14

4

)9

7)9

3

)4

2

)3

0

)2

#uration15 ees

lac,7;4-,9;6- 3 Ws

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+xample -. PM %ith *hree

Activit) *ime +stimates

Tas

0mmeiate

&reecesors 9)timistic +ost 7iely &essimisticA :one 3 6 15

, :one 2 4 14

- A 6 12 3;

( A 2 5 2=

H *. 1 4 =

0 /H 4 1> 2

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