project management - rick jerz homepage · pdf file · 2018-01-06• project...

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Project Management

Dr. Richard Jerz

© 2010 rjerz.com1

Describe or Explain:

Learning Objectives

• What are “projects”• The role of the project manager• Work breakdown structure• Project management tools (Gantt, PERT, & CPM)

• The use of software tools: MS Project

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What are Projects?

• Unique, one‐time operations designed to accomplish a specific set of objectives in limited time frame.

• Often expensive and resource intensive.

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Build A

A Done

Build B

B Done

Build C

C Done

Build D

Ship

JAN FEB MAR APR MAY JUN

On time!

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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

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Management of Projects

Planning ‐ goal setting, defining the project, team organization

Scheduling ‐ relates people, money, and supplies to specific activities and activities to each other

Controlling ‐monitors resources, costs, quality, and budgets; revises plans and shifts resources to meet time and cost demands

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Project Goals

• On time• On budget• Accomplish tasks with expected quality

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Project Organization

• Often temporary structure• Uses specialists from entire company• Headed by project manager• Coordinates activities • Monitors schedule and costs• Project structure is called “matrix organization”

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TestEngineer

MechanicalEngineer

Project 1 ProjectManager

Technician

Technician

Project 2 ProjectManager

ElectricalEngineer

Computer Engineer

Marketing FinanceHumanResources Design Quality

Mgt Production

President

A Sample Project Organization

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Steps of Project Planning

• Develop statement of work• Define work breakdown structure• List resources needed• Estimate time required• Estimate the cost


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Project Risks

• Risk: occurrence of events that have undesirable consequences• Delays• Increased costs• Inability to meet specifications• Unexpected project termination

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Risk Management

• Identify potential risks• Analyze and assess risks• Work to minimize occurrence of risk• Establish contingency plans

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Other Issues

• Temptation to understate costs• Withhold information• Misleading status reports• Falsifying records• Comprising workers’ safety• Approving substandard work


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Project Scheduling

• Identify activities and resources needed• Identifying precedence relationships • Sequencing activities• Determining activity times & costs• Estimating material and worker requirements• Determining critical activities

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Work Breakdown Structure

Project X

Level 1

Level 2

Level 3

Level 4


Project Management Tools

• Project task listing• Gantt charts• Critical Path Method (CPM)• Program Evaluation and Review Technique (PERT)


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MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Locate new facilities

Interview staff

Hire and train staff

Select and order furniture

Remodel and install phones

Move in/startup

Gantt Chart


Gantt Charts

• Advantages• Visual presentation• Simplicity

• Disadvantages• Updating• Doesn’t reflect costs• Doesn’t show relationships between tasks


PERT and CPM

• PERT: Program Evaluation and Review Technique (1958)

• CPM: Critical Path Method (1957)

• Graphically displays project activities• Estimates how long the project will take• Indicates most critical activities• Show where delays will not affect project• Can calculate slack times• Helps resource allocation


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Precedence Diagram

1

2

3

5

6

Locatefacilities

Orderfurniture

Furnituresetup

Interview

RemodelMove in

4

Hire andtrain

7S


Example with Times (& AOL)

1

2

3

4

5 6

8 weeks

6 weeks

3 weeks

4 weeks9 weeks

11 weeks

1 week

Move in


PERT/CPM Information

• Expected completion time• Critical activities (path)• Each network activities

• Earliest (ES) & latest (LS) start• Earliest (EF) & latest (LF) finish• Slack (S): Allowable delay, = LS‐ES, or LF‐EF

• What if?


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Critical Path Analysis

• Identifies critical path• Longest path in network• Shortest time project can be completed• Any delay on critical path activities delays project• Critical path activities have 0 slack


Probabilistic Estimates

Activitystart

Optimistictime

Most likelytime (mode)

Pessimistictime

o pm te


Advantages of PERT

• Forces managers to organize• Provides graphic display of activities• Identifies

• Critical activities• Slack activities

1

2

3

4

5 6


9

Limitations of PERT

• Important activities may be omitted• Precedence relationships may not be correct• Estimates may include a fudge factor

• Not exact science• Iterative process

1

2

3

4

5 6

142 weeks


It is not uncommon to face the following situations:

Shortening the duration of the project is called project crashing

Project Crashing

• The project is behind schedule• The completion time has been moved forward


Project Management Software

• Computer aided design (CAD)• Groupware (Lotus Notes)• CA Super Project• Harvard Total Manager• MS Project• Sure Track Project Manager• Time Line

© 2010 rjerz.com34

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Software Demo: MS Project


Advantages of PM Software

• Imposes a methodology• Provides a logical planning structure• Enhances team communication• Flag constraint violations• Automatic report formats• Multiple levels of reports• Enables what‐if scenarios• Generates various chart types

© 2010 rjerz.com36

© 2010 rjerz.com37

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Using Microsoft Project






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