project management - rjerz.com · • project management tools (gantt, pert, & ... project is...

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

© 2010 rjerz.com2

What are Projects?

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

• Often expensive and resource intensive.

© 2010 rjerz.com5

Build A

A Done

Build B

B Done

Build C

C Done

Build D

Ship

JAN FEB MAR APR MAY JUN

On time!

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

© 2010 rjerz.com6

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

© 2010 rjerz.com7

Project Goals

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

© 2010 rjerz.com8

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”

© 2010 rjerz.com10

TestEngineer

MechanicalEngineer

Project 1 ProjectManager

Technician

Technician

Project 2 ProjectManager

ElectricalEngineer

Computer Engineer

Marketing FinanceHumanResources Design Quality

Mgt Production

President

A Sample Project Organization

11 © 2010 rjerz.com

Steps of Project Planning

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


Project Risks

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

© 2010 rjerz.com13

Risk Management

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

© 2010 rjerz.com14

Other Issues

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


Project Scheduling

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

© 2010 rjerz.com16

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)


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


Precedence Diagram

1

2

3

5

6

Locatefacilities

Orderfurniture

Furnituresetup

Interview

Remodel Move 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?


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


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

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

Using Microsoft Project


project management - rjerz.com · • project management tools (gantt, pert, & ... project is...

Documents