Chp 4 Project Management

8/9/2019 Chp 4 Project Management

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e n t

R R g e

P

T

P

T

a

n

H H e c t

P r o j

Tata McGraw


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Chapter 3

Project Management


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3-3

OBJECTIVES

• Definition of Project Management

• Project Control Charts• Structuring Projects

• Critical Path Schedulin


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Project Management

3-4

e ne

usually directed toward some major out ut and re uirin a si nificant eriod

of time to perform

• Project Management are themanagement activities of planning,

directing, and controlling resources

peop e, equ pmen , ma er a o meethe technical, cost, and time constraints


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Gantt Chart

3-5

Vertical Axis:Horizontal bars used to denote length

or Jobs of time for each activity or job.

Activity 2

Activit 3

Activity 4

Activity 5

Activity 6

me Horizontal Axis: Always Time


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Pure Project

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e ne

A ure ro ect is where a self-contained team

works full-time on the project

ruc ur ng ro ec sPure Project: Advantages

• over the project

• Team members report to one boss

• Shortened communication lines• Team pride, motivation, and commitment


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3-7

Structuring ProjectsPure Project: Disadvantages

• Duplication of resources• Or anizational oals and olicies

are ignored

• Lack of technolo transfer • Team members have no functional

area "home"


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Functional Project

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A functional project is housed within

a functional division

Research and

Development

Project A

ProjectB

ProjectC

ProjectD

ProjectE

ProjectF

ProjectG

ProjectH

ProjectI

Exam le Pro ect “B” is in the functional

area of Research and Development.


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3-9

Functional Project: Advantages

• A team member can work onseveral projects

• Technical expertise is maintained

within the functional area• The functional area is a “ home”

after the project is completed

• Critical mass of specializedknowledge


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Structuring ProjectsFunctional Project: Disadvantages

• Aspects of the project that are notdirectl related to the functional

area get short-changed

• Motivation of team members isoften weak

• Needs of the client are secondar

and are responded to slowly


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3-11

a r x ro ec rgan za on ruc ure

President

Research and

DevelopmentEngineering Manufacturing Marketing

Manager

Project A

Manager Project B

Mana er

Project C


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Matrix: Advantages

• Enhanced communications between functionalareas

• Pinpointed responsibil ity

• Duplication of resources is minimized

• Functional “ home” for team members

• o c es o t e parent organ zat on are o owe


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3-13

Matrix: Disadvantages

• Too many bosses

• Depends on project manager’s

ne otiatin skills

• -


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Work Breakdown Structure

3-14

A work breakdown structure defines thehierarchy of project tasks, subtasks, and

ProgramLevel

wor pac ages

Project 1 Project 2

1

Task 1.12 Task 1.2

Subtask 1.1.13 Subtask 1.1.2

. . . . . .


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Network-Planning Models

• A project is made up of a sequence of activitiesthat form a network representing a project

• The path taking longest time through this

“path”

• The critical path provides a wide range of scheduling information useful in managing aproject

• Critical Path Method CPM hel s to identif the

critical path(s) in the project networks


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3-16

Prerequisites for Critical Path Methodology

pro ec mus ave:

-completion marks the end of the project;

independent jobs or tasks;

and tasks that follow a given sequence.


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3-17

ypes o r ca a e o s

• CPM with a Sin le Time Estimate

– Used when activ ity times are known with certainty

– Used to determine timing estimates for the project, eachactivity in the project, and slack t ime for activities

• CPM with Three Activity Time Estimates

– Used when activity times are uncertain

– Used to obtain the same information as the Single Time

• Time-Cost Models

– Used when cost trade-off information is a majorconsideration in planning

– Used to determine the least cost in reducing total projecttime


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Steps in the CPM with Single Time Estimate

• Activity Identification• Activit Se uencin and

Network Construction

•

– From the critical path all of the

information can be obtained


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CPM with Single Time Estimate

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Consider the following consulting project:Activity Designation Immed. Pred. Time (Weeks)Assess customer's needs A None 2

Write and submit proposal B A 1

Obtain approval C B 1

Develop service vision and goals D C 2Train employees E C 5

Quality improvement pilot groups F D, E 5

Write assessment report G F 1

Develop a critical path diagram and determine

for all activities.


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First draw the network

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Act. Imed. Pred. Time

A None 2

B A 1

C B 1

D(2)E C 5

F D,E 5

A(2) B(1) C(1) F(5) G(1)


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3-21

Determine early starts and early finish times

EF=6

ES=9

EF=14

ES=14

EF=15

ES=0

EF=2

ES=2

EF=3

ES=3

EF=4

ES=4

=

A(2) B(1) C(1) F(5) G(1)

E(5)

Hint: Start with ES=0

and go forward in the

network from A to G.


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Determine late starts and late Hint: Start with LF=15

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n s mes

ES=4

EF=6

or t e tota t me o t e project and go

backward in the

ES=9 ES=14ES=0 ES=2 ES=3D(2)

network from G to A.

= == = =

A(2) B(1) C(1) F(5) G(1)

LS=7

LF=9

EF=9 LS=14

LF=15

LS=9

LF=14

LS=3

LF=4

LS=2

LF=3

LS=0

LF=2

LS=4

=


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Critical Path & Slack

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ES=4Slack= 7-4 = 9-6 = 3 Wks

ES=9 ES=14ES=0 ES=2 ES=3

=

D(2)

EF=14 EF=15EF=2 EF=3 EF=4

A(2) B(1) C(1) F 5 G(1)

LS=7

LF=9=

EF=9 LS=14

LF=15

LS=9

LF=14

LS=3

LF=4

LS=2

LF=3

LS=0

LF=2

LS=4Duration=15 weeks

=


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3-24

Example 2. CPM with Three Activity Time Estimates

Task ImmediatePredecesors Optimistic Most Likely Pessimistic

A None 3 6 15

B None 2 4 14

C A 6 12 30

D A 2 5 8E C 5 11 17

F D 3 6 15

G B 3 9 27

H E,F 1 4 7I G,H 4 19 28


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Example 2. Expected Time Calculations

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ET(A)= 3+4(6)+15

6Task

ImmediatePredecesors

ExpectedTime

= =oneB None 5.333

C A 14 Task ImmediatePredecesors Optimistic Most Likely Pessimistic

E C 11

F D 7

A None 3 6 15

B None 2 4 14

C A 6 12 30

D A 2 5 8

E C 5 11 17

H E,F 4

I G,H 18

F D 3 6 15G B 3 9 27

H E,F 1 4 7

I G,H 4 19 28

Expected Time =Opt. Time + 4(Most Likely Time) + Pess. Time

6


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Ex. 2. Expected Time Calculations

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ET B = 2+4 4 +14

Task

Predecesors

Time A None 7

= =

6

.

C A 14

D A 5

.


F D 7

G B 11

H E F 4

A None 3 6 15

B None 2 4 14

C A 6 12 30

D A 2 5 8

E C 5 11 17

I G,H 18 F D 3 6 15G B 3 9 27H E,F 1 4 7

I G,H 4 19 28


6


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Ex 2. Expected Time Calculations

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Immediate Expected ET(C)= 6+4(12)+30Task Predecesors Time

A None 7B None 5.333

6

C A 14

D A 5

E C 11

= =


G B 11

H E,F 4

A None 3 6 15

B None 2 4 14

C A 6 12 30

D A 2 5 8

E C 5 11 17,

F D 3 6 15G B 3 9 27

H E,F 1 4 7

I G,H 4 19 28


6


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Example 2. Network

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C(14) E(11)

Duration = 54 Days

A(7) H(4)

I(18)

(5.333)


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Example 2. Probability Exercise

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What is the probability of finishing this project in

less than 53 days?

t < D

D=53

TE = 54

Z =D - TE

cp

2σ

3 30


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P essim . - O p tim .2 2

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c v y var ance, = 6σ

A 3 6 15 4B 2 4 14

C 6 12 30 16

D 2 5 8

E 5 11 17 4F 3 6 15

G 3 9 27

I 4 19 28 16

(Sum the variance along the critical path.) σ = 41

3 31


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p(t < D)

T = 54t

D=53

Z =

D - T

=

53-54

= -.156E

cpσ

There is a 43.8% robabilit that this ro ect will be

-. . , . -.

completed in less than 53 weeks.

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3-32

Ex 2. Additional Probability Exercise

• What is the probability that

exceed 56 weeks?

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Exam le 2. Additional Exercise Solution

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p(t < D)

tTE = 54

D=56

Z =D - T

=56-54

= .312E2

cpσ

p(Z > .312) = .378, or 37.8 % (1-NORMSDIST(.312))

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Time-Cost Models

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• Basic Assumption: Relationshipe ween ac v y comp e on me

and project cost

• Time Cost Models: Determine the-

tradeoffs

–

– Project indirect costs

–

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CPM Assumptions/Limitations

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• Project activities can be identified as entities

(There is a clear beginning and ending point

for each activity.)

• Project activity sequence relationships can be

• Project control should focus on the crit ical

path• The activity times follow the beta distribution,

with the variance of the project assumed to

crit ical path• Project control should focus on the crit ical

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Question Bowl

Which of the following are

Charts?.

b. Bar

.

d. All of the above

.Answer: d. All of the above

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Question Bowl

Which of the following are one of the

projects?.

b. Functional

.

d. All of the above

.

.

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Question Bowl

A project starts with a written description of the

,

statement of the work to be done and aproposed schedule all contained in which of

e o ow ng

a. SOW

.

c. Early Start Schedule

d. Late Start Schedule

e. None of the above

.

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Question Bowl

For some activit ies in a project there may

be some leeway from when an activity can

start and when it must finish. What is this

period of time called when using the Critical

a. Early start time

b. Late start timec. Slack time

d. All of the above


Answer: c. Slack time

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Question Bowl

How much “ slack time” is permitted in the “ critical

path” activity times?

.

b. No slack time is permittedc. As much as the maximum activity time in the

network

d. As much as is necessary to add up to the total

time of the ro ecte. None of the above

Answer: b. No slack time is permitted (All

critical path activities must have zero slacktime, otherwise they would not be critical to

e pro ec comp e on me.

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Question Bowl

When looking at the Time-Cost Trade Offs in the

Minimum-Cost Schedulin time-cost model,

we seek to reduce the total t ime of a project

by doing what to the least-cost activity

a. Crashing them

b. Adding slack time

Answer: a. Crashing

them (We “crash” the

c. u tract ng s ac t me

d. Adding project time


-

to seek a reduced total

time for the entire

project and we do itstep-wise as

inex ensivel as

possible.)

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Thank U

Chp 4 Project Management

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