Page 1
3 - 1© 2011 Pearson Education, Inc. publishing as Prentice Hall
Complex and temporary task of many related activities.(not ‘business as usual’)
May disrupt normal operations.(Mgt has to complete project AND keep business going)
Will have time pressure and budget limits. (work smarter not harder)
Project CharacteristicsProject Characteristics
Page 2
3 - 2© 2011 Pearson Education, Inc. publishing as Prentice Hall
Project Management Institute : Project Life Cycle model
Page 3
3 - 3© 2011 Pearson Education, Inc. publishing as Prentice Hall
Is a temporary structure
Uses specialists from many departments in a matrix organisation.
Headed by project manager who Coordinates activities
Monitors time schedule and costs
Accepts responsibility for project completion
Is the ‘one-point-of-contact’.
Project OrganizationProject Organization
Page 4
3 - 4© 2011 Pearson Education, Inc. publishing as Prentice Hall
Project Organization needed when . . .
1. Work is defined with a specific goal and deadline (SMART)
2. Work is unique or unfamiliar to the existing organization (one-off)
3. Work contains complex tasks requiring specialized skills and team work.(coordination & communication )
4. Work is temporary and critical to the organization (high priority/change management)
5. Work cuts across department boundaries. (involves staff working in teams)
Page 5
3 - 5© 2011 Pearson Education, Inc. publishing as Prentice Hall
The Role of the Project ManagerThe Role of the Project Manager
Highly visible / project leadership / project Highly visible / project leadership / project responsibility responsibility
1. All activities are finished in order and on time (planning, coordinating, organising)
2. The project is complete within budget (monitoring)
3. The project meets quality goals (controlling)
4. The project people are motivated, directed, and informed (leading)
Page 6
3 - 6© 2011 Pearson Education, Inc. publishing as Prentice Hall
PlanningObjectives
Resources
Work break-down structure
Organization
SchedulingProject activities
Start & end times
Network
ControllingMonitor, compare, revise, action
Project Management Project Management ActivitiesActivities
Page 7
3 - 7© 2011 Pearson Education, Inc. publishing as Prentice Hall
Project Planning, Project Planning, Scheduling, and ControllingScheduling, and Controlling
Figure 3.1
Before Start of project Duringproject Timeline project
Page 8
3 - 8© 2011 Pearson Education, Inc. publishing as Prentice Hall
Project Planning, Project Planning, Scheduling, and ControllingScheduling, and Controlling
Figure 3.1
Before Start of project Duringproject Timeline project
Page 9
3 - 9© 2011 Pearson Education, Inc. publishing as Prentice Hall
Project Planning, Project Planning, Scheduling, and ControllingScheduling, and Controlling
Figure 3.1
Before Start of project Duringproject Timeline project
Page 10
3 - 10© 2011 Pearson Education, Inc. publishing as Prentice Hall
Project Planning, Project Planning, Scheduling, and ControllingScheduling, and Controlling
Figure 3.1
Before Start of project Duringproject Timeline project
Page 11
3 - 11© 2011 Pearson Education, Inc. publishing as Prentice Hall
Project Planning, Project Planning, Scheduling, and ControllingScheduling, and Controlling
Figure 3.1
Before Start of project Duringproject Timeline project
BudgetsDelayed activities reportSlack activities report
Time/cost estimatesBudgetsEngineering diagramsCash flow chartsMaterial availability details
CPM/PERTGantt chartsMilestone chartsCash flow schedules
Page 12
3 - 12© 2011 Pearson Education, Inc. publishing as Prentice Hall
Establishing business objectives
Defining project (scope)
Creating work breakdown structure
Determining resources
Forming organization
Project PlanningProject Planning
Page 13
3 - 13© 2011 Pearson Education, Inc. publishing as Prentice Hall
Work Breakdown StructureWork Breakdown Structure
Level
1. Project
2. Major tasks in the project
3. Subtasks in the major tasks
4. Activities (or work packages)to be completed
Page 14
3 - 14© 2011 Pearson Education, Inc. publishing as Prentice Hall
Level 4 Compatible with Windows ME
Compatible with Windows Vista
Compatible with Windows XP 1.1.2.3
1.1.2.2
1.1.2.1
(Work packages)
Level 3 Develop GUIs Planning
Module Testing
Ensure Compatibility with Earlier Versions
Cost/Schedule Management
Defect Testing
1.1.1
1.2.2 1.3.2
1.3.11.2.1
1.1.2
Work Breakdown StructureWork Breakdown Structure
Figure 3.3
Level 2 Software Design
Project Management
System Testing1.1 1.2 1.3
Level 1 Develop Windows 7 Operating System 1.0
Page 15
3 - 15© 2011 Pearson Education, Inc. publishing as Prentice Hall
Project SchedulingProject Scheduling Identifying precedence relationships
Sequencing activities
Determining activity times & costs
Estimating material & worker requirements
Determining critical activities
Page 16
3 - 16© 2011 Pearson Education, Inc. publishing as Prentice Hall
Gantt chart
Critical Path Method (CPM)
Program Evaluation and Review Technique (PERT)
Project Management Project Management Techniques for schedulingTechniques for scheduling
Page 17
3 - 17© 2011 Pearson Education, Inc. publishing as Prentice Hall
A Simple Gantt ChartA Simple Gantt Chart
TimeJ F M A M J J A S
Design
Prototype
Test
Revise
Production
Page 18
3 - 18© 2011 Pearson Education, Inc. publishing as Prentice Hall
Network planning techniques
Developed in 1950’s CPM by DuPont for chemical plants (1957)
PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958)
uncovers precedence and interdependence of stages.
Difference is CPM has fixed times for each stage
PERT has a statistical range for times for each stage
PERT and CPMPERT and CPM
Page 19
3 - 19© 2011 Pearson Education, Inc. publishing as Prentice Hall
Six Steps PERT & CPMSix Steps PERT & CPM1. Define the project and prepare the work
breakdown structure
2. Identify which activities must precede and/or follow other activities.
3. Draw the network connecting the activities
4. Assign times & costs to each activity
5. Find the longest time path through the network – this is called the critical path
6. Use the network to help plan, schedule, monitor, and control the project
Page 20
3 - 20© 2011 Pearson Education, Inc. publishing as Prentice Hall
1. When will the project be completed?
2. What are the critical activities or tasks in the project? (no float time / must be finished on time or cause delay)
3. Which are the noncritical activities?(some float time / can be delayed without changing time for whole project)
4. What is the probability the project will be completed by a specific date? (PERT not CPM)
Questions PERT & CPM Questions PERT & CPM Can AnswerCan Answer
Page 21
3 - 21© 2011 Pearson Education, Inc. publishing as Prentice Hall
5. Is the project on schedule, behind schedule, or ahead of schedule?(timing of milestones)
6. Is the money spent equal to, less than, or greater than the budget?
7. Are there enough resources available to finish the project on time?
8. If the project must be finished in a shorter time, what is the way to accomplish this at least cost?
Questions PERT & CPM Questions PERT & CPM Can AnswerCan Answer
Page 22
3 - 22© 2011 Pearson Education, Inc. publishing as Prentice Hall
Critical Path Example Critical Path Example
Activity DescriptionImmediate
Predecessors
A Build internal components —
B Modify roof and floor —
C Construct collection stack A
D Pour concrete and install frame A, B
E Build high-temperature burner C
F Install pollution control system C
G Install air pollution device D, E
H Inspect and test F, G
Milwaukee Paper Manufacturing'sMilwaukee Paper Manufacturing'sActivities and PredecessorsActivities and Predecessors
Table 3.1
Page 23
3 - 23© 2011 Pearson Education, Inc. publishing as Prentice Hall
AON Network for AON Network for Milwaukee PaperMilwaukee Paper
G
E
F
H
CA
Start
DB
Arrows Show Precedence Relationships Figure 3.8
Page 24
3 - 24© 2011 Pearson Education, Inc. publishing as Prentice Hall
H
(Inspect/ Test)
7Dummy Activity
AOA Network for AOA Network for Milwaukee PaperMilwaukee Paper
6
F(Install
Controls)E
(Bu
i ld B
urn
er)G
(Insta
ll
Pollutio
n
Device)
5D
(Pour Concrete/
Install Frame)
4C
(Construct Stack)
1
3
2
B(Modify
Roof/Floor)
A(B
uild In
tern
al
Componen
ts)
Figure 3.9
Page 25
3 - 25© 2011 Pearson Education, Inc. publishing as Prentice Hall
Determining the Project Determining the Project ScheduleSchedule
Perform a Critical Path AnalysisPerform a Critical Path Analysis The critical path is the longest path through the
network
The critical path is the shortest time in which the project can be completed
Any delay in critical path activities delays the whole project
Critical path activities have no slack (float) time
Page 26
3 - 26© 2011 Pearson Education, Inc. publishing as Prentice Hall
Determining the Project Determining the Project ScheduleSchedule
Perform a Critical Path AnalysisPerform a Critical Path Analysis
Table 3.2
Activity Description Time (weeks)A Build internal components 2B Modify roof and floor 3C Construct collection stack 2D Pour concrete and install frame 4E Build high-temperature burner 4F Install pollution control system 3G Install air pollution device 5H Inspect and test 2
Total Time (weeks) 25
Page 27
3 - 27© 2011 Pearson Education, Inc. publishing as Prentice Hall
Determining the Project Determining the Project ScheduleSchedule
Perform a Critical Path AnalysisPerform a Critical Path Analysis
Table 3.2
Activity Description Time (weeks)A Build internal components 2B Modify roof and floor 3C Construct collection stack 2D Pour concrete and install frame 4E Build high-temperature burner 4F Install pollution control system 3G Install air pollution device 5H Inspect and test 2
Total Time (weeks) 25
Earliest start (ES) =earliest time at which an activity can start, assuming all predecessors have been completed
Earliest finish (EF) =earliest time at which an activity can be finished
Latest start (LS) =latest time at which an activity can start so as to not delay the completion time of the entire project
Latest finish (LF) =latest time by which an activity has to be finished so as to not delay the completion time of the entire project
Page 28
3 - 28© 2011 Pearson Education, Inc. publishing as Prentice Hall
Determining the Project Determining the Project ScheduleSchedule
Perform a Critical Path AnalysisPerform a Critical Path Analysis
Figure 3.10
A
Activity Name or Symbol
Earliest Start ES
Earliest FinishEF
Latest Start
LS Latest Finish
LF
Activity Duration
2
Page 29
3 - 29© 2011 Pearson Education, Inc. publishing as Prentice Hall
Forward PassForward Pass
Begin at starting event and work forwardBegin at starting event and work forward
Earliest Start Time Rule:
If an activity has only a single immediate predecessor, its ES equals the EF of the predecessor
If an activity has multiple immediate predecessors, its ES is the maximum of all the EF values of its predecessors
ES = Max {EF of all immediate predecessors}
Page 30
3 - 30© 2011 Pearson Education, Inc. publishing as Prentice Hall
Forward PassForward Pass
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 is the sum of its earliest start time (ES) and its activity time
EF = ES + Activity time
Page 31
3 - 31© 2011 Pearson Education, Inc. publishing as Prentice Hall
ES/EF Network for ES/EF Network for Milwaukee PaperMilwaukee Paper
Start
0
0
ES
0
EF = ES + Activity time
Page 32
3 - 32© 2011 Pearson Education, Inc. publishing as Prentice Hall
ES/EF Network for ES/EF Network for Milwaukee PaperMilwaukee Paper
Start0
0
0
A
2
2
EF of A = ES of A + 2
0
ESof A
Page 33
3 - 33© 2011 Pearson Education, Inc. publishing as Prentice Hall
B
3
ES/EF Network for ES/EF Network for Milwaukee PaperMilwaukee Paper
Start0
0
0
A
2
20
3
EF of B = ES of B + 3
0
ESof B
Page 34
3 - 34© 2011 Pearson Education, Inc. publishing as Prentice Hall
C
2
2 4
ES/EF Network for ES/EF Network for Milwaukee PaperMilwaukee Paper
B
3
0 3
Start0
0
0
A
2
20
Page 35
3 - 35© 2011 Pearson Education, Inc. publishing as Prentice Hall
C
2
2 4
ES/EF Network for ES/EF Network for Milwaukee PaperMilwaukee Paper
B
3
0 3
Start0
0
0
A
2
20
D
4
73= Max (2, 3)
Page 36
3 - 36© 2011 Pearson Education, Inc. publishing as Prentice Hall
D
4
3 7
C
2
2 4
ES/EF Network for ES/EF Network for Milwaukee PaperMilwaukee Paper
B
3
0 3
Start0
0
0
A
2
20
Page 37
3 - 37© 2011 Pearson Education, Inc. publishing as Prentice Hall
E
4
F
3
G
5
H
2
4 8 13 15
4
8 13
7
D
4
3 7
C
2
2 4
ES/EF Network for ES/EF Network for Milwaukee PaperMilwaukee Paper
B
3
0 3
Start0
0
0
A
2
20
Figure 3.11
Page 38
3 - 38© 2011 Pearson Education, Inc. publishing as Prentice Hall
Backward PassBackward Pass
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 the activity that immediately follows it
If an activity is an immediate predecessor to more than one activity, its LF is the minimum of all LS values of all activities that immediately follow it
LF = Min {LS of all immediate following activities}
Page 39
3 - 39© 2011 Pearson Education, Inc. publishing as Prentice Hall
Backward PassBackward Pass
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 the difference of its latest finish time (LF) and its activity time
LS = LF – Activity time
Page 40
3 - 40© 2011 Pearson Education, Inc. publishing as Prentice Hall
LS/LF Times for LS/LF Times for Milwaukee PaperMilwaukee Paper
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
Start0
0
0
A
2
20
LF = EF of Project
1513
LS = LF – Activity time
Page 41
3 - 41© 2011 Pearson Education, Inc. publishing as Prentice Hall
LS/LF Times for LS/LF Times for Milwaukee PaperMilwaukee Paper
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
Start0
0
0
A
2
20
LF = Min(LS of following activity)
10 13
Page 42
3 - 42© 2011 Pearson Education, Inc. publishing as Prentice Hall
LS/LF Times for LS/LF Times for Milwaukee PaperMilwaukee Paper
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
Start0
0
0
A
2
20
LF = Min(4, 10)
42
Page 43
3 - 43© 2011 Pearson Education, Inc. publishing as Prentice Hall
LS/LF Times for LS/LF Times for Milwaukee PaperMilwaukee Paper
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
Start0
0
0
A
2
20
42
84
20
41
00
Page 44
3 - 44© 2011 Pearson Education, Inc. publishing as Prentice Hall
Computing Slack TimeComputing Slack Time
After computing the ES, EF, LS, and LF times for all activities, compute the slack or free time for each activity
Slack is the length of time an activity can be delayed without delaying the entire project
Slack = LS – ES or Slack = LF – EF
Page 45
3 - 45© 2011 Pearson Education, Inc. publishing as Prentice Hall
Computing Slack TimeComputing Slack Time
Table 3.3
Earliest Earliest Latest Latest OnStart Finish Start Finish Slack Critical
Activity ES EF LS LF LS – ES Path
A 0 2 0 2 0 YesB 0 3 1 4 1 NoC 2 4 2 4 0 YesD 3 7 4 8 1 NoE 4 8 4 8 0 YesF 4 7 10 13 6 NoG 8 13 8 13 0 YesH 13 15 13 15 0 Yes
Page 46
3 - 46© 2011 Pearson Education, Inc. publishing as Prentice Hall
Critical Path for Critical Path for Milwaukee PaperMilwaukee Paper
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
Start0
0
0
A
2
20
42
84
20
41
00
Page 47
3 - 47© 2011 Pearson Education, Inc. publishing as Prentice Hall
Page 48
3 - 48© 2011 Pearson Education, Inc. publishing as Prentice Hall
ES – EF Gantt ChartES – EF Gantt Chartfor Milwaukee Paperfor Milwaukee Paper
A Build internal components
B Modify roof and floor
C Construct collection stack
D Pour concrete and install frame
E Build high-temperature burner
F Install pollution control system
G Install air pollution device
H Inspect and test
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Page 49
3 - 49© 2011 Pearson Education, Inc. publishing as Prentice Hall
LS – LF Gantt ChartLS – LF Gantt Chartfor Milwaukee Paperfor Milwaukee Paper
A Build internal components
B Modify roof and floor
C Construct collection stack
D Pour concrete and install frame
E Build high-temperature burner
F Install pollution control system
G Install air pollution device
H Inspect and test
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Page 50
3 - 50© 2011 Pearson Education, Inc. publishing as Prentice Hall
Page 51
3 - 51© 2011 Pearson Education, Inc. publishing as Prentice Hall
Trade-Offs and Project Trade-Offs and Project CrashingCrashing
The project is behind schedule
The completion time has been moved forward
It is not uncommon to face the It is not uncommon to face the following situations:following situations:
Shortening the duration of the project is called project crashing
Page 52
3 - 52© 2011 Pearson Education, Inc. publishing as Prentice Hall
Factors to Consider When Factors to Consider When Crashing a ProjectCrashing a Project
The amount by which an activity is crashed is, in fact, permissible
Taken together, the shortened activity durations will enable us to finish the project by the due date
The total cost of crashing is as small as possible
Page 53
3 - 53© 2011 Pearson Education, Inc. publishing as Prentice Hall
Steps in Project CrashingSteps in Project Crashing
1. Compute the crash cost per time period. If crash costs are linear over time:
Crash costper period =
(Crash cost – Normal cost)
(Normal time – Crash time)
2. Using current activity times, find the critical path and identify the critical activities
Page 54
3 - 54© 2011 Pearson Education, Inc. publishing as Prentice Hall
Steps in Project CrashingSteps in Project Crashing3. For only one critical path, select the
activity on this critical path that
(a) can still be crashed,
(b) has the smallest crash cost per period.
4. For more than one critical path, select one activity from each critical path so
that
(a) each selected activity can still be crashed,
(b) the total crash cost of all selected activities is the smallest.
Page 55
3 - 55© 2011 Pearson Education, Inc. publishing as Prentice Hall
Steps in Project CrashingSteps in Project Crashing
4. Update all activity times. If the desired due date has been reached, stop. If not, return to Step 2.
Page 56
3 - 56© 2011 Pearson Education, Inc. publishing as Prentice Hall
Crashing The ProjectCrashing The Project
Table 3.5
Time (Wks) Cost ($)Crash Cost Critical
Activity Normal Crash Normal Crash Per Wk ($) Path?
A 2 1 22,000 22,750 750 YesB 3 1 30,000 34,000 2,000 NoC 2 1 26,000 27,000 1,000 YesD 4 2 48,000 49,000 1,000 NoE 4 2 56,000 58,000 1,000 YesF 3 2 30,000 30,500 500 NoG 5 2 80,000 84,500 1,500 YesH 2 1 16,000 19,000 3,000 Yes
Page 57
3 - 57© 2011 Pearson Education, Inc. publishing as Prentice Hall
Crash and Normal Times Crash and Normal Times and Costs for Activity Band Costs for Activity B
| | |1 2 3 Time (Weeks)
$34,000 —
$33,000 —
$32,000 —
$31,000 —
$30,000 —
—
Activity Cost
Crash
Normal
Crash Time Normal Time
Crash Cost
Normal Cost
Crash Cost/Wk = Crash Cost – Normal CostNormal Time – Crash Time
=$34,000 – $30,000
3 – 1
= = $2,000/Wk$4,0002 Wks
Figure 3.16
Page 58
3 - 58© 2011 Pearson Education, Inc. publishing as Prentice Hall
Critical Path and Slack Times Critical Path and Slack Times for Milwaukee Paperfor Milwaukee Paper
Figure 3.17
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
Start0
0
0
A
2
20
42
84
20
41
00
Slack = 1 Slack = 1
Slack = 0 Slack = 6
Slack = 0
Slack = 0
Slack = 0
Slack = 0
Page 59
3 - 59© 2011 Pearson Education, Inc. publishing as Prentice Hall
Page 60
3 - 60© 2011 Pearson Education, Inc. publishing as Prentice Hall
Ethical IssuesEthical Issues
1. Offers of gifts from contractors
2. Pressure to alter status reports to mask delays
3. False reports for charges of time and expenses
4. Pressure to compromise quality to meet schedules
Project managers face many ethical decisions on a daily basis
The Project Management Institute has established an ethical code to deal with problems such as: