Project management--final new-1 (1)

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Presented byChiung Fen

WangMatt_Wozniak

Colleen

Sullivan

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` http://www.youtube.com/watch?v=HDu5Wo8Yh1k

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A project is a sequence of unique, complex , and

connected activities having one goal or purpose

and that must be completed by a specific time,

within budget , and according to specifications.

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� Projects are oriented towards a goal

� There is something unique about every project.

� Projects have a finite duration.

� Projects require coordination of interrelatedactivities.

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� Project management is a set of principlesand tools for ± Defining± Planning± Executing± controlling Resources(people, equipment, material)± Completing a PROJECT

` Ex:` � construct a building` �

implement a major new computer system` � to plan a wedding

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` Pure Project

` Functional Project

` Matrix Project

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` Pure project

- is where a self-contained team works full-time

on

the project

� Timely decision-making

� Organizational structure is simple, flexible, and

easy to

understand.

� Project is managed holistically

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- advantages� the project manager has full authority

� Team members report to one boss

� Shortened communication lines

� Team pride, motivation, and commitmentare high

- disadvantages� duplication of resources� organizational goals and policies are

ignored� lack of technology transfer � project completion delays

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`

Functional project- is housed within a functional division

� have a clear line of authority

� one superior within their functional organization

President

Research and

DevelopmentEngineering Manufacturing

Project

A

Project

B

Project

C

Project

D

Project

E

Project

F

Project

G

Project

H

Project

I

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- advantages� Individual experts can be used by many different projects� Technical expertise is maintained within the functional

area� Specialists can be grouped to share knowledge and

experience

- disadvantages� weak motivation� Response to customer needs is slow and difficult� Project does not have a single individual responsible for 

allaspects of the project

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` Matrix project

- combine functional and pure project organizations

� PM decides what tasks and when they will be performed

� functional manager control which people and

technologies are used.

President

Research and

DevelopmentEngineering Manufacturing Marketing

Manager ProjectA

Manager 

Project B

Manager 

Project C

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- disadvantage� two bosses-functional and the PM

� project manager must have strong negotiating skills or 

project may fail

�  sub optimization President

Research and

DevelopmentEngineering Manufacturing Marketing

Manager 

ProjectA

Manager 

Project B

Manager 

Project C

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Program

Project 1 Project 2

Task 1.1

Subtask 1.1.1

ork Package 1.1.1.1

Level

1

2

3

4

Task 1.2

Subtask 1.1.2

ork Package 1.1.1.2

defines the hierarchy of project tasks, subtasks, andwork packages

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` List Format �Tree Format

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` Identify prime objectives and supporting objectives

` Establish major steps or phases of the project

` Determine the products or deliverables for each

phase` Identify the tasks needed to produce each

deliverables

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Work Breakdown Structure

Electrical

1

program

project

3

task

4

Sub-task

windowsCeilingsFlooringWalls Plumbingstairs

Heating/ACbathroomkitchen

Roof External

constructionFoundations Service

Yard &Access

House at

Avenue Drive

Level

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` The U.S. Department of Defense (one of the

earliest large users of project management) has

published a variety of helpful standard forms.

` Computer programs are available to quicklygenerate charts used to visually present the status

of a particular project.

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Labor 

Materials

Overhead

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Manufacturing

finance

engineering

overhead

Manufacturing

finance

engineering

overhead

50

Percentage of labor hours Percentage of cost

40%

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Actual

Projected

Total

program

cost

Time

Actual

Cost Over 

Projected

Project 3 .

Tracking date line

Project 2 .

Project 1

Projected

Completed

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1 2 3

 1. Purchasing order release

2. Invoices received

3. Material received

Milestones

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` The Critical Path Method(CPM) was developedfrom the widely used predecessor, the Gantt chart.

` The CPM is an illustration of every activity within aproject in sequential order.

` CPM is based on the assumption that projectactivity times can be estimated accurately and thatthey do not vary.

` The critical path provides a wide range of 

scheduling information useful in managing aproject

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` The critical path of activities in a project is thesequence of activities that form the longest chain interms of their time to complete.

` There are two different paths in this network : A-B-D, and A-C-D.

` Their lengths are 4 and 3, respectively. Thereforethe critical path isA-B-D.` http://www.youtube.com/watch?v=_ ABelZv8-x4&feature=related

A(1)

B(2)

C(1)

D(1)

0 1

01

1 3

1 3

1 2

2 3

3 4

3 4

Activity

(duration)

Early

Start

Early

Finish

Late

Start

Late

finish

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` CPM with a Single Time Estimate Used when activity times are known with certainty

Used to determine timing estimates for the project, each activity in

the project, and slack time for activities

` CPM with Three Activity Time Estimates Used when activity times are uncertain

Used to obtain the same information as the Single Time Estimatemodel and probability information

` Time-Cost Models

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There is a relationship between activity completion

time and project costs.

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Worker Related

` Overtime work

` Hiring more employees` Transferring workers

from other jobs

Resource Related

` Buying/leasing more

equipment

` Additional facilitiesneeded

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` Overhead

` Facilities

` Resource Opportunity Costs

` Penalty costs/lost incentive payments(under some contractual situations)

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Slope= (CC-NC)/(NT-CT)

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*To reduce both critical paths by one day, reduce either A 

alone, or B and C together at the same time (since either 

B or C by itself modifies the critical path without

shortening it).

�B & C must be crashed together to reduce both critical

paths by one day.

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Microsoft Project 2007

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Project activities can be identified as entities

(There is a clear beginning and ending point for each activity)

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Project activity sequence relationships can be

specified and networked

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Project control should focus on the critical path

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Applying critical path methods to a project