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Chapter 3

Chapter 3. Project Management. OBJECTIVES. Definition of Project Management Work Breakdown Structure Project Control Charts Structuring Projects Critical Path Scheduling. Project Management Defined.

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Chapter 3

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  1. Chapter 3 Project Management

  2. OBJECTIVES • Definition of Project Management • Work Breakdown Structure • Project Control Charts • Structuring Projects • Critical Path Scheduling

  3. Project Management Defined • Project is a series of related jobs usually directed toward some major output and requiring a significant period of time to perform • Project Management are the management activities of planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project

  4. Gantt Chart Vertical Axis: Always Activities or Jobs Horizontal bars used to denote length of time for each activity or job. Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Time Horizontal Axis: Always Time

  5. Structuring Projects: Pure Project Advantages Pure Project Apure project is where a self-contained team works full-time on the project • The project manager has full authority over the project • Team members report to one boss • Shortened communication lines • Team pride, motivation, and commitment are high

  6. Structuring Projects: Pure ProjectDisadvantages • Duplication of resources • Organizational goals and policies are ignored • Lack of technology transfer • Team members have no functional area "home"

  7. President Research and Development Engineering Manufacturing Project A Project B Project C Project D Project E Project F Project G Project H Project I Functional Project A functional project is housed within a functional division Example, Project “B” is in the functional area of Research and Development.

  8. Structuring Projects Functional Project: Advantages • A team member can work on several projects • Technical expertise is maintained within the functional area • The functional area is a “home” after the project is completed • Critical mass of specialized knowledge

  9. Structuring Projects Functional Project:Disadvantages • Aspects of the project that are not directly related to the functional area get short-changed • Motivation of team members is often weak • Needs of the client are secondary and are responded to slowly

  10. President Research and Development Engineering Manufacturing Marketing Manager Project A Manager Project B Manager Project C Matrix Project Organization Structure

  11. Structuring Projects Matrix: Advantages • Enhanced communications between functional areas • Pinpointed responsibility • Duplication of resources is minimized • Functional “home” for team members • Policies of the parent organization are followed

  12. Structuring Projects Matrix: Disadvantages • Too many bosses • Depends on project manager’s negotiating skills • Potential for sub-optimization

  13. Level Program 1 Project 1 Project 2 2 Task 1.1 Task 1.2 3 Subtask 1.1.1 Subtask 1.1.2 4 Work Package 1.1.1.1 Work Package 1.1.1.2 Work Breakdown Structure Awork breakdown structuredefines the hierarchy of project tasks, subtasks, and work packages

  14. Network-Planning Models • A project is made up of a sequence of activities that form a network representing a project • The path taking longest time through this network of activities is called the “critical path” • The critical path provides a wide range of scheduling information useful in managing a project • Critical Path Method (CPM) helps to identify the critical path(s) in the project networks

  15. Prerequisites for Critical Path Methodology A project must have: • well-defined jobs or tasks whose completion marks the end of the project; • independent jobs or tasks; • and tasks that follow a given sequence.

  16. Types of Critical Path Methods • 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 Estimate model and probability information • Time-Cost Models • Used when cost trade-off information is a major consideration in planning • Used to determine the least cost in reducing total project time

  17. PERT and CPM • Network 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) • Consider precedence relationships and interdependencies • Each uses a different estimate of activity times

  18. Six Steps PERT & CPM • Define the project and prepare the work breakdown structure • Develop relationships among the activities - decide which activities must precede and which must follow others • Draw the network connecting all of the activities

  19. Six Steps PERT & CPM • Assign time and/or cost estimates to each activity • Compute the longest time path through the network – this is called the critical path • Use the network to help plan, schedule, monitor, and control the project

  20. A comes before B, which comes before C A C (a) B A B C A A A and B must both be completed before C can start (b) C C B B B B and C cannot begin until A is completed B A (c) A C C A Comparison of AON and AOA Network Conventions Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) Figure 3.5

  21. C and D cannot begin until A and B have both been completed A C B A C (d) D B D C cannot begin until both A and B are completed; D cannot begin until B is completed. A dummy activity is introduced in AOA A C A C (e) Dummy activity B D B D A Comparison of AON and AOA Network Conventions Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) Figure 3.5

  22. B and C cannot begin until A is completed. D cannot begin until both B and C are completed. A dummy activity is again introduced in AOA. A B D B A Dummy activity C (f) C D A Comparison of AON and AOA Network Conventions Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) Figure 3.5

  23. AON Example Milwaukee Paper Manufacturing'sActivities and Predecessors Table 3.1

  24. Activity A (Build Internal Components) A Start Activity B (Modify Roof and Floor) B Start Activity AON Network for Milwaukee Paper Figure 3.6

  25. Activity A Precedes Activity C A C Start B D Activities A and B Precede Activity D AON Network for Milwaukee Paper Figure 3.7

  26. F A C E Start H B G D Arrows Show Precedence Relationships AON Network for Milwaukee Paper Figure 3.8

  27. C (Construct Stack) 4 2 F (Install Controls) A (Build Internal Components) E (Build Burner) H (Inspect/ Test) Dummy Activity 7 1 6 B (Modify Roof/Floor) G (Install Pollution Device) D (Pour Concrete/ Install Frame) 3 5 AOA Network for Milwaukee Paper Figure 3.9

  28. Determining the Project Schedule Perform 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 project • Critical path activities have no slack time

  29. Activity Description Time (weeks) A Build internal components 2 B Modify roof and floor 3 C Construct collection stack 2 D Pour concrete and install frame 4 E Build high-temperature burner 4 F Install pollution control system 3 G Install air pollution device 5 H Inspect and test 2 Total Time (weeks) 25 Determining the Project Schedule Perform a Critical Path Analysis Table 3.2

  30. 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 Activity Description Time (weeks) A Build internal components 2 B Modify roof and floor 3 C Construct collection stack 2 D Pour concrete and install frame 4 E Build high-temperature burner 4 F Install pollution control system 3 G Install air pollution device 5 H Inspect and test 2 Total Time (weeks) 25 Determining the Project Schedule Perform a Critical Path Analysis Table 3.2

  31. Activity Name or Symbol A Earliest Finish Earliest Start ES EF LS LF Latest Finish Latest Start 2 Activity Duration Determining the Project Schedule Perform a Critical Path Analysis Figure 3.10

  32. Forward Pass Begin at starting event and work forward Earliest Start Time Rule: • If an activity has only one 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)

  33. Forward Pass Begin 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

  34. ES EF = ES + Activity time Start 0 0 0 ES/EF Network for Milwaukee Paper

  35. EF of A = ES of A + 2 ESof A A 2 0 2 Start 0 0 0 ES/EF Network for Milwaukee Paper

  36. EF of B = ES of B + 3 A 2 ESof B 0 2 0 3 Start 0 0 B 3 0 ES/EF Network for Milwaukee Paper

  37. A 2 C 2 0 2 2 4 Start 0 0 0 B 3 0 3 ES/EF Network for Milwaukee Paper

  38. A 2 C 2 0 2 2 4 Start 0 0 = Max (2, 3) D 4 0 3 B 3 0 3 ES/EF Network for Milwaukee Paper 7

  39. A 2 C 2 0 2 2 4 Start 0 0 0 B 3 D 4 0 3 3 7 ES/EF Network for Milwaukee Paper

  40. A 2 C 2 F 3 0 2 4 7 2 4 E 4 H 2 Start 0 0 4 8 13 15 0 B 3 D 4 G 5 0 3 3 7 8 13 ES/EF Network for Milwaukee Paper Figure 3.11

  41. Backward Pass Begin 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)

  42. Backward Pass Begin 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

  43. A 2 C 2 F 3 0 2 4 7 2 4 E 4 H 2 Start 0 0 4 8 13 15 13 15 0 LS = LF – Activity time B 3 D 4 G 5 0 3 3 7 8 13 LF = EF of Project LS/LF Times for Milwaukee Paper Figure 3.12

  44. A 2 C 2 F 3 0 2 4 7 2 4 10 13 E 4 H 2 Start 0 0 LF = Min(LS of following activity) 4 8 13 15 13 15 0 B 3 D 4 G 5 0 3 3 7 8 13 LS/LF Times for Milwaukee Paper Figure 3.12

  45. LF = Min(4, 10) A 2 C 2 F 3 0 2 4 7 2 4 2 4 10 13 E 4 H 2 Start 0 0 4 8 13 15 13 15 4 8 0 B 3 D 4 G 5 0 3 3 7 8 13 8 13 LS/LF Times for Milwaukee Paper Figure 3.12

  46. A 2 C 2 F 3 0 2 4 7 2 4 2 4 10 13 0 2 E 4 H 2 Start 0 0 4 8 13 15 13 15 0 0 4 8 0 B 3 D 4 G 5 0 3 3 7 8 13 4 8 8 13 1 4 LS/LF Times for Milwaukee Paper Figure 3.12

  47. Computing 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

  48. Earliest Earliest Latest Latest On Start Finish Start Finish Slack Critical Activity ES EF LS LF LS – ES Path A 0 2 0 2 0 Yes B 0 3 1 4 1 No C 2 4 2 4 0 Yes D 3 7 4 8 1 No E 4 8 4 8 0 Yes F 4 7 10 13 6 No G 8 13 8 13 0 Yes H 13 15 13 15 0 Yes Computing Slack Time Table 3.3

  49. A 2 C 2 F 3 0 2 4 7 2 4 2 4 10 13 0 2 E 4 H 2 Start 0 0 4 8 13 15 13 15 0 0 4 8 0 B 3 D 4 G 5 0 3 3 7 8 13 4 8 8 13 1 4 Critical Path for Milwaukee Paper Figure 3.13

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