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ProjectManagementAMAT 167

PROJECTManagerstypicallyoverseeavarietyofoperations.Someoftheseinvolveroutine,repetitiveactivities,butothersinvolvenonroutine activities.

ØProjects arenonroutine activities.Theyareunique,one-timeoperationsdesignedtoaccomplishasetofobjectivesinalimitedtimeframe.

Examples•Constructingashoppingcomplex

•Mergingtwocompanies

•Puttingonaplay•Designingandrunningapoliticalcampaign

•Designingnewproductsorservices•Designingadvertisingcampaigns

•Designinginformationsystems

•Reengineeringaprocess•Designingdatabases,softwaredevelopment,anddesigningWebpages

ProjectLifeCycle

ProjectManagementØAteam-basedapproachformanagingprojects

Howisitdifferentfromgeneraloperationsmanagement?•Limitedtimeframe.•Narrowfocus,specificobjectives.•Lessbureaucratic.

ProjectManagementKeymetrics:•Time.•Cost.•Performanceobjectives.

ProjectManagementKeysuccessfactors:•Top-downcommitment.•Arespectedandcapableprojectmanager.•Enoughtimetoplan.•Carefultrackingandcontrol.•Goodcommunications.

ProjectManagementMaintools:1.Workbreakdownstructure.Aninitialplanningtoolthatisneededtodevelopalistofactivities,activitysequences,andarealisticbudget.2.Network(precedence)diagram.A“bigpicture”visualaidthatisusedtoestimateprojectduration,identifyactivitiesthatarecriticalfortimelyprojectcompletion,identifyareaswhereslacktimeexists,anddevelopactivityschedules.

ProjectManagementMaintools:3.Ganttcharts.Avisualaidusedtoplanandmonitorindividualactivities.4.Riskmanagement.Analysesofpotentialfailuresorproblems,assessmentoftheirlikelihoodandconsequences,andcontingencyplans.

ProjectManagementCertification:TheProjectManagementInstitute(PMI)administersagloballyrecognized,examination-basedprofessionalcertificationprogram.ThecertificationprogrammaintainsISO9001certificationinQualityManagementSystems.Therearetwolevelsofcertification:AssociateandProjectManagementProfessional.

WorkBreakdownStructureØAhierarchicallistingofwhatmustbedoneduringaproject.

GanttChart

NetworkDiagramByusingoneofthetools,wecanobtain•Agraphicaldisplayofprojectactivities.•Anestimateofhowlongtheprojectwilltake.•Anindicationofwhichactivitiesarethemostcriticaltotimelyprojectcompletion.•Anindicationofhowlonganyactivitycanbedelayedwithoutdelayingtheproject.

NetworkDiagramActivities:Projectstepsthatconsumeresourcesand/ortime.

Events: starting and finishing of activities, designated by nodes in the AOA convention. Unlike activities, they consume neither resources nor time.

UseofdummyactivityinAOARule:wedonotallowmultipleedges(arcshavingsamestartingandendnodes)

Remark:WedonotneeddummyactivitiesinAON

UseofdummyactivityinAOAWhatisthemeaningofthis?

Remark:WedonotneeddummyactivitiesinAON

ExerciseDrawtheAOAandAONdiagrams

NetworkDiagramPath: asequenceofactivitiesthatleadsfromthestartingnodetotheendingnode.Forexample,intheAOAdiagram,thesequence1-2-4-5-6isapath.IntheAONdiagram,S-1-2-6-7isapath.Notethatinbothdiagramstherearethreepaths.Onereasonfortheimportanceofpathsisthattheyrevealsequentialrelationships.Ifoneactivityinasequenceisdelayedordoneincorrectly,thestartofallfollowingactivitiesonthatpathwillbedelayed.

NetworkDiagramExpectedprojectduration=expectedtimeofthelongestpath.Ifthereareanydelaysalongthelongestpath,therewillbecorrespondingdelaysinprojectcompletiontime.Attemptstoshortenprojectcompletionmustfocusonthelongestsequenceofactivities.Longestpath=criticalpath.Itsactivitiesarereferredtoascriticalactivities.

NetworkDiagramPathsthatareshorterthanthecriticalpathcanexperiencesomedelaysandstillnotaffecttheoverallprojectcompletiontimeaslongastheultimatepathtimedoesnotexceedthelengthofthecriticalpath.

Slack=lengthofagivenpath– lengthofthecriticalpath

NetworkDiagramCommontoolsforplanningandcoordinatinglargeprojects:

vCPM:Criticalpathmethod-deterministic

vPERT:Programevaluationandreviewtechnique-probabilistic