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Project Management
Dr. Richard Jerz
© 2010 rjerz.com1
Describe or Explain:
Learning Objectives
• What are “projects”• The role of the project manager• Work breakdown structure• Project management tools (Gantt, PERT, & CPM)
• The use of software tools: MS Project
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What are Projects?
• Unique, one‐time operations designed to accomplish a specific set of objectives in limited time frame.
• Often expensive and resource intensive.
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Build A
A Done
Build B
B Done
Build C
C Done
Build D
Ship
JAN FEB MAR APR MAY JUN
On time!
Management Key Decisions
• Deciding which projects to implement• Selecting a project manager• Selecting a project team• Planning and designing the project• Managing and controlling project resources• Deciding if and when a project should be terminated
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Management of Projects
Planning ‐ goal setting, defining the project, team organization
Scheduling ‐ relates people, money, and supplies to specific activities and activities to each other
Controlling ‐monitors resources, costs, quality, and budgets; revises plans and shifts resources to meet time and cost demands
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Project Goals
• On time• On budget• Accomplish tasks with expected quality
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Project Organization
• Often temporary structure• Uses specialists from entire company• Headed by project manager• Coordinates activities • Monitors schedule and costs• Project structure is called “matrix organization”
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TestEngineer
MechanicalEngineer
Project 1 ProjectManager
Technician
Technician
Project 2 ProjectManager
ElectricalEngineer
Computer Engineer
Marketing FinanceHumanResources Design Quality
Mgt Production
President
A Sample Project Organization
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Steps of Project Planning
• Develop statement of work• Define work breakdown structure• List resources needed• Estimate time required• Estimate the cost
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Project Risks
• Risk: occurrence of events that have undesirable consequences• Delays• Increased costs• Inability to meet specifications• Unexpected project termination
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Risk Management
• Identify potential risks• Analyze and assess risks• Work to minimize occurrence of risk• Establish contingency plans
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Other Issues
• Temptation to understate costs• Withhold information• Misleading status reports• Falsifying records• Comprising workers’ safety• Approving substandard work
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Project Scheduling
• Identify activities and resources needed• Identifying precedence relationships • Sequencing activities• Determining activity times & costs• Estimating material and worker requirements• Determining critical activities
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Work Breakdown Structure
Project X
Level 1
Level 2
Level 3
Level 4
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Project Management Tools
• Project task listing• Gantt charts• Critical Path Method (CPM)• Program Evaluation and Review Technique (PERT)
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MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Locate new facilities
Interview staff
Hire and train staff
Select and order furniture
Remodel and install phones
Move in/startup
Gantt Chart
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Gantt Charts
• Advantages• Visual presentation• Simplicity
• Disadvantages• Updating• Doesn’t reflect costs• Doesn’t show relationships between tasks
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PERT and CPM
• PERT: Program Evaluation and Review Technique (1958)
• CPM: Critical Path Method (1957)
• Graphically displays project activities• Estimates how long the project will take• Indicates most critical activities• Show where delays will not affect project• Can calculate slack times• Helps resource allocation
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Precedence Diagram
1
2
3
5
6
Locatefacilities
Orderfurniture
Furnituresetup
Interview
Remodel Move in
4
Hire andtrain
7S
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Example with Times (& AOL)
1
2
3
4
5 6
8 weeks
6 weeks
3 weeks
4 weeks9 weeks
11 weeks
1 week
Move in
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PERT/CPM Information
• Expected completion time• Critical activities (path)• Each network activities
• Earliest (ES) & latest (LS) start• Earliest (EF) & latest (LF) finish• Slack (S): Allowable delay, = LS‐ES, or LF‐EF
• What if?
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Critical Path Analysis
• Identifies critical path• Longest path in network• Shortest time project can be completed• Any delay on critical path activities delays project• Critical path activities have 0 slack
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Probabilistic Estimates
Activitystart
Optimistictime
Most likelytime (mode)
Pessimistictime
o pm te
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Advantages of PERT
• Forces managers to organize• Provides graphic display of activities• Identifies
• Critical activities• Slack activities
1
2
3
4
5 6
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Limitations of PERT
• Important activities may be omitted• Precedence relationships may not be correct• Estimates may include a fudge factor
• Not exact science• Iterative process
1
2
3
4
5 6
142 weeks
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It is not uncommon to face the following situations:
Shortening the duration of the project is called project crashing
Project Crashing
• The project is behind schedule• The completion time has been moved forward
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Project Management Software
• Computer aided design (CAD)• Groupware (Lotus Notes)• CA Super Project• Harvard Total Manager• MS Project• Sure Track Project Manager• Time Line
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Software Demo: MS Project
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Advantages of PM Software
• Imposes a methodology• Provides a logical planning structure• Enhances team communication• Flag constraint violations• Automatic report formats• Multiple levels of reports• Enables what‐if scenarios• Generates various chart types
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Using Microsoft Project
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Using Microsoft Project
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Using Microsoft Project
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Using Microsoft Project
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Using Microsoft Project
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