Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Project Management Operations Management - 5 th Edition Chapter

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc.Beni AsllaniBeni Asllani

University of Tennessee at ChattanoogaUniversity of Tennessee at Chattanooga

Project ManagementProject Management

Operations Management - 5th EditionOperations Management - 5th Edition

Chapter 9Chapter 9

Roberta Russell & Bernard W. Taylor, IIIRoberta Russell & Bernard W. Taylor, III

Copyright 2006 John Wiley & Sons, Inc.Copyright 2006 John Wiley & Sons, Inc. 9-9-22

Lecture OutlineLecture Outline

Project Planning Project Scheduling Project Control CPM/PERT


What is a Project?

Project unique, one-time operational activity or effort

Examples constructing houses, factories, shopping malls, athletic

stadiums or arenas developing military weapons systems, aircrafts, new ships launching satellite systems constructing oil pipelines developing and implementing new computer systems planning concert, football games, or basketball tournaments introducing new products into market


Project ElementsProject Elements

ObjectiveObjective ScopeScope Contract requirementsContract requirements SchedulesSchedules ResourcesResources PersonnelPersonnel ControlControl Risk and problem analysisRisk and problem analysis


Project Management Process

Project planningProject planning Project scheduling Project scheduling Project controlProject control Project teamProject team

made up of individuals from various areas and made up of individuals from various areas and departments within a companydepartments within a company

Matrix organizationMatrix organization a team structure with members from functional areas, a team structure with members from functional areas,

depending on skills requireddepending on skills required Project ManagerProject Manager

most important member of project teammost important member of project team


Project ScopeProject Scope

Scope statementScope statement a document that provides an understanding, a document that provides an understanding,

justification, and expected result of a projectjustification, and expected result of a project Statement of workStatement of work

written description of objectives of a projectwritten description of objectives of a project Work breakdown structureWork breakdown structure

breaks down a project into components, breaks down a project into components, subcomponents, activities, and taskssubcomponents, activities, and tasks


Work Breakdown Structure for Computer Order Processing System Project

Work Breakdown Structure for Computer Order Processing System Project


Organizational Breakdown StructureOrganizational Breakdown Structure a chart that shows which organizational units are a chart that shows which organizational units are

responsible for work itemsresponsible for work items Responsibility Assignment MatrixResponsibility Assignment Matrix

shows who is responsible for work in a projectshows who is responsible for work in a project


Project Scheduling

StepsSteps Define activitiesDefine activities Sequence Sequence

activitiesactivities Estimate timeEstimate time Develop scheduleDevelop schedule

TechniquesTechniques Gantt chartGantt chart CPMCPM PERTPERT Microsoft ProjectMicrosoft Project


Gantt Chart

Graph or bar chart with a bar for each project activity that shows passage of time

Provides visual display of project Provides visual display of project scheduleschedule

Slack amount of time an activity can be delayed

without delaying the project


| | | | |Activity

Design house and obtain financing

Lay foundation

Order and receive materials

Build house

Select paint

Select carpet

Finish work

00 22 44 66 88 1010MonthMonth

MonthMonth11 33 55 77 99

Example of Gantt ChartExample of Gantt Chart


Project ControlProject Control

Time managementTime management Cost managementCost management Quality managementQuality management Performance managementPerformance management

Earned Value AnalysisEarned Value Analysis a standard procedure for numerically measuring a a standard procedure for numerically measuring a

project’s progress, forecasting its completion date and project’s progress, forecasting its completion date and cost and measuring schedule and budget variationcost and measuring schedule and budget variation

CommunicationCommunication Enterprise project managementEnterprise project management


CPM/PERTCPM/PERT

Critical Path Method (CPM)Critical Path Method (CPM) DuPont & Remington-Rand (1956)DuPont & Remington-Rand (1956) Deterministic task timesDeterministic task times Activity-on-node network constructionActivity-on-node network construction

Project Evaluation and Review Technique Project Evaluation and Review Technique (PERT)(PERT) US Navy, Booz, Allen & HamiltonUS Navy, Booz, Allen & Hamilton Multiple task time estimatesMultiple task time estimates Activity-on-arrow network constructionActivity-on-arrow network construction


Project NetworkProject Network

Activity-on-node (AON) nodes represent activities,

and arrows show precedence relationships

Activity-on-arrow (AOA) arrows represent activities

and nodes are events for points in time

Event completion or beginning

of an activity in a project

1 32

BranchBranch

NodeNode


AOA Project Network for AOA Project Network for a Housea House

3322 00

11

33

11 1111

1 2 4 6 7

3

5

Lay Lay foundationfoundation

Design house Design house and obtain and obtain financingfinancing

Order and Order and receive receive materialsmaterials

DummyDummy

Finish Finish workwork

Select Select carpetcarpet

Select Select paintpaint

Build Build househouse


Concurrent ActivitiesConcurrent Activities

2 3

Lay foundationLay foundation

Order materialOrder material

(a)(a) Incorrect precedence Incorrect precedence relationshiprelationship

(b)(b) Correct precedence Correct precedence relationshiprelationship

3

42

DummyDummyLay Lay foundationfoundation

Order materialOrder material

11

22 00


AON Network for House Building Project

13

22

43

31 5

1

61

71Start


Order and receive materials Select paint

Select carpet

Lay foundations Build house

Finish work


13

22

43

31 5

1

61

71Start

Critical Path

Critical pathCritical path Longest path Longest path

through a networkthrough a network Minimum project Minimum project

completion timecompletion time

A:A: 1-2-4-71-2-4-73 + 2 + 3 + 1 = 9 months 3 + 2 + 3 + 1 = 9 months

B:B: 1-2-5-6-71-2-5-6-73 + 2 + 1 + 1 + 1 = 8 months3 + 2 + 1 + 1 + 1 = 8 months

C:C: 1-3-4-71-3-4-73 + 1 + 3 + 1 = 8 months3 + 1 + 3 + 1 = 8 months

D:D: 1-3-5-6-71-3-5-6-73 + 1 + 1 + 1 + 1 = 7 months3 + 1 + 1 + 1 + 1 = 7 months


Activity Start Times

13

22

43

31 5

1

61

71Start

Start at 3 monthsStart at 6 months

Start at 5 months

Finish at 9 months

Finish


Mode ConfigurationMode Configuration

1 0 3

3 0 3

Activity number

Activity duration

Earliest start

Latest start

Earliest finish

Latest finish


Forward PassForward Pass

Start at the beginning of CPM/PERT network to determine the earliest activity times

Earliest Start Time (ES) earliest time an activity can start ES = maximum EF of immediate predecessors

Earliest finish time (EF) earliest time an activity can finish earliest start time plus activity time

EF= ES + t


Earliest Activity Start and Earliest Activity Start and Finish TimesFinish Times

1 0 3

3

2 3 5

2

3 3 4

1 5 5 6

1

4 5 8

3

6 6 7

1

7 8 9

1

Start


Select pain

Lay foundations

Select carpet

Build house

Finish work



Backward PassBackward Pass

Determines latest activity times by starting at the end of CPM/PERT network and working backward

Latest Start Time (LS) Latest time an activity can start without delaying

critical path time

LS= LF - t Latest finish time (LF)

latest time an activity can be completed without delaying critical path time

LS = minimum LS of immediate predecessors


Latest Activity Start and Latest Activity Start and Finish TimesFinish Times

1 0 3

3 0 3

2 3 5

2 3 5

3 3 4

1 4 5 5 5 6

1 6 7

4 5 8

3 5 8

6 6 7

1 7 8

7 8 9

1 8 9

Start


Select pain

Lay foundations

Select carpet

Build house

Finish work



* Critical Path* Critical Path

00009999999988888888*7*7*7*7

111177778888666677776666

111166667777555566665555

00008888888855555555*4*4*4*4

111144445555333344443333

00005555555533333333*2*2*2*2

00003333333300000000*1*1*1*1

Slack SSlack SEFEFLFLFESESLSLSActivityActivity

Activity SlackActivity Slack

Documents

Copyright 2006 John Wiley & Sons, Inc. Beni Asllani University of Tennessee at Chattanooga Project Management Operations Management - 5 th Edition Chapter