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Project management ppt @ bec doms
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1Chapter 11: Project Management
Project Management
2Chapter 11: Project Management
Introduction
3Chapter 11: Project Management
Previous Examples of Projects Transporting Olympic Flame (Chapter 1) Mercedes-Benz facility location (Chapter 5)
4Chapter 11: Project Management
Viper Development Project
Project team given 3 years to go from concept to roadster. Needed to develop new 8.0-litter V-10 aluminum
engine and new high performance six-speed transmission.
Comparable projects usually require five years at Chrysler.
5Chapter 11: Project Management
Viper Development Project con’t
Project team members hand-picked. Artemis Prestige selected to help manage
project ability to track several projects concurrently interactive use provide broad picture of entire project help identify the impact of each activity on the
ultimate completion of the project
6Chapter 11: Project Management
Viper Development Project: An Overwhelming Success
First test engine required less than a year to develop.
Transmission developed in 1.5 years compared to the usual 5 to 6 years.
Many important innovations in the frame, body, and brakes were incorporated .
7Chapter 11: Project Management
Zeneca Pharmaceuticals
Mission is the development of new drugs for the medical community.
The development of a new drug is a complex project with typical durations of 10 years.
8Chapter 11: Project Management
Zeneca Pharmaceuticals: Major Steps in Drug Development
Preclinical Testing Investigational New Drug Human Clinical Testing
three separate phases
New Drug Application Approval
9Chapter 11: Project Management
Differences Between Pharmaceutical R&D Projects and Other Industries
Final product is information rather than a physical product.
Long duration, extreme costs, and high chances for failure.
10Chapter 11: Project Management
Background
Project management concerned with managing organizational activities.
Often used to integrate and coordinate diverse activities.
Projects are special types of processes.
11Chapter 11: Project Management
Defining a Project
Projects are processes that are performed infrequently and ad hoc, with a clear specification of the desired objective.
12Chapter 11: Project Management
Examples of Projects Constructing highways, bridges,
tunnels and dams Erecting skyscrapers, steel mills,
and homes Organizing conferences and
conventions Managing R&D projects Running political campaigns,
war operations, and advertising campaigns
13Chapter 11: Project Management
Reasons for Growth in Project Operations
More Sophisticated Technology
Better-Educated Citizens More Leisure Time Increased Accountability Higher Productivity Faster Response to
Customers Greater customization for
customers
14Chapter 11: Project Management
Planning the Project
15Chapter 11: Project Management
Life Cycle of a Project (Stretched-S) & (Exponential)
16Chapter 11: Project Management
Organizing the Project Team
Ad Hoc Project Form Weak Functional Matrix Strong Project Matrix
17Chapter 11: Project Management
Types of Project Team Members
Those having a long-term relationship with the project.
Those that the PM will need to communicate with closely.
Those with rare skills necessary to project success.
18Chapter 11: Project Management
Project Plans
19Chapter 11: Project Management
Work Breakdown Structure
20Chapter 11: Project Management
Project Master Schedule
21Chapter 11: Project Management
Complexity of Scheduling Project Activities
Large number of activities Precedence relationships Limited time of the project
22Chapter 11: Project Management
Planning and Scheduling Projects
Planning. Determining what must be done and which tasks must precede others.
Scheduling. Determining when the tasks must be completed; when they can and when they must be started; which tasks are critical to the timely completion of the project; and which tasks have slack and how much.
23Chapter 11: Project Management
Scheduling the Project: PERT and CPM
24Chapter 11: Project Management
Terminology
Activity Event Network Path Critical Path Critical Activities
25Chapter 11: Project Management
Project Planning When Activity Times are Known
Inputs list of the activities that must be completed activity completion times activity precedence relationships
26Chapter 11: Project Management
Project Planning When Activity Times are Known continued
Outputs graphical representation of project time to complete project identification of critical path(s) and activities activity and path slack earliest and latest time each activity can be started earliest and latest time each activity can be completed
27Chapter 11: Project Management
Example
Activity Time Preceded ByA 10 --B 7 --C 5 AD 13 AE 4 B,CF 12 DG 14 E
28Chapter 11: Project Management
Network Diagram
29Chapter 11: Project Management
Early Start and Finish Times
30Chapter 11: Project Management
Latest Start and Finish Times
31Chapter 11: Project Management
Activity Slack Time
TES = earliest start time for activity
TLS = latest start time for activity
TEF = earliest finish time for activity
TLF = latest finish time for activity
Activity Slack = TLS - TES = TLF - TEF
32Chapter 11: Project Management
Path Slack
Duration of Critical Path
- Path Duration
Path Slack
33Chapter 11: Project Management
Activity Slack Times
Activity ES EF LS LF Slack
A 0 10 0 10 0
B 0 7 10 17 10
C 10 15 12 17 2
D 10 23 10 23 0
E 15 19 17 21 2
F 23 35 23 35 0
G 19 33 21 35 2
34Chapter 11: Project Management
Project Planning When Activity Times are Uncertain
Inputs Optimistic (to), most likely (tm), and pessimistic (tp) time
estimate for each activity activity precedence relationships
Outputs graphical representation of project expected activity and path completion times variance of activity and path completion times probability that project completed by specified time
35Chapter 11: Project Management
Expected Activity Time and Variance of Activity Time
tt t t
t t
eo m p
p o
4
6
62
2
36Chapter 11: Project Management
Example
Activity Preceded By to tm tp te 2
A -- 2 6 7 5.50 .694
B -- 5 7 9 7.00 .444
C A 3 5 6 4.83 .250
D A 10 10 10 10.0 0.000
E B,C 3 4 5 4.0 .111
F D 8 12 13 11.5 .694
G E 2 4 8 4.33 1.000
37Chapter 11: Project Management
Network Diagram with Expected Activity Times and Variances
1
2
3
4
5
6
[5.5, 0.694]
[7.0, 0.444]
[4.83, 0.250]
[10, 0.0]
[4.0, 0.111]
[4.33, 1.0]
[11.5, 0.913]A
B
C
D
E
F
G
38Chapter 11: Project Management
Expected Completion Time and Variance of Path A-D-F
Expected completion time = 5.5 + 10 + 11.5=27
Path Variance = 0.694 + 0 + 0.913 = 1.607
39Chapter 11: Project Management
Path Expected Times and Variances
PathExpected
Time VarianceStandardDeviation
A-D-F 27 1.607 1.27
A-C-E-G 14.66 2.055 1.43
B-E-G 15.33 1.555 1.25
40Chapter 11: Project Management
Probabilities of Completion
V
timecompletion expected - timecompletion desiredz
41Chapter 11: Project Management
Probability of Project Being Completed on or Before Time 25
z
25 27
127157
..
Only path A-D-F has reasonable chance of taking 25 or more:
From standard normal table in Appendix A, there is a 5.82% chance of completing project on or before time 25.
42Chapter 11: Project Management
Probability of Path A-D-F being Completed on or Before Time 25
5.82%
43Chapter 11: Project Management
Plan E Project Operations Network
44Chapter 11: Project Management
Proper Use of Dummy Activities
45Chapter 11: Project Management
Activity Expected Times and Variances
46Chapter 11: Project Management
Simulating Project Completion Times with Spreadsheets
A
B
C
D
E
F
47Chapter 11: Project Management
Simulating Project Completion Times
Activity Mean (days)StandardDeviation
A 32.1 1.2
B 24.6 3.1
C 22.2 2.2
D 26.1 5.2
E 34.4 6.2
F 34.5 4.1
48Chapter 11: Project Management
Activity Activity Activity Activity Activity Activity Path1 Path 2 Path 3 ProjectA B C D E F (A-C-F) (B-D-F) (B-E) Finish Time
0.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.000.00 0.00 0.00 0.00
Minimum 0.00 0.00 0.00 0.00Maximum 0.00 0.00 0.00 0.00
49Chapter 11: Project Management
50Chapter 11: Project Management
Project Management Software Capabilities
51Chapter 11: Project Management
Microsoft Project’s Gantt Chart
52Chapter 11: Project Management
Pert Chart Generated by Microsoft Project
53Chapter 11: Project Management
Calendar of Activities Created by Microsoft Project
54Chapter 11: Project Management
Controlling the Project: Cost and Performance
55Chapter 11: Project Management
Variance Report Cost standard determined using engineering
estimates or analysis of past performance Actual cost monitored and compared with cost
standard Project manager can exert control if difference
between standard and actual (called a variance) is considered significant.
56Chapter 11: Project Management
Cost-Schedule Reconciliation Charts
57Chapter 11: Project Management
Earned Value Chart
58Chapter 11: Project Management
Goldratt’s Critical Chain
59Chapter 11: Project Management
Introduction Similar issues that trouble people about working on
projects regardless of type of project unrealistic due dates too many changes resources and data not available unrealistic budget
These issues/problems related to need to make trade-offs
To what extent are these problems caused by human decisions and practices?
60Chapter 11: Project Management
Three Project Scenarios
61Chapter 11: Project Management
Project Completion Time Statistics
62Chapter 11: Project Management
Observations Average Completion Times Implications of Assuming Known Activity
Times Shape of the Distribution Worker Time Estimates Impact of Inflated Time Estimates Student Syndrome
63Chapter 11: Project Management
Multitasking
64Chapter 11: Project Management
Alternative Gantt Charts for Projects A and B
65Chapter 11: Project Management
Common Chain of Events Underestimate time needed to complete
project assumption of known activity times and
independent paths Project team members inflate time estimates Work fills available time
student syndrome early completions not reported
66Chapter 11: Project Management
Common Chain of Events continued
Safety time misused Misused safety time results in missed
deadlines Hidden safety time complicates task of
prioritizing project activities Lack of clear priorities results in poor
multitasking
67Chapter 11: Project Management
Common Chain of Events concluded
Poor multitasking increases task durations Uneven demand on resources also results due
to poor multitasking More projects undertaken to ensure all
resources fully utilized More projects further increases poor
multitasking
68Chapter 11: Project Management
Reversing the Cycle
Reduce number of projects assigned to each individual
Schedule start of new projects based on availability of bottleneck resources
Reduce amount of safety time added to individual tasks and then add some fraction back as project buffer activity durations set so that there is a high probability the
task will not be finished on time
69Chapter 11: Project Management
The Critical Chain
Longest chain of consecutively dependent events considers both precedence relationships and
resource dependencies
Project Buffer Feeding Buffer
70Chapter 11: Project Management
Sample Network Diagram
71Chapter 11: Project Management
Project and Feeder Buffers