PROJECT MANAGEMENT

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PROJECT MANAGEMENT

• Outline
• What is project mean?
• Examples of projects
• Project Planning and Control
• Project Life Cycle
• Gantt Chart
• PERT/CPM

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What is Project?

• What is the different between normal business
  activities and Project?
• Project
• Unique, one time operations design to
  accomplish a specific set of objectives in a
  limited time frame.

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Examples of project

1. Building a house
2. Building a factory
3. Add assembly line in the factory
4. Merging to companies
5. Managing political campaign
6. Designing a new product
7. Soft ware development

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In project a lot of problem arise? Why?

• a lot of activities should be handles
• Limited time
• Restricted resources

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Project Planning and Control

• Definition of Project Management
• Work Breakdown Structure
• Project Control
• Organizational Structures
• Critical Path Scheduling
• CPM with a Single Time
• CPM with Three Activity Time Estimates

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Project Management

• Project
• Lengthy network of activities needed to complete
  a major output.
• Project Management
• Planning, execution, and controlling resources to
  needed to complete the project.

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Project Life Cycle

• Definition
• Why we need to start new project
• Feasibility Analysis (Cost, Benefit , risk of
  under taking a project)
• Planning
• Details of the work, estimates time, Human
  resource and cost
• Execution
• During which a project itself is done
• Termination
• During which closer is achieved

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Project Planning, Controlling and Scheduling

• Project Planning
• 1. Setting goals.
• 2. Defining the project.
• 3. Tying needs into timed project activities.
• 4. Organizing the team.

Before Project
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Project Planning, Controlling and Scheduling

• Project Scheduling
• 1. Tying resources to specific activities.
• 2. Relating activities to each other.
• 3. Updating and revising on regular basis.

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Project Planning, Controlling and Scheduling

• Project Controlling
• 1. Monitoring resources, costs, quality and
  budgets.
• 2. Revising and changing plans.
• 3. Shifting resources to meet demands.

During Project
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Work Breakdown Structure
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Project Control Gantt Chart

• The Gantt chart is a popular tool for planning
  and scheduling simple project.
• It enables a manager to initially schedule
  project activities and then to monitor progress
  over time by comparing planned progress to actual
  progress

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Project Control Gantt Chart
a
b
a
c
b
d
c
d
d
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PERT and CPM

• PERT (program evaluation and review technique)
• U.S. Navy Special Projects Office (1958)
• Polaris missile project
• CPM (critical path method)
• J. E. Kelly of Remington-Rand and M. R. Walker of
  Du Pont (1957)
• Scheduling maintenance shutdowns of chemical
  processing plants

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Questions answered by PERT/CPM

• When will the entire project be completed?
• What are the critical activities or tasks in the
  project, that is, the ones that will delay the
  entire project if they are late?
• Which are the non-critical activities, that is,
  the ones that can run late without delaying the
  entire projects completion?
• What is the probability that the project will be
  completed by a specific date?

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Questions answered by PERT/CPM

• At any particular date, is the project on
  schedule, behind schedule, or ahead of schedule?
• On any given date, is the money spent equal to,
  less than, or greater than the budgeted amount?
• Are there enough resources available to finish
  the project on time?
• If the project is to be finished in a shorter
  amount of time, what is the best way to
  accomplish this at the least cost?

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To Find Critical Path ???

• To find the critical path, need to determine the
  following quantities for each activity in the
  network
• 1. Earliest start time (ES) the earliest time an
  activity can begin without violation of immediate
  predecessor requirements.
• 2. Earliest finish time (EF) the earliest time
  at which an activity can end.
• 3. Latest start time (LS) the latest time an
  activity can begin without delaying the entire
  project.
• 4. Latest finish time (LF) the latest time an
  activity can end without delaying the entire
  project.

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CPM with Single Time Estimate
Consider the following consulting project
Develop a critical path diagram and determine
the duration of the critical path and slack times
for all activities
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First draw the network
C, 1
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Determine early start and early finish times
ES4 EF6
ES0 EF2
ES2 EF3
ES3 EF4
?
C, 1
ES4 EF9
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When I can start depends on when predecessors
finish.
ES4 EF6
ES0 EF2
ES2 EF3
ES3 EF4
C, 1
ES4 EF9
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Determine late starts and late finish times
ES4 EF6
ES0 EF2
ES2 EF3
ES3 EF4
LS7 LF9
C, 1
ES4 EF9
LS14 LF15
LS9 LF14
?
LS4 LF9
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Dont delay the project
ES4 EF6
ES0 EF2
ES2 EF3
ES3 EF4
LS7 LF9
C, 1
ES4 EF9
LS14 LF15
LS9 LF14
LS4 LF9
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Critical Path Slack
ES4 EF6
D, 2
ES0 EF2
ES2 EF3
ES3 EF4
LS7 LF9
C, 1
ES4 EF9
LS14 LF15
LS9 LF14
E, 5
LS4 LF9
Duration 15 weeks
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Activity Times

• To find the expected activity time (t), the beta
  distribution weights the estimates as follows

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Activity Times

• The time estimates in PERT are

Optimistic time (a) time an activity will take
if everything goes as well as possible. There
should be only a small probability (say, 1/100)
of this occurring. Pessimistic time (b) time
an activity would take assuming very unfavorable
conditions. There should also be only a small
probability that the activity will really take
this long. Most likely time (m) most realistic
time estimate to complete the activity
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Activity Times

• The time estimates in PERT are

Optimistic time (a) time an activity will take
if everything goes as well as possible. There
should be only a small probability (say, 1/100)
of this occurring. Pessimistic time (b) time
an activity would take assuming very unfavorable
conditions. There should also be only a small
probability that the activity will really take
this long. Most likely time (m) most realistic
time estimate to complete the activity
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• Consider the following project
• Immed. Optimistic Most
  Likely Pessimistic
• Activity Predec. Time (Hr.) Time
  (Hr.) Time (Hr.)
• A -- 4
  6 8
• B -- 1
  4.5 5
• C A 3
  3 3
• D A 4
  5 6
• E A 0.5
  1 1.5
• F B,C 3
  4 5
• G B,C 1
  1.5 5
• H E,F 5
  6 7
• I E,F 2
  5 8
• J D,H 2.5
  2.75 4.5
• K G,I 3
  5 7

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PERT/ CPM

• CPM uses two sets of time and cost estimates for
  activities
• A normal time and cost and
• A crash time and cost
• The normal cost is an estimate of cost to
  complete an activity in normal time.
• The crash time is the shortest possible activity
  time.
• Crash cost is the cost of completing the activity
  on a crash or deadline basis.

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Project Crashing with PERT/CPM Four Steps

• Find the normal critical path and identify the
  critical activities.
• Compute the crash cost per week (or other time
  period) for all activities in the network.
• This process uses the following formula

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Project Crashing with PERT/CPM Four Steps

• 3. Select the activity on the critical path with
  the smallest crash cost per week.
• Crash this activity to the maximum extent
  possible or to the point at which your desired
  deadline has been reached
• 4. Check to be sure that the critical path you
  were crashing is still critical.
• Often, a reduction in activity time along the
  critical path causes a non-critical path or paths
  to become critical.
• If the critical path is still the longest path
  through the network, return to step 3.
• If not, find the new critical path and return to
  step 2.

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Subproject

• For extremely large projects, an activity may be
  made of several smaller sub-activities.
• Each activity might be viewed as a smaller
  project or a subproject of the original project.
• The person in charge of the activity might wish
  to create a PERT/CPM chart for managing this
  subproject.
• Many software packages have the ability to
  include several levels of subprojects

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In class assignment

• Immediate Completion
• Activity Description
  Predecessors Time (days)
• A Initial Paperwork
  --- 3
• B Build Body
  A 3
• C Build Frame
  A 2
• D Finish Body
  B 3
• E Finish Frame
  C 7
• F Final Paperwork B,C
  3
• G Mount Body to Frame D,E
  6
• H Install Skirt on Frame C
  2