Project Management

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• Project Management
• Chapter 17

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Projects
Unique, one-time operations designed to
accomplish a specific set of objectives in a
limited time frame.
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Project Management

• How is it different?
• Limited time frame
• Narrow focus, specific objectives
• Less bureaucratic
• Why is it used?
• Special needs
• Pressures for new or improves products or services

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Project Management

• What are the Key Metrics
• Time
• Cost
• Performance objectives
• What are the Key Success Factors?
• Top-down commitment
• Having a capable project manager
• Having time to plan
• Careful tracking and control
• Good communications

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Project Management

• What are the Major Administrative Issues?
• Executive responsibilities
• Project selection
• Project manager selection
• Organizational structure
• Organizational alternatives
• Manage within functional unit
• Assign a coordinator
• Use a matrix organization with a project leader

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Project Management

• What are the tools?
• Work breakdown structure
• Network diagram
• Gantt charts
• Risk management

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Summary of 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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Project Manager

• Responsible for

Work Quality Human Resources Time Communicat
ions Costs
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Project Life Cycle
Management
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Planning and Scheduling
Gantt Chart
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PERT and CPM Networks

• PERT Program Evaluation and Review Technique
• CPM Critical Path Method
• Graphically displays project activities
• Estimates how long the project will take
• Indicates most critical activities
• Show where delays will not affect project

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The Network Diagram

• Network (precedence) diagram diagram of project
  activities that shows sequential relationships by
  the use of arrows and nodes.
• Activity-on-arrow (AOA) a network diagram
  convention in which arrows designate activities.
• Activity-on-node (AON) a network diagram
  convention in which nodes designate activities.
• Activities steps in the project that consume
  resources and/or time.
• Events the starting and finishing of
  activities, designated by nodes in the AOA
  convention.

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The Network Diagram (contd)

• Path
• Sequence of activities that leads from the
  starting node to the finishing node
• Critical path
• The longest path determines expected project
  duration
• Critical activities
• Activities on the critical path
• Slack
• Allowable slippage for path the difference the
  length of path and the length of critical path

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Network Conventions for PERT and CPM Networks
(AOA)
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Project Network
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Project Network with Activity Times and
Activities Labeled
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Example
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Example Solution
Critical Path
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Computing Algorithm

• Network activities
• ES earliest start
• EF earliest finish
• LS latest start
• LF latest finish
• Used to determine
• Expected project duration
• Slack time
• Critical path

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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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Advantages of PM Software

• Imposes a methodology
• Provides 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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Summary

• Projects are a unique set of activities
• Projects go through life cycles
• PERT and CPM are two common techniques
• Network diagrams
• Project management software available

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Advantages of Gantt Charts and Networks

• Forces managers to organize
• Provides graphic display of activities
• Identifies
• Critical activities
• Slack activities

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Limitations of Networks

• Important activities may be omitted
• Precedence relationships may not be correct
• Estimates may include a fudge factor

142 weeks
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Ethical Issues

• Temptation to understate costs
• Withhold information
• Misleading status reports
• Falsifying records
• Comprising workers safety
• Approving substandard work

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Homework Problem
Do problem 5 (part a only) on p. 819. While
thesolution is given in the following slides, be
sure that you take the time to try to solve this
problem prior to looking at the solution.
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Problem 5a
Network before doing the critical path method
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Network after doing the critical path method
5a.
(Activity slacks are given in the table on the
next slide)
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26 18
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Key?
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28 21
11 4
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19 12
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5a (continued)
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End of slides for Project Management