Project Management. Learning Objectives. What are Projects? Dr. Richard Jerz. Describe or Explain:

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1 Project Management Dr. Richard Jerz 1 Learning Objectives Describe or Explain: 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 2 What are Projects? Unique, one time operations designed to accomplish a specific set of objectives in limited time frame. Often expensive and resource intensive. Build A A Done Build B B Done Build C JAN FEB MAR APR MAY JUN C Done Build D On time! Ship 5 1

2 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 6 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 7 Project Goals On time On budget Accomplish tasks with expected quality 8 2

3 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 10 A Sample Project Organization President Human Resources Marketing Finance Design Quality Mgt Production Project 1 Project Manager Mechanical Engineer Test Engineer Technician Project 2 Project Manager Electrical Engineer Computer Engineer Technician 11 Steps of Project Planning Develop statement of work Define work breakdown structure List resources needed Estimate time required Estimate the cost 12 3

4 Project Risks Risk: occurrence of events that have undesirable consequences Delays Increased costs Inability to meet specifications Unexpected project termination 13 Risk Management Identify potential risks Analyze and assess risks Work to minimize occurrence of risk Establish contingency plans 14 Other Issues Temptation to understate costs Withhold information Misleading status reports Falsifying records Comprising workers safety Approving substandard work 15 4

5 Project Scheduling Identify activities and resources needed Identifying precedence relationships Sequencing activities Determining activity times & costs Estimating material and worker requirements Determining critical activities 16 Work Breakdown Structure Project X Level 1 Level 2 Level 3 Level 4 18 Project Management Tools Project task listing Gantt charts Critical Path Method (CPM) Program Evaluation and Review Technique (PERT) 19 5

6 Gantt Chart 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 21 Gantt Charts Advantages Visual presentation Simplicity Disadvantages Updating Doesn t reflect costs Doesn t show relationships between tasks 22 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 24 6

7 Precedence Diagram S Locate facilities 1 Order furniture 2 Remodel 5 Furniture setup 6 Move in 7 Interview 3 Hire and train 4 25 Example with Times (& AOL) 6 weeks 4 8 weeks 2 3 weeks 1 11 weeks Move 5 in 6 1 week 4 weeks 3 9 weeks 26 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? 27 7

8 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 28 Probabilistic Estimates o m t e p Activity start Optimistic time Most likely time (mode) Pessimistic time 29 Advantages of PERT Forces managers to organize Provides graphic display of activities Identifies Critical activities 4 Slack activities

9 Limitations of PERT Important activities may be omitted Precedence relationships may not be correct Estimates may include a fudge factor 4 Not exact science 2 Iterative process weeks 3 32 Project Crashing It is not uncommon to face the following situations: The project is behind schedule The completion time has been moved forward Shortening the duration of the project is called project crashing 33 Project Management Software Computer aided design (CAD) Groupware (Lotus Notes) CA Super Project Harvard Total Manager MS Project Sure Track Project Manager Time Line 34 9

10 Software Demo: MS Project 35 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

11 Using Microsoft Project 38 Using Microsoft Project 39 Using Microsoft Project 40 11

12 Using Microsoft Project 41 Using Microsoft Project 42 12

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