ch3(project management)
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Chapter 3
Project Management
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• Definition of Project Management
• Work Breakdown Structure
• Project Control Charts
• Structuring Projects
• Critical Path Scheduling
OBJECT!ES
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Project Management
Defined
• Project is a series of related jo"s usuall#
directed toward some major out$ut and
re%uiring a significant $eriod of time to$erform
• Project Management are the management
acti&ities of $lanning' directing' and controlling
resources ($eo$le' e%ui$ment' material) to meet
the technical' cost' and time constraints of a
$roject
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Project Control Charts* +antt Chart
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5 Activity 6
Time
Vertical Axis: Always Activities
or Jobs
Vertical Axis: Always Activities
or Jobs
Horizontal Axis: Always Time
Horizontal Axis: Always Time
Horizontal bars use to enote len!t"
o# time #or eac" activity or $ob%
Horizontal bars use to enote len!t"
o# time #or eac" activity or $ob%
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Structuring Projects Pure Project*
Advantages
Pure Project
Defined
, $ure $roject is where a self-contained teamworks full-time on the $roject
• The $roject manager has full authorit#o&er the $roject
• Team mem"ers re$ort to one "oss• Shortened communication lines• Team $ride' moti&ation' and
commitment are high
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Structuring Projects Pure Project*
Disadvantages• Du$lication of resources
• Organi.ational goals and $olicies are ignored
• /ack of technolog# transfer• Team mem"ers ha&e no functional area
0home0
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1unctional Project
Defined
&resient
'esearc" an
(evelo)ment*n!ineerin! +anu#acturin!
&ro$ect
A
&ro$ect
,
&ro$ect
-
&ro$ect
(
&ro$ect
*
&ro$ect
.
&ro$ect
/
&ro$ect
H
&ro$ect
0
A functional project is housed within afunctional division
*xam)le &ro$ect , is in t"e #unctional
area o# 'esearc" an (evelo)ment%
*xam)le &ro$ect , is in t"e #unctional
area o# 'esearc" an (evelo)ment%
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Structuring Projects
1unctional Project* Advantages• , team mem"er can work on se&eral
$rojects
• Technical e2$ertise is maintained withinthe functional area
• The functional area is a 3home4 after the
$roject is com$leted• Critical mass of s$eciali.ed knowledge
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Structuring Projects
1unctional Project* Disad&antages
• ,s$ects of the $roject that are not
directl# related to the functional area get
short-changed• Moti&ation of team mem"ers is often
weak
• 5eeds of the client are secondar# and areres$onded to slowl#
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Structuring Projects*
Matri2 Project Organi.ation Structure
&resient
'esearc" an
(evelo)ment*n!ineerin! +anu#acturin! +aretin!
+ana!er
&ro$ect A
+ana!er
&ro$ect ,
+ana!er
&ro$ect -
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Structuring Projects
Matri2* ,d&antages
• Enhanced communications "etween functionalareas
• Pin$ointed res$onsi"ilit#
• Du$lication of resources is minimi.ed
• 1unctional 3home4 for team mem"ers
• Policies of the $arent organi.ation are followed
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Structuring Projects
Matri2* Disad&antages
• Too man# "osses
• De$ends on $roject manager6s
negotiating skills
• Potential for su"-o$timi.ation
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Work Breakdown Structure Defined
&ro!ram
&ro$ect 1 &ro$ect 2
Tas 1%1
ubtas 1%1%1
or &aca!e 1%1%1%1
7evel
1
2
3
4
Tas 1%2
ubtas 1%1%2
or &aca!e 1%1%1%2
A work breakdown structure defines the hierarchyof project tasks, subtasks, and work packages
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5etwork-Planning Models• , $roject is made u$ of a se%uence of
acti&ities that form a network re$resenting a$roject
• The $ath taking longest time through this
network of acti&ities is called the 3critical$ath4
• The critical $ath $ro&ides a wide range ofscheduling information useful in managing a
$roject• Critical Path Method (CPM) hel$s to identif#
the critical $ath(s) in the $roject networks
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Prere%uisites for Critical Path Methodolog#
, $roject must ha&e*
well-defined jo"s or tasks whosecom$letion marks the end of the $roject7
inde$endent jo"s or tasks7
and tasks that follow a gi&en se%uence8
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T#$es of Critical Path Methods• CPM with a Single Time Estimate
– 9sed when acti&it# times are known with certaint#
– 9sed to determine timing estimates for the $roject' eachacti&it# in the $roject' and slack time for acti&ities
• CPM with Three ,cti&it# Time Estimates – 9sed when acti&it# times are uncertain
– 9sed to o"tain the same information as the Single TimeEstimate model and $ro"a"ilit# information
• Time-Cost Models – 9sed when cost trade-off information is a major
consideration in $lanning
– 9sed to determine the least cost in reducing total $rojecttime
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Ste$s in the CPM with Single Time
Estimate • :8 ,cti&it# dentification
• ;8 ,cti&it# Se%uencing and 5etworkConstruction
•
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E2am$le :8 CPM with Single Time
Estimate
-onsier t"e #ollowin! consultin! )ro$ect:
Develop a critical path diagram and determine
the duration of the critical path and slack times
for all activities.
,cti&it# Designation mmed8 Pred8 Time (Weeks)
Assess customer's needs A None 2
Wrte and su!mt proposa" # A 1$!tan appro%a" C # 1
&e%e"op ser%ce %son and oa"s & C 2
(ran emp"o)ees * C 5
+ua"t) mpro%ement p"ot roups , &- * 5
Wrte assessment report . , 1
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E2am$le :8 CPM with Single Time
Estimate
-onsier t"e #ollowin! consultin! )ro$ect:
,cti&it# Designation mmed8 Pred8 Time (Weeks)
Assess customer's needs A None 2
Wrte and su!mt proposa" # A 1$!tan appro%a" C # 1
&e%e"op ser%ce %son and oa"s & C 2
(ran emp"o)ees * C 5
+ua"t) mpro%ement p"ot roups , &- * 5
Wrte assessment report . , 1
Develop a critical path diagram and determine
the duration of the critical path and slack times
for all activities.
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E2am$le :* 1irst draw the network
A/2 #/1 C/1
&/2
*/5
,/5./1
A None 2
# A 1
C # 1
& C 2
* C 5
, &-* 5
. , 1
Act med red (me
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E2am$le :* Determine earl# starts and
earl# finish times
*9
*,14
*14
*,15
*0
*,2
*2
*,3
*3
*,4
*4
*,9
*4*,6
A/2 #/1 C/1
&/2
*/5
,/5 ./1
nt tart th *0
and o orard n the
netor: rom A to .
nt tart th *0
and o orard n the
netor: rom A to .
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E2am$le :*
Determine late
starts and late finishtimes
*9
*,14
*14
*,15
*0
*,2
*2
*,3
*3
*,4
*4
*,9
*4*,6
A/2 #/1 C/1
&/2
*/5
,/5 ./1
;14
;,15
;9
;,14
;4
;,9
;7
;,9
;3
;,4
;2
;,3
;0
;,2
nt tart th ;,15 or
the tota" tme o the pro
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E2am$le :* Critical Path = Slack
*9
*,14
*14
*,15
*0
*,2
*2
*,3
*3
*,4
*4
*,9
*4*,6
A/2 #/1 C/1
&/2
*/5
,/5 ./1
;14
;,15
;9
;,14
;4
;,9
;7
;,9
;3
;,4
;2
;,3
;0
;,2
&uraton 15 ee:s
"ac:/7=4/9=6 3 W:s
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E2am$le ;8 E2$ected Time
Calculations
*(/A 3>4/6>15
6
*(/A 3>4/6>15
6
*(/A42?67*(/A42?67Tas
0mmeiate
&reecesors
*x)ecte
Time
A 9one <
, 9one 5%333- A 14
( A 5
* - 11
. ( <
/ , 11H *. 4
0 /H 1;
Tas
0mmeiate
&reecesors 8)timistic +ost 7iely &essimistic
A 9one 3 6 15
, 9one 2 4 14
- A 6 12 3:
( A 2 5 ;
* - 5 11 1<. ( 3 6 15
/ , 3 = 2<
H *. 1 4 <
0 /H 4 1= 2;
*@pected (me $pt (me > 4/Aost ;:e") (me0 > ess (me
6
*@pected (me $pt (me > 4/Aost ;:e") (me0 > ess (me
6
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E2am$le ;8 E2$ected Time
Calculations
Tas
0mmeiate
&reecesors
*x)ecte
Time
A 9one <
, 9one 5%333
- A 14( A 5
* - 11
. ( <
/ , 11
H *. 40 /H 1;
*(/#32?65333*(/#32?65333
*(/# 2>4/4>14
6
*(/# 2>4/4>14
6
Tas
0mmeiate
&reecesors 8)timistic +ost 7iely &essimistic
A 9one 3 6 15
, 9one 2 4 14
- A 6 12 3:
( A 2 5 ;
* - 5 11 1<. ( 3 6 15
/ , 3 = 2<
H *. 1 4 <
0 /H 4 1= 2;
*@pected (me $pt (me > 4/Aost ;:e") (me0 > ess (me
6
*@pected (me $pt (me > 4/Aost ;:e") (me0 > ess (me
6
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E2am$le ;8 E2$ected Time
Calculations
Tas
0mmeiate
&reecesors
*x)ecte
Time
A 9one <
, 9one 5%333
- A 14
( A 5
* - 11
. ( <
/ , 11
H *. 4
0 /H 1;
*(/C 6>4/12>30
6
*(/C 6>4/12>30
6
*(/C84?614*(/C84?614
Tas
0mmeiate
&reecesors 8)timistic +ost 7iely &essimistic
A 9one 3 6 15
, 9one 2 4 14
- A 6 12 3:
( A 2 5 ;
* - 5 11 1<. ( 3 6 15
/ , 3 = 2<
H *. 1 4 <
0 /H 4 1= 2;
*@pected (me $pt (me > 4/Aost ;:e") (me0 > ess (me
6
*@pected (me $pt (me > 4/Aost ;:e") (me0 > ess (me
6
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E2am$le ;8 5etwork
,(>)
B(?8
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E2am$le ;8 Pro"a"ilit# E2ercise
What s the pro!a!"t) o nshn ths pro
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Act%t) %arance- 5 /3essm1 = $ptm1
602 2σ Act%t) %arance- 5 /
3essm1 = $ptm1
602 2σ
Tas 8)timistic +ost 7iely &essimistic Variance
A 3 6 15 4
, 2 4 14
C 6 12 3: 16
( 2 5 ;
E 5 11 1< 4
. 3 6 15
/ 3 = 2<
H 1 4 < 1I 4 1= 2; 16
/um the %arance along the critical
path
σ 2∑ 5 41σ
2∑ 5 41
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There is a 43.8% probability that this project will be
completed in less than 53 wees.
There is a 43.8% probability that this project will be
completed in less than 53 wees.
p/D =156 438- or 438 E /N$F&(/=156 p/D =156 438- or 438 E /N$F&(/=156
D & = (
53=54
41 =156
*
cp
2σ ∑
D & = (
53=54
41 =156
*
cp
2σ ∑
(* 54
p/t &
t
&53
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E2am$le ;8 ,dditional Pro"a"ilit# E2ercise
• What is the $ro"a"ilit# that the $rojectduration will e2ceed ? weeks
• What is the $ro"a"ilit# that the $rojectduration will e2ceed ? weeks
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E2am$le ;8 ,dditional E2ercise Solution
t(* 54
p/t &
&56
D
& = (
56=54
41 312
*
cp2
σ ∑D
& = (
56=54
41 312
*
cp2σ ∑
p/D G 312 8- or 8 /1=N$F&(/312 p/D G 312 8- or 8 /1=N$F&(/312
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Time-Cost Models
• !asic Ass"mption# Felationshi$ "etweenacti&it# com$letion time and $roject cost
• Time $ost odels* Determine theo$timum $oint in time-cost tradeoffs –
,cti&it# direct costs – Project indirect costs
– ,cti&it# com$letion times
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CPM ,ssum$tionsG/imitations • Project acti&ities can "e identified as entities (There
is a clear "eginning and ending $oint for eachacti&it#8)
• Project acti&it# se%uence relationshi$s can "es$ecified and networked
• Project control should focus on the critical $ath
• The acti&it# times follow the "eta distri"ution' with
the &ariance of the $roject assumed to e%ual the sum
of the &ariances along the critical $ath• Project control should focus on the critical $ath
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*nd o Chapter 3
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