project management ppt @ bec doms

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