week 15a – project management (chapter 3) characteristics, tools, pert/cpm, critical path, slack...

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WEEK 15A – PROJECT MANAGEMENT (CHAPTER 3) Characteristics, tools, Pert/CPM, critical path, slack calculation, crashing SJSU Bus. 140 - David Bentley 1

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WEEK 15A – PROJECT MANAGEMENT (CHAPTER 3) Characteristics, tools, Pert/CPM, critical path, slack calculation,

crashing

SJSU Bus. 140 - David Bentley 1

Project Characteristics

• Definite beginning• Definite end• Long duration (often months or years)• Very low product quantity • Very high variety of tasks• Multiple tasks often being performed concurrently

SJSU Bus. 140 - David Bentley 2

Project Management Tools

• Work Breakdown Structure• Network diagramming

• CPM (Catalytic Construction & Dupont 1957)• PERT (Booz Allen & Hamilton and U.S. Navy 1958)• PERT/CPM combined over time

• Gantt Charts (Henry Gantt early 1900s)

SJSU Bus. 140 - David Bentley 3

Planning Complex Projects - Work Breakdown Structure

SJSU Bus. 140 - David Bentley 4

Project XProject X

Level 1

Level 2

Level 3

Level 4

Operations Management, Seventh Edition, by William J. Stevenson

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Network Diagram (PERT Chart)

SJSU Bus. 140 - David Bentley 5

B

12

E

3

C

6

D

5

A

15 I

7

J

14

H

9

F

8

End

Start

K

6

G

8

Planning Simple Projects - Gantt Chart

SJSU Bus. 140 - David Bentley 6

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

Facility Move

Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB)

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

PERT/CPM Conventions

• One starting point• One ending point• No looping back• Activities and events

• Activity on arrows vs. activity on nodes

• “Dummy” activity used to preserve integrity• Zero time and zero resources

• All activities entering a node must be complete before starting the next activity

SJSU Bus. 140 - David Bentley 7

Activity-on-arrow Pert chart

SJSU Bus. 140 - David Bentley 8

1

2

3

4

5 6

Locatefacilities

Orderfurniture

Furnituresetup

InterviewHire andtrain

Remodel

Move in

Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB)

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Activity-on-node Pert chart

SJSU Bus. 140 - David Bentley 9

1

2

3

5

6

Locatefacilities

Orderfurniture

Furnituresetup

Interview

RemodelMove in

4

Hire andtrain

7S

Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB)

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Network Conventions

SJSU Bus. 140 - David Bentley 10

a

b

c ab

c

a

b

c

d

a

b

c

Dummyactivity

Operations Management, Seventh Edition, by William J. Stevenson

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

PERT/CPM Steps - 1

• Develop the work breakdown structure• Identify all tasks from the WBS; identify resources• Sequence tasks, determining dependency• Estimate time duration of each task

• Single estimate vs. three estimates (O,P,M)

• Create the network (PERT) diagram

SJSU Bus. 140 - David Bentley 11

PERT/CPM Steps – 2a

• Identify critical path (see next slide)• Determine ES, EF, LS, LF dates• Calculate slack

• LS – ES or• LF – EF

(Let’ define “critical

path” first)

SJSU Bus. 140 - David Bentley 12

Critical Path

• Longest duration path in project• Determines the length of the overall project• Slippage on critical path will delay project completion• Focus on shortening the critical path to shorten the project• “Crashing” may result in creation of new critical path

SJSU Bus. 140 - David Bentley 13

Calculate path lengths and Determine critical path

SJSU Bus. 140 - David Bentley 14

B

12

E

3

C

6

D

5

A

15 I

7

J

14

H

9

F

8

End

Start

K

6

G

8

Path Lengths (+ critical path)

Path Length

SJSU Bus. 140 - David Bentley 15

PERT/CPM Steps – 2b

• After we identify the critical path…• Determine ES, EF, LS, LF dates• Calculate slack

• LS – ES or• LF – EF

SJSU Bus. 140 - David Bentley 16

Calculate ES, LS, EF, LF and Determine slack

SJSU Bus. 140 - David Bentley 17

B

12

E

3

C

6

D

5

A

15 I

7

J

14

H

9

F

8

End

Start

K

6

G

8

ES, LS, EF, LF, and Slack - 1

Activity

ES EF LS LF Slack

F

H

J

K

SJSU Bus. 140 - David Bentley 18

ES, LS, EF, LF, and Slack - 2Activity

ES EF LS LF Slack

A

B

C

E

D

SJSU Bus. 140 - David Bentley 19

ES, LS, EF, LF, and Slack - 3

Activity

ES EF LS LF Slack

G

I

SJSU Bus. 140 - David Bentley 20

Crashing

• The compression of one or more tasks on the critical path

• Why crash?• Avoid penalties• Earn incentives

• Cost-benefit trade-off analysis• How crash?

• Additional resources• Overtime• Alternative processes

SJSU Bus. 140 - David Bentley 21

Controlling the Project

• PERT/CPM charts little use for control• Gantt charts widely used• Project cost reporting also useful• Tools

• Microsoft Project• Microsoft Project Server

• Others• Microsoft Visio

SJSU Bus. 140 - David Bentley 22

Controlling the Schedule - Gantt Chart

SJSU Bus. 140 - David Bentley 23

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

Facility Move

Operations Management, Seventh Edition, by William J. Stevenson (Mod. 11/11/02 DAB)

Copyright © 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

What are the characteristics and qualities of a good project manager?

SJSU Bus. 140 - David Bentley 24

Characteristics/Qualities of a Good Project Manager

• Planning• Organizing• Delegating• Communicating

• Oral• Written

• _____________• _____________

• Using people skills• Customers/users• Team members

• Analytical• Time sensitive

• Milestones• Deadlines

• ______________

SJSU Bus. 140 - David Bentley 25