Project Management
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Quantitative Methods of Management
 Jan Fábry
Project Management
 Project
Activity 5
Activity 2
Activity 1
Activity 7
Activity 3
Activity 4
Activity 6
___________________________________________________________________________
Quantitative Methods of Management
 Jan Fábry
Project Management
NETWORK – graphical representation of the project
Activity  Node
Activity 5
Activity 2
Activity 1
Activity 7
Activity 3
Activity 4
Activity 6
___________________________________________________________________________
Quantitative Methods of Management
 Jan Fábry
Project Management
NETWORK – graphical representation of the project
Activity  Arc
5
2
2
4
1
1
2
3
5
6
6
6
3
4
8
7
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Quantitative Methods of Management
 Jan Fábry
Project Management
 Event
Activity A
Design a car
1
Start point
of A
Activity B
Make a prototype
3
2
Finish point
of A
Start point
of B
Finish point
of B
___________________________________________________________________________
Quantitative Methods of Management
 Jan Fábry
Project Management
Activity A
Design a car
1
Activity B
Make a prototype
2
3
Activity A immediately PRECEDES activity B
Activity B immediately SUCCEEDS activity A
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Quantitative Methods of Management
 Jan Fábry
Project Management
3
Activity A
Design a car
1
2
4
Activity A is the predecessor of Activity B and C
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Quantitative Methods of Management
 Jan Fábry
Project Management
Activity E
Prototype test
Activity A
Design a car
1
5
3
2
Dummy
activity
4
Activity E (Prototype test) follows Activity B
Activity D (Prototype presentation) follows Activity B and C
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Quantitative Methods of Management
 Jan Fábry
Project Management
Activity Requirements
- time
- money (cost)
- material
- machines
- people
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Quantitative Methods of Management
 Jan Fábry
Project Management
Phases of Project Management
 Planning
Network
 Scheduling
Start and finish times
for each activity
Finish time of project
 Controlling
Periodic progress
reports
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Quantitative Methods of Management
 Jan Fábry
Project Management
Methods
Deterministic
time
Critical Path Method
(CPM)
Probabilistic
time
Program Evaluation
Review Technique
(PERT)
___________________________________________________________________________
Quantitative Methods of Management
 Jan Fábry
Project Management
CPM
___________________________________________________________________________
Quantitative Methods of Management
 Jan Fábry
Project Management
CPM
 Finish time of the project
 Start and finish times of each activity
 A critical path consisting of critical activities
 Non-critical activities and their possible delay
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Quantitative Methods of Management
 Jan Fábry
Project Management
CPM
Example - Music DM, Inc.
 Christmas compilation of Czech carols
 11 activities:
1) Songs Selection
2) Mastering
3) Promotion Material Elaborating
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Quantitative Methods of Management
 Jan Fábry
Project Management
CPM
Example - Music DM, Inc.
 11 activities:
4) Customers Analysis
5) Promotion Material Production
6) Make CD Copies
7) Customers Selection
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Quantitative Methods of Management
 Jan Fábry
Project Management
CPM
Example - Music DM, Inc.
 11 activities:
8) Data to Printing House
9) Promotion Material to Printing House
10) Laser Print
11) Mailing
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Quantitative Methods of Management
 Jan Fábry
Project Management
CPM
Example - Music DM, Inc.
Activity
Description
Duration
Predecessors
A
Songs Selection
15
None
B
Mastering
8
A
C
Promotion Material Elaborating
6
A
D
Customers Analysis
7
A
E
Promotion Material Production
4
C, D
F
Promotion Material to PH
5
E
G
Customers Selection
3
D
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Quantitative Methods of Management
 Jan Fábry
Project Management
CPM
Example - Music DM, Inc.
Activity
Description
Duration
Predecessors
H
Make CD Copies
12
B, D
I
Data to PH
3
G
J
Laser Print
9
F, I
K
Mailing
8
H, J
 All the envelopes have to be delivered until December 12
 Objective: set the starting date of the project
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Quantitative Methods of Management
 Jan Fábry