The Nature of Project Management
 Characteristics of Projects: purpose, life cycle,
interdependencies, uniqueness, and conflict.
 Project Management Process: planning (work
breakdown structure), scheduling, and controlling.
 Selecting the Project Manager: credibility,
sensitivity, ability to handle stress, and leadership.
 Building the Project Team: Forming, Storming,
Norming, and Performing.
 Principles of Effective Project Management: direct
people individually and as a team, reinforce excitement,
keep everyone informed, manage healthy conflict,
empower team, encourage risk taking and creativity.
 Project Metrics: Cost, Time, Performance
Work Breakdown Structure
1.0 Move the hospital (Project)
1.1 Move patients (Task)
1.1.1 Arrange for ambulance (Subtask)
1.1.1.1 Prepare patients for move
1.1.1.2 Box patients personnel effects
1.2 Move furniture
1.2.1. Contract with moving company
•
•
•
Project Management Questions
What activities are required to complete a
project and in what sequence?
When should each activity be scheduled to
begin and end?
Which activities are critical to completing the
project on time?
What is the probability of meeting the project
completion due date?
How should resources be allocated to
activities?
Tennis Tournament Activities
Activity Description
Immediate
Designation Predecessor
Negotiate for Location
A
Contact Seeded Players
B
Plan Promotion
C
A
Locate Officials
D
C
Send RSVP Invitations
E
C
Sign Player Contracts
F
B,C
Purchase Balls and Trophies
G
D
Negotiate Catering
H
E,F
Prepare Location
I
E,G
Tournament
J
H,I
Duration
(days)
2
8
3
2
10
4
4
1
3
2
Notation for Critical Path Analysis
Item
Activity duration
Symbol
t
Definition
The expected duration of an activity
Early start
ES
The earliest time an activity can begin if all previous
activities are begun at their earliest times
Early finish
EF
The earliest time an activity can be completed if it
is started at its early start time
Late start
LS
The latest time an activity can begin without
delaying the completion of the project
Late finish
LF
The latest time an activity can be completed if it
is started at its latest start time
Total slack
TS
The amount of time an activity can be delayed
without delaying the completion of the project
Tennis Tournament Activity on
Node Diagram
TS
A2
C3
START
B8
F4
D2
G4
E10
I3
H1
ES
EF
LS
LF
J2
PERT
Program Evaluation and Review Technique
PERT—Program Evaluation Review
Technique
 Assumes each activity duration has a range
that statistically follows a beta distribution.
 Uses three time estimates for each activity:
optimistic, pessimistic, and a weighted average
to represent activity durations.
Knowing the weighted average and variances for
each activity allows the project planner to compute
the probability of meeting different project durations.
7–8
Tennis Tournament Activity on Node
Diagram
TS
A2
C3
START
B8
F4
D2
G4
E10
I3
H1
ES
EF
LS
LF
J2
Incorporating Uncertainty
in Activity times
F(D)
P(D<A) = .01
P(D>B) = .01
A
optimistic
M
most
likely
D
average
B
pessimistic
TIME
Formulas for Beta Distribution of
Activity Duration
Expected Duration
A4M  B
D
6
_
Variance
 B  A
V 

 6 
2
Note: (B - A )= Range or 6
Activity Means and Variances for Tennis
Tournament
Activity
A
B
C
D
E
F
G
H
I
J
a
1
5
2
1
6
2
1
1
2
2
m
2
8
3
2
9
4
3
1
2
2
b
3
11
4
3
18
6
11
1
8
2
ET
2
8
3
2
10
4
4
1
3
2
Variance
4/36
36/36
4/36
4/36
144/36
16/36
100/36
0
36/36
0
Uncertainly Analysis
Assumptions
1. Use of Beta Distribution and Formulas For D and V
2. Activities Statistically Independent
3. Central Limit Theorem Applies ( Use “student t” if less than
30 activities on CP)
4. Use of Critical Path Activities Leading Into Event Node
Result
Project Completion Time Distribution is Normal With:
_
  D
For Critical Path Activities
 2  V
For Critical Path Activities
Completion Time Distribution for Tennis
Tournament
Critical Path
Activities
A
C
E
I
J
D
2
3
10
3
2
 = 20
V
4/36
4/36
144/36
36/36
0
188/36 = 5.2 = 
2
Question
What is the probability of an overrun if a 24 day completion time
is promised?
Z
Z
 2  5.2
X 

24  20
5.2
Z  1.75
20
24
P (Time > 24) = .5 - .4599 = .04 or 4%
Days
Activity Cost-time Tradeoff
Cost
C*
Crash
Slope is cost to expedite per day
Normal
C
D*
D
Activity Duration (Days)
Cost-Time Estimates for Project
Activity
Normal
Time
Crash
Time
Normal
Cost
Crash
Cost
A
2
1
$6
$10
B
5
2
$9
$18
C
4
3
$6
$8
D
3
1
$5
$9
Progressive Crashing
B
A
D
C
Progressive Crashing
 Using Normal Times, What is the critical path?
A-B-D : 10 days (Critical Path)
A-C-D : 9 days
 Using Normal Times, How long is the project
expected to take?
Critical Path Time : 10 days
 Using Normal Times, How much will the project
cost?
Normal Cost to complete A,B,C,D = 6+9+6+5=$26
Progressive Crashing
Cuts
Additional
Cost
Completion
Time After
Cuts
Total
Cost
10
----
---
---
$26
ABD
10
D cut 1
$2
9
$28
ABD
9
D cut 1
$2
8
$30
ABD
8
B cut 1
$3
7
$33
ABD
ACD
7
A cut 1
$4
6
$37
ABD
ACD
6
B cut 1
C cut 1
$3
$2
5
$42
Current
CP
Completion
Time
ABD