Project Management
ME 414W/415W Project Management
Project Management
DILBERT’S
BOSS
ME 414W/415W Project Management
A Balancing Act
 Deliverables
 Cost
 Quality
ME 414W/415W Project Management
Learning How
 ME
414W/415W http://www.me.psu.edu/sommer/me415/
 MBA
 Industrial training programs
ME 414W/415W Project Management
Planning
Technical
 Time
 Resources

– Personnel
– Equipment and Facilities
– Budget
ME 414W/415W Project Management
Benefits of Planning
 Framework
for communication
– Clients and coworkers
 Allocate
resources
– Personnel, equipment and facilities, budget
 Benchmark
ME 414W/415W Project Management
to measure progress
Planning - Fundamentals
 Establish
Performance Standards at the
BEGINNING
 Use Decision Trees/Matrices, QFD, Taguchi
Methods
 Assure Performance Standards as Project
Progresses
 Verify Final Performance Against Standards
 NO SUPRISES!
ME 414W/415W Project Management
Time Planning
 Identify
TASKS
 Estimate DURATION of Tasks
 Establish PRECEDENCE of Tasks
 Record MILESTONES (Performance and
Dated)
 Plan Start and Finish DATES for Tasks
ME 414W/415W Project Management
Models
Gantt Charts - Bar Charts
 CPM/PERT - Network
 Control Charts - Planned versus Actual
 http://www.mne.psu.edu/me415/resources/doc
s/gantt chart.pdf

ME 414W/415W Project Management
Example Gantt Chart
Apr 23, '00
Apr 30, '00
May 7, '00
May 14, '00
May 21, '00
May 28, '00
Duration S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F
5d
Wilbur
ID
1
Task Name
Get final report from PSU
2
Get blueprints for old hardw are
3
Time-motion study of existing hardw are2d
4
Design electrical and pneumatic renovations
4d
5
Schedule dow n-time w ith production supervisor
2d
6
Schedule truck to pickup hardw are at PSU
1d
7
Inform PSU about pickup
8
Schedule contractor for electrical and pneumatic
1d
9
Transport hardw are from PSU
2d
10
Shut dow n production line
1d
11
Remove old hardw are
2d
12
Store old hardw are (just in case)
10d
13
Renovate electrical and pneumatic
2d
14
Install new hardw are
3d
15
Shake-dow n test by engineering
2d
16
Training for production supervisor
2d
Orville,Production superv
17
Shake-dow n test by production supervisor
2d
Wilbur,Orvill
18
Training for production w orkers
1d
19
Restart production
1d
Producti
20
Time-motion study of new hardw are
2d
O
21
Scrap old hardw are
3d
1d
2d
ME 414W/415W Project Management
Wilbur
Orville,Production supervisor
Wilbur
Orville,Production supervisor
Orville
Orville
Wilbur
Trucking company
Production supervisor
Shop machinist
Wilbur
Contractor for electrical and pneumatic
Shop machinist
Wilbur,Orville
Orville
Gantt Chart
 Tabulate
Project Tasks
– Title and ID Number for Each Task
– Estimate Duration of Each Task
– Estimate Resource Requirements for Each Task
(May Need Dummy Tasks for Critical Resources)
Identify Prerequisite Tasks for Each Task
 Layout Bar Chart with One Bar per Task
based on Time
 Add Dated Milestones

ME 414W/415W Project Management
Example Gantt Chart
Apr 23, '00
Apr 30, '00
May 7, '00
May 14, '00
May 21, '00
May 28, '00
Duration S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F
5d
Wilbur
ID
1
Task Name
Get final report from PSU
2
Get blueprints for old hardw are
3
Time-motion study of existing hardw are2d
4
Design electrical and pneumatic renovations
4d
5
Schedule dow n-time w ith production supervisor
2d
6
Schedule truck to pickup hardw are at PSU
1d
7
Inform PSU about pickup
8
Schedule contractor for electrical and pneumatic
1d
9
Transport hardw are from PSU
2d
10
Shut dow n production line
1d
11
Remove old hardw are
2d
12
Store old hardw are (just in case)
10d
13
Renovate electrical and pneumatic
2d
14
Install new hardw are
3d
15
Shake-dow n test by engineering
2d
16
Training for production supervisor
2d
Orville,Production superv
17
Shake-dow n test by production supervisor
2d
Wilbur,Orvill
18
Training for production w orkers
1d
19
Restart production
1d
Producti
20
Time-motion study of new hardw are
2d
O
21
Scrap old hardw are
3d
1d
2d
ME 414W/415W Project Management
Wilbur
Orville,Production supervisor
Wilbur
Orville,Production supervisor
Orville
Orville
Wilbur
Trucking company
Production supervisor
Shop machinist
Wilbur
Contractor for electrical and pneumatic
Shop machinist
Wilbur,Orville
Orville
Gantt Chart - Pros and Cons

Strengths
– See Status of Each Task at Any Point in Time
– See Overlapping and Parallel Tasks

Weaknesses
– Unable to Tell if the Entire Project is on Time for
Highly Dependent Projects
– Difficult to Show Critical Path
ME 414W/415W Project Management
CPM/PERT
 Critical
Path Method
 Program Evaluation and Review Technique
ME 414W/415W Project Management
Example PERT Chart
Time-motion study of
existing hardw are
3
2d
5/4/00
5/5/00
Get final report from PSU
Design electrical and
pneumatic renovations
Schedule dow n-time w ith
production supervisor
Schedule contractor for
electrical and pneumatic
Renovate electrical and
pneumatic
Install new hardw are
1
5d
4
4d
5
2d
8
1d
13
2d
14
3d
4/27/00
5/3/00
5/4/00
5/9/00
5/10/00
5/11/00
5/12/00
5/12/00
5/17/00
5/18/00
5/19/00
5/23/00
Shut dow n production line
Remove old hardw are
10
1d
11
2d
5/12/00
5/12/00
5/15/00
5/16/00
Get blueprints for old
hardw are
Schedule truck to pickup
hardw are at PSU
Inform PSU about pickup
Transport hardw are from
PSU
Store old hardw are (just
in case)
2
1d
6
1d
7
2d
9
2d
12
10d
4/27/00
4/27/00
5/4/00
5/4/00
5/5/00
5/8/00
5/9/00
5/10/00
5/17/00
5/30/00
ME 414W/415W Project Management
CPM/PERT

Tabulate Project Tasks
– Title and ID Number for Each Task
– Estimate Duration for Each Task D=(O+4M+P)/6

O = Optimistic, M = Most Likely, P = Pessimistic
– Estimate Resource Requirements for Each Task
(May Need Dummy Tasks for Critical Resources)
Identify Prerequisite Tasks for Each Task
 Layout Flowchart of Tasks Based on
Dependencies NOT Time
 Indicate Performance Milestones on Flowchart

ME 414W/415W Project Management
CPM/PERT - continued

Calculate Earliest Completion Time and
Latest Completion Time
– Beginning at start of project, ECT for task = ECT
for preceding node + duration
– Beginning at end of project, LCT for task = LCT for
following node - duration

Calculate Slack Time for Each Task
– Slack for Task= ECT - LCT

Determine Critical Path
– Longest Time Path
– Zero Slack
ME 414W/415W Project Management
Example PERT Chart
Time-motion study of
existing hardw are
3
2d
5/4/00
5/5/00
Get final report from PSU
Design electrical and
pneumatic renovations
Schedule dow n-time w ith
production supervisor
Schedule contractor for
electrical and pneumatic
Renovate electrical and
pneumatic
Install new hardw are
1
5d
4
4d
5
2d
8
1d
13
2d
14
3d
4/27/00
5/3/00
5/4/00
5/9/00
5/10/00
5/11/00
5/12/00
5/12/00
5/17/00
5/18/00
5/19/00
5/23/00
Shut dow n production line
Remove old hardw are
10
1d
11
2d
5/12/00
5/12/00
5/15/00
5/16/00
Get blueprints for old
hardw are
Schedule truck to pickup
hardw are at PSU
Inform PSU about pickup
Transport hardw are from
PSU
Store old hardw are (just
in case)
2
1d
6
1d
7
2d
9
2d
12
10d
4/27/00
4/27/00
5/4/00
5/4/00
5/5/00
5/8/00
5/9/00
5/10/00
5/17/00
5/30/00
ME 414W/415W Project Management
CPM/PERT – Pros and Cons

Strengths
– Shows Task Dependencies
– Predicts Critical Path
– Identifies Slack Time for Resources
 Weaknesses
– Assumes Subsequent Task Starts Immediately
After Prerequisite Concludes
– Difficult to Visualize Timing
ME 414W/415W Project Management
Control Charts
 Quality
– Statistical Process Control
 Schedule
– Gantt, Milestone, PERT
 Budget
– Commitment
– Performance
– Cash Flow
ME 414W/415W Project Management
Budget Control Chart
ME 414W/415W Project Management
Resource Planning
 LINK
TO TIME PLANNING
 Personnel
– In-House
– Vendors and Subcontractors
– Circle-dot chart
ME 414W/415W Project Management
Circle-dot Chart
TASK
Due
Date
Date Completed
A
B
C
D
E
ME 414W/415W Project Management
MOE
LARRY CURLY SHEMP
Resource Planning - continued

Equipment and Facilities
– May Need to Add Dummy Tasks for Critical
Resources
– Downtime for Expected Maintenance or Failure

Budget
– Often Not Under Direct Control of Project Team
– Contingency Funds
– Variable Value of Money
Inflation
 International Currency

ME 414W/415W Project Management
Project Management is …
ME 414W/415W Project Management
… a Balancing Act
ME 414W/415W Project Management