Project Management

Management of work to
develop and implement an
innovation or change in an
existing organization
Examples:
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New buildings
Weapon systems
Automotive, Ship, Aircraft
Planning a concert
New Products
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Project Management

Elements
Project Team
Project Planning
Project Control
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Project Team
Project Team
Project Manager
Purchasing
Engineering
Marketing
Suppliers
Manufacturing
Purchasing Managers
Head Engineers
Sales Managers
Sales Rep.
Line Managers
Workers
Engineers
Advertising Salesforce
Workers
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Project Planning

Precedence Relationship
Sequential relationship of activities in
a project

Project planning
Define project objective(s)
Identify activities
Establish precedence relationships
Make time estimates
Determine project completion time
Compare project schedule objectives
Determine resource requirements to
meet objectives
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Project Planning

Project Network
Building a sidewalk
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Project Control

Control
Activities are identified
Activities are completed in
order
Resource needs
Schedule changes and
corrections

Main Goal – maintaining
project schedule so project in
on-time and close to budget
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Project Control

Work Breakdown Structure
(WBS)
Method for project planning and
control
Breaks down components, subcomponents, activities, and tasks
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Work Break Down Structure
 Good way to identify activities and determine
tasks
 Helps identify relationships between modules
and activities
 Cancels out unnecessary duplication of activities
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Gantt Chart
 Helps identify
start of activities
end of activities
slack time
– amount of time an activity can be delayed without
delaying the project
precedence relationships between activities
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CPM - Critical Path Method
 Definition: In CPM activities are shown as a
network of precedence relationships using
activity-on-node network construction
Single estimate of activity time
Deterministic activity times
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PERT Project Evaluation & Review Techniques
 Definition: In PERT activities are shown as a
network of precedence relationships using
activity-on-arrow network construction
Multiple time estimates
Probabilistic activity times
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Critical Path
 Longest path through a network
 minimum project completion time
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Benefits of CPM/PERT
 Useful at many stages of project management
 Mathematically simple
 Give critical path and slack time
 Provide project documentation
 Useful in monitoring costs
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Limitations to CPM/PERT
 Clearly defined, independent and stable
activities
 Specified precedence relationships
 Subjective time estimates
 Over emphasis on critical paths
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Questions Answered by CPM & PERT
 Completion date?
 On Schedule?
 Within Budget?
 Critical Activities?
 How can the project be finished early at the least
cost?
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ANY QUESTIONS???
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