Chapter 17
Project Management
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Project Characteristics
Single unit
Many related activities
Difficult production planning control
General purpose equipment; high labor skills
Time
Cost
Performance/Quality
Project organization works best when:
Work can be defined with a specific goal and deadline
The job is unique or somewhat unfamiliar to the existing organization
The work contains complex interrelated tasks requiring specialized skills
The project is temporary but critical to the organization
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Examples of Projects
A project is a temporary
customized initiative consisting
of smaller activities that must be
coordinated to finish the entire
project on time, within budget,
while meeting requirements.
Project management:
1. Cost
2. Time
3. Performance/Quality
Projects fail due to schedule
overruns, use of unproven
technology, poor estimates,
weak definitions of objectives,
and supplier problems.
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Project Stages
1. Define: clearly understand the goal of the project, responsibilities,
deliverables, and what must be accomplished.
2. Plan: determine the steps needed to execute the project, delegate
tasks, and identify start and completion dates.
3. Organize: coordinating the resources to execute the plan costeffectively.
4. Control: collecting and assessing status reports and managing
changes to baselines.
5. Close: compiling statistics, reassigning people, and preparing
“lessons learned”.
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Management of Large Projects
Planning
Goal setting, project definition, team organization
Scheduling
Relating activities to each other
Relating people, money, and supplies to specific activities
Controlling
Monitoring resources, schedule, costs, quality, and budgets
Revising plans and shifting resources to meet time and cost
demands
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Project Planning, Scheduling, and Control
Work Breakdown Structure
1. Project
2.
Major tasks in the project
3.
Subtasks in the major tasks
4.
Activities to be completed
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Project Manager Requirements
Four key skills:
1. Bias towards task completion,
2. Technical and administrative credibility,
3. Interpersonal and political sensitivity,
4. Leadership ability.
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•
•
•
•
•
•
manage people as a team
reinforce excitement of the team
keep everyone informed - Communication
build agreements and consensus
empower the project team
encourage risk-taking and creativity
Have a Project Champion
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Project Management Techniques
1. Gantt Charts
2. Network techniques: developed in 1950’s
Consider precedence relationships and
interdependencies
CPM by DuPont for chemical plants (1957)
PERT by Booz, Allen & Hamilton with the U.S. Navy,
for Polaris missile (1958)
CPM and PERT are essentially the same
(we will see the difference later)
© 1984-1994 T/Maker Co.
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Project Management Software
Microsoft “Project”
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Activity Network, AON & AOA Format
Important:
AOA Needs
dummy
activities to
show all
relationships
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When Activity c is Not Required for e
Wrong!
Right!
Important: AOA Needs dummy
activities to show all relationships
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When activity f does not need activity a to be completed first
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A Comparison of AON and AOA
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Relocating an Office – Gantt Chart
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Relocating an Office: Network
Locate Facilities - 8w
Interview Staff – 4w
Hire and Train – 9w
Order Furniture – 6w
Remodel/phones - 11w
6w
Furniture set up – 3w
3w
8w
11w
Move in – 1w
1w
4w
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AON -> AOA -> !
Page 1 of 3
G
E
F
C
St
A
B
D
H
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TRAIN Design AOA - Example
Activity
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•
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•
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Immediate
Predecessor
a - Design TRAIN
b - Build Prototype
a
c - Perform Tests on Prototype
b
d - Estimate Material Costs
a
e - Refine TRAIN Design
c,d
f - Demonstrate to Customers
e
g - Estimate Labor Cost
d
h - Prepare Technical Proposal
e
i - Deliver Proposal to Customer
g,h
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Activity
Duration
20
10
8
11
7
6
12
13
5
17
Methods of Network Graphical Representation
1. AOA (ADM)
2. AON (PDM)
Methods of Network Analysis
1. PERT
Program Evaluation and Review Technique
Booz-Allen Hamilton/Lockheed/Navy
Probabilistic
R&D
Less popular with time
Focus on time analysis (later also cost)
2. CPM
Critical Path Method
DuPont/Rand
Deterministic
Construction
More popular with time
Focus on time and cost analysis
PMI (2005)
ADM / PERT: Arrow Diagram Method
PDM / CPM: Precedence Diagram Method
Example
Activity
a
b
c
d
e
f
g
h
i
j
k
l
m
n
o
p
Duration
12
Preceded by
---
13
--10
--16
c
4
a
14
b,d
7
b,d
8
c
22
e,f
16
e,f
25
g
8
b,d,h
12
i
14
j,k
10
l
8
m,n,o
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