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Project Management

Project Management. Data, information, knowledge, wisdom (before and after the event) Theory from Practice. Updated from the lecture to better explain backward pass to determine latest finish of preceding activities. identification of critical path using LS-ES-D=0 i.e. no slack or float time.

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Project Management

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  1. Project Management Data, information, knowledge, wisdom (before and after the event) Theory from Practice Updated from the lecture to better explain backward pass to determine latest finish of preceding activities. identification of critical path using LS-ES-D=0 i.e. no slack or float time

  2. Overview • a “project” - as a large scale, one-off operation • identifying objectives & deciding trade-offs • imagining, planning, estimating, modelliing and control • methods of scheduling • networks of time and precedence • Gantt chart and CPA methods • Resource planning and management • Limitations of project management concepts

  3. Project situations Startup or shutdown of plant Installation of equipment Manufacture of aircraft, ships, and large machines Space shots Auditing accounts Fund-raising Planning a military invasion Building construction Movie making New product R & D & introduction Launching a course Designing an advertising campaign Computer system development

  4. Project Management 2000 • project-based service organisations • big projects and constant overspend • corporate downsizing • development of 3rd World & former closed economies • knowledge explosion & buying in expertise • global competition • compression of product life cycle • more customer focus

  5. Estimate & Plan Information & Control Organise & Schedule Implementation Project management activities & decisions

  6. Management of Projects Client Situation analysis External Internal Firm, strategies, objectives, priorities Projects Hard System Soft system Scope Work breakdown Schedules, baselines Networks Resources Costs budgets Status reports Organisation Leadership & problem-solving Teams - form …. to perform Partners Customer expectations Negotiation/Politics Implementation Project completed Happy client

  7. Project Life Cycle Definition Planning Execution Delivery Effort & Cost Train customer Transfer documents Release resources Reassign staff Lessons learnt Goals Specifications Tasks Responsibilities Schedules Budgets Resources Risks Staffing Progress reports Changes Quality forecasts

  8. Project Proposal - Logical Framework ID Project title________________________________ Date: Internal/external? Proposer___________________ Contract manager___________________ Checked for: priority, capacity, profitability, cash flow, quality of planning & estimates, knock-on effect, repeatability, client sustainability, etc Project objectives & sub-objectives - SMART definitions Inputs, activities, outputs, resources (staff hours, methods, equipt, infrastructure, availabilities, materials, monitoring & measurement indicators, risks) Proposed budget amounts - by head and sub-head. Investment appraisal Support depts/divisions & contribution Partners: who, reliability + nature/scope of input Work schedule, Overall duration & estimated costs

  9. Project screening ID Project idea/title______________________________ Date: Internal/external? Proposer___________________ Contract manager___________________ Need strategic fit, payback, ROI, contribution, risk analysis More data collection and supplementary information Evaluation of project by criteria Progress? Abandon? Review panel evaluates proposal and current project portfolio for balance/risks Periodic reassessment of priorities Reject, scale down, put on hold Accept. Accept - subject to conditions? Assign priority, resources, project manager Release funds & authorisations Monitor progress - periodic reviews & audits

  10. Risk Analysis What are the major risks for the project? Probability of occurrence 0 --1 (high) Impact on project success if these risks do occur? 0 -- 1 (high) Current project status? Activity starts, completions, in-progress, bottle-necks, delays, variation orders, estimated expenditures vs. actual, over-spends, under-spends, virement? Priority team action? Interventions? Inspections/audits? Renegotiations, variation orders, penalty clauses

  11. Screening metrics Source: Gray & Larson, 2003, Project Management, McGraw Hill

  12. Cash Generator Star Low High Technical feasibility (Easy? Hard? Risk?) Dead Dog Nurture?? Low High Investment return & commercial potential Project Portfolio Analysis

  13. Finance & accounting Legal HRM Project coordination Managing agents, contractors and clients Design & Development Engineering Marketing Manufacturing Procurement Functional into Matrix

  14. Project Manager Project Informatics & Administration Manager Project Teams & Information Coordination Director Client Finance & accounting HRM Legal Team Leader Team Leader Systems engineer Civil engineer Design Architect Electrical engineer Team Leader Team Leader

  15. Sub-contractors manufacturer components suppliers facilities company Legal dept & auditors Tool & die companies Marketing agency Design advisers Virtual Project Virtual organisation Project contracting agent

  16. Shimmering, collaborative boundaries • lead partner (Foster) engineers alliances (Arup) - internal & external • collect best-in-the-world competencies. bring a specific, high quality product/service to market ASAP • not one homogeneous orgn, but "BORG" hybrid e.g. Sun • Mission accomplished • disperse • look for new alliances, opportunities

  17. Work Breakdown Structure - as a Hierarchy Project 1 2 3 4 5 etc End product - the deliverable Sub- deliverables Levels Element (lowest level) deliverables Cost-expenditures - estimates, assign accounts Group work packages for monitoring progress & responsibility Work package - identifiable work activities

  18. Work Breakdown Structure Integrate this by level for coordination & control across organisation : strategy, design, manufacture, testing/quality, purchasing, IT infrastructure (HW+SW+staff), job/project accounts (revenue & spend), disbursement of direct costs & overheads Adapted from: Gray & Larson, 2003, Project Management, McGraw Hill

  19. Work Package Estimates Project: Genoptica Board ID: GF 3421 WP Description: Final prototype Deliverable: Circuit board Date: xx/xx/xx Original unit: standard components assembly Estimator: C J WP Duration: 5 work weeks Total Budget £2650 Budget by work weeks (Time phased) Adapted from: Gray & Larson, 2003, Project Management, McGraw Hill

  20. PBS for Software Development Project Adapted from: Gray & Larson, 2003, Project Management, McGraw Hill

  21. Market Research Project: team responsibilities R=responsible S=supports Project team Adapted from: Gray & Larson, 2003, Project Management, McGraw Hill

  22. analyse specify design produce deliver Macro estimate 1 2 3 4 5 Detailed estimate Macro estimate Detailed estimate Macro estimate Detailed estimate Macro estimate Detailed estimate Estimating by Project Life Cycle Phases Source: Gray & Larson, 2003, Project Management, McGraw Hill

  23. Total Project Cost 500,000 Design 20% 100,000 Program 30% 150,000 Test 40% 200,000 Document 5% 25,000 Produce CD 5% 25,000 D-1 10% 50000 D-2 10% 50,000 Doc-1 2% 10,000 Doc-2 3% 15,000 P-1 20% 100,000 P-2 5% 25,000 P-3 5% 25,000 CD-1 5% 25,000 Source: Gray & Larson, 2003, Project Management, McGraw Hill T-1 10% 50,000 T-2 10% 50,000 T-3 20% 100,000 Apportioning/Allocating Project Costs

  24. Generating the Project Plan - WBS • Who is the project customer and project stakeholders • Define • end product or service (the specification) and objectives • inputs: total resources & time required • project organisation structure/network • Identify and detail tasks/activities and subtasks. If visible, group into phases. Enter into Gantt Chart • Estimate + enter durations of each task • 1xPessimistic + 4xLikely + 1xOptimistic------------------------------------------------ 6 • Decide before, parallel, after sequences • Decide FS, SS, FF, FS relationships/dependencies • Forward pass for project duration • Backward pass for critical path and slack • Load & assign resources - physical and human to tasks • Balance/level against cost & time - baseline budgets vs. actual

  25. MS Project: Enter tasks to Gantt Chart Week 1 2 3 4 5 6 7 8/20 8/27 9/3 9/10 9/17 9/24 10/1 Dig foundations Pour footing Lay blocks Base stage complete Install floor Erect walls Install roof Secure ceiling Install windows Plastering stage Activity Milestone

  26. Forward Pass for Duration Forward pass take the highest of the multiple preceding LFs 30 B 43 43 D 59 59 F 64 59 13 16 0 A 30 56 5 64 30 30 C 50 50 E 56 20 6 ES ID EF Te time estimate (overall duration) = 64 Descr SL LS LF D

  27. Backward Pass for Latest times, critical path & slack • start with last project activity(ies) • from the project end activity, trace backward on each path - subtracting (LF-Dur) activity times to give the LS for each node • carry back the LS to the preceding node to establish its LFunless • the preceding activity is a burst activity (apredecessor to two or more activities) in this case select the smallest LS from its immediate successor activities to obtain its LF. • activity C in the next slide, is a burst successor to E and F. Its LF depends on F i.e. the lowest LS (20 not E's 185) • A, B, F, G, H are critical as LF-ES-Dur for each is 0. There is no slack on these activities

  28. Backward Pass for slack & critical path ? Source: Gray & Larson, 2003, Project Management, McGraw Hill LF-ES-D = 0 : no slack, critical path

  29. Critical Path & Slack Slack time? how long a task can slip behind without affecting other tasks or end date. CP (LF – ES – D= 0 i.e. no slack on these activities) ES=4 EF=6 Node D 9-4-2= 3 units of slack time D(2) ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=9 EF=14 ES=14 EF=15 LS=7 LF=9 G(1) A(2) B(1) C(1) F(5) ES=4 EF=9 LS=0 LF=2 LS=2 LF=3 LS=3 LF=4 LS=9 LF=14 LS=14 LF=15 E(5) Duration = 15 weeks Node E 9-4-5= 0 No slack time LS=4 LF=9 critical path

  30. Y X A B C Z J M K X Z L Y AA Activity-on-Node preceded by A nothing B A C B Y and Z X Y and Z can start at same time if desired J, K, L can start at same time if desired (need not occur simultaneously) But must be completed before M can begin Z X and Y AA X and Y Adapted from: Gray & Larson, 2003, Project Management, McGraw Hill

  31. Finish to Start: most common SS: Q (dependent on P) can start 5 days after P starts P Prototype Q Lag = 5 Lag = 3 Lag = 2 Testing A B C Lag = 4 FF: testing must be finished 4 days after prototyping is completed SF: documentation must finish no later than 3 wks after testing starts testing system documentation Lag = 3 Relationships Adapted from: Gray & Larson, 2003, Project Management, McGraw Hill

  32. Compressing Time using Laddering and FS relationships Trench 1/3 Trench 1/3 Trench 1/3v Lay pipe 1/3 Lay pipe 1/3 Lay pipe 1/3 Refill 1/3 Refill 1/3 Refill 1/3 Source: Gray & Larson, 2003, Project Management, McGraw Hill

  33. Activity Prec. Weeks A B C D E F G - A B C C D, E F 2 1 1 2 5 5 1 Assess customer's needs Write and submit proposal Obtain approval Develop service vision and goals Train employees Quality improvement pilot groups Write assessment report Exercise • Develop a critical path diagram and determine • the duration • the critical path • slack times

  34. 3 Time Estimates

  35. Network C(14) E(11) H(4) A(7) D(5) F(7) I(18) B (5.333) G(11) Duration = 54 Days

  36. CPM Assumptions/Limitations • activities can be identified as discrete entities. • clear beginning & ending point for each activity • activity sequence relationships can be specified & networked. • project focus on critical path.

  37. Implementation and Control • Monitor actual time, cost & performance • Data capture, reports/charts, progress, exceptions • Compare plan to actual • Is corrective action needed? • Evaluate alternative corrective actions • Take corrective action • Data, capta, information, knowledge, wisdom

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