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Chapter#07 Introduction to project management

COURSE INSTRUCTOR : PROF. DR. SHAHAB KHUSHNOOD. Chapter#07 Introduction to project management. Lecture No. 07 Course: Engineering Management. MED DEPARTMENT, U.E.T TAXILA. PROJECT MANAGEMENT.

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Chapter#07 Introduction to project management

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  1. COURSE INSTRUCTOR : PROF. DR. SHAHAB KHUSHNOOD Chapter#07Introduction to project management Lecture No. 07 Course: Engineering Management MED DEPARTMENT, U.E.T TAXILA

  2. PROJECT MANAGEMENT Project Management is the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals.

  3. INTRODUCTION Under Project Management; For project planning, scheduling and control following historical techniques are used from since 1956: 1- Critical Path Method (CPM) First in 1956, this technique is used by Integrated Engineering Control Group of E.I. du Pont de Nemours & Company to schedule activities related to design and construction. 2- Program Evaluation and Review Techniques (PERT) (Extended version of Gantt Chart, which is developed by Du Pont.)

  4. NEED FOR A PROJECT MANAGEMENT Following three things are entailed in project management • The project has certain objectives • The project deadlines are specified • The required resources are negotiated by the project manager with top management Sometimes project management is also known by the following three names

  5. NEED FOR A PROJECT MANAGEMENT • Product management • System management • Program management The following factors will indicate the need for project management • The project has tight time schedules to meet • There is a requirement for major innovation • The present organization work schedules will be disrupted with the integration of the project’s activities

  6. CHARACTERISTICS OF A PROJECT MANAGEMENT PROCEDURE Some of the characteristics of such a procedure are as follows • The organization is project oriented • The project has a limited life • Frequent progress evaluation • Clearly outlined goal responsibility • Dynamic changes in responsibilities • Dynamic changes in organization

  7. RESPONSIBILITIES OF A PROJECT ORGANIZATION • Changes associated with the project • Outside contact for the project • Scheduling the project • Monitoring the project • Investigating the market potentials concerning the project • Controlling principal subcontractors involved in major tasks

  8. LIFE CYCLE PHASES OF THE PROJECT ORGANIZATION • The life cycle of the project organization may be divided into six phases. • All of these phases are shown as on next slide.

  9. FUNCTIONS OF PROJECT MANAGEMENT • Project reporting • Planning • Directing • Project execution • Liaison with customer • Evaluating the project • Re-programming

  10. ACTIONS TO STIMULATE PROJECT SUCCESS • Do not over-relay on a specific control tool • Establish realistic objectives • Make sure that changes are kept under control • Seek necessary authority • Emphasize that the stated objectives are fulfilled • Make sure that the structure of the team is flat and flexible • Try to improve the project’s public image

  11. ACTIONS TO STIMULATE PROJECT SUCCESS • Establish realistic estimates for performance, cost and schedule • Make sure that a good relationship exists between team and customer • To overcome potential difficulties, make sure of the existence of backup strategies

  12. THE PROJECT MANAGER • The two important aspects concerned with the project manager are: • Basic Responsibilities Of A Project Manager • To make sure that the end product is delivered to the customer within the framework of a specified time schedule • To make sure that the end product is produced within the allocated budget • To make sure that the end product fully satisfies all the performance requirements

  13. 2-Qualifications Of a Successful Project Manager: • Understanding of the concepts of profitability • A working knowledge of several areas of science • A strong desire in training, teaching and developing his supervisory manpower • Desirable past experiences

  14. CRITICAL PATH SCHEDULING TECHNIQUES • Critical path scheduling techniques presents two graphical techniques which are commonly used in planning and controlling projects. • These graphical techniques are known as critical path method (CPM) and program evaluation and review technique (PERT).

  15. PERT • This is used when there is existence of uncertainties associated with times of activities of the project. • Its application is emphasized in research and development work.

  16. CPM • This is used where one is certain about the duration times of activities. • It is commonly used to manage construction projects Both of CPM and the PERT find application in areas such as highway construction, power generation, plant and oil refinery maintenance and aerospace projects.

  17. A project has to possess specific characteristics for these techniques to be most applicable. These characteristics are as follows: • When a job is started, it has to continue without any interference until its full completion • Jobs or tasks are defined such that their completion will result in the end of the project • Jobs or tasks are ordered in a specified sequence in which they follow each other • Jobs or tasks are independent. In other words, within a defined sequence they can be performed, started and stopped independently

  18. Both these methods roughly involve the following steps: • Decomposing a project into individual jobs or tasks • Arranging the individual jobs or tasks into a logical network • Estimating the time duration of each individual job or task • Developing a schedule • Redistributing resources or funds so that the schedule is improved

  19. STEPS TO DEVELOP & ANALYZE A PERT NETWORK

  20. STEPS TO DEVELOP & ANALYZE A PERT NETWORK Step 1: Step 2: SELF EXPLAINATORY

  21. STEPS TO DEVELOP & ANALYZE A PERT NETWORK Step 3: The PERT network requires these three estimates for the duration time of each activity. 1- The Optimistic Time: This is the minimum time an activity or a task will take for its completion. 2- The Pessimistic Time: This is the maximum time an activity will take for its completion. 3- The Most Likely Time: This is the most likely time an activity will take for the completion. This is the time which is used for the activities of the CPM network.

  22. STEPS TO DEVELOP & ANALYZE A PERT NETWORK Step- 4: Expected time to complete an activity is given by:

  23. EXPECTED TIME TO COMPLETE AN ACTIVITY Example:1

  24. EXPECTED TIME TO COMPLETE AN ACTIVITY Step-5: This step is concerned with calculating the variance of each activity duration time.

  25. EXPECTED TIME TO COMPLETE AN ACTIVITY Example:2

  26. Step-6: • The critical path of the network is given by the longest path of that network. • The duration time of the project is given by the total sum of activity expected duration times of the longest path. * The term CRITICAL is used to signify that if any delay in the completion of the activities along the longest path occurs then the completion of the whole project will be delayed.

  27. Step-7:

  28. Step-7: (cont..) • This equation is associated with the normal probability distribution function. Thus the probability values for the corresponding values of x can be obtained from table given on next slide. • However for any other value of x, which is not given in the table, the corresponding probability values may be found in a standard probability text book.

  29. Example:3

  30. STEPS TO DEVELOP AND ANALYZE A CPM NETWORK

  31. STEPS TO DEVELOP AND ANALYZE A CPM NETWORK • Decompose the project into individual jobs or tasks and identify each of them • Find out ‘activities or tasks’ sequence and develop the network • Estimate each activity’s duration time • Find out the critical path of the network under study

  32. SYMBOLS AND DEFINITIONS USED TO CONSTRUCT AND SOLVE A CPM OR A PERT NETWORK • CIRCLE • It is used to represent an event • Circle represents an unambiguous point in time the project’s life • For example, an event can be a start or a completion of an activity or activities. • Usually the events of a CPM or a PERT network are labeled with a number.

  33. b) CONTINUOUS ARROW • This is used to represent an activity • An activity always begins from a circle and ends at a circle.

  34. c) DOTTED ARROW • This represents a dummy activity or a restraint • It is an imaginary activity and does not consume any money, manpower or time.

  35. d) CIRCLE WITH DIVISIONS • A circle with division also represents an event. • This circle is divided into three portions as shown

  36. The top portion is used to label the event with a number • The bottom portion of the circle is divided into two halves • The left half is used for the latest event time whereas the remaining portion is used for the earliest event time Both the earliest and latest event times are defined below Earliest Event Time: This is the earliest time in which an event can be reached.

  37. Latest Event Time: This is the latest time in which an event can be reached without delaying the completion of the project. • Critical Path Of The Network • This is that path which is longest path from one end of a CPM or a PERT network to another end . • For the completion of the project on time; the activities along the critical path have to be accomplished on time; otherwise, the project will be delayed.

  38. Example:4

  39. Example:5

  40. ESSENTIAL FORMULAS AND A PROCEDURE FOR DETERMINING THE CRITICAL PATH OF A NETWORK • Essential Formulas • This section presents four formulas essential to performing network analysis. • These formulas are defined with figure and symbology used in fig are:

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