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  1. PROJECT MANAGEMENT Outline What is project mean? Examples of projects… Project Planning and Control Project Life Cycle Gantt Chart PERT/CPM

  2. What is Project? What is the different between normal business activities and Project? Project Unique, one time operations design to accomplish a specific set of objectives in a limited time frame.

  3. Examplesof project… • Building a house • Building a factory • Add assembly line in the factory • Merging to companies • Managing political campaign • Designing a new product • Soft ware development

  4. Project Management • Project • Lengthy network of activities needed to complete a major output. • Project Management • Planning, execution, and controlling resources to needed to complete the project.

  5. Project Life Cycle • Definition • Why we need to start new project • Feasibility Analysis (Cost, Benefit , risk of under taking a project) • Planning • Details of the work, estimates time, Human resource and cost • Execution • During which a project itself is done • Termination • During which closer is achieved

  6. Project Planning, Controlling and Scheduling Project Planning: • 1. Setting goals. • 2. Defining the project. • 3. Tying needs into timed project activities. • 4. Organizing the team. Before Project

  7. Project Planning, Controlling and Scheduling • Project Scheduling: • 1. Tying resources to specific activities. • 2. Relating activities to each other. • 3. Updating and revising on regular basis.

  8. Project Planning, Controlling and Scheduling • Project Controlling: • 1. Monitoring resources, costs, quality and budgets. • 2. Revising and changing plans. • 3. Shifting resources to meet demands. During Project

  9. Level Program 1 Project 1 Project 2 2 Task 1.1 Task 1.2 3 Subtask 1.1.1 Subtask 1.1.2 4 Work Package Work Package Work Breakdown Structure

  10. Project Control: Gantt Chart • The Gantt chart is a popular tool for planning and scheduling simple project. • It enables a manager to initially schedule project activities and then to monitor progress over time by comparing planned progress to actual progress

  11. Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Time Project Control: Gantt Chart a b a c b d c d d

  12. PERT and CPM • PERT (program evaluation and review technique) • U.S. Navy Special Projects Office (1958) • Polaris missile project • CPM (critical path method) • J. E. Kelly of Remington-Rand and M. R. Walker of Du Pont (1957) • Scheduling maintenance shutdowns of chemical processing plants

  13. Questions answered by PERT/CPM • When will the entire project be completed? • What are the critical activities or tasks in the project, that is, the ones that will delay the entire project if they are late? • Which are the non-critical activities, that is, the ones that can run late without delaying the entire project’s completion? • What is the probability that the project will be completed by a specific date?

  14. Questions answered by PERT/CPM • At any particular date, is the project on schedule, behind schedule, or ahead of schedule? • On any given date, is the money spent equal to, less than, or greater than the budgeted amount? • Are there enough resources available to finish the project on time? • If the project is to be finished in a shorter amount of time, what is the best way to accomplish this at the least cost?

  15. To Find Critical Path ??? To find the critical path, need to determine the following quantities for each activity in the network: 1. Earliest start time(ES): the earliest time an activity can begin without violation of immediate predecessor requirements. 2. Earliest finish time(EF): the earliest time at which an activity can end. 3. Latest start time(LS): the latest time an activity can begin without delaying the entire project. 4. Latest finish time(LF): the latest time an activity can end without delaying the entire project.

  16. Activity Designation Immed. Pred. Time (Weeks) Assess customer's needs A None 2 Write and submit proposal B A 1 Obtain approval C B 1 Develop service vision and goals D C 2 Train employees E C 5 Quality improvement pilot groups F D, E 5 Write assessment report G F 1 CPM with Single Time Estimate Consider the following consulting project: Develop a critical path diagram and determine the duration of the critical path and slack times for all activities

  17. D, 2 G, 1 A, 2 B, 1 F, 5 E, 5 When I can start depends on when predecessors finish. C, 1

  18. D, 2 ES=9 EF=14 ES=14 EF=15 G, 1 A, 2 B, 1 F, 5 LS=0 LF=2 LS=2 LF=3 LS=3 LF=4 E, 5 Don’t delay the project ES=4 EF=6 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 LS=7 LF=9 C, 1 ES=4 EF=9 LS=9 LF=14 LS=14 LF=15 LS=4 LF=9

  19. Slack=(7-4)=(9-6)= 3 Wks ES=9 EF=14 ES=14 EF=15 G, 1 A, 2 B, 1 F, 5 LS=0 LF=2 LS=2 LF=3 LS=3 LF=4 Critical Path & Slack ES=4 EF=6 D, 2 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 LS=7 LF=9 C, 1 ES=4 EF=9 LS=9 LF=14 LS=14 LF=15 E, 5 LS=4 LF=9 Duration = 15 weeks

  20. CPM with Three Activity Time Estimates

  21. Expected Times

  22. PERT/ CPM • CPM uses two sets of time and cost estimates for activities: • A normal time and cost and • A crash time and cost • The normal costis an estimate of cost to complete an activity in normal time. • The crash timeis the shortest possible activity time. • Crash costis the cost of completing the activity on a crash or deadline basis.

  23. crash cost – normal cost crash cost/time period = normal time – crash time Project Crashing with PERT/CPM: Four Steps • Find the normal critical path and identify the critical activities. • Compute the crash cost per week (or other time period) for all activities in the network. This process uses the following formula:

  24. Project Crashing with PERT/CPM: Four Steps 3. Select the activity on the critical path with the smallest crash cost per week. Crash this activity to the maximum extent possible or to the point at which your desired deadline has been reached 4. Check to be sure that the critical path you were crashing is still critical. • Often, a reduction in activity time along the critical path causes a non-critical path or paths to become critical. • If the critical path is still the longest path through the network, return to step 3. • If not, find the new critical path and return to step 2.

  25. Subproject • For extremely large projects, an activity may be made of several smaller sub-activities. • Each activity might be viewed as a smaller project or a subproject of the original project. • The person in charge of the activity might wish to create a PERT/CPM chart for managing this subproject. • Many software packages have the ability to include several levels of subprojects