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Project Management

Project Management. Planning Techniques Project manager responsible for developing project implementation plan. Duties includes: Defining tasks Making estimates (cost and timing) Preparing schedules Preparing budgets. Project Management. Recall the house construction example:

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Project Management

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  1. Project Management Planning Techniques Project manager responsible for developing project implementation plan. Duties includes: • Defining tasks • Making estimates (cost and timing) • Preparing schedules • Preparing budgets

  2. Project Management Recall the house construction example: Task Definition: DescriptionDuration(days)Precedence Step A: Prepare site. 5 - Step B: Build foundation. 8 A Step C: Frame walls and roof. 15 B Step D: Rough in Plumbing 12 C Step E: Rough in Electrical 10 C Step F: HVAC Venting 8 C Step G: Drywall 11 D,E,F Step H: Finish Electrical 5 G Step I: Finish Plumbing 4 G Step J: Finish HVAC 2 H Step K: Install Kitchen 8 H,I Step L: Install Baths 14 H,I Step M: Paint 5 J,K,L Step N: Landscape 5 J,K,L

  3. H,5 J,2 D,12 M,5 G,11 K,8 A,5 B,8 C,15 E,10 N,5 I,4 L,14 F,8 Project Management Recall: Precedence Diagram Tasks must sometimes be performed in series, or may at times be performed in parallel. For the house example, let each node represent a project task/job. Each node is identified by a job letter and duration. Now we can determine how long it will take to finish the project …

  4. H,5 J,2 D,12 M,5 G,11 K,8 A,5 B,8 C,15 E,10 N,5 I,4 L,14 F,8 Project Management Critical Path

  5. Project Management • Timing – Gantt Chart • Tasks and task durations are often represented as Gantt Charts. • Task precedence knowledge is shown graphically on the time line.

  6. Expediting/Crashing • CPM – Critical Path Method • Can normal task times be reduced? • Is there an increase in direct costs? • Additional manpower • Additional machines • Overtime, etc… • Can there be a reduction in indirect costs? • Less overhead costs • Less daily rental charges • Bonus for early completion • Avoid penalties for running late • Avoid cost of late startup • CPM addresses these cost trade-offs.

  7. CPM – Critical Path Method Example: Overhead cost = $5/day Step 1. Draw the precedence diagram

  8. F,6 D,4 A,10 H,5 E,3 G,5 B,5 C,3 CPM – Critical Path Method Precedence diagram & critical path Enumerative Approach: Reduce job D by 1 day: Total cost improves by ________________ Reduce job H by 1 day: Total cost improves by ________________ Reduce job A by 2 days: Total cost improves by ________________

  9. F,6 D,4 A,10 H,5 E,3 G,5 B,5 C,3 CPM – Critical Path Method (cont.) Reduce job A by an additional day and job B by 1 day?: Total cost improves by ________________ Reduce job A by an additional day and job C by 1 day?: Total cost improves by ________________

  10. F,6 D,3* A,8* H,4* E,3 G,5 B,5 C,3 CPM – Critical Path Method (cont.) * task time after crashing Any additional cost reductions possible? Overall improvement = ______________________________

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