Project Management

Project 01 – OFF CLASS

3

Project Management• Project

– series of related jobs usually directed toward some major output and requiring a significant period of time to perform.

• Project Management – planning, directing, and controlling resources (people,

equipment, material) to meet the technical, cost, and time constraints of the project.

– Project or Program?

Work Breakdown Structure

Program

Project 1 Project 2

Task 1.1

Subtask 1.1.1

Work Package 1.1.1.1

Level

1

2

3

4

Task 1.2

Subtask 1.1.2

Work Package 1.1.1.2

5

Work Breakdown Structure

• Allow the elements to be worked on independently

• Make them manageable in size

• Give authority to carry out the program

• Monitor and measure the program

• Provide the required resources

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Project Control: Gantt Chart

Activity 1Activity 2Activity 3Activity 4Activity 5Activity 6

Time

(See Exhibit 3.2 for other project control reporting tools)

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Organizational StructurePure Project--Advantages

• The project manager has full authority over the project

• Team members report to one boss

• Shortened communication lines

• Team pride, motivation, and commitment are high

8

Organizational StructurePure Project--Disadvantages

• Duplication of resources

• Organizational goals and policies are ignored

• Lack of technology transfer

• Team members have no functional area "home"

9

Functional Project

President

Research andDevelopment

Engineering Manufacturing

ProjectA

ProjectB

ProjectC

ProjectA

ProjectB

ProjectC

ProjectA

ProjectB

ProjectC

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Organizational StructureFunctional Project--Advantages

• A team member can work on several projects

• Technical expertise is maintained within the functional area

• The functional area is a home after the project is completed

• Critical mass of specialized knowledge

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Organizational StructureFunctional Project--Disadvantages

• Aspects of the project that are not directly related to the functional area get short-changed

• Motivation of team members is often weak

• Needs of the client are secondary and are responded to slowly

12

Matrix Project

President

Research andDevelopment

Engineering Manufacturing Marketing

ManagerProject A

ManagerProject B

ManagerProject C

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Organizational StructureMatrix--Advantages

• Enhanced interfunctional communications

• Pinpointed responsibility

• Duplication of resources is minimized

• Functional home for team members

• Policies of the parent organization are followed

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Organizational StructureMatrix--Disadvantages

• Two bosses

• Depends on PM’s negotiating skills

• Potential for suboptimization

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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

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Critical Path SchedulingA project must have:

well-defined jobs or tasks whose completion marks the end of the project;

independent jobs or tasks;

and tasks that follow a given sequence.

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CPM with Single Time Estimate

Consider the following consulting project:

Develop a critical path diagram and determine theduration of the critical path and slack times for allactivities

Activity Designation Immed. Pred. Time (Weeks)Assess customer's needs A None 2Write and submit proposal B A 1Obtain approval C B 1Develop service vision and goals D C 2Train employees E C 5Quality improvement pilot groups F D, E 5Write assessment report G F 1

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First draw the network

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

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Determine early start and early finish times

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4EF=9

ES=4EF=6

?A, 2

B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

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When I can start depends on when predecessors finish

ES=9EF=14

ES=14EF=15

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

21

Determine late starts and late finish times

LS=4LF=9

ES=9EF=14

ES=14EF=15

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

LS=14LF=15

LS=9LF=14

LS=7LF=9

?

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Don’t delay the project

A, 2

ES=9EF=14

ES=14EF=15

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4EF=9

ES=4EF=6

B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

LS=14LF=15

LS=9LF=14

LS=4LF=9

LS=7LF=9

LS=3LF=4

LS=2LF=3

LS=0LF=2

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Critical Path & Slack

ES=9EF=14

ES=14EF=15

ES=0EF=2

ES=2EF=3

ES=3EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

LS=14LF=15

LS=9LF=14

LS=4LF=9

LS=7LF=9

LS=3LF=4

LS=2LF=3

LS=0LF=2

Duration = 15 weeks

Slack=(7-4)=(9-6)= 3 Wks