The McGraw-Hill Companies, Inc.
, 2004
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Project Management
The McGraw-Hill Companies, Inc., 2004
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Definition of Project Management
Project Control Charts
Structuring Projects
Critical Path Scheduling
OBJECTIVES
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Project Management
Defined
Project is a series of related jobs usually directed toward
some major output and requiring a significant period of
time to perform
Project Management are the management activities of
planning, directing, and controlling resources (people,
equipment, material) to meet the technical, cost, and
time constraints of a project
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Project Control Charts: Gantt Chart
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5
Activity 6
Time
Vertical Axis:
Always Activities
or Jobs
Horizontal Axis: Always Time
Horizontal bars used to denote length
of time for each activity or job.
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Gantt Chart Example
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Structuring Projects Pure 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
Pure Project
Defined
A pure project is where a self-contained team
works full-time on the project
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Structuring Projects Pure Project: Disadvantages
Duplication of resources
Organizational goals and policies are ignored
Lack of technology transfer
Team members have no functional area "home"
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Functional Project
Defined
President
Research and
Development
Engineering Manufacturing
Project
A
Project
B
Project
C
Project
D
Project
E
Project
F
Project
G
Project
H
Project
I
A functional project is housed within a functional
division
Example, Project B is in the functional area of
Research and Development.
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Structuring Projects
Functional 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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Structuring Projects
Functional 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
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Structuring Projects:
Matrix Project Organization Structure
President
Research and
Development
Engineering Manufacturing Marketing
Manager
Project A
Manager
Project B
Manager
Project C
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Structuring Projects
Matrix: Advantages
Enhanced communications between functional areas
Pinpointed responsibility
Duplication of resources is minimized
Functional home for team members
Policies of the parent organization are followed
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Structuring Projects
Matrix: Disadvantages
Too many bosses
Depends on project managers negotiating skills
Potential for sub-optimization
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Work Breakdown Structure
Defined
Program
Project 1 Project 2
Task 1.1
Subtask 1.1.1
Work Package [Link]
Level
1
2
3
4
Task 1.2
Subtask 1.1.2
Work Package [Link]
A work breakdown structure defines the hierarchy of project tasks,
subtasks, and work packages
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Network-Planning Models
A project is made up of a sequence of activities that form a network
representing a project
The path taking longest time through this network of activities is called the
critical path
The critical path provides a wide range of scheduling information useful in
managing a project
Critical Path Method (CPM) helps to identify the critical path(s) in the
project networks
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Prerequisites for Critical Path Methodology
A 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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Types of Critical Path Methods
CPM with a Single Time Estimate
Used when activity times are known with certainty
Used to determine timing estimates for the project, each activity
in the project, and slack time for activities
CPM with Three Activity Time Estimates
Used when activity times are uncertain
Used to obtain the same information as the Single Time Estimate
model and probability information
Time-Cost Models
Used when cost trade-off information is a major consideration in
planning
Used to determine the least cost in reducing total project time
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Steps in CPM with Single Time Estimate
1. Activity Identification
2. Activity Sequencing and Network Construction
3. Determine the critical path
From the critical path all of the project and activity
timing information can be obtained
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CPM with Single Time Estimate
Consider the following project:
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 agents E C 5
Quality improvement pilot groups F D, E 5
Write assessment report G F 1
Develop a critical path diagram and determine the duration of
the critical path and slack times for all activities.
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First draw the network
A(2) B(1) C(1)
D(2)
E(5)
F(5)
G(1)
A None 2
B A 1
C B 1
D C 2
E C 5
F D,E 5
G F 1
Act. Imed. Pred. Time
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Determine early starts and early finish times
ES=9
EF=14
ES=14
EF=15
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4
EF=9
ES=4
EF=6
A(2) B(1) C(1)
D(2)
E(5)
F(5)
G(1)
Hint: Start with ES=0
and go forward in the
network from A to G.
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Determine late starts and
late finish times
ES=9
EF=14
ES=14
EF=15
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4
EF=9
ES=4
EF=6
A(2) B(1) C(1)
D(2)
E(5)
F(5)
G(1)
LS=14
LF=15
LS=9
LF=14
LS=4
LF=9
LS=7
LF=9
LS=3
LF=4
LS=2
LF=3
LS=0
LF=2
Hint: Start with LF=15 or
the total time of the project
and go backward in the
network from G to A.
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Critical Path & Slack
ES=9
EF=14
ES=14
EF=15
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4
EF=9
ES=4
EF=6
A(2) B(1) C(1)
D(2)
E(5)
F(5)
G(1)
LS=14
LF=15
LS=9
LF=14
LS=4
LF=9
LS=7
LF=9
LS=3
LF=4
LS=2
LF=3
LS=0
LF=2
Duration = 15 weeks
Slack=(7-4)=(9-6)= 3 Wks
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CPM Assumptions/Limitations
Project activities can be identified as entities (There is a
clear beginning and ending point for each activity.)
Project activity sequence relationships can be specified and
networked
Project control should focus on the critical path
The activity times follow the beta distribution, with the
variance of the project assumed to equal the sum of the
variances along the critical path