om operations
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Chapter 3
Project Management
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Definition of Project Management
Work Breakdown Structure
Project Control Charts
Structuring Projects
Critical Path Scheduling
OBJECTIVES
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Projectis a series of related jobs usually
directed toward some major output and
requiring a significant period of time to
perform Project Managementare the
management actiities of planning!
directing! and controlling resources"people! equipment! material# to meet the
technical! cost! and time constraints of a
project
Project Management
Defined
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Gantt hart
Activity 1
Activity 2
Activity 3
Activity 4
Activity 5Activity 6
Time
Vertical Axis:Always Activities
or Jobs
Vertical Axis:Always Activities
or Jobs
Horizontal Axis: Always Time
Horizontal Axis: Always Time
Horizontal bars use to enote len!t"
o# time #or eac" activity or $ob%
Horizontal bars use to enote len!t"
o# time #or eac" activity or $ob%
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Structuring Projects Pure Project:
Adv n ges
Pure Project
Apure project is where a self-contained teamwors full-time on the project
$he project manager has full authorityoer the project
$eam members report to one boss Shortened communication lines $eam pride! motiation! and commitment
are high
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Structuring Projects Pure
Project:
Dis dv n ges
Duplication of resources %rgani&ational goals and policies
are ignored 'ack of technology transfer
$eam members hae no functionalarea (home(
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Functional Project
&resient
'esearc" an
(evelo)ment*n!ineerin! +anu#acturin!
&ro$ect
A
&ro$ect
,
&ro$ect
-
&ro$ect
(
&ro$ect
*
&ro$ect
.
&ro$ect
/
&ro$ect
H
&ro$ect
0
) functional projectis housed withina functional diision
*xam)le &ro$ect , is in t"e #unctional
area o# 'esearc" an (evelo)ment%
*xam)le &ro$ect , is in t"e #unctional
area o# 'esearc" an (evelo)ment%
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Structuring Projects
Functional Project:
Adv n ges
) team member can work on
seeral projects $echnical e*pertise is maintained
within the functional area
$he functional area is a +home,after the project is completed Critical mass of speciali&ed
knowledge
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Structuring Projects
Functional Project:
Disadvantages
)spects of the project that are notdirectly related to the functional
area get short-changed Motiation of team members is
often weak .eeds of the client are secondary
and are responded to slowly
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Matrix Project rgani!ation
Structure
&resient
'esearc" an(evelo)ment *n!ineerin! +anu#acturin! +aretin!
+ana!er
&ro$ect A
+ana!er
&ro$ect ,
+ana!er
&ro$ect -
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Structuring Projects
Matrix: Advantages
/nhanced communications between functionalareas
Pinpointed responsibility
Duplication of resources is minimi&ed 0unctional +home, for team members
Policies of the parent organi&ation are followed
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Structuring Projects
Matrix: Disadvantages
$oo many bosses
Depends on project manager1s
negotiating skills
Potential for sub-optimi&ation
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"or# $rea#do%n Structure
&ro!ram
&ro$ect 1 &ro$ect 2
Tas 1%1
ubtas 1%1%1
or &aca!e 1%1%1%1
7evel
1
2
3
4
Tas 1%2
ubtas 1%1%2
or &aca!e 1%1%1%2
)work breakdown structuredefines thehierarchy of project tasks! subtasks! andwork packages
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&et%or#'Planning Models
) project is made up of a sequence of actiitiesthat form a network representing a project
$he path taking longest time through thisnetwork of actiities is called the +critical path,
$he critical path proides a wide range ofscheduling information useful in managing aproject
Critical Path Method "CPM# helps to identify thecritical path"s# in the project networks
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Prere(uisites for ritical
Path Methodolog)
) project must hae2
well-defined jobs or tasks whosecompletion marks the end of the project3
independent jobs or tasks3
and tasks that follow a gien sequence4
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*)pes of ritical Path
Methods
CPM with a Single $ime /stimate8 5sed when actiity times are known with certainty
8 5sed to determine timing estimates for the project! each
actiity in the project! and slack time for actiities CPM with $hree )ctiity $ime /stimates
8 5sed when actiity times are uncertain
8 5sed to obtain the same information as the Single $ime/stimate model and probability information
$ime-Cost Models8 5sed when cost trade-off information is a major
consideration in planning
8 5sed to determine the least cost in reducing total projecttime
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Steps in the PM %ith Single
*ime +stimate
64 )ctiity 7dentification
84 )ctiity Sequencing and .etworkConstruction
94 Determine the critical path
8 0rom the critical path all of the projectand actiity timing information can be
obtained
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PM %ith Single *ime
+stimate
-onsier t"e #ollowin! consultin! )ro$ect:Acti!it" #esi$nation Immed% Pred% Time &'ees(
Assess customer's needs A None 2
Write and submit proposal B A 1btain appro!al " B 1
#e!elop ser!ice !ision and $oals # " 2
%rain emplo&ees " 5
(ualit& impro!ement pilot $roups ) #* 5
Write assessment report + ) 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 dra% the net%or#
A,2- B,1- ",1-
#,2-
,5-
),5-+,1-
A None 2
B A 1
" B 1
# " 2
" 5
) #* 5
+ ) 1
Act. /med. red. %ime
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Determine earl) starts and earl)
finish times
9)14
14)15
0)2 2)3 3)4
4
)9
4
)6
A,2- B,1- ",1-
#,2-
,5-
),5- +,1-
int tart it 0
and $o orard in te
netor rom A to +.
int tart it 0
and $o orard in te
netor rom A to +.
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Determine late
starts and late
finish times
9
)14
14
)15
0
)2
2
)3
3
)4
4
)9
4
)6
A,2- B,1- ",1-
#,2-
,5-
),5- +,1-
14
)15
9
)14
4
)9
7
)9
3
)4
2
)3
0
)2
int tart it )15
or te total time o te
pro:ect and $obacard in te
netor rom + to A.
int tart it )15
or te total time o te
pro:ect and $obacard in te
netor rom + to A.
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ritical Path , Slac#
9
)14
14
)15
0
)2
2
)3
3
)4
4
)9
4)6
A,2- B,1- ",1-
#,2-
,5-
),5- +,1-
14
)15
9
)14
4
)9
7)9
3
)4
2
)3
0
)2
#uration15 ees
lac,7;4-,9;6- 3 Ws
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+xample -. PM %ith *hree
Activit) *ime +stimates
Tas
0mmeiate
&reecesors 9)timistic +ost 7iely &essimisticA :one 3 6 15
, :one 2 4 14
- A 6 12 3;
( A 2 5 2=
H *. 1 4 =
0 /H 4 1> 2
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