PROJECT

MANAGEMENT
 OUTLINES

► The Importance of Project Management

► Project Planning

► Project Scheduling

► Project Controlling

► Project Management Techniques: CPM

► Determining the Project Schedule

► Critical Path Method

 WHAT IS A PROJECT?

“ Unique process consisting of a set of coordinated and

controlled activities with start and finish dates,
undertaken to achieve an objective conforming to
specific requirements, including constraints of time,
cost, quality and resources”
• A Project is a planned set of activities
• A Project has a scope
• A Project has time, cost, quality and resource constraints
EXAMPLES OF PROJECTS
 REASONS FOR FAILURE PROJECTS

No risk Lack of
executive
management support

No No measures
linkage to to evaluate
business successful
strategy projects

Inability to Wrong
manage team
change members
SUCCESSFUL PROJECT CRITERIA

ON TIME ON BUDGET

MEET GOALS
 MANAGEMENT OF PROJECTS
► Planning ► Scheduling
► Objectives ► Project activities
► Resources ► Start and end times
1. Planning - goal setting, defining
► Work break-down ► Network
structure the project, team organization
► Organization 2. Scheduling - relate people,
money, and supplies to specific
activities and activities to each
other
3. Controlling - monitor resources,
costs, quality, and budgets;
► Controlling revise plans and shift resources
► Monitor, compare, revise, action to meet time and cost demands
PROJECT PLANNING, SCHEDULING. AND CONTROLLING
PROJECT PLANNING, SCHEDULING. AND CONTROLLING
PROJECT PLANNING, SCHEDULING. AND CONTROLLING
 PROJECT ORGANIZATION
► Often temporary structure
► Uses specialists from entire company
► Headed by project manager
► Coordinates activities
► Monitors schedule
and costs
► Permanent
structure called
‘matrix organization’

© 2014 Pearson Education, Inc. 3 - 11

 A SAMPLE PROJECT ORGANISATION

President

Human Quality
Resources Marketing Finance Design Production
Mgt

Project Project Mechanical Test

Technician
No. 1 Manager Engineer Engineer

Project Project Electrical Computer

Technician
No. 2 Manager Engineer Engineer
 A SAMPLE PROJECT ORGANISATION
Marketing Operations Engineering Finance

Project 1

Project 2

Project 3

Project 4

© 2014 Pearson Education, Inc. 3 - 13

 THE ROLE OF PROJECT MANAGER

Highly visible
Responsible for making sure that:
1) All necessary activities are finished in order
and on time
2) The project comes in within budget
3) The project meets quality goals
4) The people assigned to the project receive
motivation, direction, and information
 THE ROLE OF PROJECT MANAGER

Highly visible Project managers should be:

Responsible for making sure that:
► Good coaches
1) All necessary activities
► Goodare finished in order
communicators
and on time ► Able to organize activities

2) The project comes from a variety

in within of disciplines
budget
3) The project meets quality goals
4) The people assigned to the project receive
motivation, direction, and information
 ETHICAL ISSUES
► Project managers face many ethical decisions
on a daily basis
► The Project Management Institute has
established an ethical code to deal with
problems such as:

1) Offers of gifts from contractors

2) Pressure to alter status reports to mask delays
3) False reports for charges of time and expenses
4) Pressure to compromise quality to meet schedules
 WORK BREAKDOWN STRUCTURE

Level
1. Project
2. Major tasks in the project
3. Subtasks in the major tasks
4. Activities (or “work packages”)
to be completed
 WORK BREAKDOWN STRUCTURE
Develop Windows 8
Level 1 1.0
Operating System

Software Cost Management System

Level 2 1.1 1.2 1.3
Design Plan Testing

Develop Design Cost Module

Level 3 1.1.1 1.2.1 1.3.1
GUIs Tracking Reports Testing

Ensure Compatibility Develop Defect

with Earlier Versions 1.1.2 Cost/Schedule 1.2.2 Testing 1.3.2
Interface

Compatible with
Level 4 1.1.2.1
Windows 7
(Work packages)
Compatible with 1.1.2.2
Windows Vista

Compatible with Figure 3.3

Windows XP 1.1.2.3
 PROJECT SCHEDULING TECHNIQUE

1) Ensure that all activities

are planned for
2) Their order of
performance is
accounted for
3) The activity time
estimates are recorded
4) The overall project time is developed
 PURPOSES OF PROJECT SCHEDULING

1. Shows the relationship of each activity to

others and to the whole project
2. Identifies the precedence relationships
among activities
3. Encourages the setting of realistic time and
cost estimates for each activity
4. Helps make better use of people, money,
and material resources by identifying critical
bottlenecks in the project
PROJECT MANAGEMENT TECHNIQUES

► Gantt chart
► Critical Path Method (CPM)
 A SIMPLE GANTT CHART

Time
J F M A M J J A S

Design
Prototype
Test
Revise
Production
 EXAMPLE OF GANTT CHART
Deplaning
Passengers
Baggage claim
Baggage Container offload
Pumping
Fueling
Engine injection water
Cargo and mail Container offload
Main cabin door
Galley servicing
Aft cabin door
Lavatory servicing Aft, center, forward
Drinking water Loading
First-class section
Cabin cleaning
Economy section
Cargo and mail Container/bulk loading
Galley/cabin check
Flight services
Receive passengers
Operating crew Aircraft check
Baggage Loading
Passengers Boarding
0 10 20 30 40
Time, Minutes
 CPM
► Network techniques
► Developed in 1950s
► CPM by DuPont for chemical plants (1957)
► Consider precedence relationships and
interdependencies
► Each uses a different estimate of activity
times
 CPM
1. Define the project and prepare the work
breakdown structure
2. Develop relationships among the activities –
decide which activities must precede and
which must follow others
3. Draw the network connecting all of the
activities
 CPM
4. Assign time and/or cost estimates to each
activity
5. Compute the longest time path through the
network – this is called the critical path
6. Use the network to help plan, schedule,
monitor, and control the project
 CPM

1. When will the entire project be completed?

2. What are the critical activities or tasks in the
project?
3. Which are the noncritical activities?
4. Is the project on schedule, behind schedule, or
ahead of schedule?
 AON AND AOA
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
A comes before
(a) A B C B, which comes
before C A B C
A A
A and B must both
(b) C be completed
before C can start C
B B
B
B and C cannot
(c) A begin until A is B
completed A
C C
 AON AND AOA
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)

C and D cannot
A C begin until both A C
(d) A and B are
completed
B D B D

C cannot begin until

both A and B are
A C completed A C
(e) D cannot begin until Dummy activity
B is completed
B D A dummy activity is
introduced in AOA B D
 AON AND AOA
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)

B and C cannot
begin until A is
completed
A B D D cannot begin A B D
until both B and C
(f) are completed Dummy
A dummy activity activity
C
C
is again
introduced in AOA
 DETERMINING PROJECT SCHEDULE
Perform a Critical Path Analysis
► The critical path is the longest path
through the network
► Any delay in critical path activities delays
the project
► Critical path activities have no slack time
 DETERMINING PROJECT SCHEDULE
Table
3.2 Time Estimates for Milwaukee Paper Manufacturing
ACTIVITY DESCRIPTION Predecessor TIME (WEEKS)
A Build internal components - 2
B Modify roof and floor - 3
C Construct collection stack A 2
D Pour concrete and install A,B 4
frame
E Build high-temperature burner C 4
F Install pollution control system C 3
G Install air pollution device E,D 5
H Inspect and test F,G 2
Total time (weeks) 25
 DETERMINING PROJECT SCHEDULE
Perform a Critical Path Analysis
Earliest start (ES) = earliest time at which an activity can
start, assuming all predecessors have
been completed
Earliest finish (EF) = earliest time at which an activity can be
finished
Latest start (LS) = latest time at which an activity can start
so as to not delay the completion time of
the entire project
Latest finish (LF) = latest time by which an activity has to be
finished so as to not delay the
completion time of the entire project
 DETERMINING PROJECT SCHEDULE
Activity Format

Activity Name
or Symbol
A Earliest
Earliest ES EF Finish
Start

Latest LS LF Latest
Start 2 Finish

Activity Duration
 DETERMINING PROJECT SCHEDULE
Begin at starting event and work forward

Earliest Start Time Rule:

► If an activity has only a single immediate

predecessor, its ES equals the EF of the
predecessor
► If an activity has multiple immediate
predecessors, its ES is the maximum of all
the EF values of its predecessors

ES = Max {EF of all immediate predecessors}

 DETERMINING PROJECT SCHEDULE
Begin at starting event and work forward

Earliest Finish Time Rule:

► The earliest finish time (EF) of an activity is

the sum of its earliest start time (ES) and its
activity time

EF = ES + Activity time
 DETERMINING PROJECT SCHEDULE

ES EF = ES + Activity time
Start
0 0

0
 DETERMINING PROJECT SCHEDULE

EF of A =
ES ES of A + 2
of A
A
Start 0 2
0 0

2
 DETERMINING PROJECT SCHEDULE

A
0 2

2 EF of B =
ES ES of B + 3
0
Start
0 of B
B
0 0 3

3
 DETERMINING PROJECT SCHEDULE

A C
0 2 2 4

2 2

Start
0 0

B
0 3

3
 DETERMINING PROJECT SCHEDULE

A C
0 2 2 4

2 2

Start
0 0
= Max (2, 3) D
0
3 7
B
0 3

3
4
 DETERMINING PROJECT SCHEDULE

A C
0 2 2 4

2 2

Start
0 0

B D
0 3 3 7

3 4
 DETERMINING PROJECT SCHEDULE
ACTIVITY Predecessor TIME (WEEKS)
A
A - 2 0 2 C F
2 4 4 7
B - 3

C A 2
2
2 3
D A,B 4 Start
0 0
E C 4 E H
4 8 13 15
F C 3
0
G E,D 5 4 2
H F,G 2
B D
3 7 G
0 3 8 13

3 4
5

Figure 3.10
 DETERMINING PROJECT SCHEDULE
Begin with the last event and work backwards
Latest Finish Time Rule:

► If an activity is an immediate predecessor for

just a single activity, its LF equals the LS of the
activity that immediately follows it
► If an activity is an immediate predecessor to
more than one activity, its LF is the minimum
of all LS values of all activities that
immediately follow it
LF = Min {LS of all immediate following activities}
 DETERMINING PROJECT SCHEDULE
Begin with the last event and work backwards
Latest Start Time Rule:

► The latest start time (LS) of an activity is the

difference of its latest finish time (LF) and its
activity time

LS = LF – Activity time
 DETERMINING PROJECT SCHEDULE

A C F
0 2 2 4 4 7

2 2 3

Start E H
0 0 4 8 13 15
13 15
0 4 2

B D – Activity timeG
LS = LF
0 3 3 7 8 13

3 4 5 LF = EF
of Project
 DETERMINING PROJECT SCHEDULE

A C F
0 2 2 4 4 7

10 13
2 2 3

Start E H
0 0 4 Min(LS
8 of 13 15
LF =
following activity) 13 15
0 4 2

B D G
0 3 3 7 8 13

3 4 5
 DETERMININGLFPROJECT
= Min(4, 10)SCHEDULE

A C F
0 2 2 4 4 7

2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15

4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
8 13
3 4 5
 DETERMINING PROJECT SCHEDULE

A C F
0 2 2 4 4 7

0 2 2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15

0 0 4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
 SLACK TIME
After computing the ES, EF, LS, and LF times for
all activities, compute the slack or free time for
each activity

► Slack is the length of time an activity can be

delayed without delaying the entire project

Slack = LS – ES or Slack = LF – EF
 SLACK TIME
TABLE 3.3 Milwaukee Paper’s Schedule and Slack Times
EARLIEST EARLIEST LATEST LATEST ON
START FINISH START FINISH SLACK CRITICAL
ACTIVITY ES EF LS LF LS – ES PATH
A 0 2 0 2 0 Yes
B 0 3 1 4 1 No
C 2 4 2 4 0 Yes
D 3 7 4 8 1 No
E 4 8 4 8 0 Yes
F 4 7 10 13 6 No
G 8 13 8 13 0 Yes
H 13 15 13 15 0 Yes
 SLACK TIME
Activities with zero slack are on the critical path. It:
► Starts at the first activity in the project
► Terminates atTABLE activityMilwaukee
the last 3.3 Paper’s Schedule and Slack Times
in the project
► Includes only critical activities
EARLIEST EARLIEST LATEST LATEST ON
START FINISH START FINISH SLACK CRITICAL
ACTIVITY ES EF LS LF LS – ES PATH
A 0 2 0 2 0 Yes
B 0 3 1 4 1 No
C 2 4 2 4 0 Yes
D 3 7 4 8 1 No
E 4 8 4 8 0 Yes
F 4 7 10 13 6 No
G 8 13 8 13 0 Yes
H 13 15 13 15 0 Yes
 CRITICAL PATH

A C F
0 2 2 4 4 7

0 2 2 4 10 13
2 2 3

Start E H
0 0 4 8 13 15

0 0 4 8 13 15
0 4 2

B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5