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Topic 8 - Project Management.r

This document provides an overview of project management techniques. It defines a project, discusses the typical project life cycle phases, and introduces two network planning techniques - PERT and CPM. These techniques use precedence diagrams and time estimates to identify the critical path of a project and estimate completion time. The document also includes an example of applying these techniques to a cable manufacturing project.

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120 views23 pages

Topic 8 - Project Management.r

This document provides an overview of project management techniques. It defines a project, discusses the typical project life cycle phases, and introduces two network planning techniques - PERT and CPM. These techniques use precedence diagrams and time estimates to identify the critical path of a project and estimate completion time. The document also includes an example of applying these techniques to a cable manufacturing project.

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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Project

Management
Project Management Applications
What is a project?
◦ Any unique endeavor with specific objectives
◦ With multiple activities
◦ With defined precedent relationships
◦ With a specific time period for completion

Examples?
◦ A major event like a wedding
◦ Any construction project
◦ Designing a political campaign
Project Life Cycle
Conception: identify the need
Feasibility analysis or study: costs benefits, and risks
Planning: analyze the work to be done and develop time
estimates for completing each of the activities.
Execution: carry out the activities that make up the project
Termination: ending the project
Project Activities
Specific tasks that must be
completed and require
resources.
Network Planning Techniques
Program Evaluation & Review Technique (PERT):
◦ Developed to manage the Polaris missile project
◦ used to determine a project's planned completion date and
identify the project's critical path.

Critical Path Method (CPM):


◦ Network planning technique, with deterministic times, used to
determine a project's planned completion date and identify
the project's critical path.
The PoLARis Missile
Both PERT and CPM
Graphically display the precedence relationships &
sequence of activities
Estimate the project’s duration
Identify critical activities that cannot be delayed
without delaying the project
Estimate the amount of slack associated with non-
critical activities
Precedence Relationships
Establishes
relationships of
activities to
ensure that all
necessary
activities are
completed before
a subsequent
activity is begun.
Critical Path
The longest
sequential path
through the
network diagram.
Activity on Node
Network diagramming
notation that places
activities in the nodes
and arrows to signify
precedence relationships.
Network Diagrams
Activity-on-Node (AON):
◦ Uses nodes to represent the activity
◦ Uses arrows to represent precedence relationships
Step 1-Define the Project: Cables By Us is bringing a new product on line to
be manufactured in their current facility in existing space. The owners have
identified 11 activities and their precedence relationships. Develop an AON for
the project.

Immediate Duration
Activity Description
Predecessor (weeks)
A Develop product specifications None 4
B Design manufacturing process A 6
C Source & purchase materials A 3
D Source & purchase tooling & equipment B 6
E Receive & install tooling & equipment D 14
F Receive materials C 5
G Pilot production run E&F 2
H Evaluate product design G 2
I Evaluate process performance G 3
J Write documentation report H&I 4
K Transition to manufacturing J 2
Step 2- Diagram the Network for
Cables By Us
Step 3 (a)- Add Deterministic Time
Estimates and Connected Paths
Step 3 (a) (Con’t): Calculate the
Project Completion Times
Paths Path duration
ABDEGHJK 40
ABDEGIJK 41
ACFGHJK 22
ACFGIJK 23
The longest path (ABDEGIJK) limits the project’s duration
(project cannot finish in less time than its longest path)
ABDEGIJK is the project’s critical path
Some Network Definitions
Earliest Start (ES) = the earliest finish of the immediately preceding
activity
Earliest Finish (EF) = is the ES plus the activity time
Latest Start (LS) and Latest Finish (LF) = the latest an activity can
start (LS) or finish (LF) without delaying the project completion
ES, EF Network
LS, LF Network
Project Management within
OM: How it all fits together
Project management techniques provide a structure for the
project manager to track the progress of different activities
required to complete the project. Particular concern is given
to critical path (the longest connected path through the
project network) activities.
Any delay to a critical path activity affects the project
completion time. These techniques indicate the expected
completion time and cost of a project. The project manager
reviews this information to ensure that adequate resources
exist and that the expected completion time is reasonable.
Project Management OM
Across the Organization
Accounting uses project management (PM)
information to provide a time line for major
expenditures
Marketing use PM information to monitor the
progress to provide updates to the customer
Information systems develop and maintain software
that supports projects
Operations use PM to information to monitor
activity progress both on and off critical path to
manage resource requirements
Thank you for listening!
Chapter 16 Highlights
A project is a unique, one time event of some duration that
consumes resources and is designed to achieve an objective in a
given time period.
Each project goes through a five-phase life cycle: concept, feasibility
study, planning, execution, and termination.
Two network planning techniques are PERT and CPM. Pert uses
probabilistic time estimates. CPM uses deterministic time
estimates.
Pert and CPM determine the critical path of the project and the
estimated completion time. On large projects, software programs
are available to identify the critical path.
Chapter 16 Highlights con’t
Pert uses probabilistic time estimates to determine the
probability that a project will be done by a specific time.
To reduce the length of the project (crashing), we need to know
the critical path of the project and the cost of reducing individual
activity times. Crashing activities that are not on the critical path
typically do not reduce project completion time.
The critical chain approach removes excess safety time from
individual activities and creates a project buffer at the end of the
critical path.

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