Project Management

McGraw-Hill/Irwin

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

 You should be able to: 1. Discuss the behavioral aspects of projects in terms of project personnel and the project manager 2. Explain the nature and importance of a work breakdown structure in project management 3. Give a general description of PERT/CPM techniques 4. Construct simple network diagrams 5. List the kinds of information that a PERT or CPM analysis can provide 6. Analyze networks with deterministic times 7. Analyze networks with probabilistic times 8. Describe activity crashing and solve typical problems

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Projects
Unique, one-time operations designed to

accomplish a specific set of objectives in a limited time frame Examples:

The Olympic Games Producing a movie Software development Product development ERP implementation

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Projects go through a series of stages a life

cycle Projects bring together people with a diversity of knowledge and skills, most of whom remain associated with the project for less than its full life Organizational structure affects how projects are managed

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 The project manager is ultimately responsible for

the success or failure of the project The project manager must effectively manage:
The work The human resources Communications Quality Time Costs

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 Behavioral problems can be created or

exacerbated by
within budget Surprises

Decentralized decision making Stress of achieving project milestones on time and

The team must be able to function as a unit Interpersonal and coping skills are very important Conflict resolution and negotiation can be an important part of a project managers job

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 Many problems can be avoided or mitigated

by:

Effective team selection Leadership Motivation Maintaining an environment of Integrity Trust Professionalism Being supportive of team efforts

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Project champion
A person who promotes and supports a project Usually resides within the organization Facilitate the work of the project by talking up the project to other managers, and who might be asked to share resources with the project team as well as employees who might be asked to work on parts of the project The project champion can be critical to the success of a project

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 Planning
Objectives Resources Work break-down schedule Organization

Scheduling
Project activities Start & end times Network

Controlling
Monitor, compare, revise, action

WBS
A hierarchical listing of what must be done

during a project
Establishes a logical framework for identifying the

required activities for the project

1. 2. 3.

Identify the major elements of the project Identify the major supporting activities for each of the major elements Break down each major supporting activity into a list of the activities that will be needed to accomplish it

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 PERT (program evaluation and review

technique) and CPM (critical path method) are two techniques used to manage largescale projects By using PERT or CPM Managers can obtain:
A graphical display of project activities 2. An estimate of how long the project will take 3. An indication of which activities are most critical to timely project completion 4. An indication of how long any activity can be delayed without delaying the project
1.

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 Network diagram Diagram of project activities that shows sequential relationships by use of arrows and nodes Activity on arrow (AOA) Network diagram convention in which arrows designate activities Activity on node (AON) Network convention in which nodes designate activities
Activities Project steps that consume resources and/or time Events The starting and finishing of activities

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Deterministic
Time estimates that are fairly certain

Probabilistic
Time estimates that allow for variation

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Finding ES and EF involves a forward

pass through the network diagram

Early start (ES)

The earliest time an activity can start Assumes all preceding activities start as early as possible For nodes with one entering arrow ES = EF of the entering arrow For activities leaving nodes with multiple entering arrows ES = the largest of the largest entering EF

Early finish (EF)

The earliest time an activity can finish EF = ES + t

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 Finding LS and LF involves a backward pass

through the network diagram

Late Start (LS)

The latest time the activity can start and not delay the

project

The latest starting time for each activity is equal to its latest

finishing time minus its expected duration: LS = LF - t

Late Finish (LF)

The latest time the activity can finish and not delay the

project

For nodes with one leaving arrow, LF for nodes entering that

node equals the LS of the leaving arrow For nodes with multiple leaving arrows, LF for arrows entering node equals the smallest of the leaving arrows

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Slack can be computed one of two ways:

Slack = LS ES Slack = LF EF

Critical path
The critical path is indicated by the activities

with zero slack

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 Knowledge of slack times provides

managers with information for planning allocation of scarce resources

Control efforts will be directed toward those activities

that might be most susceptible to delaying the project of the activities on the same path will be started as early as possible and not exceed their expected time

Activity slack times are based on the assumption that all

If two activities are on the same path and have the

same slack, this will be the total slack available to both

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Milwaukee Paper Manufacturing's Activities and Predecessors

Activity A B C D E F G H Description Build internal components Modify roof and floor Construct collection stack Pour concrete and install frame Build high-temperature burner Install pollution control system Install air pollution device Inspect and test Immediate Predecessors A A, B C C D, E F, G

Activity A (Build Internal Components)

Start
Activity B (Modify Roof and Floor)

Start Activity

Activity A Precedes Activity C A C

Start

D Activities A and B Precede Activity D

F A C

Start

D Arrows Show Precedence Relationships

2
(B C ui l om d A p o In t ne ern nt al s)

C (Construct Stack)

4
F Co (Ins nt tal ro l ls )

E (Build Burner)

Dummy Activity

6
G ll a st tion ) n (I llu ce i Po ev D

Ro (M B of odi / F fy lo or )

H (Inspect/ Test)

D 5 (Pour Concrete/ Install Frame)

Perform a Critical Path Analysis

The critical path is the longest path through the network The critical path is the shortest time in which the project can be completed Any delay in critical path activities delays the project Critical path activities have no slack time

Perform a Critical Path Analysis

Activity A B C D E F G H Description Build internal components Modify roof and floor Construct collection stack Pour concrete and install frame Build high-temperature burner Install pollution control system Install air pollution device Inspect and test Total Time (weeks) Time (weeks) 2 3 2 4 4 3 5 2 25

Perform a Critical Path Analysis

Activity A B C D E F G H Earliest start (ES) = earliest time at Description Time (weeks) which an activity can start, assuming all Build internal components predecessors have been completed2 ModifyEarliest roof and floor(EF) = 3 at finish earliest time which an activity can be finished Construct collection stack 2 Pour concrete and(LS) install Latest start = frame latest time4 at which an activity burner can start so as to not Build high-temperature 4 thecontrol completion time of the entire Install delay pollution system 3 project Install air pollution device 5 Latest finish (LF) = latest time by Inspect and test 2 as which an activity has to be finished so Total Time (weeks) 25 to not delay the completion time of the entire project

Perform a Critical Path Analysis

Activity Name or Symbol Earliest Start A ES EF Earliest Finish

Latest Start

LS 2

LF

Latest Finish

Activity Duration

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

ES
Start

EF = ES + Activity time 0 0

ES of A
0
Start

EF of A = ES of A + 2

A 2

Start

ES of B

EF of B = ES of B + 3

A 2

C 2

Start

0 0 B 3 3

A 2

C 2

Start

0 0 B 3

= Max (2, 3) 3
3

D 7 4

A 2

C 2

Start

0 0 B 3 3 3 D 4 7

A 2

C 2

F 3

Start

E 4

13

H 2

15

0 0 B 3 3 3 D 4 7

G 5

13

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 more than one activity, its LF is the minimum of all LS values of all activities that immediately follow it

If an activity is an immediate predecessor to

LF = Min {LS of all immediate following activities}

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

A 2

C 2

F 3

Start

E 4

13 13

H 2

15 15

0 0 B 3 3 3 7

LS = LF D Activity time G
8 4 5

13

LF = EF of Project

A 2

C 2

4 10

F 3

7 13 H 2

Start

E LF = Min(LS of 8 following 4 activity) 4 0 B 3 3 3 D 4 7 8 G 5 13

13 13

15 15

LF = Min(4, 10)

A 2

2 2

C 2

4 4 E 4

4 10

F 3

7 13 H 2

Start

4 4 B 3 D 4

8 8 G 5

13 13

15 15

0 0 3 3 7

8 8

13 13

0 0 0 0
Start

A 2

2 2

2 2

C 2

4 4 E 4

4 10

F 3

7 13 H 2

0 0 B 3 D 4

4 4

8 8 G 5

13 13

15 15

0 1

3 4

3 4

7 8

8 8

13 13

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

Earliest Start Activity ES

A B C D E F G H 0 0 2 3 4 4 8 13

Earliest Finish EF
2 3 4 7 8 7 13 15

Latest Start LS
0 1 2 4 4 10 8 13

Latest Finish LF
2 4 4 8 8 13 13 15

Slack LS ES
0 1 0 1 0 6 0 0

On Critical Path
Yes No Yes No Yes No Yes Yes

0 0 0 0
Start

A 2

2 2

2 2

C 2

4 4 E 4

4 10

F 3

7 13 H 2

0 0 B 3 D 4

4 4

8 8 G 5

13 13

15 15

0 1

3 4

3 4

7 8

8 8

13 13

Activity a b c d e f g h i j

Predecessor --a a a b, c d d, e f g, h

Duration 5 days 4 3 4 6 4 5 6 6 4