Project Management

1. Project Management Prof. Dr. Ali ŞEN University of Mediterranean Karpasia

2. What is a Project? A temporary and one-time endeavor undertaken to create a unique product or service, which brings about beneficial change or added value

3. Examples of Projects • Building Construction • Research Project

4. PROJECT MANAGEMENT VS. GENERAL MANAGEMENT

5. Skill Requirements for Effective Project Management • Conflict Resolution • Creativity and Flexibility • Ability to Adjust to Change • Good Planning • Negotiation • win-win versus win-lose

6. Figure 1-1: Performance, Cost, and Time Project Targets Chapter 1: The World of Project Management

7. Figure 1-2 The Project Life Cycle

8. Management of Projects • Planning - goal setting, defining the project, team organization • Scheduling - relates people, money, and supplies to specific activities and activities to each other • Controlling - monitors resources, costs, quality, and budgets; revises plans and shifts resources to meet time and cost demands

9. Project Management Activities • Planning • Objectives • Resources • Work break-down schedule • Organization • Scheduling • Project activities • Start & end times • Network • Controlling • Monitor, compare, revise, action

10. Before Start of project During project Timeline project Project Planning, Scheduling, and Controlling Figure 3.1

11. Before Start of project During project Timeline project Project Planning, Scheduling, and Controlling Figure 3.1

12. Before Start of project During project Timeline project Project Planning, Scheduling, and Controlling Figure 3.1

13. Project Control Reports • Detailed cost breakdowns for each task • Total program labor curves • Cost distribution tables • Functional cost and hour summaries • Raw materials and expenditure forecasts • Variance reports • Time analysis reports • Work status reports

14. Before Start of project During project Timeline project Project Planning, Scheduling, and Controlling Figure 3.1

15. Time/cost estimates Budgets Engineering diagrams Cash flow charts Material availability details Budgets Delayed activities report Slack activities report CPM/PERT Gantt charts Milestone charts Cash flow schedules Before Start of project During project Timeline project Project Planning, Scheduling, and Controlling Figure 3.1

16. The Constraint Triangle RESOURCE (COST) What is most important? PRODUCT (SPECIFICATION) SCHEDULE (TIME)

17. Peanuts

18. Tools And Techniques

19. The Work Breakdown Structure(WBS)

20. Outline • Introduction • Purposes, Benefits and Examples of a WBS • Additional WBS Terminology • Risks in preparing a WBS • Summary • Appendix -- Constructing a WBS • Steps of Construction • Notes on WBS • Examples of Issues in preparing WBS

21. The Overall Planning Cycle Manage Risks Analyze Job Generate Initial Plans Generate Detailed Plans Execute Measure, Manage Productivity and Quality

22. Detailed Planning - Processes Source Information Statement of Work Requirements Constraints Standards Processes History etc. Estimate Size Estimate Effort and Cost WBS Size Effort & Cost Revise & Negotiate Not OK Complete Detailed Planning Evaluate Estimate Schedule OK Schedule

23. Detailed Planning - Questions What Do We Have To Do? How Big Is It? How Much Will it Cost? WBS Size Effort & Cost What Can We Change? Not OK Is This Acceptable? Complete Detailed Planning How Long? What Do We Do When? OK Schedule

24. Work Breakdown Structure Introduction Just tell me what I have to do!

25. Software for “C” Compiler Build “C” Compiler Build Test Suite Write Documentation Write Installation Software Manage Software Development User Interface File System Parser Code Generator Run Time System The Work Breakdown Structure Is ... • A hierarchical list of the activities required to complete a project • It includes tasks for • Software development • Software development management • Support of software development • Any other activities required to meet customer requirements, such as training, documentation etc.

26. Top Level Role of WBS Cost Estimate (proposal &/ project start) Source Documents (SOW, Requirements, contract, test criteria, etc,) WBS Cost Tracking (during execution) Historical Records (at end of project)

27. Build “C” Compiler Build Test Suite Write Documentation Write Installation Software Manage Software Development User Interface File System Parser Code Generator Run Time System An example of a WBSShown as a Tree Software for “C” Compiler

28. An example of a WBSShown as Indented Text 1 Software for “C” Compiler 1.1 Build a “C” Compiler 1.1.1 Build a User Interface 1.1.2 Build a File System 1.1.3 Build a Parser 1.1.4 Build a Code Generator 1.1.5 Build a Run Time System 1.2 Build the Test Suite for the Compiler 1.2.1 etc. 1.3 Write Documentation 1.4 Write Installation Software 1.5 Manage Software Development

29. Purposes of a WBS • To organize the work to be done • To illustrate the work to be done • To assure that all necessary work has been identified • To divide the work into small, well defined tasks

30. Why Do a WBS? • To facilitate planning, estimating and scheduling of the project • To identify contractual tasks and deliverables • To provide a basis for data monitoring and historical data collection

31. $301K $112K $85K $28K $45K $31K $22K $13K $15K $38K $24K “Rolling Up” Costs

32. Work Breakdown Structure Jigsaw model ELEMENTS

33. Gantt Chart GANTT Charts Constructing GANTT Charts Staffing and Re-scheduling

34. Gantt Chart A GANTT chart is a type of bar chart that illustrates a project schedule. After the PERT/CPM analysis is completed, the following phase is to construct the GANTT chart and then to re-allocate resources and re-schedule if necessary. GANTT charts have become a common technique for representing the phases and activities of a project work breakdown structure. It was introduced by Henry Gantt around 1910 – 1915.

35. Gantt Chart

36. Gantt Chart • Characteristics: • The bar in each row identifies the corresponding task • The horizontal position of the bar identifies start and end times of the task • Bar length represents the duration of the task • Task durations can be compared easily • Good for allocating resources and re-scheduling • Precedence relationships can be represented using arrows • Critical activities are usually highlighted • Slack times are represented using bars with doted lines • The bar of each activity begins at the activity earliest start time (ES) • The bar of each activity ends at the activity latest finish time (LF).

37. Gantt Chart • Advantages • Simple • Good visual communication to others • Task durations can be compared easily • Good for scheduling resources • Disadvantages • Dependencies are more difficult to visualise • Minor changes in data can cause major changes in the chart

38. Constructing Gantt Chart • The steps to construct a GANTT chart from the information obtained by PERT/CPM are: • Schedule the critical tasks in the correct position. • Place the time windows in which the non-critical tasks can be scheduled. • Schedule the non-critical tasks according to their earliest starting times. • Indicate precedence relationships between tasks.

39. Constructing Gantt Chart Example of an early GANTT chart construction:

40. Constructing Gantt Chart Step 1. Schedule critical tasks:

41. Constructing Gantt Chart Step 2. Place time windows for non-critical tasks:

42. Constructing Gantt Chart Step 3. Schedule non-critical tasks Step 4. Indicate precedence relationships:

43. Project Management Software • Benefits of project management software: • Calculate project schedule • Resource smoothing • Automatic generation of reports and charts • Limitations of project management software • Allocation of resources to tasks • Estimation of tasks durations • Make decisions Reading: (Kendall&Kendall, chapter 3), (Dennis &Wixom, chapter 3).

44. Activity-in-the-Box Network Diagrams (precedence)

45. Six Steps PERT & CPM • Define the project and prepare the work breakdown structure • Develop relationships among the activities - decide which activities must precede and which must follow others • Draw the network connecting all of the activities

46. Six Steps PERT & CPM • Assign time and/or cost estimates to each activity • Compute the longest time path through the network – this is called the critical path • Use the network to help plan, schedule, monitor, and control the project

47. Questions PERT & CPM Can Answer When will the entire project be completed? What are the critical activities or tasks in the project? Which are the noncritical activities? What is the probability the project will be completed by a specific date?

48. Questions PERT & CPM Can Answer Is the project on schedule, behind schedule, or ahead of schedule? Is the money spent equal to, less than, or greater than the budget? Are there enough resources available to finish the project on time? If the project must be finished in a shorter time, what is the way to accomplish this at least cost?

49. A comes before B, which comes before C A C (a) B A B C A A A and B must both be completed before C can start (b) C C B B B B and C cannot begin until A is completed B A (c) A C C A Comparison of AON and AOA Network Conventions Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) Figure 3.5

50. C and D cannot begin until both A and B are completed A C B A C (d) D B D C cannot begin until both A and B are completed; D cannot begin until B is completed. A dummy activity is introduced in AOA A C A C (e) Dummy activity B D B D A Comparison of AON and AOA Network Conventions Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) Figure 3.5