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Project Management

Project Management. Dr. Ron Lembke Operations Management. What’s a Project?. Changing something from the way it is to the desired state Never done one exactly like this Many related activities Focus on the outcome Regular teamwork focuses on the work process. Examples of Projects.

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Project Management

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  1. Project Management Dr. Ron Lembke Operations Management

  2. What’s a Project? • Changing something from the way it is to the desired state • Never done one exactly like this • Many related activities • Focus on the outcome • Regular teamwork focuses on the work process

  3. Examples of Projects • Building construction • New product introduction • Software implementation • Training seminar • Research project

  4. Why are projects hard? • Resources- • People, materials • Planning • What needs to be done? • How long will it take? • What sequence? • Keeping track of who is supposedly doing what, and getting them to do it

  5. IT Projects • Half finish late and over budget • Nearly a third are abandoned before completion • The Standish Group, in Infoworld • Get & keep users involved & informed • Watch for scope creep / feature creep

  6. Pinion Pine Power Plant • DOE Clean Coal • Air-blown Integrated Gasification Combined Cycle • Kellogg/Rust/Westinghouse gasifier • GE Frame 6FA combustion turbine • $335.9m, half DOE, half SPP

  7. Coal Gasification • Coal Gasification (new) • Coal into Low Heat Value (LHV) gas 130 btus/standard foot • Crushed coal and limestone absorbs sulfur • Hot gas desulfirized • Particulate removal • Gas Fed into turbine • Tested fine on nat gas

  8. Technology Development • Ash created in gasification, collected • Hot-gas cleanup (new technology) • SO2 in collected in calcium sulfate • Hot-gas filter, then to combustion turbine • Fines combustor burns particles bottom of filter • Main problem was filter-fines removal • Never operated more than 24 hrs. • Tried 24 times to start it. Eventually mothballed

  9. Project Scheduling • Establishing objectives • Determining available resources • Sequencing activities • Identifying precedence relationships • Determining activity times & costs • Estimating material & worker requirements • Determining critical activities

  10. Project Personnel Structure • Pure project “Skunk Works” • Functional Project • Matrix Project

  11. Work Breakdown Structure • Hierarchy of what needs to be done, in what order • For me, the hardest part • I’ve never done this before. How do I know what I’ll do when and how long it’ll take? • I think in phases • The farther ahead in time, the less detailed • Figure out the tricky issues, the rest is details • A lot will happen between now and then • It works not badly with no deadline

  12. Mudroom

  13. W D Mudroom Remodel D • Big-picture sequence easy: • Demolition • Framing • Plumbing • Electrical • Drywall, tape & texture • Slate flooring • Cabinets, lights, paint • Hard: can a sink fit? W

  14. Project Scheduling Techniques • Gantt chart • Critical Path Method (CPM) • Program Evaluation & Review Technique (PERT)

  15. Gantt Chart

  16. PERT & CPM • Network techniques • Developed in 1950’s • CPM by DuPont for chemical plants • PERT by U.S. Navy for Polaris missile • Consider precedence relationships & interdependencies • Each uses a different estimate of activity times

  17. Questions Answered by PERT & CPM • Completion date? • On schedule? Within budget? • Probability of completing by ...? • Critical activities? • Enough resources available? • How can the project be finished early at the least cost?

  18. PERT & CPM Steps • Identify activities • Determine sequence • Create network • Determine activity times • Find critical path • Earliest & latest start times • Earliest & latest finish times • Slack

  19. 1 2 3 Activity on Node (AoN) Project: Obtain a college degree (B.S.) Receive diploma Attend class, study etc. Enroll 1 month 4? Years 1 day

  20. 1 2 3 4 Activity on Arc (AoA) Project: Obtain a college degree (B.S.) Attend class, study, etc. Receive diploma Enroll 1 month 4,5 ? Years 1 day

  21. 1 2 3 4 AoA Nodes have meaning Project: Obtain a college degree (B.S.) GraduatingSenior Applicant Student Alum

  22. We’ll use Activity on Node 3 2 1 4 1-2 must be done before 2-3 or 3-4 can start

  23. Activity Relationships 2-3 must be done before 3-4 or 3-5 can start 3 5 2 1 4

  24. Activity Relationships 2-4 and 3-4 must be done before 4-5 can start 3 5 2 1 4

  25. Network Example You’re a project manager for Bechtel. Construct the network. Activity Predecessors A --B A C AD B E BF C G DH E, F

  26. A C E F B D G H Z Network Example - AON

  27. 7 2 9 5 1 3 6 8 Network Example - AOA G D B E A H C F 4

  28. 2 2 3 1 5 3 1 4 4 AOA Diagrams A precedes B and C, B and C precede D B A D C B A C D Add a phantom arc for clarity.

  29. Critical Path Analysis • Provides activity information • Earliest (ES) & latest (LS) start • Earliest (EF) & latest (LF) finish • Slack (S): Allowable delay • Identifies critical path • Longest path in network • Shortest time project can be completed • Any delay on activities delays project • Activities have 0 slack

  30. Critical Path Analysis Example

  31. Network Solution B D E A G 2 6 3 1 1 C F 3 4

  32. Earliest Start & Finish Steps • Begin at starting event & work forward • ES = 0 for starting activities • ES is earliest start • EF = ES + Activity time • EF is earliest finish • ES = Maximum EF of all predecessors for non-starting activities

  33. B D E A G 2 6 3 1 1 C F 3 4 Activity A Earliest Start Solution For starting activities, ES = 0.

  34. B D E A G 2 6 3 1 1 C F 3 4 Earliest Start Solution

  35. Latest Start & Finish Steps • Begin at ending event & work backward • LF = Maximum EF for ending activities • LF is latest finish; EF is earliest finish • LS = LF - Activity time • LS is latest start • LF = Minimum LS of all successors for non-ending activities

  36. B D E A G 2 6 3 1 1 C F 3 4 Earliest Start Solution

  37. B D E A G 2 6 3 1 1 C F 3 4 Latest Finish Solution

  38. Compute Slack

  39. B D E A G 2 6 3 1 1 C F 3 4 Critical Path

  40. New notation • Compute ES, EF for each activity, Left to Right • Compute, LF, LS, Right to Left ES EF C 7 LS LF

  41. Exhibit 7.6, p.195 F 8 C 7 A 21 G 2 B 5 D 2 E 5

  42. Exhibit 7.6, p.195 21 28 28 36 F 8 C 7 0 21 36 38 A 21 G 2 28 33 21 26 26 28 B 5 D 2 E 5 F cannot start until C and D are done. G cannot start until both E and F are done.

  43. Exhibit 7.6, p.195 21 28 28 36 F 8 C 7 21 28 28 36 0 21 36 38 A 21 G 2 0 21 36 38 28 33 21 26 26 28 B 5 D 2 E 5 21 26 26 28 31 36 E just has to be done in time for G to start at 36, so it has slack. D has to be done in time for F to go at 28, so it has no slack.

  44. Gantt Chart - ES A C B D E F G 0 5 10 15 20 25 30 35 40

  45. Solved Problem 1 B4 E6 G7 C3 A 1 I4 F2 D7 H9

  46. Solved Problem 1 1 5 511 B4 E6 1118 1 5 511 G7 1118 1 4 0 1 1822 C3 A 1 I4 6 9 0 1 810 1822 F2 1 8 911 817 D7 H9 2 9 918

  47. Can We Go Faster?

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