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A “Project”

A “Project”. A collection of activities directed toward a common goal Requires a unified effort A unique “one time” product Has a Beginning A middle And an end. Project objectives:. Quantified in terms of Time - Schedule Cost - Budget

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A “Project”

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  1. A “Project” • A collection of activities directed toward a common goal • Requires a unified effort • A unique “one time” product • Has a Beginning • A middle • And an end.

  2. Project objectives: • Quantified in terms of • Time - Schedule • Cost - Budget • Quality - How should the end product operate and under what conditions?

  3. Project Objectives: • Make it: • Quick • Cheap and • Right. • Choose any two...

  4. Activity Months • a Pilot process 6 • b Scaleup Manufacturing 3 • c Package 2 • d Design Package 5 • e Get Containers 6 • f Get Outer boxes 10 • g Define Market Strategy 2 • h Develop Promotion 3 • i Train Sales Force 2 • j Pack and Ship 4 • Total --> 43 Months • How long will it take?… 43 months? Or 10?

  5. P.E.R.T. Lockheed, Navy, Booze-Allen-Hamilton Polaris Missile Project > 3000 contractors Computerized Shaved two years off the project Activity on Arrow Nodes are milestones Probabilities and Statistics C.P.M. Remington-Dupont Munitions Plant Maintenance Activity on Node Single estimates of times Project Management-- simultaneous independent efforts in the 1950’s

  6. How Long will it take? • Identify activities • Estimate Durations • Define Precedence relationships • Find the Critical Path(s) • The Longest time path determines the length of the project

  7. Activity Months Predecessors • a Pilot process 6 - • b Scaleup Manufacturing 3 a • c Package 2 b,e • d Design Package 5 - • e Get Containers 6 d • f Get Outer boxes 10 d • g Define Market Strategy 2 - • h Develop Promotion 3 g • i Train Sales Force 2 h • j Pack and Ship 4 c, f, i

  8. Pert Chart

  9. The critical path:

  10. The Bracket diagram

  11. Project Costs: • Lost sales opportunities • Lost market position opportunities • Overhead costs of keeping it going • Cost of the guys in the white coats • VS • Cost of expediting • Lost quality • Uncertainty • Crashing Projects: • Adding resources to shorten specific activities: • On the critical path • Biggest Bang for the least bucks • Stop • when it costs more than you save.

  12. Which steps should be crashed? Fixed project overhead (and Opportunity cost) is $1000K /month • Activity Months Crash Cost • a Pilot process 6 $800 • b Scaleup Manufacturing 3 $1,300 • c Package 2 $750 • d Design Package 5 $400 • e Get Containers 6 $700 • f Get Outer boxes 10 $200 • g Define Market Strategy 2 $100 • h Develop Promotion 3 $200 • i Train Sales Force 2 $300 • j Pack and Ship 4 $1,200 • Critical path activities

  13. Benefits of Project Management • Overview of project logic--Relationships & timing • Communication documents • Defines responsibilities • Track progress • Identify problems while there is still time to fix them • Basis for evaluating alternatives • Decisions on resource allocation • Tool for managing manpower--Assignments across projects.

  14. Pitfalls in Project Planning • GIGO • Resource schedule conflicts • Precedence relationships poorly defined • Leaving out essential activities (e.g. QC Lab capacity) • Crashing noncritical activities • Ignoring a second critical path • Uncertainty can make shorter paths critically unpredictable • People • Lack of uniform purpose (Communication) • Point estimates are typically wrong • Breakthroughs • Serendipity • Murphy

  15. A Miracle occurs! And then...

  16. More Commonly…. • Let’s Hear More “EUREKA!”s • and fewer • “Oh CRAP!!” s • from this lab...

  17. Purpose of a project • A Project should: • Define the Goals • Achieve the Goals • Turn itself OFF.

  18. There comes a time in the life of every Project... • When it becomes necessary to • shoot the engineers… • And start production. • If an engineer were in on the invention of the wheel, • He’d still be making it rounder and • we’d still be walking.

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