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Project Management. Chapter 3 BUSI 2106 – Operations Management. Project s and Project Management. What is a project? What is project management? Why is project management so important? What three basic activities are in project management?. Project s and Project Management.
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Project Management Chapter 3 BUSI 2106 – Operations Management
Projects and Project Management • What is a project? • What is project management? • Why is project management so important? • What three basic activities are in project management?
Projects and Project Management • What is a project? • A “unique event” with a unique goal • With a start, end, work, inputs and outputs. • Work, outside of the defined production system • What is project management entail? • Planning – activities to be done • Scheduling - work • Controlling – resources
Projects and Project Management • Why is project management so important? • Projects can be complex • The track record for project success is actually low • (at cost, on time, to spec) • Must coordinate resources across functional lines
Planning • Work Breakdown Structure (WBS) – hierarchical representation of project work, broken down into individual activities
Scheduling • Gantt chart – shows sequences of activities, start and end dates.
Controlling • Controlling Costs and Time • Use of software • Microsoft Project • Fast Track • MacProject • OpenWorkBench
PERT/CPM • Diagram Representation of a project, its activities and sequence • Six Steps • Define Project, Build WBS • Develop sequences – what tasks must be complete before another one starts • Draw network diagram connecting all activities • Assign time and cost estimates for each activity • Compute critical path • Why is it critical? • Use the diagram to help plan, schedule, monitor, etc.
PERT/CPM: Step 2 • Develop sequences
PERT/CPM: Step 3 • Draw network diagram
PERT/CPM: Step 4 • Assign time and cost
PERT/CPM: Step 5 • Compute critical path • Substeps • Forward Pass: Assign earliest start (ES) and earliest finish (EF) to each activity • Backward Pass: Assign latest finish (LF) and latest start (LS) to each activity • Calculate slack time for each activity • Identify critical path activities (activities where slack = 0)
PERT/CPM: Step 5 • Page 70 (the one with the transparencies)
Variability in Activity Times • Many techniques to make more accurate estimations • Three time estimates (optimistic (a), pessimistic (b), most likely (m)) • Time = (a + 4m + b)/6 • Variance = ([b + a]/6)^2
Probability of Project Completion • When you need to know the probability that a project will be completed at/before a certain time
Probability of Project Completion • “what is the probability that my this project, estimated to be finished in 15 weeks, will be complete in under 16 weeks?” • Find the z-score of 16 weeks
Project Crashing • Sometimes you need to add extra resources to speed up • Steps • Compute crash cost per time pd (week, day, etc) for each activity • Find critical path • On critical path, select the activity with the smallest crash cost. • Crash this activity by one pd • May need to check other activities on other critical paths • Update all activity times. Repeat from step 2 if needed.
