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Chapter 17

Chapter 17. Project Management. Project Teams. What is a Project? In The Beginning…Just Do It!. Good PMs In Most Industries Make about $100,000 Annually. Here's Why. Projects. 17- 5. Projects

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Chapter 17

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  1. Chapter 17 Project Management

  2. Project Teams

  3. What is a Project?In The Beginning…Just Do It!

  4. Good PMs In Most Industries Make about $100,000 Annually. Here's Why. Instructor Slides

  5. Projects 17-5 • 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

  6. The Nature of Projects 17-6 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

  7. Project Life Cycle – PMI says it is “Initiation, Planning, Execution, Monitoring & Control, And Closing” 17-7

  8. ERP Project Phases/Schedule/Resource Requirements We Are Here ~2 Months ~ 7 Months Analysis Design Develop Deployment Operations “Go-Live” LFF Heavy Core Team & Some Extended ERP Team Members for Initial Training Sessions CIT Heavy LFF Light Finalize Gap Analysis to Determine Extent of Required Customizations LFF Medium Core Team & Some Extended ERP Team Members as Needed LFF Heavy for IT as it relates to Data Migration Planning and Testing LFF Heavy for Core Team and End-User Training LFF Heavy for IT  KEY MILESTONE - GAP ANALYSIS Target Aug / Sep 2012 Nov 2011 Jan 2012 May 2012 -8-

  9. Matrix Organization

  10. Matrix Organization Factors

  11. ERP Project Team -11- • Dave H. • Kurt N. • Todd K. • Grant L. • Dana J. • Andy B. • Gary R. • Columbus • Jim S. • Jim B. • Carlo B. • Ken O. • Brian B. • Jeff B. • Chad B. • Cindy H. • Peggy F. • Elisabeth J. • Adrianne M. • Howard P. • Dave P. • Tegan P. • Todd R. • Karen R. • Robin S. • Renee T. • Travis Y.

  12. ERP Project Areas of Impact -12-

  13. Project Manager 17-13 • 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 • SPONSORS

  14. Project Management Triangle

  15. Project Scope • The work that needs to be accomplished to deliver a product, service, or result with the specified features and functions. • Scope Creep - the incremental expansion of the scope of a project, which may include and introduce more requirements that may not have been a part of the initial planning of the project, while nevertheless failing to adjust schedule and budget, • Scope creep comes from internal and external sources

  16. Behavioral Issues • Behavioral problems can be created or exacerbated by • Decentralized decision making • Stress of achieving project milestones on time and within budget • Surprises • 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 manager’s job

  17. Avoiding Problems 17-18 • 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 • Communication

  18. Project Champion 17-19 • 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

  19. Work Breakdown Structure (WBS) 17-20 • A hierarchical listing of what must be done during a project • Establishes a logical framework for identifying the required activities for the project • 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

  20. WBS 17-21

  21. Gantt Chart 17-22

  22. The Real Project Plan! -23- Our Road to Success . . . PMs make it fun! Kick-Off Nov. 29th Lundberg CIT TRIBE Winds of THRESHER CIT Tasks Joint Tasks Mt. RAMSDEN FOWLER Forrest SKUPOWSKI’S Slide KLUGER Crater FINANCE TRIBE LEADERSHIP TEAM BRANDT’S Badlands HOLZHEY’S Gone Fishing ROBIN’S Rapids GRANT Lookout OPERATIONS TRIBE The Sands of RISOTTO Sept 2012 BACON Bend HOWARD’S Falls OLD U.S.S. BRUMIT HAVER’S Harbor Cyclone ELIZABETH NEW DANA’S Curve PROJECT MAP 23

  23. PERT and CPM 17-24 • PERT (program evaluation and review technique) and CPM (critical path method) are two techniques used to manage large-scale projects • By using PERT or CPM Managers can obtain: • A graphical display of project activities • An estimate of how long the project will take • An indication of which activities are most critical to timely project completion • An indication of how long any activity can be delayed without delaying the project

  24. Deterministic Time Estimates • Deterministic • Time estimates that are fairly certain • Probabilistic • Time estimates that allow for variation 17-27

  25. Early Start, Early Finish • 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 17-28

  26. Late Start, Late Finish • 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 17-29

  27. Slack and the Critical Path 17-30 • 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

  28. Using Slack Times 17-31 • 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 • Activity slack times are based on the assumption that all of the activities on the same path will be started as early as possible and not exceed their expected time • If two activities are on the same path and have the same slack, this will be the total slack available to both

  29. Probabilistic Time Estimates • The beta distribution is generally used to describe the inherent variability in time estimates • The probabilistic approach involves three time estimates: • Optimistic time, (to) • The length of time required under optimal conditions • Pessimistic time, (tp) • The length of time required under the worst conditions • Most likely time, (tm) • The most probable length of time required 17-32

  30. Budget Control 17-35 • Budget control is an important aspect of project management • Costs can exceed budget • Overly optimistic time estimates • Unforeseen events • Unless corrective action is taken, serious cost overruns can occur

  31. Time-Cost Trade-Offs 17-36 • Activity time estimates are made for some given level of resources • It may be possible to reduce the duration of a project by injecting additional resources • Motivations: • To avoid late penalties • Monetary incentives • Free resources for use on other projects

  32. Time-Cost Trade-Offs: Crashing 17-37 Shortening activity durations • Typically, involves the use of additional funds to support additional personnel or more efficient equipment, and the relaxing of some work specifications

  33. PERT: Advantages“program evaluation and review technique” 17-41 • Among the most useful features of PERT: • It forces the manager to organize and quantify available information and to identify where additional information is needed • It provides the a graphic display of the project and its major activities • It identifies • Activities that should be closely watched • Activities that have slack time

  34. PERT in ActionThe Miracle of Calculations in PM Instructor Slides

  35. Sources of Errors in Project Management • Potential sources of error: • The project network may be incomplete • Precedence relationships may not be correctly expressed • Time estimates may be inaccurate • There may be a tendency to focus on critical path activities to the exclusion of other important project activities • Major risk events may not be on the critical path 17-43

  36. Project Management Software 17-45 • Technology has benefited project management • CAD • To produce updated prototypes on construction and product-development projects • Communication software • Helps to keep project members in close contact • Facilitates remote viewing of projects • Project management software • Specialized software used to help manage projects • Assign resources • Compare project plan versions • Evaluate changes • Track performance

  37. Project Management Software Advantages 17-46 • Advantages include: • Imposes a methodology and common project management terminology • Provides a logical planning structure • May enhance communication among team members • Can flag the occurrence of constraint violations • Automatically formats reports • Can generate multiple levels of summary and detail reports • Enables “what if” scenarios • Can generate a variety of chart types

  38. Risk Management 17-47 • Risks are an inherent part of project management • Risks relate to occurrence of events that have undesirable consequences such as • Delays • Increased costs • Inability to meet technical specifications • Good risk management involves • Identifying as many risks as possible • Analyzing and assessing those risks • Working to minimize the probability of their occurrence • Establishing contingency plans and budgets for dealing with any that do occur

  39. Operations Strategy 17-48 Projects present both strategic opportunities and risks • It is critical to devote sufficient resources and attention to projects • Projects are often employed in situations that are characterized by significant uncertainties that demand • Careful planning • Wise selection of project manager and team • Monitoring of the project • Project software can facilitate successful project completion • Be careful to not focus on critical path activities to the exclusion of other activities that may become critical • It is not uncommon for projects to fail • When that happens, it can be beneficial to examine the probable reasons for failure –and hire a properly trained Project Manager

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