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Project Management Basic Concepts

Opermgt 345 January, 2001. Project Management Basic Concepts. What is a Project?. A Project is a series of activities and tasks that: Have a specific objective to be completed with certain objectives Have a defined start and end dates Have funding limits (if applicable)

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Project Management Basic Concepts

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  1. Opermgt 345 January, 2001 Project ManagementBasic Concepts

  2. What is a Project? A Project is a series of activities and tasks that: Have a specific objective to be completed with certain objectives Have a defined start and end dates Have funding limits (if applicable) Consume Resources

  3. Typical Project Structure Project Definition Project Monitoring Project Planning Project Implementation Project Evaluation Project Adjustment

  4. Project Life Cycle Resources and Effort Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Conceptual Design Advanced Development Detailed Design Project Implementation Project Termination • Goals • Scope • Baseline • Requirements • Feasibility • Desirability • Plan • Budget • Schedule • Management • Commitment • Define • Responsibility • Team • Organization • Structure • Detailed Plan • Kickoff • Manage • Measure • Control • Update and • Modify Plan • Problem Solve • Closeout • Document • Suggest • Improvements • Reassign • Dissolve Project • Team

  5. Successful Projects A successful project is one which achieves the following objectives: • Completed On Time • Completed Within Cost • Meets Performance Criteria • Minimum Disruption of the Main Work of the Organization • Effective Utilization of Resources

  6. The Triple Play ofProject Management Constraints Time Cost Performance

  7. Triple Constraint Trade-offs $ Budget Better Performance Specifications Worse Schedule Early Late TIME

  8. Major causes of failure • Selection of a unsound project • Selecting the wrong person as a project manager • Lack of support from upper management • Misused management techniques • Project termination not planned

  9. Project Definition Build Canoe Rental Building on Coeur d A’lene Lake

  10. Form Project Team • Select Project Leader • Identify Key People • Gain Management Commitment • Define Project Team Operating Rules

  11. The Top Level Project Tasks Brainstorm the Major Tasks C Establish Work Flow B G A D E F

  12. Define Top Level TasksCanoe Example Site Preparation Build Dock Build Building Finish and Ready for Business

  13. Sequence Top Level Tasks Build Dock Finish Site Preparation Build Building

  14. Sub-Tasks Detailed Tasks C G B A D E F Develop Work Sequence Detailed Tasks

  15. Brainstorm Sub-Tasks Site Preparation Build Dock Build Building Finish Dock Site Install Pilings Foundation Order Canoes Frame Landscape Building Site Build Dock Roof Assemble Canoes Power Siding Open for Business Paint

  16. Work Breakdown Structure Top Level Task 2nd Level Task 2nd Level Task 2nd Level Task 2nd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task Lower Level Tasks

  17. Sequence Sub-Tasks Task Description Immediate Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canoes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

  18. Build Network Diagram(PERT Chart)(Activities on Arrows) 1 Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

  19. Build Network Diagram(PERT Chart) A 1 3 Prep Dock Site Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

  20. Build Network Diagram(PERT Chart) 2 J Order Canoes A 1 3 Prep Dock Site Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

  21. Build Network Diagram(PERT Chart) 2 J Order Canoes A 1 3 Prep Dock Site B Task Predecessor Prepare Hut Site A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M 4 D Hut Foundation 6

  22. Build Network Diagram(PERT Chart) 2 J Order Canoes A C E 1 3 5 9 Prep Dock Site Install Pilings Build Dock B Task Predecessor Prepare Hut Site A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M 4 D Hut Foundation 6

  23. Build Network Diagram(PERT Chart) 2 J Order Canoes A C E 1 3 5 9 Prep Dock Site Install Pilings Build Dock B Task Predecessor Prepare Hut Site A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M G Power To Hut 4 D Hut Foundation 6

  24. Build Network Diagram(PERT Chart) 2 L J Order Canoes Assemble Canoes A C E 1 3 5 9 Prep Dock Site Install Pilings Build Dock B Task Predecessor Prepare Hut Site A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M G Power To Hut 4 D Hut Foundation 6

  25. Build Network Diagram(PERT Chart) 2 L J Order Canoes Assemble Canoes A C E 1 3 5 9 Prep Dock Site Install Pilings Build Dock B Task Predecessor Prepare Hut Site A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M G Power To Hut Roof 4 I D Hut Foundation F 6 7 Frame Hut

  26. Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M Build Network Diagram(PERT Chart) 2 L J Order Canoes Assemble Canoes A C E 1 3 5 9 Prep Dock Site Install Pilings Build Dock B Prepare Hut Site G Power To Hut Paint Hut Roof K 4 I D Hut Foundation F H 6 7 8 Frame Hut Side Hut

  27. Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M Build Network Diagram(PERT Chart) 2 L J Order Canoes Assemble Canoes A C E M N 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B Prepare Hut Site G Power To Hut Paint Hut Roof K 4 I D Hut Foundation F H 6 7 8 Frame Hut Side Hut

  28. Task Description Time Build Network Diagram(PERT Chart) Canoe ExampleAdd Times A Prepare Dock Site 3 d B Prepare Hut Site 4 d C Install Dock Pilings 6 d D Foundation for Hut 3 d E Build Dock 4 d F Frame Hut 3 d G Power to Hut 2 d H Side the Hut 2 d I Roof the Hut 3 d J Order Canoes 2 d K Paint Hut 4 d L Assemble Canoes 10 d M Finish Landscaping 4 d NOpen for Business 2 d 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Paint Hut Roof K (4) 4 I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

  29. Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M Build Network Diagram(PERT Chart) 2 L J Order Canoes Assemble Canoes A C E M N 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B Prepare Hut Site G Power To Hut Paint Hut Roof K 4 I D Hut Foundation F H 6 7 8 Frame Hut Side Hut

  30. Task Description Time Build Network Diagram(PERT Chart) Canoe ExampleAdd Times A Prepare Dock Site 3 d B Prepare Hut Site 4 d C Install Dock Pilings 6 d D Foundation for Hut 3 d E Build Dock 4 d F Frame Hut 3 d G Power to Hut 2 d H Side the Hut 2 d I Roof the Hut 3 d J Order Canoes 2 d K Paint Hut 4 d L Assemble Canoes 10 d M Finish Landscaping 4 d NOpen for Business 2 d 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Paint Hut Roof K (4) 4 I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

  31. Determining Project Length Option 1: Sum all the task durations: A Prepare Dock Site - 3 d B Prepare Hut Site - 4 d C Install Dock Pilings A 6 d D Foundation for Hut B 3 d E Build Dock C 4 d F Frame Hut D 3 d G Power to Hut D 2 d H Side the Hut F 2 d I Roof the Hut F 3 d J Order Canoes and Receive Canoes - 2 d K Paint Hut H 4 d L Assemble Canoes J 10 d M Finish Landscaping L,I,K,E,G 4 d N Open for Business M 2 d Sum = 52 days Anything wrong with this approach?

  32. Determining Project Length Option 2: Determine duration of each network path

  33. Network DiagramProject Paths Paths: A-C-E-M-N = 19 days 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Paint Hut Roof K (4) 4 I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

  34. Network DiagramProject Paths Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Paint Hut Roof K (4) 4 I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

  35. Network DiagramProject Paths Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-I-M-N = 18 days 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Paint Hut Roof K (4) 4 I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

  36. Network DiagramProject Paths Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-J-M-N = 18 days B-D-G-M-N = 15 days 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Paint Hut Roof K (4) 4 I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

  37. Network DiagramProject Paths Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-J-M-N = 18 days B-D-G-M-N = 15 days J-L-M-N = 18 days 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Paint Hut Roof K (4) 4 J (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

  38. Critical Path The Critical Path is the Longest Path Through the Network.

  39. Network Diagram Canoe ExampleCritical Path Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-J-M-N = 18 days B-D-G-M-N = 15 days J-L-M-N = 18 days 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Paint Hut Roof K (4) 4 I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

  40. Completed Task Timetable Task Description Immediate Predecessor Time ES LS EF LF A Prepare Dock Site - 3 d 0 3 3 6 B Prepare Hut Site - 4 d 0 0 4 4 C Install Dock Pilings A 6 d 3 6 9 12 D Foundation for Hut B 3 d 4 4 7 7 E Build Dock C 4 d 9 12 13 16 F Frame Hut D 3 d 7 7 10 10 G Power to Hut D 2 d 7 14 9 16 H Side the Hut F 2 d 10 10 12 12 I Roof the Hut F 3 d 10 13 13 16 J Order Canoes and Receive Canoes - 2 d 0 4 2 6 K Paint Hut H 4 d 12 12 16 16 L Assemble Canoes J 10 d 2 6 12 16 M Finish Landscaping L,I,K,E,G 4 d 16 16 20 20 N Open for Business M 2 d 20 20 22 22

  41. Slack Time Total Slack = The length of time an activity can be delayed without affecting the project completion time. Total Slack = Late Start - Early Start Total Slack = Late Finish - Early Finish For Critical Activities Free Slack = The time a task can be delayed without delaying another task.

  42. Slack Time Task Description Immediate Predecessor Time ES LS EF LF Slack A Prepare Dock Site - 3 d 0 3 3 6 3 B Prepare Hut Site - 4 d 0 0 4 40 C Install Dock Pilings A 6 d 3 6 9 12 3 D Foundation for Hut B 3 d 4 4 7 7 0 E Build Dock C 4 d 9 12 13 16 3 F Frame Hut D 3 d 7 7 10 10 0 G Power to Hut D 2 d 7 14 9 16 7 H Side the Hut F 2 d 10 10 12 12 0 I Roof the Hut F 3 d 10 13 13 16 3 J Order Canoes and Receive Canoes - 2 d 0 4 2 6 4 K Paint Hut H 4 d 12 12 16 16 0 L Assemble Canoes J 10 d 2 6 12 16 4 M Finish Landscaping L,I,K,E,G 4 d 16 16 20 20 0 N Open for Business M 2 d 20 20 22 22 0

  43. Critical Path Tasks Critical Path = All tasks with slack = zero

  44. Critical Path Tasks Task Description Immediate Predecessor Time ES LS EF LF Slack A Prepare Dock Site - 3 d 0 3 3 6 3 B Prepare Hut Site - 4 d 0 0 4 40 *** C Install Dock Pilings A 6 d 3 6 9 12 3 D Foundation for Hut B 3 d 4 4 7 7 0 *** E Build Dock C 4 d 9 12 13 16 3 F Frame Hut D 3 d 7 7 10 10 0 *** G Power to Hut D 2 d 7 14 9 16 7 H Side the Hut F 2 d 10 10 12 12 0 *** I Roof the Hut F 3 d 10 13 13 16 3 J Order Canoes and Receive Canoes - 2 d 0 4 2 6 4 K Paint Hut H 4 d 12 12 16 16 0 *** L Assemble Canoes J 10 d 2 6 12 16 4 M Finish Landscaping L,I,K,E,G 4 d 16 16 20 20 0 *** N Open for Business M 2 d 20 20 22 22 0 *** Critical Path = B - D - F - H - K - M - N

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