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Title: Management/Project and Program Management - St. Norbert College Wisconsin USA Description of the project management syllabus included in the Production/Operations Management Course. Includes an overview of Project Management principles.
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Project Management
Project Management
The Numbers Group
return to class webpage
Introduction to Project Management
Project management was first used to manage the US space program.
It's practice has now been expanded rapidly through the government, the military
and the corporate world. Here is the main definition of what project management is:
Project management is no small task.
Project management has a definite beginning and end. It is not a continuous
process.
Project management uses various measurement tools to accomplish and track project tasks.
These include Gantt and Pert charts.
Projects frequently need resources on an add-on basis as opposed to organizations
who have full-time positions.
There are three main points that are most important to a successful project:
A Project must meet customer requirements.
A Project must be under budget.
A Project must be on time.
There are four phases a project goes through.
The role of the project manager in project management is one of great responsibility.
It's the project manager's job to direct and supervise the project from
beginning to end. Here are some other roles:
The project manager must define the project, reduce the project to a set
of manageable tasks, obtain appropriate and necessary resources, and build
a team or teams to perform the project work
The project manager must set the final goal for the project and must
motivate his workers to complete the project on time.
A project manager must have is technical skills. This relates
to financial planning, contract management, and managing creative thinking
and problem solving techniques are promoted.
No project ever goes 100% as planned, so project managers must learn
to adapt to change.
There are many things that can go wrong with project management. These
are commonly called barriers. Here are some possible barriers:
Poor Communication
Many times a project may fail because the project team does not know exactly what to get done or what's already been done.
Disagreement
Project must meet all elements in a contract.
Customer and project manager must agree on numerous elements.
Failure to comply with standards and regulations.
Inclement weather.
Union strikes.
Personality conflicts.
Poor management
Poorly defined project goals
SMART Goals
What is a Goal?
According to the New Comprehensive International Dictionary of the English Language a goal is a point toward which effort or movement is directed. The objective point that one is striving to reach
All goals should be SMART Goals
Specific
Well defined
They are clear to anyone that has a basic knowledge of the project
Measurable
Have some means to be able to know if the goal is obtainable or how far away completion is.
Agreed Upon
Have agreement between the users and the project team on what goals should be
Realistic
Looking at the resources, knowledge, and time available can the goal be accomplished
Time-Framed
How much time is needed to accomplish the goal
Having too much time can affect the project performance
Project Life Cycle
In Contemporary Systems Analysis, 5th Edition published by Business
and Educational Technologies, Marvin Gore and John Stubbe wrote that the
Project Life Cycle includes the following Phases and activities:
A. Study Phase
User Need
Initial Investigation
User Review
System Performance Design
Candidate Review
Study Phase Report
B. Design Phase
General System Review
Processing Requirements Identification
Data Base Design
Control Requirements
Output Design
Input Design
Software Selection
Equipment Selection/Acquisition
People
Reference Manual Identification
Plans
Design Specifications Preparation
Design Phase Report Preparation
C. Development Phase
Implementation Planning
Computer Program Design
User Review
Equipment Acquisition and Installation
Coding and Debugging
Computer Program Testing
System Testing
Reference Manual Preparation
Personnel Training
Changeover Plan Preparation
Development Phase Report Preparation
User Acceptance Review
D. Operation Phase
System Changeover
Routine Operation
System Performance Evaluation
System Changes/Enhancements
Project Management Tools
WHAT THESE TOOLS ARE USED FOR?
Good project management deals with three factors: time, cost and performance. Projects are successful if they are completed on time, within budget, and to performance requirements. In order to bring the many components of a large project into control there is a large toolkit of techniques, methodologies, and tools.
These techniques provide the tools for managing different components involved in a project: planning and scheduling, developing a product, managing financial and capital resources, and monitoring progress. However the success of a project will always rest on the abilities of a project manager and the team members.
WORK BREAKDOWN STRUCTURE (WBS)
This tool is related to planning and scheduling a project. Basically it is a functional decomposition of the tasks of the project. The total work of the project is broken down into the major subtasks. It starts with the end objective required and successively subdividing it into manageable components in terms of size and complexity: program, project, system, subsystem, components, tasks, subtasks, and work elements.
EXAMPLE OF WBS
 It should be product- or task-oriented and should include all the necessary effort which must be undertaken to achieve the end objective.
Because it defines the work required to achieve an objective and help to show the required interfaces, a WBS is useful for complex projects.
However, it has got an important drawback: it does not show the timing of activities. In order to overcome this drawback, another tool can be used.
GANTT CHARTS
Developed by Harry Gantt in 1916, these charts give a timeline for each activity. They are used for planning, scheduling and then recording progress against these schedules.
GANTT CHART EXAMPLE
Basically there are two basic types of Gantt Charts: Load Charts and Project Planning Charts.
* Load Charts:
This type of chart is useful for manufacturing projects during peak or heavy load periods. The format of the Gantt Load Chart is very similar to the Gantt Project Planning Chart but, in this case, uses time as well as departments, machines or employees that have been scheduled.
* Project Planning Chart
It addresses the time of individual work elements giving a time line for each activity of a project. This type of chart is the predecessor of the following tool: PERT.
As it can be seen in the figure, it is really easy to understand the graph, but in developing it you need to take into consideration certain precedence relationships between the different activities
of the project. On the chart, everyone is able to see when each activity starts and finishes but there is no possibility to determine when each activity may start or if we can start a particular activity before finishing the immediate predecessor activity. Therefore, we need somehow know the precedence relationships between activities. This is the main reason for using the following tools instead of using exclusively Gantt Charts.
PERT/CPM (Critical path Method)
Both methods show precedence relationships explicitly. Although the two methods were developed independently during the fifties, they are surprisingly similar. Both methods, PERT and CPM, use a graphic representation of a project that it is called "Project Network" or "CPM diagram", and it is used to portray graphically the interrelatioships of the elements of a project and to show the order in which the activities must be performed.
REPRESENTING A PROJECT NETWORK
In order to represent a project network, two basic elements are used:
A cycle, called "node", represents an event. An event describes a checkpoint. It does not symbolize the performance of work, but it represents the point in time in which the event is accomplished.
An arrow, called "arc", represents an activity.
The network will try to reflect all the relationships between the activities.
Two simple rules govern the construction of a project network:
Each activity must be represented by only one directed arc or arrow.
No two activities can begin and end on the same two nodes or cycles.
Another element to represent a project network is a "dummy activity". To explain it, we will consider the following example:
The temptation is to represent these relationships as:
But then we have broken the second rule earlier mentioned. To show that activities A and B precede C, whereas activity B precedes activity D, we use a dummy activity as shown in the figure:
To construct a project network, first of all, we need a list of activities showing the precedence relationships between the different activities involved, a list as the following example:
PROJECT NETWORK
Because each activity must have a unique pair of starting and ending nodes, we must use a dummy activity to draw the first four activities, as shown in the figure.
Constructing a project network, is a trial-and-error process. It usually takes two or three attempts to produce a neatly constructed network. After constructing the network, the duration of each activity should be shown in parenthesis.
But, what is this for? With this representation we can determine the minimum completion time for the project. We do this by starting at the originating event of the network (node 1) and determining the earliest time we can start an activity, given the activities that precede it and assuming that all the activities start as soon as possible and are completed as soon as possible. For example for the first one, it would be:
Where T=0 is the Earliest Start Time (ES) for activity A and T=1 is the Latest Start Time (EF) for activity A. Continuing this process results in the network:
PROJECT NETWORK WITH EARLIEST TIME
Notice that in the case of activity D for example, it only starts after both precedence activities B and C are completed. If everything goes as planned, the project will take 15.5 months to complete. However, every activity needs to start as early as possible for the project to be completed in 15.5 months.
We can use a similar process to determine which activities we can delay, and by how much, without increasing the completion time of the project. To calculate this, we can define the "Latest Finish Time" (LF), and the "latest Start Time" (LS) for each activity, for example:
Continuing with this process we can obtain
PROJECT NETWORK WITH EARLIEST AND LATEST TIMES
Now we have a project network with the earliest and the latest start and finish times, where:
Then I can calculate how much I can delay an activity. That is the "Slack Time." To determine it, we can use either or two equations:
Slack Time: LS-ES
Slack Time: LF-EF
The slack represents how long we can delay the activity without delaying the entire project. The activities that have zero slack lie on a path through the network. This path is called the "Critical Path," and the activities are called "Critical Activities." If you delay these activities, you will delay the entire project. Every project has at least one critical path, but there can be more than one. Another procedure to determine the critical path is just noticing which is the largest path through the network, in this case A-B-D-G-H-I-K-L.
PERT/CPM: DIFFERENCES
Both tools lead to the same end: a critial path and critical activities with slack time equal to zero. The differences between these tools come from how they treat the activity time. PERT treats activity time as a random variable whereas CPM requires a single deterministic time value for each activity. Another difference is that PERT focuses exclusively on the time variable whereas CPM includes the analysis of the Time/Cost Trade-off.
PERT
We have a high degree of uncertainty in regard to the completion time of many activities. It makes sense in the real world that you do not really know how long a particular activity will take, specially talking about certain activities such as research and development. In this case, we can look at the project completion time in a probabilistic fashion and for each activity we can define:
Optimistic time estimate: an estimate of the minimum time an activity will require.
Most likely time estimate: an estimate of the normal time an activity will require.
Pessimistic time estimate: an estimate of the maximum time an activity will require.
These three estimates are considered to be related in the form of unimodal probability distribution: m. What we need in any case is a specific duration for each activity taking into consideration these three estimates. This can be possible calculating the expected or mean activity time for each activity as
With the expected time for each activity we can determine which is the critical path.
Using three assumptions, we can conclude that project completion time or critical path completion time has a normal distribution. Using this, we can determine probabilities, using completion time as a normal random variable, mean and standard deviation.
P(Completion Time |
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Description | of | the | project | management | syllabus | included | in | the | Production/Operations | Management | Course. | Includes | an | overview | of | Project | Management | principles. |
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http://www.snc.edu/socsci/chair/333/numbers.html
St. Norbert College Wisconsin USA 2008 October
dvd rental
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Description of the project management syllabus included in the Production/Operations Management Course. Includes an overview of Project Management principles.
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