Project Management

Projects
„Unique, one-time operations designed to
accomplish a specific set of objectives in a
limited time frame.”
Processes in an organization

Usual Projects
business
processes

Routines & Changes &

regular tasks Uncertainty
 Main characteristics of projects
• Uniqe set of tasks and processes
• Narrow focus, specific performance objectives
• The end of the project is definite:
– Limited time-frame
– Objectives reached or
– it is proven, that objectives cannot be reached
anymore
• Budget is limited
• It can be planned
• It is always risky
 Project management
• Project management is the discipline of
planning, organizing, and managing
resources to bring about the successful
completion of specific project goals and
objectives.
• Project-like management: managing non-
project processes as projects
 Project Manager (Stevenson)

Responsible for:

Work (tasks) Quality

Human Resources Time
Communications Costs
 Other roles in the project
• Project-coordinator: negotiate with the
functional leaders, report to the project
manager
• Projectmanagement-team members
• Project champion: strong person who
promotes and supports the project
• Project-workers: deliver the tasks
 Project Life Cycle (Stevenson)

Feasibility

Management
Planning
Concept
Execution

Termination
Project life cycle
Cost of changing in the life cycle
Definintion Planning, Implementation, Closing
preparation execution the
project
Influence of the
stakeholders
Costs

Cost of changing

Time
Project-management tools
 Problem tree diagram
A problem tree is a problem analysis tool that illustrates the cause and effect
relationship of problems using a hierarchical tree diagram.
• by arranging the problem statements in hierarchical order
• and depicting the problem statements in a boxed article.
Problem-tree
 Fishbone (Ishikawa) diagram
• A Fishbone Diagram is a problem analysis tool that
illustrates the cause and effect relationships of problems
and is often use in the quality management discipline.
 Objective tree
• An objective tree is an objective formulation tool that depicts
graphically the hierarchy of objectives. It is formulated by initially
inverting the statements found in the problem tree (often used in
tandem).
 Logical Framework Matrix
3. Means of
1. Objectives- verifi- 4. Risks and
structure 2. Indicators cation assumptions

1. Strategic goal

2. Immediate
objective

3. Outputs (results)

4. Activities (inputs)

Pre-conditions
 Work Breakdown Structure
• a tool used to define and group a project's discrete work
elements (or tasks) in a way that helps organize and
define the total work scope of the project
 GANTT charts
• A Gantt chart is a type of bar chart that
illustrates a project schedule.
• Gantt charts illustrate the start and finish dates
of the terminal elements and summary elements
of a project.
• Some Gantt charts also show the dependency
relationships between activities.
• Gantt charts can be used to show current
schedule status using percent-complete
shadings, or colored lines and a vertical
"TODAY" line.
 GANTT charts
ID Activities Who Time intervals
is 1. 2. 3. 4. 5. 6. 7. 8.
respo
nsible
?

1.

2.

3.
4.

5.
6.
7.

10.

11.
 GANTT charts

activities Time
1.
2.
3.
4.
5.
6.
GANTT charts
 GANTT charts

activities time
1.

2.

3.

4.

5.

6.

today
 The Network Diagram
• Network (precedence) diagram
• Activity-on-arrow (AOA)
• Activity-on-node (AON)
• Activities
• Events
The Network Diagram (cont’d)
• Path
– Sequence of activities that leads from the starting
node to the finishing node
• Critical path
– The longest path; determines expected project
duration
• Critical activities
– Activities on the critical path
• Slack
– Allowable slippage for path; the difference the
length of path and the length of critical path
Project Network – Activity on
Arrow
Order
AOA furniture 4
Furniture
Locate 2 setup
facilities
Remodel
1 5 6
Move
in
Interview
Hire and
train
3
Project Network – Activity on
NodeOrder
furniture
Locate Furniture
2 setup
facilities
AON
1 6
Move
Remodel
in

S 5 7

Hire and
Interview
train

3 4
Network Conventions
a
b
c a

c
b

a c
a c

b Dummy
activity
b d
 Time Estimates
• Deterministic
– Time estimates that are fairly certain

• Probabilistic
– Estimates of times that allow for variation
Deterministic time estimates
6 weeks
4
3 weeks
8 weeks 2

11 weeks Move
in
1 5 6
1 week

4 weeks
9 weeks

3
 Solution
Critical Path

Path Length Slack

(weeks)
1-2-3-4-5-6 18 2
1-2-5-6 20 0
1-3-5-6 14 6
 Probabilistic Time Estimates
• Optimistic time
– Time required under optimal conditions
• Pessimistic time
– Time required under worst conditions
• Most likely time
– Most probable length of time that will be
required
Optimistic Most likely Pessimistic
time time time

2-4-6
b

3-4-5 3-5-7 5-7-9

d e f

4-6-8
h
Time-cost Trade-offs: Crashing
• Crash – shortening activity duration
• Procedure for crashing
– Crash the project one period at a time
– Only an activity on the critical path
– Crash the least expensive activity
– Multiple critical paths: find the sum of
crashing the least expensive activity on
each critical path
 Crashing exercise
activity duration Minimum Cost of one
duration day crashing
(crash time)
a 6 6 -
b 10 8 500
c 5 4 300
d 4 1 700
e 9 7 600
f 2 1 800
• Indirect costs: 1000 / day
 Network diagram

6 10
a b
2
f
5 9
c
e
4
d
Solution?