Project

Management

Chetna Chauhan
Session 7
The Great Pyramid of Giza

•Built 4,500 years ago

around 2500 BC
•Were tallest for 3500
years
20000/30000 laborers
10 hours a day
20 years
Sourced from
800 km (max)
Cutting Operation?

Source: University College, London

 Alignment with directions
1/15th of 1
degree

Autumn equinox
Orion correlation
How did they move?
How did they keep one stone over other?
How did they keep one stone over other?

One stone/ 3 min

Mortar could not

be recreated

2.5 tons is the

weight of an average
pyramid stone block
 Projects

JAN FEB MAR APR MAY JUN

Build A

A Done

Build B

B Done

Build C

C Done
On time!
Build D

Ship

Unique, one-time operations designed to accomplish

a specific set of objectives in a limited time frame.
 Project Management

 How is it different?
 Limited time frame
 Narrow focus, specific objectives

 Less bureaucratic

 Why is it used?
 Special needs
 Pressures for new or improves products or
services/ cost reduction
 Project Management
 What are the Major Administrative Issues?
 Executive responsibilities
 Project selection
 Project manager selection
 Organizational structure (reporting)
 Organizational alternatives
 Manage within functional unit
 Assign a coordinator
 Use a matrix organization with a project leader
 Project Management
 What are the tools?
 Work breakdown structure

An initial planning tool that is needed to develop a list of activities, activity

sequences, and a realistic budget.

 Network diagram
Visual aid that is used to estimate project duration, identify activities that are critical
for timely project completion, identify areas where slack time exists, and develop
activity schedules

 Gantt charts
A visual aid used to plan and monitor individual activities.

Risk management


Analyses of potential failures or problems, assessment of their likelihood and

consequences, and contingency plans.
 Planning and Scheduling

Gantt Chart MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Locate new
facilities

Interview staff

Hire and train staff

Select and order

furniture

Remodel and install

phones

Move in/startup
Behavioral aspects of
project management
 The nature of projects

• Projects bring together people with diverse knowledge and skills, most of
whom remain associated with the project for less than its full life
• Some people go from project to project, and others are “on loan,” either on a
full-time or part-time basis, from their regular jobs
• Some organizations are involved with projects on a regular basis; examples
include consulting firms, architects, writers and publishers, and construction
firms.
• In a matrix organization, functional and project managers share workers and
facilities. Project managers negotiate with functional managers for people to
work on a project.
 Key Decisions
 Deciding which projects to implement
 Selecting a project manager
 Selecting a project team
 Planning and designing the project
 Managing and controlling project resources
 Deciding if and when a project should be terminated
 Key Decisions

 Deciding which projects to implement

Budget, availability of appropriate knowledge and skill personnel, and cost–benefit

considerations. Also, availability of funds, safety issues, government-mandated
actions

 Selecting a project manager

(Project management triangle)

 Selecting a project team

Person’s knowledge and skill base, how well the person works with others,
enthusiasm for the project, other projects the person is involved in, and how
likely those other projects might be to interfere with work on this project
 Key Decisions
 Planning and designing the project

Project performance goals, a timetable for project completion, the scope of the project, what work
needs to be done, how it will be done, outsourcing, resources required, a budget, and when and how
long resources will be needed

 Managing and controlling project resources

Managing personnel, equipment, and the budget; establishing appropriate metrics for evaluating the
project; monitoring progress; and taking corrective action when needed. Designing an information
system and deciding what project documents should be generated, their contents and format, when
and by whom they will be needed, and how often they should be updated

 Deciding if and when a project should be terminated

Sometimes it is better to terminate a project than to invest any more resources. Important
considerations: likelihood of success, termination costs, and whether resources could be better used
elsewhere
 Project Manager
Responsible for:

Work Quality
Human Resources Time
Communications Costs
 Skills of Project Manager
 Ability to motivate and direct team members; make trade-off decisions; expedite
the work when necessary; put out fires; and monitor time, budget, and technical
details
 For projects that are less well defined, and thus have a higher degree of
uncertainty, the project manager also must employ strong leadership skills
 The project manager may not have the authority needed to accomplish all the
objectives of the project. Instead, the manager sometimes must rely on
persuasion and the cooperation of others to realize project goals
 Ethical Issues

 Temptation to understate costs

 Withhold information
 Misleading status reports
 Falsifying records
 Comprising workers’ safety
 Approving substandard work
 Project Life Cycle

Definition

Management
Project life cycle Planning

Execution

Termination
Definition. (a) concept: at which point the organization recognizes the need for a project or
sponds to a request for a proposal from a potential customer or client
) feasibility analysis: examine the expected costs, benefits, and risks of undertaking the project
Planning: which spells out the details of the work and provides estimates of the necessary
uman resources, time, and cost.
Execution: During which the project itself is done. This phase often accounts for the
ajority of time and resources consumed by a project.
Termination: During which closure is achieved. Termination can involve reassigning personnel
d dealing with any leftover materials, equipment (e.g., selling or transferring
uipment), and any other resources associated with the project.
 Work Breakdown Structure

Project X

Level 1

Level 2

Level 3

Level 4
 PERT and CPM
PERT: Program Evaluation and
Review Technique
CPM: Critical Path Method

 Graphically display project activities

 Estimate how long the project will take
 Indicate most critical activities
 Show where delays will not affect project

PERT (program evaluation and review technique) and CPM (critical path method) are
two of the most widely used techniques for planning and coordinating large-scale
projects.
 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
 Slack time is the amount of time that a task can be delayed
without causing a delay in the overall project or process
Project Network – Activity on Arrow
Path: 1-2-4-5-6
Order
AOA furniture 4
Furniture
Locate 2 setup
facilities
Remodel
1 5 6
Move
in
Interview
Hire and
train
3
Project Network – Activity on Node
Order
furniture
Locate Furniture
2 setup
facilities
AON
1 6
Move
Remodel
in

S 5 7

Hire and
Interview
train

3 4
 AOA Vs AON
• Activity-on-Arrow (AOA): Each activity is represented by an arrow that connects the
starting point and the ending point of the activity.
• The length of the arrow represents the duration of the activity and the head of the
arrow points to the end of the activity.
• The precedence relationships between the activities are shown by arrows pointing
from the predecessor activity to the successor activity.
• In Activity-on-Node (AON), each activity is represented by a node or a box that
contains information about the activity, such as the name of the activity, its duration,
and the start and end dates.
• The precedence relationships between the activities are shown by arrows pointing
from the predecessor activity to the successor activity.
• AOA is simple and easy to understand, while AON provides more information about
each activity. AON is more commonly used in project management because it
provides more detailed information about the project schedule.
Network Conventions
 Dummy activity
  Immediate
Activity Predecessor
A –
B –
C A
E C
F A,B
End E,F
 Dummy activity

Immediate
Activity
predecessor
 Example
Determine
a. The length of each path.
b. The critical path.
c. The expected length of the project.
d. The amount of slack time for each path.
6 weeks
4
rd er e
O i t ur

Fur p
n 3 weeks
fur

set
8 weeks 2

n itu
u
Rem
cate s od e

re
Lo i l i t i e 11 weeks
l Move
fac in
1 5 6
In 1 week
te ain
rv t r
4 weeks ew
i
and
re
Hi 9 weeks

3
 Example 1 Solution

Critical Path

P a th L e n g th S la c k
(w e e k s )
1 -2 -3 -4 -5 -6 18 2
1 -2 -5 -6 20 0
1 -3 -5 -6 14 6
 Time Estimates

 Deterministic
 Time estimates that are fairly certain
 Probabilistic
 Estimates of times that allow for variation
 Probabilistic Time Estimates

 The probabilistic approach involves three time

estimates for each activity instead of one:
 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
 Probabilistic Estimates

to tm te tp

Activity Optimistic Most likely Pessimistic

start time time (mode) time
 Expected Time

te = to + 4t m +t p
6
te = expected time
to = optimistic time
tm = most likely time
tp = pessimistic time
 Example
Optimistic Most likely Pessimistic
time time time

2-4-6
b

2- c
- 4

3-
3
1- a

5
3-4-5 3-5-7 5-7-9
d e f
-6
2- g

4
3- i
3-
6

4-6-8
h
The network diagram for a project is shown in the accompanying figure, with three time
Estimates for each activity. Activity times are in weeks. Do the following:
a. Compute the expected time for each activity and the expected duration for each path.
b. Identify the critical path.
 Solution
(a)

(b) The path that has the longest expected duration is the critical path.
Which is that?
 Time-cost Trade-offs: Crashing

 Crash – shortening activity duration

 Procedure for crashing
 Crash the project one period at a time
 Crash 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
 Time-Cost Trade-Offs: Crashing

Total
cost

Expected indirect costs

Cost
Shorten

Cumulative CRASH
cost of
crashing
Shorten

Optimum

Project length
 Technology for Managing Projects

 Computer aided design (CAD)

 Project management software
 Crystalball
 CA Super Project

 Harvard Total Manager

 MS Project

 Sure Track Project Manager

 Time Line
 Advantages of PM Software
 Imposes a methodology
 Provides logical planning structure
 Enhances team communication
 Flag constraint violations
 Automatic report formats
 Multiple levels of reports
 Enables what-if scenarios
 Generates various chart types
 Project Risk Management

 Risk: occurrence of events that have

undesirable consequences
 Delays
 Increased costs
 Inability to meet specifications
 Project termination
 Risk Management

 Identify potential risks

 Analyze and assess risks
 Work to minimize occurrence of risk
 Establish contingency plans
Thank You