Chapter 9 – p.

366

Project
Management
Do Thi Thu Ha, MSc.
 Do Thi Thu Ha, MSc.

Lecture outline
In this chapter, you will learn about:
1. Project Planning
2. Global and Diversity Issues in Project Management
3. Project Scheduling
a) Gantt chart
b) CPM/PERT: AOA and AON network
c) Critical path
4. Activity scheduling
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Project planning Project management

work 2 work 4
work 1 work 3 work n
Activity:
individual job or work effort
requiring labor, resources and
time, and is subject to
management control.
Make change Make innovation

Project:
a unique, one-time operational
activity or effort.

Project management:
based on
 Plan the project
resource and
 Control project activities
budget
Existing operations
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Project planning
Planning
Scheduling
“What will we do?” Control
“How can we do?”
“How to make it
right?”
Basic elements of a project plan:
1. Objectives 5. Resources
2. Project scope 6. Personnel
3. Contract requirements 7. Control
4. Schedules 8. Risk and problem analysis

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Project planning
Project team:
made up of individuals from various areas
and departments within a company
Matrix organization:
a team structure with members from
functional areas, depending on skills
required
Project manager:
most important member of project team
Scope statement:
a document that provides an
understanding, justification, and
expected result of a project
Statement of work:
written description of objectives of
a project

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Project planning
General
Matrix organization manager

Production Finance Marketing R&D

manager manager manager manager

Production Finance Marketing R&D

Project A manager group A group A group A group A

Production Finance Marketing R&D

Project B manager group B group B group B group B

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Project planning Scope statement template

Project name Name of project
Project sponsor Name of sponsor Project manager Name of project
manager
Date of project approval Date of approval Last revision date Last updated date
Scope description List at a high level what is in the scope of the project as
well as what is out of scope of the project
Project deliverables List the top level deliverables of the project
Acceptance criteria List the project acceptance criteria
w o rk
Constraints List any constraints that affect the project tate of
S
Assumptions List any assumptions that the project is being based upon

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Project planning
Work breakdown
structure (WBS):
breaks a project into
components,
subcomponents,
activities, and tasks

figure 9.2, page 372

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Global and Diversity

Issues in Project Management
 Global project teams are formed from
different genders, cultures, ethnicities,
etc.
 Diversity among team members can add
an extra dimension to project planning
 Cultural research and communication
are important elements in the planning
process
Read the case study “Project Management Diversity
in China” and determine the differences of
management between these 2 countries.
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Project scheduling
Develop  Techniques
Estimate schedule  Gantt chart
Sequence time  CPM/PERT
Define activities
activities
Gantt chart: Precedence relationship:
a graph or bar chart with a the sequential relationship of project activities to
bar for each project activity each other.
that shows the passage of
time. Slack:
the amount of time an activity can be delayed without
delaying the project.

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Project scheduling: Gantt chart

Month 0 2 4 6 8 10
Activity
Design house
and obtain
financing
Lay foundation
Order and
receive materials
Build house

Select paint

Select carpet

Finish work

Month 1 3 5 7 9
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Project scheduling: Gantt chart practice

9-1/408. Construct a Gantt chart for the project described by the
following set of activities, and indicate the project completion time:
Activity Activity predecessor Time (week)
1 - 5
2 - 4
3 1 3
4 2 6

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Project scheduling: Gantt chart practice

The following table shows the tasks, dependencies, and estimated times a project manager
might input to a basic GANTT chart for a software development project.
Project start date: 12 June 2018
Task Identifier Task Description Predecessor Task(s) Time (days)
1 Establish project - 2
2 Establish customer requirements 1 3
Produce software specification
3 2 4
documents
4 Write test plans 3 1
5 Write code 3 2
6 Developer testing 5 2
7 System testing 4, 6 4
8 Write customer documentation 3 3
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Project scheduling: Gantt chart practice

9-2/408. Construct a Gantt chart for the project described by the
following set of activities, and indicate the project completion time and
the available slack for each activity:
Activity Activity predecessor Time (week)
1 - 3
2 - 7
3 1 2
4 2 5
5 2 6
6 4 1
7 5 4
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Project control
Time

Cost

Quality
Project control
Performance

Communication

Enterprise project management

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CPM/PERT
Both CPM and PERT  Critical PathMethod (CPM)
are derivatives of the  DuPont & Remington-Rand
Gantt chart and, as a  Deterministic task times
result, are very similar.
 Activity-on-node network construction
 Project Evaluation and Review Technique
CPM/PERT uses a
(PERT)
network to depict the
 US Navy and Booz, Allen & Hamilton
precedence
relationships among  Probabilistic task time estimates
activities.  Activity-on-arrow network construction

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CPM/PERT
Activity-on-arrow (AOA):
Branch Node
arrows represent activities
and nodes are events for
points in time 1 2 3

Activity-on-node (AON):
Dummy: nodes represent activities,
two or more activities and arrows show
cannot share the same start precedence relationships
and end nodes.

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CPM/PERT: AOA network

AOA Project Network for a House

Lay
3 Dummy
foundation
2 0 Build Finish
3 1 house work
1 2 4 3
6 1
7
Design house Order and
and obtain receive Select 1 1 Select
financing materials paint carpet
5
A dummy activity is inserted into the network to show a
precedence relationship, but it does not represent any 2 3
actual passage of time.
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Project scheduling: Gantt chart practice

9-2/408. Construct a Gantt chart for the project described by the
following set of activities, and indicate the project completion time and
the available slack for each activity:
Activity Activity predecessor Time (week)
1 - 3
2 1 7
3 1 2
4 2, 3 5
5 4 6
6 4 1
7 4, 5 4
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CPM/PERT: AOA network practice

Job Predecessors Duration
A -- 6
B -- 4
C A 3
D A,B 5
E D 2
F D,E 8
G D,E,F 5
H F,G 4
I E,F 2
J H,I 6
K I,J 3
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CPM/PERT: AON network

Lay Build
foundation house
Activity Number
2 4 Activity Time
2 3

1 7
Start 3 1
Design house Finish work
3 5 6
and obtain
1 1 1
financing
Order &receive Select Select
materials paint carpet

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Critical path
2 4
2 3

1 7
Start 3 1
3 5 6
1 1 1

Critical path: A: 1-2-4-7 C: 1-3-4-7

3 + 2 + 3 + 1 = 9 months 3 + 1 + 3 + 1 = 8 months
the longest path through
a network; it is the
minimum project B: 1-2-5-6-7 D: 1-3-5-6-7
3 + 2 + 1 + 1 + 1 = 8 months 3 + 1 + 1 + 1 + 1 = 7 months
completion time.
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Critical path - Activity Start Times

Start at 5 months
2 4
2 3
Finish at 9 months
1 7
Start 3 1
Finish

3 5 6
1 1 1
Start at 3 months Start at 6 months

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Activity scheduling Earliest start time (ES):

the earliest time an activity can start.
Activity Earliest Earliest Earliest finish time (EF):
number start finish the earliest start time plus the activity time.
Latest start time (LS):
the latest time an activity can start without
1 0 3 delaying critical path time.
Latest finish time (LF):
the latest time an activity can be completed
and still maintain the project critical path
3 0 3 time.

Activity Latest Latest

duration start finish EF = ES + t LS = LF - t

Node Configuration t = activity time

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Activity scheduling
Lay
foundation Build
2 house
4
2
3 Finish
work
1 7
Start
3 1
Design
house and 6
obtain
3
1
financing 1 5
Select
Order and 1 carpet
receive
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 Do Thi Thu Ha, MSc.

Activity scheduling
Lay
foundation Build
2 33 5 house
4 55 8
2 3 5
3 5 8 Finish
work
1 00 3 7 88 9
Start
3 0 3 1 8 9
Design
house and 6 66 7
obtain
3 33 4
1 7 8
financing 1 4 5 5 55 6
Select
Order and 1 6 7 carpet
receive
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 Do Thi Thu Ha, MSc.

Activity Slack
Activity LS ES LF EF Slack S
*1 0 0 3 3 0
*2 3 3 5 5 0
3 4 3 5 4 1
*4 5 5 8 8 0
5 6 5 7 6 1
6 7 6 8 7 1
*7 8 8 9 9 0
*Critical path

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Practice Questions page 408

 9-3  9-11
 9-14
 9-15

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