PROJECT MANAGEMENT

FERDOUS SARWAR, PhD

Projects
Unique, one-time operations designed to accomplish a
specific set of objectives in a limited time frame.
JAN FEB MAR APR MAY JUN
Build A

A Done

Build B

B Done

Build C

C Done
On time!
Build D

Ship
Project Management
 How is it different?
 Limited time frame
 Narrow focus, specific objectives

 Less bureaucratic

 Why is it used?
 Specialneeds
 Pressures for new or improves products or services
Project Management
 What are the Key Metrics
 Time
 Cost
 Performance objectives

 What are the Key Success Factors?

 Top-down commitment
 Having a capable project manager
 Having time to plan
 Careful tracking and control
 Good communications
Project Management
 What are the Major Administrative Issues?
 Executive responsibilities
 Project selection
 Project manager selection
 Organizational structure

 Organizational alternatives
 Manage within functional unit
 Assign acoordinator
 Use a matrix organization with a project leader
Project Management
 What are the tools?
 Work breakdown structure
 Network diagram

 Gantt charts

 Risk management
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
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
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 displays project activities

 Estimates how long the project will take
 Indicates most critical activities
 Show where delays will not affect project
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
Node
Order
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
Example 1

6 weeks
Deterministic 4
time estimates
3 weeks
8 weeks 2

11 weeks Move
in
1 5 6
1 week

4 weeks
9 weeks

3
Example 1 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
Computing Algorithm
 Network activities
 ES: early start
 EF: early finish
 LS: late start
 LF: late finish

 Used to determine
 Expected project duration
 Slack time
 Critical path
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
Probabilistic Estimates

to tm te tp

Activity Optimistic Most likely Pessimistic

start time time (mode) time
Expected Time

te = t o + 4t m +t p
6
te = expected time
to = optimistic time
tm = most likely time
tp = pessimistic time
Variance

2 (t
= p o– t ) 2

36

2 = variance
to = optimistic time
tp = pessimistic time
 Example 5

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
Path Probabilities

Specified time – Path mean

Z =
Path standard deviation

Z indicates how many standard deviations

of the path distribution the specified tine
is beyond the expected path duration.
 Example 6
17
Weeks
1.00
a-b-c
Weeks
10.0

d-e-f
Weeks
16.0

1.00
g-h-i
13.5 Weeks
Advantages of PERT
 Forces managers to organize
 Provides graphic display of activities
 Identifies
4
 Critical activities
2
 Slack activities
1 5 6

3
Limitations of PERT
 Important activities may be omitted
 Precedence relationships may not be
correct 4

 Estimates may include 2

a fudge factor
1 5 6
 May focus solely
on critical path 142 weeks

3
Technology for Managing Projects
 Computer aided design (CAD)
 Groupware (Lotus Notes)
 Project management software
 CA Super Project
 Harvard Total Manager

 MS Project

 Sure Track Project Manager

 Time Line
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