Chapter 1_ Project Management

							         Chapter 1: Project Management




    Project
    Project Attributes
    Project Management
    Benefits of Project Management
    Project Network: CPM


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          PROJECT


   Define Project
    –   an organized undertaking to accomplish a specific goal
        or objective
    –   an endeavor to accomplish a specific objective through
        a unique set of interrelated tasks and effective
        utilization of resources
    –   a coherent piece of work which has a distinct start and
        finish, and an aim of making a unique product.


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         Project Attributes


   Attributes are:
    –   a well defined objective in terms of scope, schedule, costs, quality
        standard and to meet customers’ satisfaction.
    –   a series of interrelated tasks or activities in a certain sequences
    –   utilized resources: manpower, machines, materials, methods,
        money, management
    –   have specific time frame and datelines: start times, finish times
    –   a one time assignment and unique task
    –   customers willing to pay for an agreed price
    –   involves risks: based on estimates and assumptions

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            Project Management



       Project Management
        –   defined as planning, directing, leading, coordinating, scheduling
            and controlling all resources( the 6 Ms) to meet technical, costs
            and time constraints of the project.


       Project Management Objective
        –   to IMPLEMENT the project within the project scope within a
            specified time duration, within a specified cost, and meets quality,
            technical specifications and customer requirements.



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    Benefits of Project Management


       well planned project with coordinated activities and
        responsibilities
       competitive project and well maintained costs
       timely completion and delivery of project to customers
       achieve customer satisfaction
       establish long term customer relationship
       meets quality, technical standards and law
       portrays good and professional image and credibility
       sustain business competitiveness and survival

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    Three phases of Project Management
                   - request for proposal
                   - define the needs of the project
     Project                                                   Technical
                   - write proposal
     Planning      - set goals and project objective


                   - appoint project leader
                   - form project team
                   - define statement of work (SOW)
                   - identify activities and tasks
                   - identify resources

                   - determine time sequence /estimates for activities
     Project       - determine manpower and utilization
                   - resources management: money, capital, material
                                                                 Time
    Scheduling
                   - implement, carry out project

                   - monitor resources
                   - monitor costs performance w.r.t. budget
                   - assess quality of works
     Project                                                      Costs
                   - reports project progress
    Controlling    - devise contingency plans if deviations or problems

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        Project Network Planning

       Techniques
         – Critical Path Method (CPM)
         – Program Evaluation Review Technique (PERT)
         – Gantt Chart
       Network Planning
         – 2 types of networks
         – an activity is a defined piece of work that has /takes up time
         – an event number is a number to show the sequence of activities

          ACTIVITY ON NODE (AON)              ACTIVITY ON ARC (AOA)
            -activity is represented           -activity is represented
                     by node                    by arrow, arc, branch

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           Critical Path Method (CPM)


       ES: - earliest start time of an activity
            - predecessor activities must be completed before next activity can
               start
       EF: - the earliest time the activity can be completed
                       EF    =   ES + duration of activity


       LS:   - latest start time the activity can start without delaying the project
       LF:   - the latest time the activity to be completed without delaying the
               project

                         LS = LF – duration of activity

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     Critical Path Method (CPM)


   Slack: - the amount of time that an activity can be delayed without affecting
             the overall completion of the project.

                       Slack = LS – ES; Slack = LF – EF

   Critical activity: - activity with zero slack, no time delay is allowed for the
                          activity
   Critical path: - the longest path of connected critical activities in the
                         network
                       - the path determines the longest completion time of a project

   Dummy activity: - commonly used in AOA network
                 - represented by dashed arrow, with no (zero) time value
                 - represents no activity but to show predecessor relationship of
                     activities
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      Advantages of CPM

    good for planning large, complex projects
    makes use of straight forward concept and not mathematically complex
    use graphical networks to show relationships among project activities
    it shows which activity is critical and which activity can be delayed
    it shows the critical path, longest path to determine the project
     completion time

    Limitations
      – success of project does not rely on 100% focus on CPM
      – other important factors such as resources management, risks
        management, quality requirements, customer’s expectations, legal
        and OSH requirements
      – need well defined activities, defined interrelationships to do the
        network
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     GANTT Chart

    a simple planning and scheduling tool to plan activities in a
     simple project’
    a presentation tool to present project plan and progress
    a horizontal bar chart that represents time, duration of
     activity on the right side of the listed table of activities.
    advantages:
     –   efficient technique for small, simple project with less
         interrelationships among activities
     –   commonly and widely used in management presentation and easy
         to understand
     –   good and easy to track, present to management and review
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     PROBLEMS SOLVING


        Students to apply and solve project
         management problems:
         –   draw project networks
         –   compute the estimate times for each activity
         –   determine the critical activities, critical path
         –   compute slack
         –   determine the project completion time.


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