Reallocation of Resources in Project Management - PowerPoint by wzu11242

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									  PROJECT
MANAGEMENT
 By: Jonathan Daun
    Adriana Leon
    Adam Goplin
     WHAT IS PROJECT MANAGEMENT?
 Project: Unique, one-time operation designed to
  accomplish a set of objectives in a limited time
  frame
 Examples: building a bridge, designing a new
  product, software development, implementing an
  ERP system
         HOW ARE PROJECTS DIFFERENT?
   Projects differ from normal operations:
       One time operation
       Limited time horizon
       Limited budget
       Unique specifications
       May work across organizational boundaries
       Less bureaucratic
LIFE CYCLE OF PROJECTS
 Project Definition
 Planning

 Implementation (Execution of Major Activities)

 Project Phaseout
        ROLES – PROJECT CHAMPION
 Task of promoting and supporting a project
 Usually a member of upper management with
  good communication skills
 Solicits buy-in from other managers, particularly
  those who must concede resources to the project
ROLES – PROJECT TEAM MEMBERS
 Posses required knowledge and skill to complete
  tasks
 Responsible for technical design, development,
  testing, and implementation of project
 Must work well in team setting

 Must have enthusiasm/buy-in to project
ROLES – PROJECT MANAGER
   Bears ultimate responsibility for success/failure
    of project
       Leadership
       Organization
       Communication
       Finance
       Technical savvy
       Team building/HR management
PROJECT MANAGEMENT TRIANGLE




               Quality



        Performance Objectives
    WORK BREAKDOWN STRUCTURE
             (WBS)
 Hierarchical listing of tasks that must be
  accomplished for a project
 Identifies required activities and major elements

 Each major element is broken down into
  supporting activities and so on down
                                     WBS EXAMPLE (D                                           WIGHT     FISCHER)

                                                                   Canoe Trip to
                                                                  Boundary Waters


Arrange Travel       Get Equipment                        Plan Meals                Prepare Budget                              Plan for
                                                                                                                                             Plan Activities
                                                                                                                               Emergencies



      Schedule Flights to Mpls Contact BW Outfitter             Bring cooking gear            Assign Budget Person     Obtain
                                                                                                                                       Bring Cards
                                                                                                                      emerg. #’s



             Rent Van                                             Freeze dry food                 Get deposits         Arrange            Bring
                                                  Rent canoes
                                                                                                                     contact at BW      Joke book



           Arrange Motel                                                     Prepare 7
                                                                                                Retain Receipts        Bring
                                                  Rent Tents
                                                                             breakfasts
                                                                                                                                       Bring scotch
                                                                                                                     emerg. flares



       Schedule return flights        Bring                                                     Pay for supplies       Bring two
                                                                          Prepare 7 lunches
                                  Sleeping Bags                                                                       first aid kits


                                      Bring
                                                                          Prepare 6 dinners      Close-out trip
                                   Fishing Gear


                                 Bring lights and
                                   waterproof
                                     matches
SELECTING PROJECTS
 Limited resources means not all projects can be
  undertaken
 Factors for selecting projects:
       Budgets
       Availability of expertise/skill
       Cost-benefit analysis
       Government mandates
       Safety concerns
GANTT CHARTS
 Used to schedule and monitor project activities
 Lists project activities, estimates of activity time
  length, and sequence of activities
      PROS/CONS OF WORKING ON
             PROJECTS
 Pros
     Rewards associated with being part of
      successful project
     Thrill of working on different/unusual tasks
      and solving new problems
     Opportunities to meet new contacts & increase
      future job opportunities
 Cons
     Managers don’t want to lose good workers to
      projects
     Disruption of daily routine
     Risk of being replaced on current job
     Fear of association with unsuccessful project
             WHY PROJECTS FAIL
 Unrealistic expectations
 Lack of executive sponsorship

 Lack of project management

 Failure to align project with organizational
  objectives
 Poor scope

 Politics/conflicts
                    WHAT IS PERT?
 Project Evaluation and Review Technique
 Developed in 1958 by Navy

 Used in the POLARIS missile program

 Helps forecast project completion date
     1) How does the cost of work performed compare to
      the value of the work performed?
     2) What is the value (in dollars) of work performed so
      far?
     3) How does the amount of money spent so far on a
      project compare to what should have been spent?
                         PERT
   PERT - a management tool for defining and
    integrating events; a process which must be
    accomplished in time to assure completing project
    objectives on schedule.

   3 basic factors influence project progress:
     a) time
     b) resources
     c) technology
                         PERT
   Objectives:
     To provide, through applying an integrated
      management information system (which contains a
      balanced combination of the basic elements of time,
      cost, and performance)
     coordinate planning and control information at the
      proper levels so that timely managerial judgments
      will meet all established project objectives.
                  PERT NETWORK
 Events may be represented in a PERT network
  by any selected geometric figure (ovals, circles,
  squares).
 The events must follow logically.




    The arrows indicate the flow in the PERT network and the numbers
    identify the events. The arrows and not the #’s indicate the order of
    events. Events that immediately follow one another are called
    successor events. Similarly, a predecessor event is one which
    immediately precedes another event.
                PERT NETWORK
   Key features of a PERT network are:
    1) Events must take place in a logical order.
    2) Activities represent the time and the work it
    takes to get from one event to another.
     3) No event can be considered reached until ALL
    activities leading to the event are completed.
    4) No activity may be begun until the event
    preceding it has been reached.
                             STEPS:
 Step 1: *Define tasks
 Step 2: *Place tasks in a logical order, find the
         critical path
       Critical path- longest time path through the task
        network which dictate finish date
 Step 3: Generate estimates
 Step 4: Determine earliest and latest dates

 Step 5: Determine probability of meeting
         expected date

               *Don’t require calculations.   Use logic.*
EXAMPLE: PLANTING FLOWERS & TREES
   Helpful to create a diagram:
      CALCULATING PERT: STEPS 1&2
 Step 1: *Define tasks
 Step 2: *Place tasks in a logical order, find the
         critical path

      *Don’t require calculations. Use logic.*
            STEP 3: GENERATE ESTIMATES
 Organize your estimates into a table
 Calculate:
   Most Optimistic (TO) – best case scenario
   Most Likely (TL) “normal” scenario
   Most Pessimistic (TP) Worst case scenario
 Use PERT formula to calculate each scenario
     (TO x 1 + TL x 4 + TP x 1) / 6 = TE
    sum of (optimistic x 1 + likely x 4 + pessimistic x 1) / by 6 =
      expected task duration
         Group tasks on critical path separately
         TE is earliest possible completion time
STEP 3A: GET ORGANIZED
            STEP 3B: GENERATE ESTIMATES
   Calculate standard deviation
       Standard deviation- average deviation from the
        estimated time
           SD=(TP-T0)/6
       higher the SD is the greater amount of uncertainty
        exists

   Calculate variance
       reflects the spread of a value over a normal
        distribution
           V=SD2
       a large variance indicates great uncertainty, a small
        variance indicates a more accurate estimate
      TE: EXPECTED TASK DURATION
 1) For each TE cell:
       (TO*1+ TL*4+ TP*1)/6
 Use sum formula to add TE column.
              SD: STANDARD DEVIATION
   Use excel formula:
      SD=(TP-T0)/6
                   V:VARIANCE

   Use Excel formula
        V=SD2
   Use sum formula for V column
                                      Critical Path Tasks (longest duration)
                  Task                To TL      TP                  TE              SD                V

Mark Utilities                        1    3     5       =SUM(B3*1+C3*4+D3*1)/6   =(D3-B3)/6         =F3*F3

Dig holes                             2    4     7       =SUM(B4*1+C4*4+D4*1)/6   =(D4-B4)/6         =F4*F4

Plant trees                           1    3     6       =SUM(B5*1+C5*4+D5*1)/6   =(D5-B5)/6         =F5*F5

Plant flowers                         1    3     5       =SUM(B6*1+C6*4+D6*1)/6   =(D6-B6)/6         =F6*F6

Install edging                        1    2     4       =SUM(B7*1+C7*4+D7*1)/6   =(D7-B7)/6         =F7*F7
                                               TOTAL          =SUM(E3:E7)                         =SUM(G3:G7)

Enter desired time completion date:   15             Probability of completion:    =NORMDIST(B10,E8,SQRT(G8),TRUE)
                                              STEP 4: DATES
   For each task, determine the latest allowable time for moving to
    the next task
      Slack- difference between latest time and expected time
                         Tasks with zero slack time are on the critical path

                                                            Critical Path Tasks (longest duration)
                         Task             To           TL             TP            TE           ES           EF        LS         LF     SLACK    SD              V
    Mark Utilities                        1            3              5          3.00            0            3          0         3        0     0.667        0.444
    Dig holes                             2            4              7          4.17            3            7          3         7        0     0.833        0.694
    Plant trees                           1            3              6          3.17            7           10.17       7        10.17     0     0.833        0.694
    Plant flowers                         1            3              5          3.00            10           13        10         13       0     0.667        0.444
    Install edging                        1            2              4          2.17            13          15.17      13        15.17     0     0.500        0.250
    TOTAL                                                                       15.50                                                                          2.528


    Enter desired time completion date:   15           Probability of completion:                                                                         37.66%


                                                            Critical Path Tasks (longest duration)
                         Task             To           TL             TP            TE           ES           EF        LS         LF     SLACK    SD              V
    Buy Trees                             0.5          1              3          1.25            0           1.25        3        4.25      3     0.125       0.015625
    Buy Flowers                           0.5          1              3          1.25            0           1.25        3        4.25      3     0.125       0.015625
    Buy Edging                            0.5          1              3          1.25           1.25          2.5       4.25       5.5      3     0.125       0.015625
    TOTAL                                                                                3.75                                                                          0.047


                                              ES=Earliest Start EF=   Earliest Finish      LS=Latest Start     LF=Latest Finish
                                                     Critical Path Tasks (longest duration)
                 Task                  To    TL TP               TE                   ES  EF   LS  LF      SLACK        SD           V
Mark Utilities                          1    3 5       =SUM(B3*1+C3*4+D3*1)/6          0   3    0   3      =I3-G3   =(D3-B3)/6     =K3*K3
Dig holes                               2    4 7       =SUM(B4*1+C4*4+D4*1)/6          3 7.17 3 7.17       =I4-G4   =(D4-B4)/6     =K4*K4
Plant trees                             1    3 6       =SUM(B5*1+C5*4+D5*1)/6          7 10.17 7 10.17     =I5-G5   =(D5-B5)/6     =K5*K5
Plant flowers                           1    3 5       =SUM(B6*1+C6*4+D6*1)/6         10  13   10  13      =I6-G6   =(D6-B6)/6     =K6*K6
Install edging                          1    2 4       =SUM(B7*1+C7*4+D7*1)/6         13 15.17 13 15.17    =I7-G7   =(D7-B7)/6     =K7*K7
TOTAL                                                       =SUM(E3:E7)                                                          =SUM(L3:L7)

                                                                                                                    =NORMDIST(B10,E8,SQRT(L8),
Enter desired time completion date:    15        Probability of completion:                                                  TRUE)


                                                     Critical Path Tasks (longest duration)
                 Task                  To    TL TP               TE              ES  EF   LS  LF   SLACK        SD            V
Buy Trees                              0.5   1 3      =SUM(B14*1,C14*4+D14*1)/6 0 1.25 3 4.25 =I14-G14 =(E14-B14)/6        =K14*K14
Buy Flowers                            0.5   1 3      =SUM(B15*1,C15*4+D15*1)/6 0 1.25 3 4.25 =I15-G15 =(E15-B15)/6        =K15*K15
Buy Edging                             0.5   1 3      =SUM(B16*1,C16*4+D16*1)/6 1.25 2.5 4.25 5.5 =I16-G16 =(E16-B16)/6    =K16*K16
TOTAL                                                =SUM(E14:E16)                                                      =SUM(L14:L16)

                                  ES=Earliest Start EF= Earliest Finish       LS=Latest Start   LF=Latest Finish
             STEP 5: PROBABILITIES
   Use Excel formula
       =NORMDIST(x, mean, standard_dev, cumulative)
         X is the value for which you want the distribution (desired
          date)
         Mean is the arithmetic mean of the distribution (summed
          PERT expected durations)
         Standard_dev is the standard deviation of the distribution

          (square root of the summed variances)
         Cumulative is a logical value that determines the form of
          the function. If cumulative is TRUE, NORMDIST returns
          the cumulative distribution function (probability of
          completion on the date entered)
                   PERT IN A NUTSHELL:
   1) A management tool for defining and coordinating what must be
    done to accomplish a project’s objectives on time. These tasks were
    affected by our constructing a diagram of the PERT network.

   2) A technique that aids the manager but does not decide for him. He
    uses it to calculate variance, slack, probability, and time estimates.

   3) A technique that presents statistical knowledge about the
    uncertainties faced in completing the many activities associated with
    a project -- with it we calculated the expected task duration, variance,
    and probability.

   4) A method for attracting a manager’s attention to latent problems
    that require decisions and/or solutions. We used it to analyze the
    PERT network for critical paths and slacks.

   5) A method of attracting a manager’s attention to procedures for
    adjusting time, resources, or performance to meet target dates. He
    does so by analyzing the PERT network for areas of possible resource
    reallocation.
CPM (CRITICAL PATH
METHOD)
KEY PM (PROJECT MANAGEMENT) TERMS

   Critical Path:              The longest path (time) through the task network.
                                The series of tasks (or single task) that dictates the
                                calculated finish date of the project (in other words,
                                when the last task in the critical path is done the
                                project is done).
                                -If shortened, it will decrease overall project
                                completion time.
                                -Activities outside the CP would not effect overall PC
                                time.
   Slack Time:      The amount of time a task can be delayed before the project finish
                     date is delayed.
                                -TS (Total Slack) can be either positive (+) or negative
                                (-).
                                -If Positive: indicates amount of time that the
                                task can be delayed w/out delaying project finish date.
                                -If Negative: indicates amount of time that must
                                be saved so that the project finish date is not delayed.
                                - TS = Latest Start – Earliest Start
                                - A task w/ a TS = 0 is a Critical Task (  Float Time)

CPM (CRITICAL PATH
METHOD)
KEY PM TERMS (CONT.)

   Crashing:     The shifting of resources to reduce slack time so the critical path is as
                  short as possible. Always practice caution when crashing projects.
                             -Results: Creates interference and increases project costs.
   Dummy Activity:       An imaginary activity w/ 0 duration. It is used to show either
                  an indirect relationship between 2 tasks or to clarify the identities of
                  the tasks.
                             -In CPM, each activity must be uniquely defined by its
                             beginning and ending points.
                             -When two activities begin and end at the same time a
                             dummy activity is put in place to tell them both apart.
   Dependencies: Links between project tasks.      3 Types:
                  1- Casual: Where one task must be completed before another can
                 begin. (Critical Path Schedules)
                  2- Resource: Where a task is limited by availability of resources.
                  3- Discretionary: Optional task sequence preferences may reflect
                 organizational preferences. (not required)
                  -Milestone: A significant task which represents a significant
                 accomplishment within the project. (Special Attention/Control)
CPM (CRITICAL PATH
METHOD)
KEY PM TERMS (CONT.)
   Constraints:             Restrictions set on the start/finish date of a task.
                             You can specify that a task must start on/finish no
                             later than a particular date. 2 Types:
                   1- Flexible: As soon as possible (ASAP) / as late as possible
                             (ALAP) do not have specific times
                             allocated. Setting these times enables you to begin
                             tasks ASAP/ALAP w/ the task ending before the
                             project finish.
                                        -Must take into consideration all other
                                                   factors.)
                   2- Inflexible: Must start on (MSO) / must finish on (MFO)
                                        require an allocated date, which controls
                                        the time completion of a task.
                                        -External factors: -Availability of
                                                              Eq./Resources
                                                           -Deadlines
                                                           -Contract Milestones
                                                           -Start/Finish Dates
   *Origin of CPM: introduced by US industry 1958 (DuPont
    Corporation/Remington-Rand)
CPM (CRITICAL PATH
METHOD)
INTRODUCTION

 Valuable   Management Tool
 Unlike  PERT, analyzes only the longest
 likely chain of activities used to complete a
 project.
             - Earliest time a project can be completed when using the
             longest possible task durations.

 Deterministic,     not probabilistic (PERT)
             - Events are determined by preceding events, not by
             probability.
             -Deterministic (Time estimates that are fairly certain.)
             -Probabilistic (Estimates of times that allow for variation.)

 Derives   a “normal” completion time
CPM (CRITICAL PATH
METHOD)
INTRODUCTION (CONT.)

   “Unrealistic estimates = Unrealistic Plans.”
                 - All plans are estimates and are only as good as
                 the task estimates.
   Adding tasks = Added Time & Cost.
                 - If there are any additions/reductions in the
                 overall project, the estimates must adapt to the
                 change.
   Expectation Control (Benefits)
                 - Time estimates (likely) - How long will it take?
                                           - How long will it take if it
                                           needs to be done sooner?
                  - Cost estimates         - How much will it cost?
                                           - How much will it cost if it
                                           needs to be done sooner.
                  - Time and Cost if crashed
CPM (CRITICAL PATH
METHOD)
ANALYSIS FACTORS

   Duration:  The time it takes for an activity to be
               completed, given the planned amount of
               material, labor and equipment.
   Effort:    The amount (not time-oriented) of work
               required to finish the task. Duration may
               decrease by adding resources but the overall
               effort required will remain constant.
   Scope:     A specific definition of what the project does
               and does not entail. This is critical to the ever-
               changing project environment as well as
               managing the expectations of not only
               customers, but workers.
   Resources: All available means utilized for the
               completion of the project. Such as equipment,
               employees, finances, etc.
CPM (CRITICAL PATH
METHOD)
ASSUMPTIONS MADE BY CPM


 Key   concept used by both CPM/PERT
     -small set of activities make up the longest path,
                   controlling the entire project.
     -these “critical” activities could be identified and
                   managed with the optimum level of
                   efficiency (personnel, resources, etc.)
     -Non-critical activities
     -Pareto Phenomenon
CPM (CRITICAL PATH
METHOD)
ASSUMPTIONS MADE BY CPM (CONT.)

 Other   Assumptions:
      -Each task possesses a distinct start and
 finish point.
      -Each estimate can be mathematically
 calculated.
      -Tasks must be able to be arranged in a
 defined sequences that produces a pre-defined
 result.
      -Resources may be re-allocated as required
 per needs.
      -Cost & time have a direct relationship.
      -Time has 0 value.
CPM (CRITICAL PATH
METHOD)
ASSUMPTIONS MADE BY CPM (CONT.)

 “Crashing”   Project Assumption:
     -CPM assumes projects may be crashed:
         •Finishing a task/project in a shorter
          amount of time using extra resources.
     -Impacts:   -Shared Resources
                 -Other Projects
                 -Quality
                 -Reliability
CPM (CRITICAL PATH
METHOD)
COMPUTING ALGORITHMS (AOA)

   Activity-on-Arrow Diagram




    Circles = Events   Tail Event = Initial Event
    Arrows = Tasks     Head Event = Final Event
CPM (CRITICAL PATH
METHOD)
COMPUTING ALGORITHM (AOA)

   Necessary Information:
         -ES, the earliest time activity can start, assuming all
    preceding activities start as early as possible.
         -EF, the earliest time the activity can finish.
         -LS, the latest time the activity can start and not
    delay the project.
         -LF, the latest time the activity can finish and not
    delay the project.

   Used to Calculate:
         -Expected total project duration.
         -Slack time. (LS – ES or        LF – EF)
         -The critical path.
CPM (CRITICAL PATH
METHOD)
FORWARD AND BACKWARD PASS

   Forward Pass:
         -For each path, start at the left side of the diagram and
    work toward the right side.
         -For each beginning activity: ES = 0.
         -For each activity: ES + Activity Time = EF
         -For the following activity: ES = EF of preceding activity.

   Backward Pass:
         -For each path, start at the right side of the diagram and
    work toward the left side.
         -Use the largest EF as the LF for all ending activities.
         -For each activity: LS = LF – Activity Time.
         -For the preceding activity: LF = LS of following activity.
                  SOURCES:
 http://krypton.mnsu.edu/~tony/courses/609/PERT
  /tech.html
 krypton.mnsu.edu/~tony/courses/609/PERT/p
  ert2.ppt

								
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