Presented by: Hemant Bhagat Batch: XMBA01

10/7/2011

Presentation Outline
Project Planning Project Scheduling Project Control Example by CPM

Project Elements

Objective Scope Contract requirements Schedules Resources Personnel Control Risk and problem analysis

Project
A project is a temporary endeavour involving a connected sequence of activities and a range of resources, which is designed to achieve a specific and unique outcome and which operates within time, cost and quality constraints and which is often used to introduce change.

Characteristic of a project
A unique, one-time operational activity or effort Requires the completion of a large number of interrelated activities Established to achieve specific objective Resources, such as time and/or money, are limited Typically has its own management structure Need leadership


Examples
y constructing houses, factories, shopping malls, y y y y y y

athletic stadiums or arenas developing military weapons systems, aircrafts, new ships launching satellite systems constructing oil pipelines developing and implementing new computer systems planning concert, football games, or basketball tournaments introducing new products into market

What is project management

The application of a collection of tools and techniques to direct the use of diverse resources towards the accomplishment of a unique, complex, one time task within time, cost and quality constraints. Its origins lie in World War II, when the military authorities used the techniques of operational research to plan the optimum use of resources. One of these techniques was the use of networks to represent a system of related activities

Tools and Techniques

Project Management Process

Project planning Project scheduling Project control Project team y made up of individuals from various areas and departments within a company Matrix organization y a team structure with members from functional areas, depending on skills required Project Manager y most important member of project team Scope statement y a document that provides an understanding, justification, and expected result of a project Statement of work y written description of objectives of a project Organizational Breakdown Structure y a chart that shows which organizational units are responsible for work items Responsibility Assignment Matrix y shows who is responsible for work in a project
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Mapping of Project Management Process

Process Group Knowledge Area
Project Scope Management Project Scope Management Initiation

Initiating

Planning
Project Plan Development Scope Planning Scope Definition Activity Definition Activity Sequencing Activity Duration Estimating Schedule Development Resource Planning Cost Estimating Cost Budgeting Quality Planning

Executing
Project Plan Execution

Controlling
Integrated Change Control Scope Verification Scope Change Control Schedule Control

Closing

Project Time Management

Project Cost Management

Cost Control

Project Quality Management Project Human Resource Management Project Communications Management Risk Project Management

Quality Assurance

Quality Control

Organizational Planning Staff Acquisition Communications Planning Risk Management Planning Risk Identification Qualitative Risk Analysis Quantitative Risk Analysis Risk Response Planning Procurement Planning Solicitation Planning

Team Development

Information Distribution

Performance Reporting Risk Monitoring and Control

Administrative Closure

Project Procurement Management

Solicitation Source Selection Contract Administration

Contract Closeout

Project Scheduling
Steps
y Define activities y Sequence

Techniques
y Gantt chart y CPM y PERT y Microsoft Project

activities y Estimate time y Develop schedule

Gantt Chart

Graph or bar chart with a bar for each project activity that shows passage of time Provides visual display of project schedule Slack
y amount of time an activity can be delayed without

delaying the project

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Example of Gantt Chart

0
Activity Design house and obtain financing Lay foundation Order and receive materials Build house Select paint Select carpet Finish work

Month 4

10

3 Month

9
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Project Control

Time management Cost management Quality management Performance management

y Earned Value Analysis
a standard procedure for numerically measuring a projects progress, forecasting its completion date and cost and measuring schedule and budget variation

Communication Enterprise project management

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CPM/PERT

Critical Path Method (CPM)

y E I Du Pont de Nemours & Co. (1957) for construction of

new chemical plant and maintenance shut-down y Deterministic task times y Activity-on-node network construction y Repetitive nature of jobs

y y y y

Project Evaluation and Review Technique (PERT)

U S Navy (1958) for the POLARIS missile program Multiple task time estimates (probabilistic nature) Activity-on-arrow network construction Non-repetitive jobs (R & D work)

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Project Network

Activity-on-node (AON)
y nodes represent

Node
1 2 3

activities, and arrows show precedence relationships

Activity-on-arrow (AOA)
y arrows represent

Branch

activities and nodes are events for points in time

Event
y completion or

beginning of an activity in a project

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AOA Project Network for a House

3
2 0 1 Order and receive materials

Lay foundation

Dummy Build house Finish work

3 Design house and obtain financing

4
Select paint 1

3 1

6
Select carpet

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Concurrent Activities
Lay foundation

3
Lay foundation Dummy 2 1 Order material (b) Correct precedence relationship 0

3 2

Order material

(a) Incorrect precedence relationship

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AON Network for House Building Project

Lay foundations Build house

2 2 Start 1 3
Design house and obtain financing

4 3

Finish work

7 1 3 1
Order and receive materials

5 1
Select paint

6 1
Select carpet

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Critical Path
2 2 Start 1 3 3 1 5 1 6 1 4 3 7 1

A: B: C: D:

1-2-4-7 3 + 2 + 3 + 1 = 9 months 1-2-5-6-7 3 + 2 + 1 + 1 + 1 = 8 months 1-3-4-7 3 + 1 + 3 + 1 = 8 months 1-3-5-6-7 3 + 1 + 1 + 1 + 1 = 7 months

 Critical path
 

Longest path through a network Minimum project completion time

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Activity Start Times

Start at 5 months

2 2
Start

4 3

Finish at 9 months

1 3 3 1
Start at 3 months

7 1 6 1
Start at 6 months

Finish

5 1

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Mode Configuration
Activity number Earliest start

Earliest finish

1 3

0 0

3 3
Latest finish

Activity duration

Latest start

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Forward Pass
Start at the beginning of CPM/PERT network to determine the earliest activity times Earliest Start Time (ES)

y earliest time an activity can start y ES = maximum EF of immediate predecessors

Earliest finish time (EF)

y earliest time an activity can finish y earliest start time plus activity time

EF= ES + t

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Earliest Activity Start and Finish Times

Lay foundations Build house Start

2 2 1 1 0 3

5 4 3 7 1 6 6 7
Finish work

Design house and obtain financing

3 1

4 5 1
Select pain

1 5 6
Select carpet

Order and receive materials

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Backward Pass
Determines latest activity times by starting at the end of CPM/PERT network and working forward Latest Start Time (LS)

y Latest time an activity can start without delaying

critical path time

LS= LF - t

Latest finish time (LF)

y latest time an activity can be completed without

delaying critical path time y LS = minimum LS of immediate predecessors

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Latest Activity Start and Finish Times

Lay foundations Build house Start

2 2 1 1 0 0 3 3

3 3

5 5 4 3 5 5 8 8 7 1 6 6 7 7 8 8 8 9 9

Design house and obtain financing

Finish work

3 1

3 4

4 5 5 1 5 6 6 7

Select carpet

Order and receive materials

Select pain

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Activity Slack
Activity
*1 *2 3 *4 5 6 *7 * Critical Path

LS
0 3 4 5 6 7 8

ES
0 3 3 5 5 6 8

LF
3 5 5 8 7 8 9

EF
3 5 4 8 6 7 9

Slack S
0 0 1 0 1 1 0

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