Data, information, knowledge, wisdom before and after the event

1
Project Management

• Data, information, knowledge, wisdom (before and
  after the event)
• Theory from Practice

• Updated from the lecture to better explain
• backward pass to determine latest finish of
  preceding activities.
• identification of critical path using LS-ES-D0
  i.e. no slack or float time

2
Overview

• a project - as a large scale, one-off operation
• identifying objectives deciding trade-offs
• imagining, planning, estimating, modelliing and
  control
• methods of scheduling
• networks of time and precedence
• Gantt chart and CPA methods
• Resource planning and management
• Limitations of project management concepts

3
Project situations
Startup or shutdown of plant Installation of
equipment Manufacture of aircraft, ships, and
large machines Space shots Auditing
accounts Fund-raising Planning a military
invasion
Building construction Movie making New product R
D introduction Launching a course Designing
an advertising campaign Computer system
development
4
Project Management 2000

• project-based service organisations
• big projects and constant overspend
• corporate downsizing
• development of 3rd World former closed
  economies
• knowledge explosion buying in expertise
• global competition
• compression of product life cycle
• more customer focus

5
Project management activities decisions
6
Management of Projects
Client
Situation analysis External
Internal Firm, strategies, objectives, priorities
Projects
Hard System
Soft system
Scope Work breakdown Schedules, baselines
Networks Resources Costs
budgets Status reports

Organisation Leadership problem-solving
Teams - form . to perform Partners
Customer expectations
Negotiation/Politics
Implementation
Project completed Happy client
7
Project Life Cycle
Definition
Planning
Execution
Delivery
Effort Cost

• Train customer
• Transfer documents
• Release resources
• Reassign staff
• Lessons learnt

• Goals
• Specifications
• Tasks
• Responsibilities

• Schedules
• Budgets
• Resources
• Risks
• Staffing

• Progress reports
• Changes
• Quality
• forecasts

8
Project Proposal - Logical Framework
ID Project title________________________________
Date Internal/external? Proposer_______
____________ Contract manager__________________
_ Checked for priority, capacity,
profitability, cash flow, quality of planning
estimates, knock-on effect, repeatability,
client sustainability, etc Project objectives
sub-objectives - SMART definitions Inputs,
activities, outputs, resources (staff hours,
methods, equipt, infrastructure, availabilities,
materials, monitoring measurement indicators,
risks) Proposed budget amounts - by head and
sub-head. Investment appraisal Support
depts/divisions contribution Partners who,
reliability nature/scope of input Work
schedule, Overall duration estimated costs
9
Project screening
ID Project idea/title_____________________________
_ Date Internal/external? Proposer____
_______________ Contract manager_______________
____ Need strategic fit, payback, ROI,
contribution, risk analysis More data collection
and supplementary information Evaluation of
project by criteria Progress? Abandon? Review
panel evaluates proposal and current project
portfolio for balance/risks Periodic reassessment
of priorities Reject, scale down, put on
hold Accept. Accept - subject to
conditions? Assign priority, resources, project
manager Release funds authorisations Monitor
progress - periodic reviews audits
10
Risk Analysis
What are the major risks for the
project? Probability of occurrence 0 --1
(high) Impact on project success if these risks
do occur? 0 -- 1 (high) Current project
status? Activity starts, completions,
in-progress, bottle-necks, delays, variation
orders, estimated expenditures vs. actual,
over-spends, under-spends, virement? Priority
team action? Interventions? Inspections/audits? Re
negotiations, variation orders, penalty clauses
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Screening metrics
Source Gray Larson, 2003, Project Management,
McGraw Hill
12
Project Portfolio Analysis
13
Functional into Matrix
14
Project Teams Information Coordination
Director
Client
Finance accounting
HRM
Team Leader
Legal
Team Leader
Civil engineer
Systems engineer
Electrical engineer
Design Architect
Team Leader
Team Leader
15
Virtual Project
Virtual organisation
Project contracting agent
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Shimmering, collaborative boundaries

• lead partner (Foster) engineers alliances (Arup)
  - internal external
• collect best-in-the-world competencies. bring a
  specific, high quality product/service to market
  ASAP
• not one homogeneous orgn, but "BORG" hybrid e.g.
  Sun
• Mission accomplished
• disperse
• look for new alliances, opportunities

17
Work Breakdown Structure - as a Hierarchy
Project
1 2 3 4 5 etc
End product - the deliverable
Sub- deliverables
Levels
Element (lowest level) deliverables
Cost-expenditures - estimates, assign
accounts Group work packages for monitoring
progress responsibility
Work package - identifiable work activities
18
Work Breakdown Structure
Integrate this by level for coordination
control across organisation strategy, design,
manufacture, testing/quality, purchasing, IT
infrastructure (HWSWstaff), job/project
accounts (revenue spend), disbursement of
direct costs overheads
Adapted from Gray Larson, 2003, Project
Management, McGraw Hill
19
Work Package Estimates
Project Genoptica Board ID GF 3421
WP Description Final prototype Deliverable
Circuit board Date xx/xx/xx Original unit
standard components assembly Estimator C J WP
Duration 5 work weeks Total Budget 2650
Budget by work weeks (Time phased)
Adapted from Gray Larson, 2003, Project
Management, McGraw Hill
20
PBS for Software Development Project
Adapted from Gray Larson, 2003, Project
Management, McGraw Hill
21
Market Research Project team responsibilities
Rresponsible Ssupports
Project team
Adapted from Gray Larson, 2003, Project
Management, McGraw Hill
22
Estimating by Project Life Cycle Phases
Source Gray Larson, 2003, Project Management,
McGraw Hill
23
Apportioning/Allocating Project Costs
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Generating the Project Plan - WBS

• Who is the project customer and project
  stakeholders
• Define
• end product or service (the specification) and
  objectives
• inputs total resources time required
• project organisation structure/network
• Identify and detail tasks/activities and
  subtasks. If visible, group into phases. Enter
  into Gantt Chart
• Estimate enter durations of each task
• 1xPessimistic 4xLikely 1xOptimistic----------
  --------------------------------------
  6
• Decide before, parallel, after sequences
• Decide FS, SS, FF, FS relationships/dependencies
• Forward pass for project duration
• Backward pass for critical path and slack
• Load assign resources - physical and human to
  tasks
• Balance/level against cost time - baseline
  budgets vs. actual

25
MS Project Enter tasks to Gantt Chart
Week
1
2
3
4
5
6
7
8/20
8/27
9/3
9/10
9/17
9/24
10/1
Dig foundations
Pour footing
Lay blocks
Base stage complete
Install floor
Erect walls
Install roof
Secure ceiling
Install windows
Plastering stage
Activity
Milestone
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Forward Pass for Duration
Forward pass take the highest of the multiple
preceding LFs
43
B
30
59
D
43
64
F
59
59
13
16
30
A
0
56
64
5
30
50
C
30
56
E
50
20
6
EF
ID
ES
Te time estimate (overall duration) 64
Descr
SL
LS
LF
D
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Backward Pass for Latest times, critical path
slack

• start with last project activity(ies)
• from the project end activity, trace backward on
  each path - subtracting (LF-Dur) activity times
  to give the LS for each node
• carry back the LS to the preceding node to
  establish its LF unless
• the preceding activity is a burst activity
  (apredecessor to two or more activities) in this
  case select the smallest LS from its immediate
  successor activities to obtain its LF.
• activity C in the next slide, is a burst
  successor to E and F. Its LF depends on F i.e.
  the lowest LS (20 not E's 185)
• A, B, F, G, H are critical as LF-ES-Dur for each
  is 0. There is no slack on these activities

28
Backward Pass for slack critical path
?
Source Gray Larson, 2003, Project Management,
McGraw Hill
LF-ES-D 0 no slack, critical path
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Critical Path Slack
Slack time? how long a task can slip behind
without affecting other tasks or end date. CP
(LF ES D 0 i.e. no slack on these
activities)
ES4 EF6
Node D 9-4-2 3 units of slack time
D(2)
ES9 EF14
ES14 EF15
ES0 EF2
ES2 EF3
ES3 EF4
LS7 LF9
G(1)
A(2)
B(1)
C(1)
F(5)
ES4 EF9
LS3 LF4
LS2 LF3
LS0 LF2
LS14 LF15
LS9 LF14
E(5)
Duration 15 weeks
Node E 9-4-5 0 No slack time
LS4 LF9
critical path
30
Activity-on-Node
preceded by A nothing B A C B Y and Z X Y and
Z can start at same time if desired J, K, L can
start at same time if desired (need not occur
simultaneously) But must be completed before M
can begin Z X and Y AA X and Y
Adapted from Gray Larson, 2003, Project
Management, McGraw Hill
31
Relationships
Adapted from Gray Larson, 2003, Project
Management, McGraw Hill
32
Compressing Time using Laddering and FS
relationships
Trench 1/3
Trench 1/3
Trench 1/3v
Lay pipe 1/3
Lay pipe 1/3
Lay pipe 1/3
Refill 1/3
Refill 1/3
Refill 1/3
Source Gray Larson, 2003, Project Management,
McGraw Hill
33
Exercise

• Develop a critical path diagram and determine
• the duration
• the critical path
• slack times

34
3 Time Estimates
35
Network
C(14)
E(11)
H(4)
A(7)
D(5)
F(7)
I(18)
B (5.333)
G(11)
Duration 54 Days
36
CPM Assumptions/Limitations

• activities can be identified as discrete
  entities.
• clear beginning ending point for each activity
• activity sequence relationships can be specified
  networked.
• project focus on critical path.

37
Implementation and Control

• Monitor actual time, cost performance
• Data capture, reports/charts, progress,
  exceptions
• Compare plan to actual
• Is corrective action needed?
• Evaluate alternative corrective actions
• Take corrective action
• Data, capta, information, knowledge, wisdom