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Project Management
Lecture Note FiveFahmy Radhi
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Project Management
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Project Planning
Project Planning a statement of work thatwritten description of the goal setting,defining the project, and team
organization. Elements of Project Planning: Defines project objectives
Identify activities
Establish precedence relationships
Make time estimates
Determine project completion time
Compare project schedule objectives
Determine resources requirements to meet
objectives
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Project Organization
Project Organization anorganization formed to ensure thatproject receive the proper
management Project Manager project heading
that coordinates activities withother departments and reports
directly to top management withreasonability: To finish all activities in proper
sequence and on time
The project comes in within budget
The project meets its quality goals
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Project Organization
Chart
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Project Scheduling
Project Scheduling involves
sequencing and allocating time to all
project activities At this stage, managers decide how
long each activity will take and
compute how many people and
material will be needed at eachstage of production
Gantt Chart is one popular project
scheduling approach
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Gantt Charts
Gantt Charts planning charts used
to schedule resources and allocate
time
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Project Controlling
Project Controlling involves
close monitoring of resources,
cost, quality and budgets Control also means using a
feedback loop to revise the
project plan and having theability to shift resources to
where they are needed
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PERT AND CPM PERT (Program Evaluation and
Review Technique) a PM technique
that employs three time estimatesfor each activity
CPM (Critical Path Method) a PM
technique that uses only one time
factor per activity
There is a minor differences
between PERT and CPM so both of
them have been effectively mergedinto a sin le techni ue referred as
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The Framework ofPERT/CPM1. Define the project and prepare the work
breakdown structure
2. Develop the relationship among activities
and decide which activities mustpreceded and which must follow others
3. Draw the network connecting all of theactivities
4. Assign time and/or cost estimates to eachactivity
5. Compute the longest time path throughthe network. This is called the criticalpath
6. Use the network to help plan, schedule,
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Network Diagrams and
Approaches
Network Diagram - Diagram ofproject activities that shows
the sequential relationships bythe use arrows and nodes
Activity-on-Node a networkdiagram in which nodesdesignate activities
Activity-on-Arrow a networkdiagram in which arrows
designate activities
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General Hospital
Acvt Description Preds
A Build internal components -
B Modify roof and floor -
C Construct collection stack AD Pour concentrate and install
frame
A,B
E Build high-temperature burner C
F Install Pollution control system C
G Install air pollution device D,E
H Inspect and test F,G
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Activity-on-Node for GeneralHospital
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Activity-on-Arrow Earliest Start (ES) - the
earliest time activitycan start, assuming allpreceding activity startas early as possible
Earliest Finish (EF) -the earliest time theactivity can finish.EF = ES + t
Last Start (LS) - thelatest time the activitycan start and not delaythe project. LS = LF - t
Last Finish (LF) - thelast time the activity
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General Hospital
Acvt Description Preds Time
A Build internal components - 2
B Modify roof and floor - 3
C Construct collection stack A 2D Pour concentrate and install frame A,B 4
E Build high-temperature burner C 4
F Install Pollution control system C 3
G Install air pollution device D,E 5
H Inspect and test F,G 2
Total Time (weeks) 25
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Activity-on-Arrow for GeneralHospital
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Activity-on-Arrow for GeneralHospital
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Calculating Slack Time
and Identifying Critical
PathAct ES EF LS LF LS-ES CPA 0 2 0 2 0 CP
B 0 3 1 4 1 NCP
C 2 4 2 4 0 CPD 3 7 4 8 1 NCP
E 4 8 4 8 0 CP
F 4 7 10 13 6 NCP
G 8 13 8 13 0 CP
H 13 15 13 15 0 CP
Slack = LS ES or Slack = LF-EF
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Activity-on-Arrow for GeneralHospital
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Probabilistic TimeEstimates Optimistic time (a) - the length of
time required under optimumcondition
Pessimistic time (b) - the length oftime that will be required under theworst condition
Most likely time (m) - the mostprobable of time that will required
Expected time (te) - time estimatesthat are fairly certain.
te = (a + 4m + b)/6
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Crashing Crashing - Shortening activity
duration on critical path to
speed up the project Cost-Time Trade-Off of Crashing
decreasing the indirect cost:
facilities and equipment cost,supervision and personnel cost
increasing direct expenses
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Procedure for crashing
Obtain estimates of normal time (Nt) andcrash time (Ct), as well as normal cost (Nc)and crash cost (Cc)
compute incremental cost (Ic)IC = (Cc-Nc)/(Nt-Ct)
Cc = Crash Cost
Nc = Normal Cost
Nt = Normal Time
Ct = Crash Time
determine the lengths of critical path
determine total cost
modified crash program
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Critical Path and Slack
Time
for General Hospital