PM Fundamentals

prepared and presented by

Dr. Aries Firman21 November2015

What is a Project

What is Project Management

Objectives and tradeoffs

Planning and Control in Projects

Scheduling Methods

Constant-Time Networks

CPM Method

Use of Project Management Concepts

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Unique item - often a single unit.

Often located on one place. The unit does not move during production.

Resources are brought to the project.

May be of any size, although we focus on large projects.


Commonalities between Projects & Operations Performed by people Constrained by limited resources Planned, executed an controlled

Operations and Projects differ Operations are ongoing and repetitive Projects are temporary and unique

A Project is a temporary and intensely serious attempt undertaken to create a unique product or service Temporary definite beginning and end Unique different in some distinguishing

characteristic Project Management is generally perceived to be

concerned with planning, organization, and control of an ongoing process or activity

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Resources used in projects are time, finance, materials, tools &

machinery, and personnel

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Project Management reflects a commitment of resources and people to a typically important activity for a relatively short time frame, after which the management effort is dissolved

Project Management is the application of knowledge, skills, tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project

Meeting or exceeding stakeholder needs and expectations invariably involves balancing competing demands among Scope, time, cost, and quality Stakeholders with differing needs and expectations Identified needs and unidentified expectations

Client Relations Challenge



Project Management - Subject CoverageSubject coverage includes but is not limited to:

Pre-project activities (e.g. feasibility studies and industry benchmarking)

Project proposals and initial analysis

Project conception and design

Project management models

Post-deployment review and documentation

Project types:

Short-term, long-term, open-ended

Engineering, production, service, construction

Public sector programs and campaigns

Public/private sector partnerships

Consultancy projects

Mergers and acquisitions

Public relations campaigns

Humanitarian aid programs

Film and multimedia production

Particular events (eg. Olympics, space missions, product launches)

Disasters

Virtual projects

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Project management functions, issues,

themes and techniques, including:Budgeting

Communication and collaboration

Current and emerging standards

Facilities and equipment support

HRM challenges

Organization change projects

Marketing and branding strategies

Negotiation skills

Outsourcing and alliances

Project coordination and scheduling

Project governance

Project knowledge management

Project management teams

Project review and evaluation

Quality assurance and testing

Resource allocation

Risk assessment and management

Scheduling

Software and systems

Time and cost estimating

Web-based PM

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A wedding

A divorce

Building construction

Bridge construction

Build aircraft carrier

R&D project

Audit


New product

introduction

Open or close a

facility

Make a movie

Fund raising

campaign

Ad campaign

Software installation

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Meet the

specifications

Meet the

Deadline--schedule

Due Date!

Stay within

the budget

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Planning

Scheduling

Execution

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I. PROJECT PLANNING:

defines the work that will be done on the project and who will do it.

II. PROJECT SCHEDULING

Estimates and project schedules (A Part of project Planning)


Identify the project customer

Establish the end product or service

Set project objectives

Estimate total resources and time required

Decide on the form of project organization

Make key personnel appointments

Define major tasks required

Establish a budget


Develop a detailed work-breakdown structure

Estimated time required for each task

Sequence tasks in proper order

Develop a start/stop time for each task

Develop detailed budget for each task

Assign people to tasks


Monitor actual time, cost, and performance

Compare planned to actual figures

Determine whether corrective action is needed

Evaluate alternative corrective actions

Take appropriate corrective actions


When one or more activities threaten the time, cost, or performance of the project, a corrective action is necessary:

Redefine the activity (e.g. split the activity).

Add resources to the activity.

Shift resources from one activity to another

Resources = people, equipment, money


Gantt Charts Shown as a bar charts

Do not show precedence relations

Visual & easy to understand

Network Methods Shown as a graphs or networks

Show precedence relations

More complex, difficult to understand and costly than Gantt charts


Activity times are assumed to be constant

Activities are represented by nodes in the network

Arrows show the precedence relationships

Notations used in calculating start and finish times: ES(a) = Early Start of activity a

EF(a) = Early Finish of activity a

LS(a) = Late Start of activity a

LF(a) = Late Finish of activity a


Immediate Duration

Activity Description Predecessors Days

A Decide on Topic None 1

B Collect Data A 2

C Search the Internet A 3

D Write the Report B and C 5



A

B

D

C

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ES (a) = 0 for the starting activity

EF (a) = ES (a) + t (a)*

ES (a) = max [EF (all predecessors of a)]

Project completion time = max [EF(all ending activities)]

* t (a) denotes the duration of activity a

LF (a) = min [LS (all successors of a)]

LS (a) = LF - t(a)*

Forward Pass:

Backward pass:

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A

B

D

C

0 1

1 3

4 9

1 4ES EF

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A

B

D

C

0 1

1 3

4 9

1 4ES EF

LS LF

2 4

4 9

1 4

0 1

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Critical Path = longest path in the network All activities for which ES=LS and EF=LF

Length of critical path is equal to the project completion time

If there is any delay on the critical path, the project will be delayed (unless one takes corrective actions)


Slack time equals amount of time a path may be delayed without delaying the project Paths not on the critical path have slack

Slack = LS-ES or LF-EF



Week

No. 1 2 3 4 5 6 7 8

1 Lease the site

2 Hire the workers

3 Arrange for the Furnishings

4 Install the furnishings

5 Arrange for the phones

6 Install the phones

7 Move into the Office

Gantt chart for Opening a New Office

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Immediate Activity Computed

Activity Description Predecessors Time Slack

1 Lease the site None 1 0

2 Hire the workers 1 5 0

3 Arrange for the Furnishings 1 1 1

4 Install the furnishings 3 2 1

5 Arrange for the phones 1 1 3

6 Install the phones 4,5 1 1

7 Move into the Office 2,6,4 2 0



1

2

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ES EF

LS LF

75

1 6

1 6

0 1

0 1

1 2

4 5

1 2

2 3

6 8

6 8

3 5

4 5

5 6

2 4

6

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Program Evaluation Review Technique

Used under conditions of uncertainty in activity times

Requires three time estimates for each activity Optimistic

Most likely

Pessimistic


Critical Path Method

Used under conditions of certainty in activity times

Requires one time estimate for each activity

Looks at time/cost trade-offs Normal activity time

Normal cost

Crash time

Crash cost



Crash Cost

Acceleration

Cost

Normal Cost

Crash

Time

Normal

TimeTime Saving

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Focus on most sensitive activities first

Prioritize activity with least unit of crashing cost

Continue the crashing until saturated


Scheduling is only part of a complete approach to project management

Trade-off between sophistication and cost of methods

Choice between constant time, PERT, CPM or more advanced techniques

Choice of project management software packages (MS Project, Primavera etc)


Project?


Speed is the name of the game

Slow but sure


- Review the Project Life Cycle

- It consists of major items representing the Work Breakdown Structure

- Draw the curve with x line as time and y line as cumulative progress

- This represents the so called S - Curve as per original plan

- During its life cycle, monitor the actual progress as to show gaps

between actual achievements versus original plan

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Project Life Cycle Effort

Start

Time

Finish

Effort

Identify

a Need

Develop a

Proposed

Solution

Perform the

Project

Terminate the

Project

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A Common Project Life Cycle

Time0

100

Slow start

Quick momentum

Slow finish

% P

roje

ct com

ple

tion

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Implications of Project Life Cycles

Project life cycle shape will affect the timing of resource and funding needs

Understanding the general project life cycle may help the stakeholders better understand and accept the current status of the project

Understanding the general project life cycle may also help the PM make better goal tradeoff decisions at particular times during the project

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Risk management planning: how to approach and plan the risk management activities

Risk identification: determine risks affecting the project and documenting their characteristics

Risk analysis: perform quantitative/qualitative analysis and evaluate the effects to objectives

Risk response planning: develop procedure and techniques to enhance opportunities & reduce threats

Risk monitoring & control: monitor residual risks, identify new risks & evaluate effectiveness at PLC


Revenue focused business objectives

Customer and overall stakeholdersdriven

Experienced team

Management vision and leadership

Project Managers role


PROGRESS PERFORMANCE

PRICE/COST ESTIMATES

SCHEDULE

SCOPE CREEPING

CONTRACTUAL MATTERS

EXTERNAL STAKEHOLDERS

UNFORESEEN CONDITIONS


Well Planned

Well Designed

Well Financed

Commissionability (constructability)

Operatibility

Maintainability


Questions:

1. Total duration?

2. The scheduled start & finish dates for each specific activity?

3. How long can the non critical activities be delayed before they cause delay in the overall completion time?

Dr. Aries Firman-SBM ITB-Nov 2015 46

PM Fundamentals

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