BUAD 306 Chapter 17 Project Management Life is

BUAD 306 Chapter 17 – Project Management

Life is a Project ¢ You are already a project manager! Fraternity/sorority projects l Sport-related activities l Family events l Work-related projects l

Types of Projects ¢ Corporate l ¢ Mergers, systems conversions, relocations, new business ventures, new products, start—ups… Department l Quality improvement, work-flow modifications, new technology/ equipment, automation, new products…

Project Plan The roadmap for your project ¢ Designates who does what, when, where ¢ Shows sequence of activities and schedule of when they occur ¢ Analyzed regularly (daily) to identify issues and gauge timeliness of project ¢ Conveying the “why” is critical to the Project manager’s job!

Gantt Charts ¢ Visual display of project tasks Specific tasks l Timeframe to complete l Sequence l Assignments of Responsibility l ¢ Pros/Cons Simple, easy to create l Doesn’t show interdependencies l

Gantt Chart Paint Develop Floor Plan Buy Furniture, etc. Hang fixtures Install lighting Arrange Furniture Display Inventory Open Store WK 1 WK 2 WK 3 WK 4 WK 5 WK 6 WK 7 WK 8 WK 9 WK 10

PERT and CPM ¢ ¢ ¢ PERT – Program Evaluation and Review Technique CPM – Critical Path Method Together, Project Managers can do the following: l l See a graphical display of activities Estimate length of project Identify tasks most critical to completion Determine how long any activity can be delayed without delaying the project

Network Diagram Network consists of branches & nodes 1 2 Branch Predecessor Activity 3 Node

Network Conventions (AOA) a b c a c b a a c b b d c Dummy activity

Project Network Hang Fixtures Paint 2 4 Display Inventory/ Goods Install Lighting 1 Develop Floor Plan Buy Furniture 3 5 Arrange Furniture 6

Critical Path A path is a sequence of connected activities running from start to end node in network ¢ The critical path is the path with the longest duration in the network ¢ Project cannot be completed in less than the time of the critical path ¢

Find the Critical Path 3 weeks 4 3 weeks 2 5 weeks 1 2 weeks 9 weeks 3 5 2 weeks 6

Slack Represents time available for getting a path completed as compared to the critical path ¢ is the “wiggle room” you have on that path ¢

Example 1 D A B E F C H G Act Time A 4 B 1 C 6 D 5 E 2 F 4 G 2 H 1

Example 2 C A D B G E F H Act Time Crash $ A 2 5000 B 3 2000 C 1 -- D 5 3000 E 6 6000 F 3 8000 G 2 1000 H 1 -- *Max you can crash any activity is one week *For each week crashed, can earn $2500

Expediting Your Project? ¢ Why? Save $ l Make $ l Improve customer satisfaction l Government requirements l

Crashing Use of additional resources, which typically cost money, to shorten the original length of the overall project ¢ Conditions: ¢ Activity crashed must be on the critical path(s) l Benefit of crashing must outweigh the cost of crashing l

Should We Crash? 3 weeks 4 3 weeks 2 $500/week; maximum = 1 5 weeks 1 2 weeks Can earn $700 for each week opened early 5 2 weeks 9 weeks 3 $500/week; maximum = 3 6

Should We Crash? 3 weeks 4 3 weeks 2 What if $100/week; maximum = 1 5 weeks 1 2 weeks Can earn $700 for each week opened early 5 2 weeks 9 weeks 3 $500/week; maximum = 3 6

Example 2 – Part 2 C A D B G E F H Act Time Crash $ A 2 5000 B 3 2000 C 1 -- D 5 3000 E 6 6000 F 3 8000 G 2 1000 H 1 -- *Max you can crash any activity is one week *For each week crashed, can earn $2500

Example 3 D A B E H C F G I J Act Time Crash $ A 4 4000 B 3 2000 C 1 -- D 1 3000 E 4 2500 F 5 3000 G 2 1000 H 4 1000 I 3 1000 J 1 -- *Max you can crash any activity is one week *For each week crashed, can earn $2000

Handout #1: Given the project diagram below and the table of info: 1) Calculate the critical path and slacks 2) If the company wants to shorten the project by 3 weeks and spend no more than $5, 000, is it possible? Assume no task can be crashed more than twice. Explain 3) Using original data: if activity D is delayed by 5 weeks, is there a delay in the entire project? If so, by how much? C A B D H E G F Activ Time Crash $ A 4 $2000 B 2 -- C 11 $2000 D 9 $1500 E 1 -- F 7 $2000 G 4 $500 H 1 --

Handout #2: Given the project diagram below and the table of info: 1) Calculate the critical path and slacks 2) The company has crash costs as shown (costs are listed for 1 st week crash and 2 nd week. If no cost shown, it cannot be crashed). The company would like to crash the project by 4 weeks. How much will it cost to do this and what tasks will be crashed and by how much? B C E G A H D F I J Activ Time Crash $-1 Crash $-2 A 2 -- -- B 5 $500 $1000 C 3 $200 -- D 2 -- -- E 4 $400 $800 F 8 $1000 $2000 G 2 -- -- H 5 $800 $1500 I 3 $600 -- J 1 -- --

Handout #2: - ALTERNATIVE!!!!! Given the project diagram below and the table of info: 1) Calculate the critical path and slacks 2) The company has crash costs as shown (costs are listed for 1 st week crash and 2 nd week. If no cost shown, it cannot be crashed). The company would like to crash the project by 4 weeks. How much will it cost to do this and what tasks will be crashed and by how much? B C E G A H D F I J Activ Time Crash $-1 A 2 -- -- B 5 $500 $1000 C 3 $200 -- D 2 -- -- E 4 $400 $800 F 8 $1000 $2000 G 2 H 5 $1800 $1500 I 3 $600 -- J 1 -- -- -- Crash $-2 --

Handout #3: Given the project diagram below and the table of info: 1) Calculate the critical path and slacks 2) If task D were to slip by 4 weeks, would there be a delay in the project? If so, by how much? 3) Given the original info, the company must complete the project in 20 weeks or else be fined $2000 for each week beyond 20. Is it possible for the company to complete the project and NOT be fined? If so, how would they do so? B F D A I C E G H Activ Time Crash $ (max 1) A 5 $3000 B 3 $1500 C 4 $1500 D 1 -- E 3 $3200 F 6 $2000 G 3 -- H 3 $800 I 1 --

Microsoft Project Powerful business tool ¢ Easily entry and organization of project tasks ¢ PERT/CPM flexibility ¢ Standard project communications ¢ Custom reporting ¢

Risk Management ¢ Types of Risks Project Risks – overall project l Task Risks – individual components l Decision Risks – strategic l ¢ Cost Benefit Analysis Read Text

Key Project Tasks Project Designation ¢ Project Manager Selection ¢ Project Team Designation ¢ Project Planning ¢ Managing Resources/Activities ¢ Issues Management ¢ Communication ¢ Post-Mortem/Analysis ¢

Project Manager Ultimately responsible for success/failure of project ¢ Manages: work effort, resources, communications, quality, timetables, and costs ¢ Requires strategic management, “juggling” & prioritization skills, etc. ¢ Can be certified (PMI) ¢

Project Management Issues Time Considerations ¢ Quality Factors ¢ Conflicts of Interest ¢ Limited Resources ¢ Perception within Organization ¢ STRESS! ¢