prepared and presented by

Dr. Aries Firman

18 February 2017
 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.

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 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
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”
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Project Management - Subject Coverage
Subject 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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  New product
 A wedding
introduction
 A divorce
 Performing art event  Open or close a
 Build aircraft carrier facility
 R&D project  Make a movie
 Audit  Fund raising
campaign
 Ad campaign
 Software installation

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 Due Date!

Stay within Meet the

the budget Deadline--schedule

Meet the
specifications
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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)

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 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

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 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

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 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

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 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

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 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

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 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

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 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

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 B

A D

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Forward Pass:
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)]
Backward pass:
LF (a) = min [LS (all successors of a)]
LS (a) = LF - t(a)*

* t (a) denotes the duration of activity a

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 1 3

B
0 1 4 9

A D

ES EF
1 4

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 1 3

B
0 1 4 9
2 4

A D

4 9
ES EF 0 1
1 4

C
LS LF
1 4

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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‟)

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 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

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Gantt chart for Opening a New Office
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

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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

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 1 6

2
1 6
6 8
0 1
1 2 4 5
7
1 5 6
6 8
0 1 4 5 5 6

1 2 2 4 ES EF
3 4
LS LF
2 3 3 5

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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

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 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

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 Crash Cost

Acceleration
Cost

Normal Cost

Crash Normal
Time Saving
Time Time

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• Focus on most sensitive activities first
• Prioritize activity with least unit of crashing cost
• Continue the crashing until saturated

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 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)

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 Project?

Slow but sure

Speed is the name of the game

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- 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

Identify Develop a Perform the Terminate the

a Need Proposed Project Project
Solution
Effort

Start Finish
Time

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A Common Project Life Cycle

100
Slow finish
% Project completion

Quick momentum

Slow start
0
Time

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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

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 Revenue focused business objectives
 Customer and overall stakeholders
driven
 Experienced team
 Management vision and leadership
 Project Manager‟s role

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 PROGRESS PERFORMANCE
 PRICE/COST ESTIMATES
 SCHEDULE
 SCOPE CREEPING

 CONTRACTUAL MATTERS
 EXTERNAL STAKEHOLDERS
 UNFORESEEN CONDITIONS

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 Well Planned
 Well Designed
 Well Financed

 Commissionability (constructability)
 Operatibility
 Maintainability

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Questions:

1. Total duration, if on time?

2. The chance to complete earlier in 9 weeks?
3. How long can the least possible time and how
much will be the crash cost?

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 Is project management practice “generic” or
“specific”?
 What is your opinion on its application across
different product types?
 How would consider the role of PM tools in this
context?
Note: All groups send their slides simultaneously
to [email protected] at 10.15 am

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