Project definition
A temporary endeavor undertaken to
create a unique product or service
Three project objectives
Performance
Cost
Time
Reasons for project planning
Establish directions for project team
Support objectives of parent
organization Make allowance for
risk Put controls on the planned
work
Expected outcme of project launch
meeting
Establish technical scope
Participants accept performance
responsibility
Tentative overall schedules and
budgets
Creation of a Risk Management
Group
Project plan elements
Overview
Objectives
General approach
Contractual aspects
Schedules
Resources
Personnel
Evaluation methods
Potential problems
Even planning process
Make list of activities of similar
importance in sequential order
Level 1
b) Break each level 1 process into
subprocesses as under a) Level 2
c) Continue to lower process levels
until no further breaking is possible
Steps in designing a WBS
List task breakdown in succeedingly
finer levels
Construct a responsibility matrix
Establish pricing control
Schedule milestones
Identify problems
Generate Project Master Schedule
Developing a project budget
Three major elements
Forecast what will be needed
Labor and material
How much will it cost?
When will it be needed?
Thus, the budget reflects the
project
plan, time-phased, in dollars
Why budgeting for project is
tougher
By definition, projects are unique,
nonrecurring efforts
So theres often little history, little
tradition to rely on
Further, projects can last for years
More uncertainty, more ri
Major approaches to
budgeting
Top-Down Bottom-Up Each has
advantages . . . And disadvantages
as well
Scheduling
Scheduling Defined
Gantt Charts
Network Techniques: PERT and
CPM
Determining Task Durations
Probability and Simulation
Some Examples
Definition : Scheduling
The conversion of a project action plan
into an operating timetable
Serves as the basis for monitoring and
controlling the project
A major tool for the management of
projects
Some Benefits of Successful
Scheduling
Illustrates interdependence of all tasks
Identifies times when resources must be
available
Facilitates communication throughout the
project
Determines critical activities/critical path
Affects client expectations through
establishment of activities, milestones, and
completion dates
A process for sheduling
. Think
2. List activities
3. Arrange activities considering
precedence
and relationships
4. Develop Gantt charts and PERT/CPM
networks
5. Determine critical activities/critical path
6. Crash and adjust as necessary
Gantt Charts
to
Advantages
Easy to understand
Easy to show progress and status
Easy to maintain
Most popular view to communicate project status
client and/or senior management
Disadvantages
Can be superficial
Not always easy to see precedence, relationship
PERT/CPM networks
Advantages
Allows visualization of task relationships
Facilitates calculation of critical path
Clarifies impact of decisions on downstream
activities
Disadvantages
Complex, not easy to comprehend at a
glance
Charts dont
Monitoring and Information
Systems
Project monitoring defined
The plan-monitor-control cycle
Designing the monitoring system
Behavioral aspects of monitoring
Earned value analysis
Earned value examples
Project Monitoring Defined
Collecting, recording, and
reporting
information concerning any and all
aspects of project performance that
the
project manager or others wish to
know
Project Control Defined
CONTROL: The act of reducing the
difference between plan and reality
The last element in the planimplementmonitor-control cycle
Uses the information from the monitoring
process to get and keep a project on track
Purpose of Control
To make the actual meet the plan
The Process
1. Identify key performance areas
2. Set standards
3. Measure performance
4. Compare
5. Take corrective actio
Critical Ratio
Critical ratio = actual progress X
budgeted cost
scheduled progress actual cost
I.e., CSI = SPI X CPI, as in Chapter
10
Indices and ratios greater than 1.0
are favorable
