Overview MP2 [Compatibility Mode]

Project lifecycle

What is a Project?

A project is a temporary endeavor undertaken to accomplish a unique purpose.

Projects normally involve several people performing interrelated activities, and the main sponsor for the project is often interested in the effective use of resources to complete the project in an efficient and timely manner.

A project has a unique purpose.

A project is temporary.

A project requires resources, often from various area.

A project should have a primary sponsor or customer.

A project involves uncertainty.

A Balancing Act

Schedule requirements cost

The Project

Source: William Gendron, presentation at 1998 PMI Global Forum

A Balanced Project

Time

Cost

Scope

Quality

Expectation and Objective Congruency

Client/Customer Expectations

Low

High Customer wants

Low

more than the

organization

Business

intends to provide.

Objectives

Business needs High more from the project

than the customer.

What is Project Management?

Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements.

Project managers must not only strive to meet specific scope, time, cost, and quality goals of projects, they must also facilitate the entire process to meet the needs and expectations of the people involved in or affected by project activities.

Project Management Framework

Mapping Of Project Management Processes and PMBOK Knowledge Areas

What is Project Management, Continued

Stakeholders are the people involved in or affected by project activities and include the project sponsor, project team, support staff, customers, users, suppliers, and even opponents to the project.

Successful project managers work on developing good relationships with project stakeholders to ensure their needs and expectations are understood and met.

What is Project Management, Continued

Knowledge areas describe the key competencies that project managers must develop.

• The four core knowledge areas of project management include

project scope, time, cost, and quality management.

• These are considered to be core knowledge areas because they lead to specific project objectives.

• The four facilitating knowledge areas of project management are

human resources, communications, risk, and procurement management .

• These are called facilitating areas because they are the means through which the project objectives are achieved.

• Project integration management, the ninth knowledge area, is an

overarching function that affects and is affected by all of the other knowledge areas.

What is Project Management, Continued

Project management tools and techniques assist project managers and their teams in carrying out scope, time, cost, and quality management.

• Some popular time management tools and techniques include Gantt charts, network diagrams (sometimes referred to as PERT charts), and critical path analysis.

Additional tools help project managers and teams carry out human resource, communications, risk, procurement, and integration management.

Project management software is a tool that can facilitate management processes in all the knowledge areas.

Project Management and Other Disciplines

Much of the knowledge needed to manage projects is unique to the discipline of project management.

However, project managers must also have knowledge and experience in general management and must understand the application area of the project in order to work effectively with specific industry groups and technologies.

Managemen Proyek dan Disiplin

Lain

Contrast Projects and Operations

Projects

Operations

Create own charter,

Semi-permanent charter,

organization, and goals

Catalyst for change

Maintains status quo

Unique product or service

Standard product or service

Heterogeneous teams

Homogeneous teams

Start and end date

Ongoing

Integration Management

Cost

Time

Integration

Quality

Summary

Defined key PM concepts Described why PM is needed Explained difference between projects and operations Identified trends in the PM environment Discussed project success and failure factors Identified potential benefits of PM

Unit 2: Project Life Cycle Models

Upon completion, you will be able to …

List the purpose and types of project life cycle models Distinguish between project and product life cycle Define the role of phase reviews in PM Apply a model to a hypothetical and a real project

Key Concepts

Project phase: “A collection of logically related project activities usually culminating in the completion of a major deliverable.”

Project life cycle: “Collectively the project phases are known as the project life cycle.”

Product life cycle: The natural grouping of ideas, decisions, and actions into product phases, from product conception to operations to product phase-out.

Generic Cost and Staffing Life Cycle

Cost and

Intermediate Phases

Staffing

(one or more)

Level

Project Life Cycle

Example Phases

Concept and Proposal

Initial Phase

Intermediate Phases

Final Phase

Unit 3: Initiating Projects

Upon completion, you will be able to …

List the main functions of each PM process group Describe the purpose of the initiation process Identify its inputs and outputs, tools and techniques Develop a sample project charter Give an example of how process groups can apply to the project as a

whole or to a project phase

Process Definition

“A series of actions people take to bring about a desired result.” Types of processes

Project management processes Product-oriented processes Business-oriented processes

Process Groups

Closing Processes

Process Group Overview

Initiating Processes

To the Planning 5.1 Processes

Purpose of Initiation Process

1. To commit the organization to a project or phase

2. To set the overall solution direction

3. To define top-level project objectives

4. To secure the necessary approvals and resources

5. Validate alignment with strategic objectives

6. To assign a project manager

Initiating Core Process—Initiation

1. Product description

“Initiation is the process of

1. Project charter

2. Strategic plan

formally recognizing that a new

2. Project manager identified/

3. Project selection criteria

project exists or that an existing

assigned

4. Historical information

project should continue into its next phase.”

3. Constraints 4. Assumptions

Tools and Techniques

1. Project selection methods 2. Expert judgment

Project Charter

“A document issued by senior management that provides the project manager with the authority to apply organizational resources to project activities.”

Project Charter Content

Business need Project objectives Project deliverables Assumptions Constraints Key staff Written authorization

Exercise 3-1

Project Charter

Using the handout, complete the sample project charter Assume you are the project manager As an example, choose an anticipated major project assignment

Sample Initiating Activities

Negotiate, write, and refine the project charter Confirm how the project links to the business need Identify management responsibilities Identify geographic locations involved Test top-level objectives versus strategic business plans Make strategic procurement decisions, e.g., make, buy, or identify

qualified vendors

Key Outputs of Initiation Process

Project charter Project manager identified/assigned Other key positions identified/assigned Constraints identified Assumptions identified

Table 5.1. Sample Project Charter

Table 5.1. Sample Project Charter (cont’d)

Unit 4: Planning Projects

Upon completion, you will be able to …

Describe the purposes of the planning processes Identify the inputs and outputs of core planning processes Describe the function and develop sample planning deliverables such as

a scope statement, WBS, and milestone chart List the major tools and techniques used in the core planning processes Identify the planning facilitating processes and their functions

Planning Process Group

Closing Processes

Purpose of Planning Processes

To develop a project plan that:

Facilitates later accomplishment* Ensures project wide integration Monitors change effectively Provides decision support information to stakeholders Can be updated by iterative planning activities

* Project Management—A Managerial Approach, 1995, by Jack R. Meredith and Samuel J. Mantel Jr.

Core Processes

Planning Scope 5.2

Schedule Definition 6.4 Activity 6.1 Sequencing Activity Development

5.3 Activity 6.3 Duration

Definition Scope

Estimating

Budgeting Cost

Planning Resource 7.1 7.2

Estimating Cost

Processes Initiating

From the

4.1 Project Plan

Executing (Figure 3–6) Processes

Controlling From the

Facilitating Processes

(Figure 3–7) Processes

Quantification Risk 11.2 Planning 11.3 Planning Development Risk Response

Quality 8.1 Communications 10.1 11.1 Identification Risk

Planning Organizational

Acquisition Staff

Planning Procurement

Planning Solicitation

Core Planning Processes

Scope Planning

1. Product description

"… the process of developing a

1. Scope statement

2. Project charter

written scope statement as the

2. Supporting detail

3. Constraints

basis for future project

3. Scope management plan

4. Assumptions

decisions including, in particular, the criteria used to determine if the project or phase has been completed successfully.”

Tools and Techniques

1. Product analysis 2. Cost/Benefit analysis 3. Alternative identification 4. Expert judgment

Project Scope Statement Purpose

To provide a general description of the sum of the products and services to be provided by the project

To develop a common understanding of project scope among stakeholders

May make explicit some exclusions that, based on the audience, would

be assumed to be part of the project

Scope Statement

Scope Definition and the Project Scope Statement

The preliminary scope statement, project charter, organizational process assets, and approved change requests provide a basis for creating the project scope statement.

As time progresses, the scope of a project should become clearer and more specific.

Table 5-2. Further Defining Project

Scope

Core Planning Processes

Scope Definition

1. Scope statement

“… subdividing the major project

1. Work breakdown structure

2. Constraints

deliverables (as identified in the

3. Assumptions

scope statement) into smaller

4. Other planning outputs

more manageable components …”

5. Historical information

Tools and Techniques

1. Work breakdown structure templates

2. Decomposition

Work Breakdown Structure (WBS)

“A deliverable oriented grouping of project elements which organizes and defines the total scope of the project.

Each descending level represents an increasingly detailed definition of a project component.

Project components may be products or services.”

WBS Purpose

To define: Solution strategy or general approach Implementation tactics

To support more accurate estimates of project duration and cost than can

be made at the project level To provide a basis for estimating project resources:

Departmental or subcontractor support Vendors and their products Services Any other identifiable resource

Work Package

Deliverables and Milestones

Deliverables

– Tangible, independent, verifiable work products – Reports, presentations, prototypes, etc.

Milestones

– Significant events or achievements – Acceptance of deliverables or phase completion – Cruxes (proof of concepts) – Quality control – Keeps team focused

Contoh WBS

Level Level Level Level

Work Breakdown Structure Work Breakdown Structure Work Breakdown Structure Work Breakdown Structure

Level Level Level Level

Description Description Description Description

Total Total Total Total

Gedung Gedung Gedung Gedung

Project Project Project Project

Administrasi Administrasi Administrasi Administrasi Mobilisasi/ Mobilisasi/ Mobilisasi/ Mobilisasi/ Pek. Pek. Pek. Pek.

Pek. Pek. Pek. Pek.

Subproject Subproject Subproject Subproject

Demobilisasi Demobilisasi Demobilisasi Demobilisasi Persiapan Persiapan Persiapan Persiapan Struktur Struktur Struktur Struktur

atap atap atap atap

Category of Category of Category of Category of

Sitework Sitework Sitework Sitework Pondasi Pondasi Pondasi Pondasi

Sloof Sloof Sloof Sloof

Kolom Kolom Kolom Kolom

Balok Balok Balok Balok

Plat Plat Plat Plat

Work Work Work Work

Galian Galian Galian Galian Penulangan Penulangan Penulangan Penulangan

Cor Cor Cor Cor

Package Package Package Package

beton beton beton beton

Aircraft System

Project Management

Training

Data

Air Vehicle

Equipment Support

Facilities

Test and Evaluation

Engineering Systems

Equipment

Technical Orders

PM Activities Supporting

Facilities

Engineering Data

Intermediate Level

Maintenance

Operational Test

Services

Management Data

Level Depot

Developmental Test

Fire Control

This WBS is illustrative only. It is not intended to represent the full project scope of any specific project, nor to imply that this is the only way to organize a WBS on this type of project.

Waste Water Treatment Plant

Project Management

Civil Drawings

Headworks

Architectural Drawings

Aeration Basin

Structural Drawings

Effluent Pumping Station

Mechanical Drawings

Air Handling Building

HVAC Drawings

Sludge Building

Plumbing Drawings

Instrumentation Drawings

Electrical Drawings

This WBS is illustrative only. It is not intended to represent the full project scope of any specific project, nor to imply that this is the only way to organize a WBS on this type of project.

Contoh WBS

Contoh WBS Proyek gudang kerangka Besi

Tingkat I

Tingkat II

Tingkat III

1. Membuat Gambar

1. Gambar Bangunan

1. Gambar bangunan

2. Instalasi Listrik

2. Instalasi listrik

3. Instalasi air

2. Membeli material

3. Material Bangunan

4. Material Tiang

4. Material pondasi

5. Material dinding

3. Menyiapkan Lahan

5. Menggali tanah

6. Material atap

7. Besi beton

8. Adukan

4. Membuat Pondasi

6. Cor pondasi

9. Memadatkan tanah

10. Menggali tanah

11. Cor Pondasi

5. Pabrikasi (tiang dan

7. Pabrikasi Tiang

12. Pabrikasi Tiang

kerangka atap)

8. Pabrikasi kerangka atap

13. Pabrikasi kusen

6. Mendirikan bangunan

9. Mendirikan tiang

14. Pabrikasi kerangka atap

10.Membuat dinding 15. Mendirikan tiang

11. Menaikkan atap 16. Membuat dinding

17. Pasang kusen

18. Pasang atap

19. Pasang pintu & cat

Benefits of the WBS

Risk and Contingency

WBS

Risk Control

Project Control

Change

Control Activity List Communication Control

Project Plan

Progress

Reports

Validate Your WBS

All major elements been identified at top level? Decomposed into measurable components? Lower level(s) items necessary? All inclusive? Would stakeholders agree WBS is satisfactory? Can elements be scheduled, budgeted, and assigned to a unit that will

accept responsibility? Too much or too little visibility and control ? Can status reports be generated at all levels?

Using the WBS to Estimate Cost

Project manager establishes work requirements by defining the What—“shalls” and “wills” When—sequence Why—dependencies

Functional managers estimate cost by determining How—equipment and methods Who—type and level of expertise Where—location, department

Exercise 4-2

Work Breakdown Structure

Using “Post-it® Notes,” construct a WBS for your project or subproject Apply the WBS validation criteria Discuss any learning or insights with a classmate, including any learning

from applying the WBS test criteria

Pendekatan dalam menyusun WBS

Top Down

Brainstorming all work to be done and then grouping

Using a general-to- into a hierarchy.

specific structure to progressively detail

the work.

Bottom Up

Core Planning Processes

Activity Definition

“Identifying the specific

1. Activity list

2. Scope statement

activities that must be

2. Supporting detail

3. Historical information

performed to produce the

3. WBS updates

4. Constraints

various project deliverables.”

5. Assumptions

Tools and Techniques

1. Decomposition 2. Templates

Core Planning Processes

Activity Sequencing

1. Activity list

“… identifying and

1. Project network

2. Product description

documenting interactivity

2. Activity list updates

3. External dependencies

dependencies.”

4. Mandatory dependencies 5. Discretionary dependencies 6. Constraints 7. Assumptions

Tools and Techniques

1. Precedence diagramming method 2. Arrow diagramming method 3. Conditional diagramming

method 4. Network templates

Learning Objectives – Chapter 12

Project scheduling terminologies Precedence relationship Draw activity-on-Arrow (AOA) diagram Calculate earliest start time, earliest finish time, latest start

time, & latest finish time Calculate slack time Find critical path Analysis of possible delays

Project Scheduling Terminologies

A project is a collection of tasks that must be completed in minimum time or at minimal cost.

Activity & Activity duration Precedence relationship , predecessor, successor Activity-On-Node (AON) diagram v.s. Activity-On-Arc

(AOA) diagram PERT (Program Evaluation and Review Technique):

stochastic CPM (Critical Path Method): deterministic

Project Scheduling

Identifying precedence relationships

& costs Estimating material &

worker requirements Determining critical

activities

Purposes of Project Scheduling

Shows the relationship of each activity to others and to the project as a whole

Identifies the precedence relationships among activities Encourages the setting of realistic time and cost estimates

for each activity Helps make better use of people, money, and material

resources by identifying critical bottlenecks

Project Scheduling Techniques

Gantt chart Critical Path Method (CPM) Program Evaluation & Review Technique (PERT)

Gantt Chart

Time Period Activity J F M A M J J

Design Build

Test

Figure 16.4

Project Control Reports

Detailed cost breakdowns for each task Total program labor curves Cost distribution tables Functional cost and hour summaries Raw materials and expenditure forecasts Variance reports Time analysis reports Work status reports

PERT and CPM

Network techniques Developed in 1950’s

• CPM by DuPont for chemical plants • PERT by U.S. Navy for Polaris missile

Consider precedence relationships and interdependencies Each uses a different estimate of activity times

Questions Which May Be Addressed by Questions Which May Be Addressed by

PERT & CPM PERT & CPM

♦ Is the project on schedule, ahead of schedule, or behind schedule? ♦ Is the project over or under cost budget?

♦ Are there enough resources available to finish the project on time? ♦ If the project must be finished in less than the scheduled amount of time, what is the way to accomplish this at least cost?

The Six Steps Common to PERT & CPM

Define the project and all of its significant activities or tasks

Develop relationships among the activities. (Decide which activities must precede and which must follow others.)

Draw the network connecting all of the activities Assign time and cost estimates to each activity Compute the longest time path through the network.

This is called the critical path Use the network to help plan, schedule, monitor, and

control the project

Network Terms

Project: Obtain a college degree (B.S.) Project: Obtain a college degree (B.S.) Receive diploma Receive diploma

Register Register Attend class, Attend class,

study etc. study etc.

4 4 Years Years

Activity (Arrow) Activity (Arrow)

Event (Node) Event (Node)

Activity Relationships

B B 33

A & B can occur A & B can occur concurrently concurrently

Activity Relationships

A must be done before A must be done before

C & D can begin C & D can begin

22 D D

B B 33

Dummy Activities

Activities are defined by beginning & ending events

• Example: Activity 2-3

Every activity must have unique pair of beginning & ending events

• Otherwise, computer programs get confused

Dummy activities maintain precedence

• Consume no time or resources

Dummy Activity Example

Incorrect Incorrect

2-3

1-2

3-4

2-3 Correct Correct

1-2

2-4

4-5

2-3

33--4: Dummy 33 4: Dummy

activity activity

Milwaukee General Hospital’s Activities and Predecessors

Activity

Description

Immediate Predecessors

A Build internal components

B Modify roof and floor

C Construct collection stack

D Pour concrete and install frame

A, B

E Build high-temperature burner

F Install pollution control system

G Install air pollution device

D, E

H Inspect and test

F, G

AON Network for Milwaukee General Hospital

Start

Example 2

buat network untuk suatu proyek dengan hubungan sebagai berikut:

Activity

Immediate predecessors

D A, C

G D,E,F

Network of Seven Activities

B dummy

C 5 We need to introduce F

a dummy activity

Precedence Relationships Chart

Immediate

Estimated

Activity

Predecessor Completion Time

A None

B A 15

D G 20

E D 21

F A 25

G C,F

H D 28

I A 30

D,I

Objective of the project scheduling: minimize the completion time of the project

Earliest Start Time / Earliest Finish Time

Make a forward pass through the network as follows:

• Evaluate all activities that have no immediate predecessors. • The earliest start for such an activity is zero (ES = 0) • The earliest finish is the activity duration (EF = Activity

duration) • Evaluate ES of the node for which EF of all its immediate

predecessors has been determined. • ES = Max (EF of all its immediate predecessors) • EF = ES + Activity duration.

• Repeat this process until all nodes have been evaluated • Max (EF of the finish nodes) is the earliest finish time of the

project.

Earliest Start / Earliest Finish

A F F G G D D H H 194

90 25 14 20 28 EARLIEST FINISH

Latest Start Time / Latest Finish Time

Make a backward pass through the network as follows: • Evaluate all activities that immediately precede the finish node(s)

• The latest finish for such an activity is LF = EF of the project

• The latest start for such an activity is LS = LF - activity duration.

• Evaluate LF of the node for which LS of all its immediate successors

has been determined. • LF = Min (LS of all its immediate successors) • LS = LF - Activity duration

• Repeat this process backward until all nodes have been evaluated.

Latest Start Time / Latest Finish Time

B C 110,115

Slack Times

• Slack time is the amount of time an activity can be delayed without delaying the project completion date, assuming no other delays are taking place in the project.

Slack Time = LS - ES = LF - EF

Slack/Float Times

Activity LS - ES Slack

A 0 -0

B 95 - 90

C 110 - 105

D 119 - 119

0 Critical activities Critical activities

E 173 - 149

F must be rigidly 90 - 90 0

G 115 - 115

0 scheduled

H 166 - 149

I 119 - 90

149 - 149

The Critical Path

The critical path is a set of activities that have no slack The critical activities (activities with 0 slack) form

at least one critical path in the network.

A critical path is the longest path in the network. The sum of the completion times for the activities

on the critical path is the EF of the project.

The Critical Path

B C 110,115

Possible Delays

We observe two different types of delays:

• Single delays. • Multiple delays.

Under certain conditions the overall project will be delayed. The conditions that specify each case are presented next.

Single Delays

A delay of a certain amount in a critical activity, causes the entire project to be delayed by the same amount.

A delay of a certain amount in a non-critical activity will delay the project by the amount the delay exceeds the slack time. When the delay is less than the slack, the entire project is not delayed.

Multiple Delays

Multiple delays of non-critical activities

• Case 1: activities are on different paths

• Case 2: activities are on the same path, separated by critical activities.

• Case 3: activities are on the same path, no critical activities separating them.

Slack/float Identification

ACTIVITY

EARLIEST START TIME EARLIEST FINISH TIME

C (8,10)

LATEST FINISH TIME TIME LATEST START TIME

Types Of Slack POSITIVE SLACK NEGATIVE SLACK

Negative Slack

FORWARD PASS BACKWARD PASS

CUSTOMER’S

START DATE

FINISH DATE

Schedule Compression

Elimination of some parts of the project Addition of more resources Substitution of less time-consuming components or activities Parallelization of activities Shortening critical path activities Shortening early activities Shortening longest activities

Schedule Compression

(Continued)

Shortening easiest activities Shortening activities that are least costly to speed up Shortening activities for which you have more resources Increasing the number of work hours per day

Resource Leveling

Resource leveling is an attempt to eliminate the manpower peaks and valleys by smoothing out the period-to-period resource requirements. The ideal situation is to do this without changing the end date. However, in reality, the end date moves out and additional costs are incurred.

Resource Allocation

Resource allocation (or resource limited planning) is an attempt to find the shortest possible critical path based upon the available or fixed resources. The problem with this approach is that the employees may not be qualified technically to perform work on more than one activity in a network.

Planning Objectives (Primary)

Best time Least cost Least risk

Planning Objectives

Studying alternatives Optimum schedules Effective use of resources Communications Refinement of the estimating process Ease of project control Ease of time or cost revisions

Planning Objectives (Limitations)

Calendar completion Cash or cash flow restrictions Limited resources Management approvals

Program Crashing Costs

ALL ACTIVITIES CRASHED MINIMUM COST

TOTAL CRASH

CRASH B

S 150,000 O

CRASH E

C 140,000

CRASH F

A R 130,000

CRASH A

R 120,000 P

NORMAL OPERATIONS

10 12 14 16 18 20 22 24 PROGRAM COMPLETION TIME, WEEKS

Crash and Normal Times and Costs for Activity B

Time Cost approach

Consider

1. Float

2. Slope

3. Activity Crashing limit

4. Parallel Critical path Procedure

1. Determine Critical path

2. Activity crashed is one in CP with the lowest slope

3. caculate cost

4. do1,2,3 up to get the completion target

Precedence Diagram

Precedence Diagramming Method (PDM)

Aktivitas dinyatakan menggunakan kotak (boxes) Anak panah menunjukkan hubungan antara aktivitas-

aktivitas Lebih baik dalam memperlihatkan tipe-tipe ketergantungan

yg berbeda

Tipe Ketergantungan Tugas (Microsoft Project)

109

110

PERT Activity Times

3 time estimates

• Optimistic times (a) • Most-likely time (m) • Pessimistic time (b)

Follow beta distribution Expected time: t = (a + 4m + b)/6 Variance of times: v = [(b - a)/6] 2

Critical Path Analysis

Provides activity information

• Earliest ( ES ) & latest ( LS ) start • Earliest ( EF ) & latest ( LF ) finish • Slack ( S ): Allowable delay Identifies critical path

• Longest path in network • Shortest time project can be completed • Any delay on critical path activities delays project

• Critical path activities have 0 slack

Earliest Start and Finish Steps

Begin at starting event and work forward ES = 0 for starting activities

• ES is earliest start

EF = ES + Activity time

• EF is earliest finish

ES = Maximum EF of all predecessors for non-starting activities

Latest Start and Finish Steps

Begin at ending event and work backward LF = Maximum EF for ending activities

• LF is latest finish; EF is earliest finish

LS = LF - Activity time

• LS is latest start

LF = Minimum LS of all successors for non-ending activities

Critical Path in Network

Pour Pour

Do interior Do interior

foundation & foundation &

22 work work

frame frame

3 3 wk. wk.

6 wk. 6 wk.

Roof Roof

11 2 wk. 2 wk.

3 wk. 3 wk.

Buy Buy

33 Landscape Landscape

shrubs etc. shrubs etc.

4 wk. 4 wk.

Critical path is longest path: 12 weeks.

Gantt Chart Earliest Start and Finish

Build House Project Build House Project

11 11 Activity 11 Activity

1-2 Fdn & frame 1-2 Fdn & frame 1-3 Buy shrubs 1-3 Buy shrubs

2-3 Roof 2-3 Roof 2-4 Interior work 2-4 Interior work 3-4 Landscape 3-4 Landscape

Gantt Chart Latest Start and Finish

Build House Project Build House Project

11 11 Activity 11 Activity

1-2 Fdn & frame 1-2 Fdn & frame 1-3 Buy shrubs 1-3 Buy shrubs

2-3 Roof 2-3 Roof 2-4 Interior work 2-4 Interior work 3-4 Landscape 3-4 Landscape

Project Times

Expected project time (T)

Used to obtain probability of project

• Sum of critical path activity times, t

completion!

Project variance (V)

• Sum of critical path activity variances, v

PERT Probability Example

You’re a project planner for

General Dynamics. A Corel Corp. submarine project has an

expected completion time

of 40 weeks, with a standard deviation of 5 weeks. What is the probability of finishing the sub in 50 weeks or less ?

Converting to Standardized Variable

X - T 50 -

Normal Normal

Standardized Normal Standardized Normal

Distribution Distribution

s=5

s Z =1

T = 40 50 X m

z =0 2.0 Z

Obtaining the Probability

Standardized Normal Probability Standardized Normal Probability

Table (Portion) Table (Portion)

Z .00

s Z =1

m z =0 2.0 Z

Probabilities in body Probabilities in body

Precedences And Project Activity Times

Immediate

Optimistic Most Likely Pessimistic EXP Var S.Dev

Activity Predecessor

Time Time

h c 2 12 16 11 5.4 2.32

The complete network

b (14,4) (20,0) c g

i (18,28.4)

4 4 44 h 5 55 5

Figure 8-13 The complete Network

1 11 1 33 3 3 f 77 7 7 CRIT. TIME = 43

Critical Path Analysis (PERT)

Activity

Slacks

Critical ?

a 0 0 0 Yes

d 20 20 0 Yes

e 25 20 5 f 29 20 9 g 21 20 1 h 14 10 4

35 35 0 Yes

Assume, PM promised to complete the project in the fifty days. What are the chances of meeting that deadline? Calculate Z, where

Z = (D-S) / √√√√ V Example,

D = 50; S(Scheduled date) = 20+15+8 =43; V = (4+25+4) =33 Z = (50 – 43) / 5.745 = 1.22 standard deviations.

The probability value of Z = 1.22, is 0.888

What deadline are you 95% sure of meeting

Z value associated with 0.95 is 1.645

D = S + 5.745 (1.645) = 43 + 9.45 = 52.45 days

Thus, there is a 95 percent chance of finishing the project by

52.45 days.

Figure 16.9

Benefits of PERT/CPM

Useful at many stages of project management Mathematically simple Uses graphical displays Gives critical path & slack time Provides project documentation Useful in monitoring costs

Advantages of PERT/CPM Advantages of PERT/CPM

♦ Networks generated provide valuable project documentation and graphically point out who is responsible for various project activities

♦ Applicable to a wide variety of projects and industries ♦ Useful in monitoring not only schedules, but costs as well

Limitations of PERT/CPM

Assumes clearly defined, independent, & stable activities Specified precedence relationships Activity times (PERT) follow

beta distribution Subjective time estimates Over-emphasis on critical path

Core Planning Processes

Schedule Development

1. Project network diagram

“… determining start

1. Project schedule

2. Activity duration estimates

and finish dates for

2. Supporting detail

3. Resource requirements

project activities.”

3. Schedule management plan

4. Resource pool description

4. Resource requirements

5. Calendars

updates

6. Constraints 7. Assumptions 8. Leads and lags

Tools and Techniques

1. Mathematical analysis 2. Duration compression 3. Simulation 4. Resource leveling heuristics 5. Project management

software

Key Scheduling Concepts

Master schedule Crashing Hanger Workaround Schedule variance

Milestone Chart

Data Date

Subcontracts Signed Specifications Finalized Design Reviewed Subsystem Tested First Unit Delivered Production Plan Completed

There are many other acceptable ways to display project information on a milestone chart.

Core Planning Processes

Resource Planning

“… determining what

1. Resource requirements

2. Historical information

physical resources

3. Scope statement

(people, equipment,

4. Resource pool description

materials) and what

5. Organizational policies

quantities of each should

be used to perform project activities.”

Tools and Techniques

1. Expert judgment 2. Alternatives identification

Core Planning Processes

Cost Estimating

“… developing an

1. Cost estimates

2. Resource requirements

approximation (estimate of the

2. Supporting detail

3. Resource rates

costs of the resources needed

4. Activity duration estimates

to complete project activities.”

3. Cost management plan

5. Historical information 6. Chart of accounts

Tools and Techniques

1. Analogous estimating 2. Parametric modeling 3. Bottom-up estimating 4. Computerized tools

Core Planning Processes

Cost Budgeting

1. Cost estimates

“… allocating the overall cost

1. Cost baseline

2. WBS

estimates to individual work

3. Project schedule

items in order to establish a cost baseline for measuring project performance.”

Tools and Techniques

1. Analogous estimating 2. Parametric modeling 3. Bottom-up estimating 4. Computerized tools

Core Planning Processes

Project Plan Development

1. Other planning outputs

“… taking the results of other

1. Project plan

2. Historical information

planning processes and putting

2. Supporting detail

3. Organizational policies

them into a consistent,

4. Constraints

coherent document.”

5. Assumptions

Tools and Techniques

1. Project planning methodology

2. Stakeholder’s skills and knowledge 3. Project management information systems

Executing Processes

Closing Processes

Purpose

To coordinate, integrate, and manage all resources

Why?

in order to achieve the project objectives

How?

by carrying out the letter and intent of the project plan

While

responding to change and mitigating risks

Overview

Executing Processes

4.2 Project Plan Execution

Facilitating Processes

From the

Planning

Team 9.3 Processes Distribution Controlling Information Development (Figure 3–7)

Assurance Quality

To the

(Figure 3–5) Processes

5.4 Scope Verification

12.3 Solicitation

Source 12.4

From the

Selection

(Figure 3–7) Processes Controlling

Administration Contract

Core Execution Process

Project Plan Execution

1. Project plan

“… the primary process for

1. Work results

2. Supporting detail

carrying out the project plan.”

2. Change requests

3. Organizational policies 4. Corrective action

Tools and Techniques

1. General management skills 2. Product skills and knowledge 3. Work authorization system 4. Status review meetings 5. Project management

information system 6. Organizational procedures

Facilitating Execution Processes

Information distribution Team development Quality assurance Scope verification Solicitation Source selection Contract administration

Sample Executing Activities

Managing work results and requests for change Using tools and techniques in project plan implementation Building effective relationships with vendors and project team members Choosing from potential sellers Distributing status information in time for stakeholders to act Other?

Unit 6: Controlling Projects

Upon completion, you will be able to …

Describe the purposes of the controlling processes Identify the inputs and outputs of the core controlling processes List and define the major tools and techniques

Controlling Processes

Closing Processes

Purpose

To keep the project on track in order to achieve its objectives as outlined in the project plan by:

Monitoring and reporting variances Controlling scope changes Controlling schedule changes Controlling costs Controlling quality Responding to risks

Overview

Controlling Processes

Change Control

Facilitating Processes

To the Planning

From the Executing

5.5 (Figure 3–5) Processes

(Figure 3–6) Processes

Scope Change

Control

Control Schedule

Control Cost

11.4 Control Quality 8.3 Risk Response Control

Closing To the Processes (Figure 3–8)

Core Controlling Processes

Performance Reporting

1. Project plan

“… collecting and disseminating

1. Performance reports

2. Work results

performance information. This

2. Change requests

3. Other project records

includes status reporting, progress measurements, and forecasting.”

Tools and Techniques

1. Performance reviews 2. Variance analysis 3. Trend analysis 4. Earned value analysis 5. Information distribution

systems

Core Controlling Processes Overall Change Control

1. Project plan

“Overall change control is

1. Project plan updates

2. Performance reports

concerned with:

2. Corrective action

3. Change requests

(a) influencing the factors which

create change to ensure that

3. Lessons learned

changes are beneficial, (b) determining that a change has occurred, and (c) managing the actual change when and as they occur.”

Tools and Techniques

1. Change control system 2. Configuration management 3. Performance measurement 4. Additional planning 5. Project management

information systems

Facilitating Controlling Processes

Scope change control Quality control Schedule control Cost control Risk response control

Facilitating Controlling Processes

Risk Response Control

1. Risk management plan

“… involves executing the Risk

1. Corrective action

2. Actual risk events

Management Plan in order to

2. Updates to the risk

3. Additional risk identification

respond to risk events over the

management plan

course of the project.”

Tools and Techniques

1. Workarounds 2. Additional risk response

development

Key Cost Concept

Earned Value

A method for measuring project performance The budgeted cost of work performed for an activity or group of activities Compares the planned amount of work with the accomplished amount of

work to determine if cost and scheduled performance is as planned

Controlling Activities

Reporting status versus plan and forecasting Responding to changes in risk Completing and settling the contract, including resolving of any open items Identifying and reporting schedule slips Determining whether schedule updates require plan modifications Other?

Unit 7: Closing Projects

Upon completion, you will be able to …

Describe the purposes of closing processes Identify the inputs and outputs of the core processes List the major tools and techniques

Closing Processes

Purpose

Formalizing acceptance of the project and bringing it to an orderly end by:

Closing the contract Achieving administrative closure

Overview

Closing Processes

From the

Controlling Administrative

Contract

Processes Closure (Figure 3–7)

Close-out

Core Closing Processes

Contract Close-out

1. Contract documentation

“… involves both product

1. Contract file

verification (was all work

2. Formal acceptance and

completed correctly and

closure

satisfactorily) and administrative close-out (updating of records to reflect final results and archiving of such information for future use.”

Tools and Techniques

1. Procurement audits

Core Closing Process

Administrative Closure

1. Performance measurement

“… verifying and documenting

1. Project archives

documentation

project results to formalize

2. Formal acceptance

2. Documentation of the

acceptance of the product by

product of the project

the sponsor, client or

3. Lessons learned

3. Other project records

customer.”

Tools and Techniques

1. Performance reporting tools and techniques

Sample Closing Activities

Ensuring a record of lessons learned is developed, documented, and made available for future projects

Verifying acceptance of products or services Collecting all required project records Determining if final products meet specifications Assessing the quality, correctness, and completeness of all formal project

acceptance documents Give performance appraisals and assist in the planned transfer of

personnel to other projects or positions Other?

Functional Organization

Executive Project Coordination

(Black boxes represent staff engaged in project activities.)

Functional Organization

Discussion Question

In your opinion, what advantages and potential disadvantage does this type of organizational structure foster?

Functional Organization

Potential Advantages

Clear reporting relationships Highly specialized expertise Homogeneous group Drive for technical excellence

Functional Organization

Potential Issues

Project boundaries limited to discipline Barrier to customer influence and satisfaction Employee development opportunities limited Project manager dependent on personal influence Hierarchical decision and communication processes Overwork technical issues versus build to standard Fosters part-time roles

Strong Matrix

Chief Executive

Manager of

Project Managers

Project Manager

(Black boxes represent staff engaged in project activities.)

Project Coordination

Projectized Organization

Discussion Question

Based on your experience, what potential advantages and disadvantage does this type of organizational approach foster?

An Example of Project Org.

General Manager

Project A

Project B

Project C

Manager

Design Manuf.

Project-Based Organization

Potential Advantages

Strong project manager role Full-time administrative staff Clear accountability Fosters co-location Improved focus Cost and performance tracking Decision-making Customer relationships Common processes

Project-Based Organization

Potential Issues

Lessening of employee’s “profession” identity Reduced focus on technical competence Leadership by the nontechnically skilled Focus on administrative work versus technical Devaluing of functional managers Process versus deliverable emphasis

Structure Influence on Projects

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