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Project Management
Projects
„Unique, one-time operations designed to
accomplish a specific set of objectives in a
limited time frame.”
Processes in an organization
Usual
business
processes
Projects
Routines &
regular tasks
Changes &
Uncertainty
Main characteristics of projects
• Uniqe set of tasks and processes
• Narrow focus, specific performance objectives
• The end of the project is definite:
– Limited time-frame
– Objectives reached or
– it is proven, that objectives cannot be reached
anymore
• Budget is limited
• It can be planned
• It is always risky
Project management
• Project management is the discipline of
planning, organizing, and managing
resources to bring about the successful
completion of specific project goals and
objectives.
• Project-like management: managing nonproject processes as projects
Project Manager
Responsible for:
Work (tasks)
Human Resources
Communications
Quality
Time
Costs
(Stevenson)
Other roles in the project
• Project-coordinator: negotiate with the
functional leaders, report to the project
manager
• Projectmanagement-team members
• Project champion: strong person who
promotes and supports the project
• Project-workers: deliver the tasks
Project Life Cycle
(Stevenson)
Concept
Planning
Execution
Termination
Management
Feasibility
Project life cycle
Cost of changing in the life cycle
Definintion
Planning,
preparation
Implementation,
execution
Influence of the
stakeholders
Closing
the
project
Costs
Cost of changing
Time
Project-management tools
Problem tree diagram
A problem tree is a problem analysis tool that illustrates the cause and effect
relationship of problems using a hierarchical tree diagram.
• by arranging the problem statements in hierarchical order
• and depicting the problem statements in a boxed article.
Problem-tree
Fishbone (Ishikawa) diagram
• A Fishbone Diagram is a problem analysis tool that
illustrates the cause and effect relationships of problems
and is often use in the quality management discipline.
Objective tree
• An objective tree is an objective formulation tool that depicts
graphically the hierarchy of objectives. It is formulated by initially
inverting the statements found in the problem tree (often used in
tandem).
Logical Framework Matrix
1. Objectivesstructure
2. Indicators
3. Means of
verification
4. Risks and
assumptions
1. Strategic goal
2. Immediate
objective
3. Outputs (results)
4. Activities (inputs)
Pre-conditions
Work Breakdown Structure
• a tool used to define and group a project's discrete work
elements (or tasks) in a way that helps organize and
define the total work scope of the project
GANTT charts
• A Gantt chart is a type of bar chart that
illustrates a project schedule.
• Gantt charts illustrate the start and finish dates
of the terminal elements and summary elements
of a project.
• Some Gantt charts also show the dependency
relationships between activities.
• Gantt charts can be used to show current
schedule status using percent-complete
shadings, or colored lines and a vertical
"TODAY" line.
GANTT charts
ID
1.
2.
3.
4.
5.
6.
7.
8
9
10.
11.
Activities
Who
is
respo
nsible
?
1.
2.
3.
Time intervals
4.
5.
6.
7.
8.
GANTT charts
activities
1.
2.
3.
4.
5.
6.
Time
GANTT charts
GANTT charts
activities
time
1.
2.
3.
4.
5.
6.
today
The Network Diagram
• Network (precedence) diagram
• Activity-on-arrow (AOA)
• Activity-on-node (AON)
• Activities
• Events
The Network Diagram (cont’d)
• Path
– Sequence of activities that leads from the starting
node to the finishing node
• Critical path
– The longest path; determines expected project
duration
• Critical activities
– Activities on the critical path
• Slack
– Allowable slippage for path; the difference the
length of path and the length of critical path
Project Network – Activity on
Arrow
AOA
Locate
facilities
Order
furniture
4
Furniture
setup
2
Remodel
1
5
6
Move
in
Interview
3
Hire and
train
Project Network – Activity on
Node
Order
furniture
AON
Locate
facilities
Furniture
setup
2
6
1
Move
in
Remodel
5
S
Interview
3
Hire and
train
4
7
Network Conventions
a
c
a
c
b
a
a
c
c
b
b
b
d
Dummy
activity
Time Estimates
• Deterministic
– Time estimates that are fairly certain
• Probabilistic
– Estimates of times that allow for variation
Deterministic time estimates
6 weeks
4
8 weeks
3 weeks
2
11 weeks
1
5
Move
in
1 week
4 weeks
9 weeks
3
6
Solution
Critical Path
P a th
L e n g th
S la c k
(w e e ks)
1 -2 -3 -4 -5 -6
1 -2 -5 -6
1 -3 -5 -6
18
20
14
2
0
6
Probabilistic Time Estimates
• Optimistic time
– Time required under optimal conditions
• Pessimistic time
– Time required under worst conditions
• Most likely time
– Most probable length of time that will be
required
Optimistic
time
Most likely
time
Pessimistic
time
2-4-6
b
3-4-5
d
3-5-7
e
4-6-8
h
5-7-9
f
Time-cost Trade-offs: Crashing
• Crash – shortening activity duration
• Procedure for crashing
– Crash the project one period at a time
– Only an activity on the critical path
– Crash the least expensive activity
– Multiple critical paths: find the sum of
crashing the least expensive activity on
each critical path
Crashing exercise
activity
duration
a
b
c
d
e
f
Minimum
duration
(crash time)
6
10
5
4
9
2
• Indirect costs: 1000 / day
Cost of one
day crashing
6
8
4
1
7
1
500
300
700
600
800
Network diagram
6
a
10
b
2
f
c
5
9
4
d
e
Solution?
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