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?