PROJECT MANAGEMENT
FERDOUS SARWAR, PhD
Projects
Unique, one-time operations designed to accomplish a
specific set of objectives in a limited time frame.
JAN FEB MAR APR MAY JUN
Build A
A Done
Build B
B Done
Build C
C Done
On time!
Build D
Ship
Project Management
How is it different?
Limited time frame
Narrow focus, specific objectives
Less bureaucratic
Why is it used?
Specialneeds
Pressures for new or improves products or services
Project Management
What are the Key Metrics
Time
Cost
Performance objectives
What are the Key Success Factors?
Top-down commitment
Having a capable project manager
Having time to plan
Careful tracking and control
Good communications
Project Management
What are the Major Administrative Issues?
Executive responsibilities
Project selection
Project manager selection
Organizational structure
Organizational alternatives
Manage within functional unit
Assign acoordinator
Use a matrix organization with a project leader
Project Management
What are the tools?
Work breakdown structure
Network diagram
Gantt charts
Risk management
Planning and Scheduling
Gantt Chart MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
Locate new
facilities
Interview staff
Hire and train staff
Select and order
furniture
Remodel and install
phones
Move in/startup
Key Decisions
Deciding which projects to implement
Selecting a project manager
Selecting a project team
Planning and designing the project
Managing and controlling project resources
Deciding if and when a project should be
terminated
Work Breakdown Structure
Project X
Level 1
Level 2
Level 3
Level 4
PERT and CPM
PERT: Program Evaluation and
Review Technique
CPM: Critical Path Method
Graphically displays project activities
Estimates how long the project will take
Indicates most critical activities
Show where delays will not affect project
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
Order
AOA furniture 4
Furniture
Locate 2 setup
facilities
Remodel
1 5 6
Move
in
Interview
Hire and
train
3
Project Network – Activity on
Node
Order
furniture
Locate Furniture
2 setup
facilities
AON
1 6
Move
Remodel
in
S 5 7
Hire and
Interview
train
3 4
Network Conventions
a
b
c a
c
b
a c
a c
b Dummy
activity
b d
Time Estimates
Deterministic
Time estimates that are fairly certain
Probabilistic
Estimates of times that allow for variation
Example 1
6 weeks
Deterministic 4
time estimates
3 weeks
8 weeks 2
11 weeks Move
in
1 5 6
1 week
4 weeks
9 weeks
3
Example 1 Solution
Critical Path
Path Length Slack
(weeks)
1-2-3-4-5-6 18 2
1-2-5-6 20 0
1-3-5-6 14 6
Computing Algorithm
Network activities
ES: early start
EF: early finish
LS: late start
LF: late finish
Used to determine
Expected project duration
Slack time
Critical path
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
Probabilistic Estimates
to tm te tp
Activity Optimistic Most likely Pessimistic
start time time (mode) time
Expected Time
te = t o + 4t m +t p
6
te = expected time
to = optimistic time
tm = most likely time
tp = pessimistic time
Variance
2 (t
= p o– t ) 2
36
2 = variance
to = optimistic time
tp = pessimistic time
Example 5
Optimistic Most likely Pessimistic
time time time
2-4-6
b
3-4-5 3-5-7 5-7-9
d e f
4-6-8
h
Path Probabilities
Specified time – Path mean
Z =
Path standard deviation
Z indicates how many standard deviations
of the path distribution the specified tine
is beyond the expected path duration.
Example 6
17
Weeks
1.00
a-b-c
Weeks
10.0
d-e-f
Weeks
16.0
1.00
g-h-i
13.5 Weeks
Advantages of PERT
Forces managers to organize
Provides graphic display of activities
Identifies
4
Critical activities
2
Slack activities
1 5 6
3
Limitations of PERT
Important activities may be omitted
Precedence relationships may not be
correct 4
Estimates may include 2
a fudge factor
1 5 6
May focus solely
on critical path 142 weeks
3
Technology for Managing Projects
Computer aided design (CAD)
Groupware (Lotus Notes)
Project management software
CA Super Project
Harvard Total Manager
MS Project
Sure Track Project Manager
Time Line
Project Risk Management
Risk: occurrence of events that have undesirable
consequences
Delays
Increased costs
Inability to meet specifications
Project termination
Risk Management
Identify potential risks
Analyze and assess risks
Work to minimize occurrence of risk
Establish contingency plans
