Chapter 11 Project Management

Chapter11:ProjectManagement1OPERATIONSMANAGEMENTforMBAsThirdEditionPreparedbyE.SonnyButlerGeorgiaSouthernUniversityMeredithandShaferJohnWileyandSons,Inc.Chapter11:ProjectManagement2Chapter11:ProjectManagementChapter11:ProjectManagement3IntroductionChapter11:ProjectManagement4PreviousExamplesofProjectsTransportingOlympicFlame(Chapter1)Mercedes-Benzfacilitylocation(Chapter5)Chapter11:ProjectManagement5ViperDevelopmentProjectProjectteamgiven3yearstogofromconcepttoroadster.Neededtodevelopnew8.0-litterV-10aluminumengineandnewhighperformancesix-speedtransmission.ComparableprojectsusuallyrequirefiveyearsatChrysler.Chapter11:ProjectManagement6ViperDevelopmentProjectcon’tProjectteammembershand-picked.ArtemisPrestigeselectedtohelpmanageprojectabilitytotrackseveralprojectsconcurrentlyinteractiveuseprovidebroadpictureofentireprojecthelpidentifytheimpactofeachactivityontheultimatecompletionoftheprojectChapter11:ProjectManagement7ViperDevelopmentProject:AnOverwhelmingSuccessFirsttestenginerequiredlessthanayeartodevelop.Transmissiondevelopedin1.5yearscomparedtotheusual5to6years.Manyimportantinnovationsintheframe,body,andbrakeswereincorporated.Chapter11:ProjectManagement8ZenecaPharmaceuticalsMissionisthedevelopmentofnewdrugsforthemedicalcommunity.Thedevelopmentofanewdrugisacomplexprojectwithtypicaldurationsof10years.Chapter11:ProjectManagement9ZenecaPharmaceuticals:MajorStepsinDrugDevelopmentPreclinicalTestingInvestigationalNewDrugHumanClinicalTestingthreeseparatephasesNewDrugApplicationApprovalChapter11:ProjectManagement10DifferencesBetweenPharmaceuticalR&DProjectsandOtherIndustriesFinalproductisinformationratherthanaphysicalproduct.Longduration,extremecosts,andhighchancesforfailure.Chapter11:ProjectManagement11BackgroundProjectmanagementconcernedwithmanagingorganizationalactivities.Oftenusedtointegrateandcoordinatediverseactivities.Projectsarespecialtypesofprocesses.Chapter11:ProjectManagement12DefiningaProjectProjectsareprocessesthatareperformedinfrequentlyandadhoc,withaclearspecificationofthedesiredobjective.Chapter11:ProjectManagement13ExamplesofProjectsConstructinghighways,bridges,tunnelsanddamsErectingskyscrapers,steelmills,andhomesOrganizingconferencesandconventionsManagingR&DprojectsRunningpoliticalcampaigns,waroperations,andadvertisingcampaignsChapter11:ProjectManagement14ReasonsforGrowthinProjectOperationsMoreSophisticatedTechnologyBetter-EducatedCitizensMoreLeisureTimeIncreasedAccountabilityHigherProductivityFasterResponsetoCustomersGreatercustomizationforcustomersChapter11:ProjectManagement15PlanningtheProjectChapter11:ProjectManagement16LifeCycleofaProject(Stretched-S)&(Exponential)Chapter11:ProjectManagement17OrganizingtheProjectTeamAdHocProjectFormWeakFunctionalMatrixStrongProjectMatrixChapter11:ProjectManagement18TypesofProjectTeamMembersThosehavingalong-termrelationshipwiththeproject.ThosethatthePMwillneedtocommunicatewithclosely.Thosewithrareskillsnecessarytoprojectsuccess.Chapter11:ProjectManagement19ProjectPlansChapter11:ProjectManagement20WorkBreakdownStructureChapter11:ProjectManagement21ProjectMasterScheduleChapter11:ProjectManagement22ComplexityofSchedulingProjectActivitiesLargenumberofactivitiesPrecedencerelationshipsLimitedtimeoftheprojectChapter11:ProjectManagement23PlanningandSchedulingProjectsPlanning.Determiningwhatmustbedoneandwhichtasksmustprecedeothers.Scheduling.Determiningwhenthetasksmustbecompleted;whentheycanandwhentheymustbestarted;whichtasksarecriticaltothetimelycompletionoftheproject;andwhichtaskshaveslackandhowmuch.Chapter11:ProjectManagement24SchedulingtheProject:PERTandCPMChapter11:ProjectManagement25TerminologyActivityEventNetworkPathCriticalPathCriticalActivitiesChapter11:ProjectManagement26ProjectPlanningWhenActivityTimesareKnownInputslistoftheactivitiesthatmustbecompletedactivitycompletiontimesactivityprecedencerelationshipsChapter11:ProjectManagement27ProjectPlanningWhenActivityTimesareKnowncontinuedOutputsgraphicalrepresentationofprojecttimetocompleteprojectidentificationofcriticalpath(s)andactivitiesactivityandpathslackearliestandlatesttimeeachactivitycanbestartedearliestandlatesttimeeachactivitycanbecompletedChapter11:ProjectManagement28ExampleActivityTimePrecededByA10--B7--C5AD13AE4B,CF12DG14EChapter11:ProjectManagement29NetworkDiagramChapter11:ProjectManagement30EarlyStartandFinishTimesChapter11:ProjectManagement31LatestStartandFinishTimesChapter11:ProjectManagement32ActivitySlackTimeTES=earlieststarttimeforactivityTLS=lateststarttimeforactivityTEF=earliestfinishtimeforactivityTLF=latestfinishtimeforactivityActivitySlack=TLS-TES=TLF-TEFChapter11:ProjectManagement33PathSlackDurationofCriticalPath-PathDurationPathSlackChapter11:ProjectManagement34ActivitySlackTimesActivityESEFLSLFSlackA0100100B07101710C101512172D102310230E151917212F233523350G193321352Chapter11:ProjectManagement35ProjectPlanningWhenActivityTimesareUncertainInputsOptimistic(to),mostlikely(tm),andpessimistic(tp)timeestimateforeachactivity