IE 102 Spring Project Management

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Gabriella Stewart
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1 IE 102 Spring 2018 Project Management 1

2 Management of Projects Planning - goal setting, defining the project, team organization Scheduling - relates people, money, and supplies to specific activities and activities to each other ontrolling - monitors resources, costs, quality, and budgets; revises plans and shifts resources to meet time and cost demands 2

3 Project Planning, Scheduling, and ontrolling Before Start of project During project Timeline project 3

4 Project Planning, Scheduling, and ontrolling Before Start of project During project Timeline project 4

5 Project Planning, Scheduling, and ontrolling Before Start of project During project Timeline project 5

6 Project Planning, Scheduling, and ontrolling Before Start of project During project Timeline project 6

7 Project Planning, Time/cost Scheduling, estimates and Budgets ontrolling Engineering diagrams ash flow charts Material availability details Budgets Delayed activities report Slack activities report PM/PERT Gantt charts Milestone charts ash flow schedules Before Start of project During project Timeline project 7

8 Project Scheduling Identifying precedence relationships Sequencing activities Determining activity times & costs Estimating material and worker requirements Determining critical activities

9 Purposes of Project Scheduling 1. Shows the relationship of each activity to others and to the whole project 2. Identifies the precedence relationships among activities 3. Encourages the setting of realistic time and cost estimates for each activity 4. Helps make better use of people, money, and material resources by identifying critical bottlenecks in the project 9

10 Project Management Techniques Gantt chart ritical Path Method (PM) Program Evaluation and Review Technique (PERT) 10

11 A Simple Gantt hart Time J F M A M J J A S Design Prototype Test Revise Production 11

12 Service For A Delta Jet Passengers Baggage Fueling argo and mail Galley servicing Lavatory servicing Drinking water abin cleaning argo and mail Flight services Operating crew Baggage Passengers Deplaning Baggage claim ontainer offload Pumping Engine injection water ontainer offload Main cabin door Aft cabin door Aft, center, forward Loading First-class section Economy section ontainer/bulk loading Galley/cabin check Receive passengers Aircraft check Loading Boarding Minutes 12

13 PM & PERT Network techniques Developed in 1950 s PM by DuPont for chemical plants (1957) PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958) onsider precedence relationships and interdependencies Each uses a different estimate of activity times 13

14 Six Steps PM & PERT 1. Define the project and prepare the work breakdown structure 2. Develop relationships among the activities - decide which activities must precede and which must follow others 3. Draw the network connecting all of the activities 14

15 Six Steps PM & PERT 4. Assign time and/or cost estimates to each activity 5. ompute the longest time path through the network this is called the critical path 6. Use the network to help plan, schedule, monitor, and control the project 15

16 Questions PM & PERT an Answer 1. When will the entire project be completed? 2. What are the critical activities or tasks in the project? 3. Which are the noncritical activities? 4. What is the probability the project will be completed by a specific date? 16

17 Questions PM & PERT an Answer 5. Is the project on schedule, behind schedule, or ahead of schedule? 6. Is the money spent equal to, less than, or greater than the budget? 7. Are there enough resources available to finish the project on time? 8. If the project must be finished in a shorter time, what is the way to accomplish this at least cost? 17

18 PM AON (Activity on Node) Network onventions AOA (Activity on Arc) Network onventions 18

19 AON (Activity on Node) Network onventions Notes on board:) 19

20 AON (Activity on Arc) Network onventions Notes on board:) 20

21 AON and AOA Network onventions Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) (a) A B A comes before B, which comes before A B (b) A B A and B must both be completed before can start A B (c) A B B and cannot begin until A is completed A B 21

22 AON and AOA Network onventions Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) (d) A B D and D cannot begin until A and B have both been completed A B D (e) A B D cannot begin until both A and B are completed; D cannot begin until B is completed. A dummy activity is introduced in AOA A B Dummy activity D 22

23 AON and AOA Network onventions Activity on Activity Activity on Node (AON) Meaning Arrow (AOA) (f) A B and cannot begin until A is completed. D cannot begin until both B and are completed. A dummy activity is again introduced in AOA. B D A B Dummy activity D 23

24 Example on board:) 24

25 Milwaukee Paper Manufacturing's Activities and Predecessors AON Example Activ ity Durati on Description Immediate Predecessors A 2 Build internal components B 3 Modify roof and floor 2 onstruct collection stack A D 4 Pour concrete and install frame A, B E 4 Build high-temperature burner F 3 Install pollution control system G 5 Install air pollution device D, E H 2 Inspect and test F, G

26 AON Network for Milwaukee Activity Immediate Predecessors A Paper B A D A, B E F A Activity A (Build Internal omponents) G H D, E F, G Start Start Activity B Activity B (Modify Roof and Floor) 26

27 AON Network for Milwaukee Activity Immediate Predecessors A Paper B A Activity A Precedes Activity D E F A, B A G H D, E F, G Start B D Activities A and B Precede Activity D 27

28 AON Network for Milwaukee Activity Immediate Predecessors A Paper B A D A, B E A F F G H D, E F, G Start E H B D G Arrows Show Precedence Relationships Finish 28

29 AOA Network for Milwaukee Paper Activity Immediate Predecessors A B A 2 (onstruct Stack) 4 D E F G A, B D, E H F, G 1 Dummy Activity 6 H (Inspect/ Test) 7 D 3 (Pour oncrete/ Install Frame) 5 29

30 Determining the Project Schedule Perform a ritical Path Analysis The critical path is the longest path through the network The critical path is the shortest time in which the project can be completed Any delay in critical path activities delays the project ritical path activities have no slack time 30

31 Determining the Project Schedule Perform a ritical Path Analysis Activity Description Time (weeks) A Build internal components 2 B Modify roof and floor 3 onstruct collection stack 2 D Pour concrete and install frame 4 E Build high-temperature burner 4 F Install pollution control system 3 G Install air pollution device 5 H Inspect and test 2 Total Time (weeks) 25 31

32 Determining the Project Schedule Perform a ritical Path Analysis Earliest start (ES) = earliest time at which an activity can Activity Description start, assuming all predecessors Time (weeks) have A Build internal been completed components 2 Earliest Bfinish (EF) Modify = earliest roof and time floor at which an activity 3can be onstruct finished collection stack 2 Latest D start (LS) Pour = concrete latest time and at install which frame an activity can 4 start E Build high-temperature so as to not delay burner the completion 4time of the entire project F Install pollution control system 3 Latest Gfinish (LF) Install = latest air pollution time by device which an activity has 5 to be finished so as to not delay the completion H Inspect time and of test the entire project 2 Total Time (weeks) 25 32

33 Forward Pass Begin at starting event and work forward Earliest Start Time: If an activity has only one immediate predecessor, its ES equals the EF of the predecessor If an activity has multiple immediate predecessors, its ES is the maximum of all the EF values of its predecessors ES = Max (EF of all immediate predecessors) 33

34 Forward Pass Begin at starting event and work forward Earliest Finish Time: The earliest finish time (EF) of an activity is the sum of its earliest start time (ES) and its activity time EF = ES + Activity time 34

35 Backward Pass Begin with the last event and work backwards Latest Finish Time: If an activity is an immediate predecessor for just a single activity, its LF equals the LS of the activity that immediately follows it If an activity is an immediate predecessor to more than one activity, its LF is the minimum of all LS values of all activities that immediately follow it LF = Min (LS of all immediate following activities) 35

36 Backward Pass Begin with the last event and work backwards Latest Start Time: The latest start time (LS) of an activity is the difference of its latest finish time (LF) and its activity time LS = LF Activity time 36

37 omputing Slack Time After computing the ES, EF, LS, and LF times for all activities, compute the slack or free time for each activity Slack is the length of time an activity can be delayed without delaying the entire project Slack = LS ES or Slack = LF EF 37

38 Project Duration alculations board:) 38

39 AON Network for Milwaukee Paper Activity Immediate Predecess ors A 2 B 3 2 A D 4 A, B E 4 A F F 3 G 5 D, E H 2 F, G Start E H B D G Finish 39

40 omputing Slack Time Earliest Earliest Latest Latest On Start Finish Start Finish Slack ritical Activity ES EF LS LF LS ES Path A Yes B No Yes D No E Yes F No G Yes H Yes 40

41 ES EF Gantt hart for Milwaukee Paper A Build internal components B Modify roof and floor onstruct collection stack D Pour concrete and install frame E Build high-temperature burner F Install pollution control system G Install air pollution device H Inspect and test

42 LS LF Gantt hart for Milwaukee Paper A Build internal components B Modify roof and floor onstruct collection stack D Pour concrete and install frame E Build high-temperature burner F Install pollution control system G Install air pollution device H Inspect and test

43 Another-Example 43

44 Example on board:) 44

45 PM-Example 45

46 PM-Example 46

47 KAHOOT! Go to kahoot.it Have your KAHOOT partner. Enter nicknames as your ID.

Outline. Global Company Profile: Bechtel Group. The Importance of Project Management Project Planning Project Scheduling Project Controlling

Outline. Global Company Profile: Bechtel Group. The Importance of Project Management Project Planning Project Scheduling Project Controlling Project Management Outline Global Company Profile: Bechtel Group The Importance of Project Management Project Planning Project Scheduling Project Controlling Outline - Continued Project Management Techniques: