Ch.14-Managing Projects

Network Diagrams

A graphical tool that shows the logical linkages between activities in a project

Gantt charts

A graphical tool used to show expected start and end times for project activities and to track actual progress against these time targets

Network path

A logically linked sequence of activities in a network diagram

Critical path

A network path that has the longest, or is tied for the longest, linked sequence of activities

Program evaluation and review technique (PERT)

A network-based technique in which there are multiple time estimates for each activity

Critical-path method

A network-based technique in which there is a single time estimate for each activity

Network Diagrams

Critical-path method Program evaluation and review technique (PERT)-A network-based technique in which there are multiple time estimates for each activity.

The Critical Path is Defined by Operations That Have

EST = LST and EFT = LFT. There is no Slack Time or Schedule Flexibility in These Operations.

EFT

EST plus (+) the Time to Complete the Operation

Activity Network Diagram

Extensively used in project management to plan the most appropriate schedule for the completion of any complex task and all of its sub-tasks. This tool is also referred to as the PERT chart. (Program Evaluation and Review Technique)

LST

LFT minus (-) the Time to Complete the Operation

Purpose of Activity Network Diagram

Permits a team to find both the most efficient path and realistic schedule for the completion of any project by graphically showing total completion time, the necessary sequence of tasks and task dependencies and the critical tasks to manage (critical path)

Critical activity

Project activity for which the earliest start time and latest start time are equal. A critical activity cannot be delayed without lengthening the overall project duration

Project

- A temporary endeavor undertaken to create a unique product, service, or result. -Projects have clear starting and ending points after which the people and resources dedicated to the project are reassigned. -Projects are nonroutine, can be large or small, and may be difficult to manage. -Projects typically require significant levels of cross-functional and interorganizational coordination.

Crashing a Project

- Shortening the overall duration of a project by reducing the time it takes to perform certain activities .1.List all network paths and their current lengths and mark all activities that can be crashed. 2.Focus on the critical path or paths. Working one period at a time, choose the activity or activities that will shorten all critical paths at the least cost. The one rule is this: Never crash an activity that is not on a critical path, regardless of the cost. Doing so will not shorten the project; it will only add costs. 3.Recalculate the lengths of all paths and repeat step 2 until the target project completion time is reached or until all options have been exhausted.

Project Management is gaining importance as a management discipline due to:

-Companies accepting the fact that complex projects can be managed well. -Professional organizations such as the Project Management Institute have emerged -The pace of strategic change has quickened .-The traditional role of middle management has shrunk.

PMI (Project Management Institute)

-Offers education and certification -Sponsors conferences, research, special interest groups -Publishes Guide to the Project Management Body of Knowledge (PMBOK®)

PMBOK®

-Part I: Various business processes that organizations follow in carrying out projects. -Part II: Nine knowledge areas applicable to nearly all projects.

Earliest Start Time (ES)

-The earliest an activity can be started, as determined by the earliest finish time for all immediate predecessors -ES = Latest EF for all immediate predecessors

Concept Phase

-The first of five phases of a project where project planners develop a broad definition of what the project is and what its scope will be. Outputs - Examples include: initial budget estimates, estimates of personnel needed, and required completion dates

Latest Start Time (LS)

-The latest an activity can be started and still finish the project on time, calculated by subtracting the activity's duration from its latest finish time. -LS = LF - activity's duration

Typical Project Phases for New Products and Services

•Concept Phase •Project Definition Phase •Planning Phase •Performance Phase •Postcompletion Phase

Courter Corporation

•Courter Corporation makes high-end speakers that are used with home entertainment systems. •Courter has designed a new speaker, the Gina3000, which is louder and more reliable than Courter's earlier model .•Management has outlined 10 activities that must be completed before the Gina3000 speakers can be released for regular production.

Slack = amount of allowable delay in an activity

Slack = LS - ES

Project Management

The application of knowledge, skills, tools, and techniques to project activities to meet project requirements

Forward Pass

The determination of the earliest start and finish times for each project activity

Backward Pass

The determination of the latest finish and start times for each project activity

Earliest Finish Time (EF)

The earliest an activity can be finished, calculated by adding the activity's duration to its earliest start time. -EF = ES + activity's duration

Postcompletion Phase

The fifth of five phases of a project where the project manager or team confirms the final outcome, conducts a postimplementation meeting to critique the project and personnel, and reassigns project personnel

Performance Phase

The fourth of five phases of a project where the organization actually starts to execute the plan

EST

The largest EFT of any Previous Connected Operations

Latest Finish Time (LF)

The latest an activity can be finished and still finish the project on time, as determined by the latest start time for all immediate successors. LF = Earliest LS for all immediate successors

Project Definition Phase

The second of five phases of a project where project planners identify how to accomplish the work, how to organize for the project, the key personnel and resources required to support the project, tentative schedules, and tentative budget requirements.

LFT

The smallest LST of Any Connected Following Operation

Planning Phase

The third of five phases of a project where project planners prepare detailed plans that identify activities, time and budgets targets, and the resources needed to complete each task, while also putting into place the organization that will carry out the project

The Activity Network Diagram The Process

1.Define the project. 2.Identify all of the tasks needed to complete the project 3.Determine the initial tasks and build a sequence of additional tasks dependent on the first tasks as well as the tasks that can be performed simultaneously with the initial tasks. 4.Determine the time it takes to complete a task. 5.Determine if any slack time in a task sequence. 6.Identify the path or paths that have no slack time. This is the critical path. 7.Software such as Microsoft's "Project" is available to simplify the construction of this PERT chart.

Constructing a Network Diagram

1.Identify each unique activity in a project by a capital letter that corresponds only to that activity. 2.Represent each activity in the project by a node that shows the estimated time it will take to complete the activity. (activity on node (AON) diagram) 3.If an activity has an immediate predecessor(s), show the relationship by connecting the two activities with an arrow. The network diagram consists of all the activity nodes and arrows linking them together 4.Determine the earliest start time (ES) and earliest finish time (EF) for each activity by performing a forward pass. 5.Determine the latest finish time (LF) and latest starting time (LS) for each activity by doing a backward pass. 6.Determine the critical activities and path(s) in the project.

Courter Corporation decides to follow the six steps to create a network diagram of the Gina3000 project.

Step 1: Identify each unique activity in a project by a capital letter that corresponds only to that activity Step 2: Represent each activity in the project by a node that also shows the estimated time it will take to complete the activity. Step 3: If an activity has an immediate predecessor, show that relationship by connecting the two activities with an arrow Step 4: Determine the earliest start time (ES) and earliest finish time (EF) for each activity. Step 5: Determine the latest finish time (LF) and latest start time (LS) for each activity Step 6: Determine the critical activities and path(s) in the project

Courter Corporation

Step 1: List all network paths and their current lengths Step 2: Focus on the critical path or paths. Working one period at a time, choose the activity(s) that will shorten all critical paths at the least cost. Step 3: Recalculate the lengths of all paths and repeat step 2 until the target project completion time is reached or until all options have been exhausted.