Chapter 17: Project Management
Define the term project management.
The process of managing unique, one-time operations that need to accomplish a specific set of objectives in a limited time frame
How is project management *very different* from other types of operations management?
Few people will be there for the full life cycle of the project
What is work breakdown structure?
The process that provides logical framework for planning -uses a hierarchal approach to identify all of the project's required actives (from big to small)
How is project management *similar* to other types of operations management?
It involves managing people with diversity of knowledge and skills
What type of activity time estimates does PERT use?
PERT uses probabilistic activity time estimates
From a PERT/CPM perspective, define/explain the AOA Network Diagram.
-Arrows represent project activities -Nodes represent transition points between two or more activities
What are some common causes of behavior issues faced by project managers?
-Decentralized decision-making -Pressure to stay on schedule -Stress of achieving project milestones -Pressure to stay within budget -Suprises
What is the managerial value of knowing slack times?
-Enables project managers to focus control efforts on activities most likely to delay the project -Also provides managers with information needed to allocate scarce resources
What should guide the process of determining which activities to crash?
-Focus on activities on project's critical path -Start with activity with the lowest crash cost -Make sure crashing does not change the critical path
In the context of project management, what are the key steps in risk management?
-Identify project's actual or potential risks -Analyze and assess identified risks -Take steps to minimize risk's occurrence -Establish contingency plans and budgets
From a PERT/CPM perspective, define/explain the AON Network Diagram.
-Nodes represent project activities which are also referred to as events -Arrows designate sequence of activities
What are some common causes of cost/budget issues in project management?
-Overly optimistic activity time estimates -Unforeseen events and risks -Failure to take timely corrective action
For project managers, what are some ways to mitigate behavioral issues?
-Practice effective project team selection -Create environment of integrity, trust, and professionalism for team members -Practice effective team leadership -Learn to be supportive of team efforts
What are the key roles in project management?
-Project Champion -Project manager -Project team
What are potential sources of errors in PERT/CPM?
-Project network diagram is incomplete -Network diagram incorrectly expresses activities precedence relationships -Activity time estimates are inaccurate -Too much focus on critical path activities -Critical path does not include major risk events
What are the key responsibilities of a project manager?
-Project's completion -Project's scope -Quality Control -Communications -Time & Schedules -Costs & Budgets -Human resources
What is the difference between deterministic and probabilistic estimates of activity time?
-deterministic activity time estimates which are fairly certain estimates of time -probabilistic activity time estimates which allow for variability or uncertainty
What are the four stages of the product life cycle?
1. Definition ( goals, tasks, teams) 2. Planning (schedules, risks, staffing) 3. Execution ( status reports, quality) 4. Delivery/Termination (train customer, lessons learned)
What is the process for completing a work breakdown structure?
1. Identify major elements of the project 2. Break those down into major supporting activities 3. In turn, break those down into specific activities *Apple headquarters example*
What are some of the similarities of PERT and CPM techniques?
1. Use work breakdown structure data for project planning/management 2. Create graphical representation of the project and its required activities 3. Can be used to estimate how long the project will take to complete 4. Can determine sequence of activities most critical to timely project completion 5. Can determine how long an activity can be delayed without delaying the entire project
From a PERT/CPM perspective, define/explain a network diagram.
A graphical representation of project activities also known as a precedence diagram
What are they key decision points in project management?
Prior to the start of the project: -determining the project's scope -completing project plan/design -selecting project manager -selecting project team After the start of the project: -managing and controlling resources -deciding if and when to terminate
In the context of project management, what is activity crashing?
Process used to analyze increasing activity costs to reduce activity time -typically involves evaluating use of more people, different equipment, or different work methods
In the context of project management, what does the acronym *PERT* stand for?
Program Evaluation and Review Technique
In the context of PERT/CPM, what is the Critical Path Analysis?
A process that uses network diagram to determine the sequence of activities critical to project's timely completion
In the context of Critical Path Analysis, what is slack time?
Amount of time that an activity can be delayed without delaying project completion
From a PERT/CPM perspective, define/explain activity.
Any step that consumes resources or time
What type of activity time estimates does CPM use?
CPM uses deterministic activity time estimates
In the context of project management, what does the acronym *CPM* stand for?
Critical Path Method
When are Gantt Charts useful for project management?
Useful for relatively simple projects
Define project team.
group of people that must quickly come together and learn to function as a unit Successful ones require people with: -interpersonal and coping skills -conflict resolution and management skills
Define project champion.
person or group that actively promotes and supports the project -promotes it to key stakeholders -provides it with access to resources