Class Notes (836,624)
Canada (509,866)
York University (35,328)
Marketing (184)
MKTG 2030 (72)
Ben Kelly (12)
Lecture 8

Lecture 8.pdf

24 Pages
62 Views
Unlock Document

Department
Marketing
Course
MKTG 2030
Professor
Ben Kelly
Semester
Winter

Description
OMIS2010 Project Management Lecture 8 In this lecture… - Introduction to Project Management - Network Representation - Critical Path Method – known activity durations - Uncertain activity durations (PERT) - Speeding up activity (crashing) Introduction of Project Management Project A project is a tempor ary endeavor involving a connected sequence of activities and a range of resources, which is designed to achieve a specifi c and unique outcome and which operates within time, cost and quality constraints and which is often used to introduce change. Characteristic of a project  A unique, one-time operational activity or effort  Requires the completion of a large number of interrelated activities  Established to achieve specific objective  Resources, such as time and/or money, are limited  Typically has its own m anagement structure  Needs leadership Examples  Constructing houses, factories, shopping malls, athletic stadiums or arenas  Developing military weapons systems, aircraft, new ships  Launching satellite systems  Constructing oil pipelines  Developing and implementing new computer systems  Planning concerts, football games, or basketball tournaments  Introducing new products into market What is project management?  The application of a collection of tools and techniques to direct the use of diverse resources towards the accomplishment of a unique, complex, one time task within time, cost and quality constraints.  Its origins lie in World War II, when the military authorities used the techniques of operational research to plan the optimum use of resources.  One of these techniques was the use of networks to represent a system of related activities Project Organization  Often temporary structure  Uses specialists from entire company  Headed by project manager  Coordinates activities  Monitors schedule and costs  Permanent structure called ‘matrix organization’ Page 1 By: Jessica Gahtan OMIS2010 Project Management Lecture 8 A Sample Project Organization The Role of the Project Manager Highly visible; Responsible for making sure that:  All necessary activities are finished in order and on time  The project comes in withi n budget  The project meets quality goals  The people assigned to the project receive motivation, direction, and information Project managers should be:  Good coaches  Good communicators  Able to organize activities from a variety of disciplines 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  Controlling - monitors resources, costs, quality, and budgets; revises plans and s hifts resources to meet time and cost demands Project Management Activities Page 2 By: Jessica Gahtan OMIS2010 Project Management Lecture 8 Project Planning  Establishing objectives  Defining the project  Creating work a breakdown structure  Determining resources  Forming an organization Work Breakdown Structure (WBS)  A method of breaking down a pro ject into individual elements (components, subcomponents, activities and tasks) in a hierarchical structure which can be scheduled and cost.  It is the foundation of project planning Level: 1. Project 2. Major tasks in the project 3. Subtasks in the major tasks 4. Activities (or work packages) to be completed Project Scheduling Project scheduling involves sequencing and allotting time to all project activities.  Identifying precedence relationships  Sequencing activities  Determining activity times & costs  Estimating material & worker requirements  Determining critical activities 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 Project Control Project control is the continuous monitoring of the project for deviations from plan (time, cost, or quality) and the execution of corrective action . Project control involves: – Finding and solving problems – Updating the plan – Tracking actual resource usage and costs Project control requires a comprehensive and credible (i.e., realistic and up -to-date) plan A Simple Gantt Chart Page 3 By: Jessica Gahtan OMIS2010 Project Management Lecture 8 Service For A Delta Jet Project Planning, Scheduling, and Controlling Project Management Software  There are several popular packages for managing projects  Primavera  MacProject  Pertmaster  VisiSchedule  Time Line  Microsoft Project Page 4 By: Jessica Gahtan OMIS2010 Project Management Lecture 8 Methodologies • There are 2 approaches • Which one to use depends on whether activity durations are known or unknown – CPM: known activity durations – PERT: unknown activity durations What is PERT?  PERT, the Project Evaluation and Review Technique, is a network aid for planning and scheduling the many interrelated tasks in a large and complex project  Developed during the design and construction of the Polaris submarine in USA in 1950’s to handle uncertain activity times.  Since that time, PERT has spread rapidly throughout almost all industries.  Nowadays PERT techniques are routinely used in large projects such as software development, construction building etc.  Supporting software such as MS Project among other s are readily available. What is CPM?  CPM  Critical Path Method  Developed by Du Pont & Remington Rand  Developed for industrial projects for which activity times generally were known  Today’s project management software packages have combined the best featur es of both approaches. Network Representation Network Formalization  Tasks in a project might have precedence relations E.G.: frame of a house must first be constructed before the roof can go on  On the other hand some acti vities can happen in parallel, E.G. the electrical system can be installed at the same time as the plumbing system  PERT and CPM both use a network representation to capture the precedence or parallel relationships among the tasks in the project AON & AOA There are two approaches for drawing a project network: 1. Activity on node (AON) (Nodes designate activities) 2. Activity on arrow (AOA) (Arrows represent activities) Network Formalization Cont.  A node is represented by a circle, indicates an Activity, a time consuming effort that is required to perform a part of the work  An arrow leads from tail to head directionally, indicates the direction, the flow of the activities.  Activities leaving a node can not begin until all the activities entering the node are completed. This is how precedence is shown.  There is a single starting node, which has only outflow arrows, and a single ending node, which have only inflow arrows.  There are no cycles in the network. Page 5 By: Jessica Gahtan OMIS2010 Project Management Lecture 8 Activity on node (AON) Critical Path Method - known activity durations Critical Path  There are 2 main questions about any project: 1) What is the shortest time for completion of the project? 2) Which activities must be completed on time in order to finish the project on shortest possible time? These activities constitute the Critical Path through the PERT/CPM diagram  The process of finding the critical path answers both of these questions.  Activities on the critical path are the ones, which absolutely must be done on time in order for the whole project to complete on time. If any of the act ivities on the critical path h is late, then the entire project finishes late. Therefore the critical path activities receive the greatest attention from management.  Projects can have one or more critical paths. Example 1: Frank’s Fine Floats Frank’s Fine Floats is in the business of building elaborate parade floats. Frank and his crew have a new float to build and want to use PERT/CPM to help them manage the project. The table on the next slide shows the activities that comprise the project. Each activity’s estimated completion time (in days) and immediate predecessors are listed as well. Page 6 By: Jessica Gahtan OMIS2010 Project Management Lecture 8 Frank wants to know the total time to complete the project, which activities are critical, and the earliest and latest start and finish dates for each activity. Project Network Determining the Project Schedule – Earliest start (ES) = earliest time at which an activity can start, assuming all predecessors have been completed – Earliest finish (EF) = earliest time at which an activity can be finished – Latest start (LS) = latest time at which an activity can start so as to not delay the completion time of the entire project – Latest finish (LF) = latest time by which an activity has to be finished so as to not delay the completion time of the entire project Layout of a Node Forward Pass Begin at starting event and work forward Earliest Start Time Rule: Page 7 By: Jessica Gahtan OMIS2010 Project Management Lecture 8  If an activity has only a single 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} Earliest Start Time Single immediate predecessor : Multiple immediate predecessors : Forward Pass – Begin at starting event and work forward Earliest Finish Time Rule: 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 Earliest Start and Finish Times Step 1: Make a forward pass through the network as follows: For each activity i beginning at the ‘Start’ node, compute: – Earliest Start Time = the maximum of the earliest finish times of all activities immediately preceding activity i. (This is 0 for an activity with no predecessors.) – Earliest Finish Time = (Earliest Start Time) + (Time to complete activity i ). The project completion time is the maximum of the earliest Finish Times at the Finish node. Example: Frank’s Fine Floats Backward Pass Begin with the last event and work backwards Latest Finish Time Rule: Page 8 By: Jessica Gahtan OMIS2010 Project Management Lecture 8  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} 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 m ore 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} Latest Start and Finish Times Step 2: Make a backward pass through the network as follows: Mo ve sequentially backwards from the Finish node to the Start node. At a given node, j, consider all activities ending at node j. For each of these activities, i, compute: – Latest Finish Time = the minimum of the latest start times beginning at node j. (For the End node, this is the project completion time.) – Latest Start Time = (Latest Finish Time) - (Time to complete activity i ). Latest Start Time LS = LF – Activity time Example: Frank’s Fine Floats - Latest Start and Finish Times Page 9 By: Jessica Gahtan OMIS2010 Project Management Lecture 8 Computing Slack Time Step 3: 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 Slack Time Slack = 7-3 = 4-0 = 4 Determining the Critical Path  The critical path is the shortest time in which the project can be completed  Any delay in critical path activities delays the project  Critical path activities have no slack t ime Example: Frank’s Fine Floats – Determining the Critical Path A critical path is a path of activities, from the Start node to the Finish node, with 0 slack times. – Critical Path: A – C – E – G The project completion time equals the maximum of the activ ities’ earliest finish times. – Project Completion Time: 18 days – Critical Path - A – C – E – G Page 10 By: Jessica Gahtan OMIS2010 Project Management Lecture 8 Uncertain activity durations (PERT) Variability in Activity Times  Three time estimates are required  Optimistic time (a) – if everything goes according to plan  Pessimistic time (b) – assuming very unfavorable conditions  Most likely time (m) – most realistic estimate Uncertain Activity Times • In the three-time estimate approach, the time to complete an activity is assumed to follow a Beta distribution. • An activity’s mean completion time is: t = (a + 4m + b)/6 – a = the optimistic completion time estimate – b = the pessimistic completion time estimate – m = the most likely completion time estimate • An activity’s completion time variance is: σ = ((b-a)/6) 2 – a = the optimistic completion time estimate – b = the pessimistic completion time estimate – m = the most likely completion time estimate – In the three-time estimate approach, the critical path is determined as if the mean times for the activities were fixed times. – The overall project completion time is assumed to have a normal distribution with mean equal to the sum of the means along the critical path and variances equal to the sum of the variances along the critical path. Probability of Project Completion Project variance is computed by summing the variances of critical activities 2 s = Project variance = ∑( variances of activities on critical path) Page 11 By: Jessica Gahtan OMIS2010 Project Management Lecture 8 Example: ABC Associates Consider the following project: Activity Expected Times and Variances 2 2 t = (a + 4m + b)/s = ((b-a)/6) Activity Expected Time Variance A 6 4/9 B 4 4/9 C 3 0 D 5 1/9 E 1 1/36 F 4 1/9
More Less

Related notes for MKTG 2030

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit