Chapter 7Project Management.pptVIP

Project Management Used to manage large complex projects Has three phases: Project planning Project scheduling Project controlling Phase 1: Project Planning What is the project goal or objective? What are the activities (or tasks) involved? How are activities linked? How much time required for each activity? What resources are required for each activity? Phase 2: Project Scheduling When will the entire project be completed? What is the scheduled start and end time for each activity? Which are the “critical” activities? Which are the noncritical activities? Phase 2: Project Scheduling (cont.) How late can noncritical activities be w/o delaying the project? After accounting for uncertainty, what is the probability of completing the project by a specific deadline? Phase 3: Project Controlling At regular intervals during the project the following questions should be considered: Is the project on schedule? Early? Late? Are costs equal to the budget? Over budget? Under budget? Are there adequate resources? What is the best way to reduce project duration at minimum cost? Identifying Activities Subdivides a large project into smaller units Each activity should have a clearly defined starting point and ending point Each activity is clearly distinguishable from every other activity Each activity can be a project in itself Work Breakdown Structure (WBS) Divides the project into its various subcomponents and defines hierarchical levels of detail Level 1 Project 2 Major tasks in project 3 Subtasks in major tasks 4 Activities to be completed Example Work Breakdown Structure Identify for Each Activity: Which other activities must be completed previously (predecessors) Time required for completion Resources required This completes the project planning phase. Project Scheduling Phase Commonly used techniques: Program Evaluation and Review Technique (PERT) Critical Path Method (CPM) Project Management Example:General Foundry Inc. Have 16 weeks t