MDE$2583$6$PROJECT$MANAGEMENT - Universiti Teknologi … · ’’ innovave’ ’entrepreneurial’ global’ 5 References/Bibliography PMBOK (2013) MS Project 2013 Kerzner, R. (2013).Project

www.utm.my innova-ve ● entrepreneurial ● global 1

By

Ir. Dr. Syuhaida Ismail razakschool.utm.my/syuhaida

0126469235 [email protected]

MDE 2583 -‐ PROJECT MANAGEMENT


ICE-‐BREAKING


● Cer-fied PMP? ● Experience in PM? ● ANended any PM courses/training? ● Skill in using PM tools?

ICE-‐BREAKING


ASSESSMENT

1 Quiz 1 x 10% 10% 2 Individual Assignment 1 x 20% 20 % 3 Case Study Group

Assignment 1 x 20% 20 %

4 Post Module Assignment 1 x 50% 50 %

Total 100 %


References/Bibliography

●  PMBOK (2013) ●  MS Project 2013 ●  Kerzner, R. (2013). Project Management:

Systems Approach to Planning, Scheduling and Controlling. John Wiley & Sons Inc.

●  Gray, C.F. and Larson, E.W. (2006). Project Management: The Managerial Process. New York: McGraw-Hill International Edition.

●  Meredith, J.R. and Mantel, S.J. (2009). Project Management: A Managerial Approach. John Wiley & Sons Inc.

5


IMPORTANCE OF PROJECT MANAGEMENT



Project management is “the applicaEon of knowledge, skills, tools, and techniques to project ac-vi-es in order to meet or exceed stakeholder needs and expectaEons from a project” (PMI, Project Management Body of Knowledge (PMBOK Guide), 2013, p. 6)

•  Both a management science of science (technical skill, tool and technique) and art (so_ skill and people) that follows systema-c and structured process

•  47 processes + 5 process groups + 10 knowledge areas

WHAT IS PROJECT MANAGEMENT?


Management is an act of geang things done through and with others, with 2 basic concepts: •  Goals – set objec-ves, do the right things

(effec-ve) •  Ac-ons – establish right process, do

things right (efficient)

WHAT IS MANAGEMENT?


OPERATION VS PROJECT

Opera-on – Exis-ng systems – Repe--ve work – Efficiency (do the right things) and effec-veness (do the things right)

– Reliance on standard procedures

– Line management – Focus on “maintaining”

Project – One-‐-me resource configura-on

– Unique and separate work

–  Cohesion and direc-on –  End-‐product driven –  Stakeholder driven –  Project orienta-on –  Focus on “change”


DEFINITION OF A “PROJECT”

● Must make a distinction between terms: –  Program - an exceptionally large, long-range

objective that is broken down into a set of projects –  Task - set of activities comprising a project –  Work Packages - division of tasks –  Work Units - division of work packages

●  In the broadest sense, a project is a specific,

finite task to be accomplished

Chapter 1-8


Program

Project A

Task A1

Work Package A1a

Work Package A1b

Work Unit

Task A2

Project B

Task B1

DEFINITION OF A “PROJECT”



CHARACTERISTICS OF A PROJECT

●  Specific objec-ves-‐ Time (4 years), Cost (USD 12 B) & Performance – Life-‐cycle of building, M&E, road, O&G, steel structure

●  Mul--‐Disciplinary – different disciplines, companies and countries (Belgian and Dutch dredger)

●  Temporary undertakings-‐ definite start and end date (2000-‐2004); therefore of finite dura-on

●  Consume and compete for scarce resources (40000 workers, 2 shi_s, 12 hours/shi_

●  Produce unique and one-‐off outcomes – 2 palm island, 100 luxury hotels, theme parks, monorail etc

●  Phases -‐ Project has a number of phases/schedule ●  Usually have own budgets ●  One leader assigned overall responsibility ●  Projects are subject to a lot of changes – less tourist due to 9/11, rising

seawater hence unsound soil, 6-‐7 Richter scale earthquake, storm, 2m high waves

●  Subject to conflicts – monorail, damage marine habitat, coastal erosion, wave paNern, silty water, changes on coastal shape


TASK 1

●  Please divide yourselves into a few groups of maximum FOUR (4) members

●  You are randomly given the following topics: –  Torre David –  ManhaNan Project

●  In 30 minutes, using Microso_ PowerPoint presenta-on, your tasks are to prepare the following, which will be presented at the end of today’s class: –  Brief introduc-on to the above randomly-‐selected project –  Characteris-cs demonstra-ng that the above is a PROJECT


PROJECT STAKEHOLDERS

●  Stakeholders are the people involved in or affected by project ac-vi-es

●  Stakeholders include –  the project sponsor and project team (unethical project team in 15%

cost plus contract) –  support staff –  customers (1990s automo-ve sales strategy vs 2010s) –  users (Proton Saga wind-‐down auto window using rubber losing

torque due to sun) –  suppliers –  opponents to the project (e.g. Lynas, Bakun dam, Langat 2)


WHEN IS A PROJECT A PROJECT? (PETRONAS TWIN TOWER)

Stewart (1965) uses four criteria ●  Scope-‐ definable in terms of a single, specified end result

(From 5 SEA countries, Malaysia is the least known) ●  Unfamiliarity-‐unique, infrequent, more uncertainty

(uniquely Malaysia, pinnacles, the tallest) ●  Complexity-‐ greater degree on interdependency amongst

tasks (2 contractors, site sat on cliff edge, decayed limestone and so_ rocks)

●  Stake (risk)-‐ Outcome affects company’s stake (bad concrete batch, heavy rain, Tower 1 leaning 25 mm off from ver-cal)


TRIPLE CONSTRAINTS OF PROJECT MANAGEMENT

Solutions must not exceed boundaries


NORMAL MEASURES OF SUCCESS

●  New Products – touch pad, smart phone ●  New Markets – Australian university in Singapore ●  New Facili-es – AFTA with reduced 5% tariff for

luxurious cars ●  New Organisa-onal Forms ●  Etc (Happiness Index, early -me to market, venture to

new market/segment, IP, revenue, % use of new technology) Subject to the triple constraints of sa-sfying Time, Cost and Performance criteria






TORRE DAVID

● Is Torre David a failure or a success? Discuss. – How do you measure the success/failure – What are the factors that most influence a successful/failed project outcome?

● What are the causes that lead to under-‐performing of projects? How do they arise?


OTHER MEASURES OF PROJECT SUCCESS

● Na-onal pride or security ● Learning and experience ● Improved status and visibility ● Training and development ● Opportuni-es for authority and responsibility

● Improved ability/skills


SYDNEY OPERA HOUSE-‐ PROJECT MANAGEMENT FAILURE?

"The construc-on of the beau-ful freestanding, sculptural tripar-te Opera House was one of the longest contractual sagas of the century. Sadly, Danish architect Jorn Utzon became the scapegoat of a scandalous poli-cal affair and in 1966 withdrew from his project. Originally, the winner of an interna-onal open compe--on in 1957, it was a scheme that broke most of the rules. It was finally completed in August 1973 by other hands under the direc-on of Peter Hall."


IRONIC ISN’T IT?

●  Despite its failure as a PM exercise, the Sydney Opera House is considered a world-‐class venue for opera and a tourist aNrac-on. It is one of the 20th century's most dis-nc-ve buildings and one of the most famous performing arts centres in the world.

●  So, are we confusing between the project exercise and the result of a project?


CONCORDE-‐FAILURE ? ●  First commercial supersonic

airlines ●  Conceived in 1959. The first

prototype (aircra_ 001 F-‐WTSS) was rolled out on 11 December 1967, but extensive ground tes-ng meant that it didn't fly un-l 2 March 1969. In December 1971, the first pre-‐produc-on aircra_ (101) made its maiden flight.

●  However, the oil crisis sparked by the 'Yom Kippur' war of 1973 had a most devasta-ng affect on sales. The soaring cost of fuel rendered Concorde completely uneconomic for all but state-‐subsidised airlines.

●  Symbol of diplomacy between France and England

●  Poli-cal interference, much spending on research, test and commission

●  Runway crash in July 25, 2000 with 113 deaths


SUCCESS IN FAILURE

● Although the Concorde was a commercial failure, it was a marvellous engineering success and flew for almost thirty years un-l its re-rement in 2003.

● Sold? An-cipated sales?


MARS POLAR LANDER’S FAILURE OF SIMPLE NASA SYSTEM ENGINEERING ERROR


PROJECT MANAGEMENT FRAMEWORK

Project Integration Management

Project Success

Scope Mgt.

Time Mgt.

Cost Mgt.

Quality Mgt.

HR Mgt.

Comm. Mgt.

Risk Mgt.

Procure. Mgt.

10 Knowledge Areas Core Functions

Facilitating Functions

Stakeholder needs and

expectations

Tools and techniques


Knowledge

Areas

Project Management Process Groups

Ini$a$ng Process Group

Planning Process Group Execu$ng Process Group

Monitoring & Controlling Process Group

Closing Process Group

Project Integra$on Management

Develop Project Charter

Develop Project Management Plan Direct and Manage Project Execu-on

• Monitor & Control Project work •  Perform Integrated Change Control

Close Project or Phase

Project Scope Management • Collect requirements • Define Scope • Create WBS

• Verify scope • Control scope

Project Time Management • Define ac-vi-es • Sequence Ac-vi-es • Es-mate Ac-vity resources • Es-mate Ac-vity dura-ons • Develop schedule

Control Schedule

Project Cost Management • Es-mate cost • Determine budget

Control Cost

Project Quality Management

Plan Quality Perform Quality Assurance

Perform Quality Control

Project Human Resource Management

Develop Human Resource Plan • Acquire project team • Develop project team • Manage Project team

Project Communica$on Management

Iden-fy Stakeholders Plan Communica-ons •  Distribute Informa-on •  Manage Stakeholder Expecta-on

Report Performance

Project Risk Management • Plan Risk Management • Iden-fy Risk • Perform Qualita-ve Risk Analysis • Perform Quan-ta-ve Risk Analysis • Plan Risk Response

Monitor & Control Risk

Project Procurement Management

Plan Procurements Conduct Procurements Administer Procurements Close Procurements


PROJECT INTEGRATION MANAGEMENT

 Project managers must coordinate all of the other knowledge areas throughout a project’s life cycle

 Many new project managers have trouble looking at the “big picture” and want to focus on too many details

  E.g. Sony and Siemen do it all while Apple Inc outsources to pass over costs to customer i.e. Corning gorilla glass manufactured in China by Taiwanese


RESPONSIBILITY AND AUTHORITY

●  Senior management commitment to Project Management concept is vital

● Project Manager must clear authority and responsibility over personnel -‐50% of the baNle for project success

●  Leadership is crucial-‐in all cases, these can only be one responsible project leader

● Project Manager is supported by PMO, a management structure standardising project-‐related governance process, facilita-ng sharing of resources, method, tool and technique


PROJECT MANAGER VS PMO

Project Manager PMO Project focus Overall organisa-onal

focus: a) Suppor-ve PMO –

consulta-ve role b) Controlling PMO – require compliance to

governance c) Direc-ve PMO – directly manage

projects


KEY TO SUCCESS

● People processes of Teamwork and Leadership as well as Tools and Techniques

● Blending of Hard & So_ Methods and Techniques are important in Project Management


Tools in Project Management

● Microso_ Project (MSP) ● Primavera Project Planner (P3) ● Primavera Professional Project Management (P6)

37


Project Management Structures

●  Enterprise Project Structure (EPS)

38

Water Sewage Company

Operation & Logistic

Water

Abadan Ahwaz

Project1

Project 2

Project 3

Sewage

Human Resource Marketing

Project1

Office Building

Design

Construct

Civil &Structural

Mechanical and electrical equipment

Exterior

Interior

Oxidation Ponds Transformation Software

•  Work Break Down Structure (WBS)


PROJECT LIFE CYCLE Time Distribu-on of Project Effort

● Concep-on ●  Selec-on ● Planning, scheduling, monitoring, control

●  Evolu-on and termina-on


Process Groups Interact in a Phase or Project

Project Management Process (IPEC+MC)


PMBOK 5 process groups

Project Management Process (IPEC+MC)

Initiation

Planning

Execution

Monitoring and

Controlling Closing


PROJECT LIFE-‐CYCLE


FACTORS AFFECTING PROJECT OUTCOME

● Project manager ● Project team ●  Stakeholder ●  Scope, goals and objec-ves

● Communica-on ● Risks

  Early Project phase work   Important maNers   Alterna-ves   Planning   Control   Outsourcing   Documenta-on


PROJECT CATEGORIES BY TIME SCALES

●  Long Term (over 10 years) Electrifica-on / Water pipes replacement Defence Upgrading

● Medium Term (3 to 10 years) Construc-on of a Dam Computerisa-on of schools

●  Short term (0.5 to 3 years) Organisa-on of conferences/ new consumer products Hotel construc-on

●  Special small scale Emergency evacua-on JE vaccina-on


TYPES OF PROJECTS

Well Defined

Poorly Defined

Well Defined

TYPE 1 (KLIA)

TYPE 3 (Software)

Poorly Defined

TYPE 2 (A380 Airbus)

TYPE 4 (Multi Media

Super Corridor)

Project Results P

roje

ct m

etho

ds


DISCUSSIONS

Give examples of project types in your organisa-on and reason out why you assign them into the above categories

1.  TYPE 1-‐ ……………………………. 2.  TYPE 2-‐ ……………………………. 3.  TYPE 3-‐ ……………………………. 4.  TYPE 4-‐ …………………………….


PROJECT CONSTRAINTS

● Inadequate resources ● Unrealis-c schedules ● Unrealis-c budgets ● Unrealis-c objec-ve ● Conflicts


PROJECT MANAGEMENT PROBLEMS

1. Inadequate resources. 2. Unrealis-c deadlines. 3. Unclear goals or direc-on. 4. Team members uncommiNed.

5. Insufficient planning. 6. Communica-on breakdown.

7. Changes in goals and/or resources.

8. Conflicts between func-ons or departments.

9. Underes-ma-on of the technical difficulty

10. Problems with so_ware projects.

11. Inability to control contractors work and failure to use specialist staff.

12. Weakness in contract arrangements.

13. Lack of effec-ve planning and control.

14. Interrup-ons in funding (escala-on to escala-on).

15. Non-‐compliance with procedures


Scope Management


Project Scope Management

●  Organisation scope – defining scopes amongst organisations involved

●  Project scope – defining scopes of the project itself ●  Activity scope – determining how detailed you want to

cover the activity

50


Project Time Management

●  Create project calendar ●  Define WBS ●  Define the activities ●  Determine sequence of activities ●  Estimate activities duration ●  Estimate activities resources ●  Determine constraints and limitation ●  Develop schedule ●  Control

51


WORK BREAKDOWN STRUCTURE

●  A work breakdown structure (WBS) is an outcome-‐oriented analysis of the work involved in a project that defines the total scope of the project

●  A graphical display of the project that shows division of work in a mul-level system

●  The concept of the WBS is simple: in order to manage a whole project, one must manage/control each of its part

●  It is a founda-on document in project management because it provides the basis for planning and managing project schedules, costs, and changes



● WBS defines: – Work to be performed –  The needed exper-se, –  Selec-on of the project team, –  Base for project scheduling and control

●  The development of WBS is a con-nuing process: –  Starts when the project is first assigned to the project manager

–  Con-nues un-l all work packages have been defined

www.utm.my innova-ve ● entrepreneurial ● global 54 Copyright Course Technology 1999

54

Figure 4-‐6a. Sample of Intranet WBS Organized by Product

www.utm.my innova-ve ● entrepreneurial ● global 55 Copyright Course Technology 1999

55

Figure 4-‐6b. Sample Intranet WBS Organized by Phase


Table 4-‐3. Intranet WBS in Tabular Form 1.0 Concept

1.1 Evaluate current systems 1.2 Define Requirements 1.2.1 Define user requirements 1.2.2 Define content requirements 1.2.3 Define system requirements 1.2.4 Define server owner requirements 1.3 Define specific functionality 1.4 Define risks and risk management approach 1.5 Develop project plan 1.6 Brief web development team

2.0 Web Site Design 3.0 Web Site Development 4.0 Roll Out 5.0 Support


Figure 4-‐7. Intranet WBS and Ganc Chart in Microsod Project 98

WBS Gantt Chart


APPROACHES TO DEVELOP WBS

● Using guidelines: Some organiza-ons, like the DOD, provide guidelines for preparing WBSs

●  The analogy approach: It o_en helps to review WBSs of similar projects

●  The top-‐down approach: Start with the largest items of the project and keep breaking them down

●  The boNoms-‐up approach: Start with the detailed tasks and roll them up


BASIC PRINCIPLES FOR CREATING WBS

1. A unit of work should appear at only one place in the WBS. 2. The work content of a WBS item is the sum of the WBS items below it. 3. A WBS item is the responsibility of only one individual, even though many people

may be working on it. 4. The WBS must be consistent with the way in which work is actually going to be

performed; it should serve the project team first and other purposes only if prac-cal.

5. Project team members should be involved in developing the WBS to ensure consistency and buy-‐in.

6. Each WBS item must be documented to ensure accurate understanding of the scope of work included and not included in that item.

7. The WBS must be a flexible tool to accommodate inevitable changes while properly maintaining control of the work content in the project according to the scope statement.

*Cleland, David I. Project Management: Strategic Design and Implementation, 1994


Sample of Ac-vity Defini-on Form

60

WBS: Date: Activity Code Activity

Name Duration Predecessor Lag Constraint/

Limitation Resource Cost

Project Manager Signature: Date:

Supervisor Signature: Date:

Provider Signature: Date:




CREATE A WBS FOR SATAY BARBEQUE

Assumptions • Vegetables are uncut

• Nasi impit is uncut • Kuah is unheated

• Satay is raw • Satay Grill ready but no fire

• Arang/coal ready • Fire lighter available

• Lighter available • Plates are available

Activity ends when satay is served as

shown



Serve Satay

Veggies & Nasi Impit

Prepare Satay Grill

Barbeque & Serve

1.1 Cut nasi impit 1.2 Cut onions 1.3 Cut cucumbers 1.4 Warm up sauce

2.1 Put charcoal in grill 2.2 Light Fire 2.3 Spread charcoal

3.1 Put Satay on Grill 3.2 Grill & Serve

1 2 3


Heat up Kuah Cut Nasi Impit

Serve Satay on plate

Cut Cucumber Cut Onions Light fire

Spread coals

Cook Satay


WHY ARE PROJECTS HARD? ● Resources

–  People, materials ● Planning

– What needs to be done? –  How long will it take? – What sequence? –  Keeping track of who is supposedly doing what, and geang them to do it


IT PROJECTS

● Half finish late and over budget ● Nearly a third are abandoned before comple-on

–  The Standish Group, in Infoworld

● Get & keep users involved & informed ● Watch for scope creep / feature creep


PROJECT SCHEDULING

● Establishing objec-ves ● Determining available resources ● Sequencing ac-vi-es ● Iden-fying precedence rela-onships ● Determining ac-vity -mes & costs ● Es-ma-ng material & worker requirements

● Determining cri-cal ac-vi-es



● Hierarchy of what needs to be done, in what order

●  For me, the hardest part –  I’ve never done this before. How do I know what I’ll do when and how long it’ll take?

–  I think in phases –  The farther ahead in -me, the less detailed –  Figure out the tricky issues, the rest is details –  A lot will happen between now and then –  It works not badly with no deadline


MUDROOM REMODEL

● Big-‐picture sequence easy: –  Demoli-on –  Framing –  Plumbing –  Electrical –  Drywall, tape & texture –  Slate flooring –  Cabinets, lights, paint

● Hard: can a sink fit?

D

W

D W


PROJECT SCHEDULING TECHNIQUES

● GanN chart ● Cri-cal Path Method (CPM) ● Program Evalua-on & Review Technique (PERT)


GANTT CHART

J F M A M J JTime Period

Activity

Design

Build

Test

J F M A M J JTime Period

Activity

Design

Build

Test


PERT & CPM

● Network techniques/analysis system ● Consider precedence rela-onships & interdependencies

● Each uses a different es-mate of ac-vity -mes


CRITICAL PATH METHOD (CPM)

● Cri-cal Path Method (CPM) –  Developed in 1956 – by the DuPont Company with Remington Rand as consultants, as a determinisEc approach to scheduling.

–  Commonly used in the engineering and construc-on industry.


PROGRAM EVALUATION AND REVIEW TECHNIQUE (PERT)

● Program Evalua-on and Review Technique (PERT) -‐Similar method –  Developed in 1957 – by the US Navy, with Booz, Allen & Hamilton Management Consultants, as a probabilisEc approach to scheduling for Polaris missile

–  Commonly used by the manufacturing industry

v Both methods are o_en referred to as a network analysis system.


PERT -‐ PROBABILITY

● Expected project -me (T) •  Sum of cri-cal path ac-vity -mes, t

64 bmaET ++

=


● The purpose of CPM is – Plan the work

– Guide the progress of a project

– Provide a baseline for project control

CRITICAL PATH METHOD (CPM)





PERT & CPM STEPS

● Iden-fy ac-vi-es ● Determine sequence ● Create network ● Determine ac-vity -mes ● Find cri-cal path

•  Earliest & latest start -mes •  Earliest & latest finish -mes •  Slack


● Activity – A specific task or set of tasks – Use resources and take time to complete – e.g. concreting

● Event – The result of completing one or more

activities – Use no resources

Chapter 8-9

TERMINOLOGY


● Network – Combination of all activities and events – Define the project and the activity

precedence relationships

Chapter 8-9

TERMINOLOGY


TERMINOLOGY

● Path – Series of connected activities (or intermediate

events) between any two events in a network

● Critical – Activities, events, or paths which, if delayed,

will delay the completion of the project – A sequence of critical activities that connect

the project’s start event to its finish event

Chapter 8-10


● An activity can be in any of these conditions: – It may have a successor(s) but no

predecessor(s) - starts a network – It may have a predecessor(s) but no

successor(s) - ends a network – It may have both predecessor(s) and

successor(s) - in the middle of a network

Chapter 8-11

TERMINOLOGY


AcEvity on Node (AoN)

2 2? Years

Enroll Receive Master

Project: Obtain a Master’s Degree

1 month

Attend class, study etc.

1 1 day

3


AcEvity on Arrow (AoA)

2 ? Years

Enroll Receive Master


1 month

Attend class, study,

etc. 1

1 day 2 3 4


AoA Nodes Have Meaning

Graduating Applicant


1

Alumni

2 3 4

Student


Terminology

Chapter 8-9

event activity

Indicator b = concreting


We’ll use AcEvity on Node

1-2 must be done before 2-3 or 3-4 can start

2

3

4

1


AcEvity RelaEonships

2-3 must be done before 3-4 or 3-5 can start

2

3

4

1 5


2-4 and 3-4 must be done before 4-5 can start

2

3

4

1 5



When 5-6 is done, project is complete.

2

3

4

1 5 6



NETWORK EXAMPLE

You’re a project manager for Bechtel. Construct the network.

Ac-vity Predecessors A -‐-‐ B A C A D B E B F C G D H E, F


NETWORK EXAMPLE -‐ AON

A

C

E

F

B D

G

H

Z


NETWORK EXAMPLE -‐ AON


NETWORK EXAMPLE -‐ AOA

2

4

5 1

3 6 8

7 9 A

C F

E B D

H

G


AOA DIAGRAMS

2 3 1 A

C

B D

A precedes B and C, B and C precede D

2 4 1 A C

B

D

3

5

4

Add a phantom arc for clarity.


DUMMY


LET’S TRY THIS!

AcEvity Predecessor A -‐ B -‐ C A D A,B


DUMMY


DUMMY

● An ac-vity with zero dura-on ●  Links together ac-vi-es whose sequence would otherwise not be shown

●  Indicated by a dashed arrow ●  Show the sequence between ac-vi-es e.g. ac-vity A and D without the problem of linking Ac-vity B with Ac-vity C

●  Is determined by looking at the ac-vity list and find those ac-vi-es that share some, but not the en-re set of prior ac-vi-es.


CRITICAL PATH ANALYSIS

● Provides ac-vity informa-on •  Earliest (ES) & latest (LS) start •  Earliest (EF) & latest (LF) finish •  Slack (S): Allowable delay

● Iden-fies cri-cal path •  Longest path in network •  Shortest -me project can be completed • Any delay on ac-vi-es delays project • Ac-vi-es have 0 slack or float *Cri-cal ac-vi-es = Ac-vi-es in cri-cal path. Have no float i.e. ES = EF and/or LS = LF. Indicated with double line.


CRITICAL PATH ANALYSIS


SLACK/FLOAT


SLACK/FLOAT

●  Total float: Measure of leeway (delay) in starting and completing an activity. It assumes that all activities preceding that activity finished as Early as possible and all successor activities are started as Late as possible. FREE TIME WITHOUT DELAYING THE WHOLE PROJECT DURATION

TF = LF – EF = LS - ES ●  Free float: Amount of time that an activity’s start can be

delayed with out affecting the early start date of any successor activity in the network. FREE TIME WITHOUT DELAYING THE EARLY START OF SUCCEESOR ACTIVITY

FF = ES NEXT ACTIVITY – EF THAT ACTIVITY


COMPUTE SLACK/FLOAT


1

3

7 6

4

5

2

A D

G

B

E

L

H

F

C

J

MK

Activity on arrow network – Figure 1.0


The duration (in weeks) of the activities in the network are given as listed below:-

● A – 7 ● B – 1 ● C – 10 ● D – 3 ● E – 2 ● F – 3

● G – 12 ● H – 13 ●  J – 8 ● K – 17 ● L – 4 ● M – 12


EXAMPLE 1

●  Find a)  The minimum project time b)  The earliest and latest times for each event c)  The critical path


CRITICAL PATH ANALYSIS EXAMPLE 2

Event ID Pred. Description Time

(Wks) A None Prepare Site 1 B A Pour fdn. & frame 6 C B Buy shrubs etc. 3 D B Roof 2 E D Do interior work 3 F C Landscape 4 G E,F Move In 1


NETWORK SOLUTION

A

E D B

C F

G

1

6 2 3

1

4 3


EARLIEST START & FINISH STEPS

● Begin at star-ng event & work forward ● ES = 0 for star-ng ac-vi-es

•  ES is earliest start ● EF = ES + Ac-vity -me

•  EF is earliest finish ● ES = Maximum EF of all predecessors for non-‐star-ng ac-vi-es


Activity ES EF LS LF SlackA 0 1BCDEF

ACTIVITY A EARLIEST START SOLUTION

For starting activities, ES = 0.

A E D B

C F

G 1

6 2 3

1

4 3


Activity ES EF LS LF Slack A 0 1 B 1 7 C 1 4 D 7 9 E 9 12 F 4 8 G 12 13

EARLIEST START SOLUTION

A E D B

C F

G 1

6 2 3

1

4 3


LATEST START & FINISH STEPS

● Begin at ending event & work backward ● LF = Maximum EF for ending ac-vi-es

•  LF is latest finish; EF is earliest finish ● LS = LF -‐ Ac-vity -me

•  LS is latest start ● LF = Minimum LS of all successors for non-‐ending ac-vi-es


Activity ES EF LS LF SlackA 0 1B 1 7C 1 4D 7 9E 9 12F 4 8G 12 13 13

EARLIEST START SOLUTION

A E D B

C F G

1

6 2 3

1

4 3


Activity ES EF LS LF SlackA 0 1 0 1B 1 7 1 7C 1 4 4 7D 7 9 7 9E 9 12 9 12F 4 8 7 12G 12 13 12 13

LATEST FINISH SOLUTION

A E D B

C F

G

1

6 2 3 1

4 3


SLACK/FLOAT


SLACK/FLOAT

●  Total float: Measure of leeway (delay) in starting and completing an activity. It assumes that all activities preceding that activity finished as Early as possible and all successor activities are started as Late as possible. FREE TIME WITHOUT DELAYING THE WHOLE PROJECT DURATION

●  Free float: Property of an activity and not the network path that an activity is part of. It is the amount of time that an activity’s start can be delayed with out affecting the early start date of any successor activity in the network. FREE TIME WITHOUT DELAYING THE EARLY START OF SUCCEESOR ACTIVITY


COMPUTE SLACK/FLOAT


Activity ES EF LS LF Slack A 0 1 0 1 0 B 1 7 1 7 0 C 1 4 5 8 4 D 7 9 7 9 0 E 9 12 9 12 0 F 4 8 8 12 4 G 12 13 12 13 0

COMPUTE SLACK/FLOAT


CRITICAL PATH

A

E D B

C F

G

1

6 2 3

1

4 3


NEW NOTATION

● Compute ES, EF for each ac-vity, Le_ to Right

● Compute, LF, LS, Right to Le_

C 7 LS LF

ES EF


EXHIBIT 2.6, P.35

A 21

E 5 D 2 B 5

C 7 F 8

G 2


A 21

E 5 D 2 B 5

C 7 F 8

G 2

21 28 28 36

36 38

28 33 26 28 21 26

0 21

F cannot start until C and D are done. G cannot start until both E and F are done.

EXHIBIT 2.6, P.35


A 21

E 5 D 2 B 5

C 7 F 8

G 2

21 26

0 21

26 28 31 36

36 38

21 28 28 36

21 28 28 36

36 38

28 33 26 28 21 26

0 21

E just has to be done in time for G to start at 36, so it has slack. D has to be done in time for F to go at 28, so it has no slack.

EXHIBIT 2.6, P.35


A 21

E 5 D 2 B 5

C 7 F 8

G 2

21 26

0 21

26 28 31 36

36 38

21 28 28 36

21 28 28 36

36 38

28 33 26 28 21 26

0 21

EXHIBIT 2.6, P.35


GANTT CHART -‐ ES

0 5 10 15 20 25 30 35 40

A

B

C

D

E

F

G


CAN WE GO FASTER?


TIME-‐COST MODELS

1. Iden-fy the cri-cal path 2. Find cost per day to expedite each node on cri-cal path.

3. For cheapest node to expedite, reduce it as much as possible, or un-l cri-cal path changes.

4. Repeat 1-‐3 un-l no feasible savings exist.


What about Uncertainty?


PERT ACTIVITY TIMES

● 3 -me es-mates • Op-mis-c -mes (a) • Most-‐likely -me (m) •  Pessimis-c -me (b)

● Follow beta distribu-on ● Expected -me: t = (a + 4m + b)/6 ● Variance of -mes: v = (b -‐ a)2/36

$


PROJECT TIMES

● Expected project -me (T) •  Sum of cri-cal path ac-vity -mes, t

● Project variance (V) •  Sum of cri-cal path ac-vity variances, v

64 bmaET ++

=

( )36

22 ab −=σ


EXAMPLE

Ac-vity a m b E[T] variance A 2 4 8 4.33 1 B 3 6.1 11.5 6.48 2 C 4 8 10 7.67 1

Project 18.5 4

C B A 4.33 6.48 7.67


BENEFITS OF PERT/CPM

● Useful at many stages of project management

● Mathema-cally simple ● Use graphical displays ● Give cri-cal path & slack -me ● Provide project documenta-on ● Useful in monitoring costs


LIMITATIONS OF PERT/CPM

● Clearly defined, independent & stable ac-vi-es

● Specified precedence rela-onships ● Ac-vity -mes (PERT) follow beta distribu-on

● Subjec-ve -me es-mates ● Over emphasis on cri-cal path

www.utm.my innova-ve ● entrepreneurial ● global 138 138

Risk Management


WHAT IS RISK? A risk is a potenEal problem characterised by: (a) A likelihood of occurrence (b) A poten-al impact


SOURCES OF RISK

1. Use of new or untried technology 2. Inexperienced team 3. Poor Project management

structure 4.  Lack of resource or resource

conflicts 5. Work takes longer than planned 6. Deliveries from supplier late 7. Insufficient produc-on facili-es 8. Placing of subcontract and

purchase orders

10. Replace key, sick or holidaying personnel

11. Weather may delay work 12. Labour disputes may delay work 13. Poor cost es-mates 14. Currency conversion rates may

changes 15.  Interfaces with other people,

departments and companies. 16.  Pressure from NGOs, Poli-cians,

Crooks 17.  Global Weather Changes 18.  Natural Disasters


RISK ASSESSMENT MAP

Impact Probability

Low Medium High

High ? Medium

Low ?


Management Structure


FUNCTIONAL, PROJECT AND MATRIX ORGANIZATIONAL STRUCTURES


ORGANIZATION STRUCTURE INFLUENCES ON PROJECTS

Organization Type Project Characteristics

Functional

Matrix Projectized Weak Matrix Balanced

Matrix Strong Matrix

Project Manager's Authority

Little or None

Limited Low to Moderate

Moderate To High

High to Almost Total

Percent of Performing Organization's Personnel Assigned Full- time to Project Work

Virtually None

0-25%

15-60%

50-95%

85-100%

Project Manager's Role Part-time Part-time Full-time Full-time Full-time Common Title for Project Manager's Role

Project Coordinator/ Project Leader

Project Coordinator/ Project Leader

Project Manager/ Project Officer

Project Manager/ Program Manager

Project Manager/ Program Manager

Project Management Administrative Staff

Part-time

Part-time

Part-time

Full-time

Full-time

The organizational structure influences the project manager’s authority, but remember to address the human resources, political, and symbolic frames, too.

PMBOK Guide, 1996, p. 18


DISTINCTIONS BETWEEN PROJECT AND FUNCTIONAL MANAGEMENT

–  Job of func-onal managers go on forever

– They operate and op-mise the use of resources of overall company basis

–  Job of project managers is over once project is finished

– They op-mise resources of a project

– Different defini-ons of op-misa-on may lead to conflicts


ADVANTAGES OF PROJECT MANAGEMENT ORGANISATIONAL APPROACH

● Teamwork-‐ beNer mo-va-on & Communica-on

● Synergism-‐ high performing team ● Cross-‐Border management-‐ diff cultures, func-ons and boundaries

● Forward Looking-‐ what else needs doing ● Clent Rela-ons-‐ one point of contact ● Results – more effec-ve


Project Measurement


EARNED VALUE MANAGEMENT SYSTEMS

(EVMS)

Presented By Sean Alexander (703) 503-5000 or (888) 860-0700

[email protected]

BASIC CONCEPTS


EVMS OBJECTIVES

● Plan all work prior to beginning it ● Measure performance based on an objec-ve set of technical criteria

● Analyze schedule status and projec-ons using a -me phased CPM network

● Analyze the expenditure of funds in light of the work accomplished (not work scheduled)


EVMS OBJECTIVES

● Isolate problems: –  Quan-fy technical problems within the context of cost

and schedule parameters; –  Not aimed at replacing or changing the process for

technical problem detec-on;

● Forecast comple-on date and final cost; ● Take correc-ve ac-on; ● Maintain disciplined control of the performance measurement baseline.


BUDGET STRUCTURE

Negotiated Changes

Written Change Authorization, Not

Negotiated

Profit/Fee

Contract Cost Authorized, Unpriced Work

Distributed Budget [Σ of all CAs]

Undistributed Budget Management Reserve

Performance Measurement Baseline (PMB)

Contract Budget Base (CBB)

Contract


EARNED VALUE TERMINOLOGY

Data Element Term Acronym Scheduled Work Budgeted Cost for Work Scheduled BCWS

Earned Value Budgeted Cost for Work Performed BCWP

Actuals Actual Cost of Work Performed ACWP

Authorized Work Budget At Completion BAC

Forecasted Cost Estimate At Completion EAC

Work Variance Schedule Variance SV

Cost Variance Cost Variance CV Completion Variance Variance At Completion VAC


0

1000

2000

3000

4000

5000

6000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

EARNED VALUE DATA ELEMENTS

T/N

Cost Variance Schedule Variance

Projected Program Delay

VAC

EAC

BAC (PMB)

CBB

MR

ACWP BCWP

BCWS

ETC

Schedule Slip


Control Account

Software Engineering

CWBS/OBS INTEGRATION

Work Packages

Planning Packages

OBS DATA SUMMARIZATION

SOFTWARE INTEGRATION PROGRAM

Product Development

Master Planning

Ada Products

Software Tools Standards

CPCI #1 MOS

CPCI #2 MOLE

CPCI #3 MAC

Ada Study

Ada Conversion

Ada Approach

Ada Applications

Secure Systems

LAN Applications

Marketing

BCWS BCWP ACWP BAC EAC

FUNCTIONAL ORGANIZATION

CWBS EXTENSION

SELECTED REPORTING ELEMENTS

SELECTED PSWBS ELEMENTS

Hardware Engineering

Engineering

Operations

WBS DATA SUMMAR I ZAT I ON

VP/GM

Control Account

Control Account

Control Account

Control Account

Control Account


CONTROL ACCOUNT ELEMENTS

Work Packages Detailed, short-‐span tasks, or material items, required to

accomplish the CA objec-ves,

typically in the near term

Task 1 Task 2

Task 4 Task 5

Task 3 Work Packages

Planning Packages

Planning Packages Future work that has not been detail planned as work packages. They are always scheduled to occur in the future.


EARNED VALUE TECHNIQUES

  A predetermined amount of value, i.e. budget, that is claimed, or earned, when the corresponding work is accomplished. The budget value is earned in one of the following ways: þ  0/100 þ  X/Y Percent

±  25/75 ±  40/60 ±  50/50

þ  Milestone Weights

þ  Milestone Weights with Percent Complete

þ  % Complete ±  Subjective Estimate ±  Objective Indicators

þ  Apportioned Effort þ  Level of Effort


Budgets vs Funds


BCWS vs ETC

● Budgeted Cost for Work Scheduled (BCWS) –  Time phased budget spread of required resources for

the en-re task. –  Forms the Performance Measurement Baseline (PMB).

● Es-mate To Complete (ETC) –  Funding required to complete remaining work. –  When added to ACWP, it results in the EAC.


EAC

THE PLAN (BCWS) AND THE ETC

BCWS

ETC

BAC/

The BCWS & BAC represent the work. The ETC & EAC represent the funds (i.e., money) required for that work.


BAC vs EAC

● Budget At Comple-on (BAC) –  Budgetary number represen-ng ALL authorized work

(i.e., the SOW). –  Cannot change without a change to the SOW, or

appropriate approval.

● Es-mate At Comple-on (EAC) –  Funding number represen-ng ALL the money that

will be spent. –  Can change without a commensurate change to the

SOW.


BUDGET VS FUNDS

Budget

ü A number written on a piece of paper

ü Cannot be spent

ü BCWS

ü BCWP

ü BAC

Funds

ü Actuals

ü Expenditures & estimates of future spending

ü ETC

ü ACWP

ü EAC


P CUM

DATA ANALYSIS RELATIONSHIPS

Term Formula

Percent Complete

Cost Performance Index or Performance Factor

Checklist Actions Ratio of work accomplished in terms of the total amount of work to do.

Symbol % Done

CPI or PF

TCPI or VF

BCWP BAC

Average Performance BCWPcum

Duration (wks or mos) Since ACWP Began

BCWPcum Duration (wks or mos)

From Time Now to Manager's Stated Completion Date

SC or S/C Schedule Correlation

BCWP ACWP

Ratio of work accomplished against money spent (an efficiency rating: Work Done for Resources Expended)

To Complete Performance Index

or Verification Factor

BAC - BCWP EAC - ACWP

Ratio of work remaining against money remaining (Efficiency which must be achieved to complete the remaining work with the expected remaining money)

Schedule Performance Index SPI Ratio of work accomplished against what should have been done (Efficiency Rating: Work done as compared to what should have been done)

BCWP BCWS

SV

Ratio of Schedule Variance (SV) in terms of average amount of work accomplished (in weeks or months). It indicates a correlation to program true schedule condition

IEAC Independent Estimate At Completion

BAC PF

Calculation of a projected Estimate At Completion to compare with the CAM's Estimate At Completion: 1) Ration of total work to be done against experienced cost efficiency 2) Sunk costs added to a ratio of remaining work against weighted cost and schedule efficiencies

1)

2) BAC - BCWP .8CPI + .2SPI

ACWP +

Average Expected Performance To Finish

Average rate at which work has been accomplished since work began

Average rate at which work must be accomplished in the future to finish on the date the CAM has forecasted for completion of the work. P TO GO

P CUM


BENEFITS OF EVMS

● Clear defini-on of work prior to beginning that work –  Helps the line manager credibly request appropriate

resources –  Provides the basis for a realis-c plan against which to

measure performance


BENEFITS OF EVMS

● Objec-ve measurement of work accomplishment –  Helps the line manager develop plans that are rooted

in reality •  If the task can be done within scope, schedule, budget; confidence

in a successful outcome is increased •  If the task cannot be done within scope, schedule, budget; that

problem can be defined and resolved at a -me when the resolu-on will be reasonably inexpensive

–  Assists the line manager to request needed help –  Assists program and func-onal management to iden-fy areas requiring addi-onal management aNen-on


BENEFITS OF EVMS

● Provides true cost condi-on – Side-‐steps false cost variances – Encourages realis-c projec-ons of final cost – Enhances accuracy of funding forecasts


● Reduces propensity of customer/boss to add work without adding budget –  Ties budget directly to work –  Requires all work transfers to include associated budget –  Requires all budget transfers to include associated work

● Fosters management decisions within a framework of reality, rather than latent unease

BENEFITS OF EVMS


0

1000

2000

3000

4000

5000

6000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

EARNED VALUE DATA ELEMENTS

Time Now

Cost Variance Schedule Variance

Projected Project Delay

Variance at Completion (VAC)

Estimate at Completion (EAC)

Budget at Completion (BAC)

Project Budget Base Management Reserve

ACWP BCWP

BCWS

ETC

Schedule Slip


EARNED VALUE TERMINOLOGY

Data Element Term Acronym Scheduled Work Budgeted Cost for Work Scheduled BCWS

Earned Value Budgeted Cost for Work Performed BCWP

Actuals Actual Cost of Work Performed ACWP

Authorized Work Budget At Completion BAC

Forecasted Cost Estimate At Completion EAC

Work Variance Schedule Variance SV

Cost Variance Cost Variance CV Completion Variance Variance At Completion VAC


EARNED VALUE EXERCISE – FENCE PROJECT

Calculation of Earned Value


Project CommunicaEons Management


IMPORTANCE OF GOOD COMMUNICATIONS

● The greatest threat to many projects is a failure to communicate

● Strong verbal skills are a key factor in career advancement for Project Managers


PROJECT COMMUNICATIONS MANAGEMENT PROCESSES

● Communica-ons planning: determining the informa-on and communica-ons needs of the stakeholders

●  Informa-on distribu-on: making needed informa-on available in a -mely manner

● Performance repor-ng: collec-ng and dissemina-ng performance informa-on

● Administra-ve closure: genera-ng, gathering, and dissemina-ng informa-on to formalize phase or project comple-on


COMMUNICATIONS PLANNING

● Every project should include some type of communica-ons management plan, a document that guides project communica-ons

● Crea-ng a stakeholder analysis for project communica-ons also aids in communica-ons planning


COMMUNICATIONS MANAGEMENT PLAN CONTENTS

●  A descrip-on of a collec-on and filing structure for gathering and storing various types of informa-on

●  A distribu-on structure describing what informa-on goes to whom, when, and how

●  A format for communica-ng key project informa-on ●  A project schedule for producing the informa-on ●  Access methods for obtaining the informa-on ●  A method for upda-ng the communica-ons

management plans as the project progresses and develops

●  A stakeholder communica-ons analysis


INFORMATION DISTRIBUTION

● Geang the right informa-on to the right people at the right -me and in a useful format is just as important as developing the informa-on in the first place

● Important considera-ons include – using technology to enhance informa-on distribu-on

–  formal and informal methods for distribu-ng informa-on


PERFORMANCE REPORTING

● Performance repor-ng keeps stakeholders informed about how resources are being used to achieve project objec-ves –  Status reports describe where the project stands at a specific point in -me

–  Progress reports describe what the project team has accomplished during a certain period of -me

–  Project forecas-ng predicts future project status and progress based on past informa-on and trends

–  Status review mee-ngs o_en include performance repor-ng


CASE-‐STUDY LYNAS -‐ WHAT ARE THE ISSUES?


LYNAS CASE-‐STUDY – GROUP WORK

● Use the internet to get all the informa-on ● Iden-fy project stakeholders ● What are the issues? ● What are project benefits? ● What are the project risks? (major & minor)

● Why are there conflicts? ● How to resolve conflicts? ● How can management inform the public?


ADMINISTRATIVE CLOSURE

● A project or phase of a project requires closure

● Administra-ve closure produces – project archives –  formal acceptance –  lessons learned


SUGGESTIONS FOR IMPROVING PROJECT COMMUNICATIONS

● Resolve conflicts effec-vely ● Develop beNer communica-on skills ● Run effec-ve mee-ngs ● Use templates for project communica-ons


CONFLICT HANDLING MODES IN ORDER OF PREFERENCE

● Confronta-on or problem-‐solving: directly face a conflict

● Compromise: use a give-‐and-‐take approach ●  Smoothing: de-‐emphasize areas of differences and emphasize areas of agreement

●  Forcing: the win-‐lose approach ● Withdrawal: retreat or withdraw from an actual or poten-al disagreement


Project Closure


WHAT IS INVOLVED IN CLOSING PROJECTS?

● Closing processes include gaining stakeholder acceptance of the final product and bringing the project or phase to an orderly end

● Closing verifies that all of the deliverables have been completed

● A project audit is o_en done


TRANSITION PLANNING ● It is important to plan for and execute a smooth transi-on of the project into the normal opera-ons of the company

● Most projects produce results that are integrated into the exis-ng organiza-onal structure

● Some projects require the addi-on of new organiza-onal structures

● Some projects end by ex-nc-on or starva-on


ADMINISTRATIVE CLOSURE

● Administra-ve closure involves – verifying and documen-ng project results to formalize acceptance of the products produced

– collec-ng project records – ensuring products meet specifica-ons – analyzing whether the project was successful and effec-ve

– archiving project informa-on for future use


FINAL REPORT OUTLINE

●  Cover page ●  Table of contents and execu-ve summary (for a long report) ●  Need for the project ●  Project descrip-on and leNer of agreement ●  Overall outcome of the project and reasons for success or failure ●  Project management tools and techniques used and assessment

of them ●  Project team recommenda-ons and future considera-ons ●  Final project GanN chart ●  ANachments with all deliverables


Closing Remarks


CURRENT & FUTURE OF PM (-‐ Pinto and Kharbanda 1995)

• PM approach will replace functional line management • Globalisation needs PM approach • Trend towards flat, flexible organisation • PM used as competitive weapon • PM concept changes from decision maker, boss director to leader, coach & facilitator


THE END


PETRONAS TWIN TOWERS

● Iden-fy the PETRONAS Twin Towers’ stakeholders, their roles and interests.

● Discuss the risks faced during the project management processes of the PETRONAS Twin Towers.

● Appraise the mi-ga-on to the above risks in terms of innova-ons.


BOSCH POWER TOOLS: THE DELTA-‐SANDER PROJECT (A)

● What are the problems facing the Bosch Delta-‐Sander project?

● What are the steps required by Mr. Klaus HuNelmaier in order to rec-fy the problems?

● Should the Bosch Delta-‐Sander be exhibited in Cologne? Give your opinions.


INDIVIDUAL ASSIGNMENT 1

● One of the project failure causes is due to lack of integrity. Discuss.

● Why do you think SC s-ll implemented Construc-on Management approach although the SC management team was facing various issues throughout the SC project?

Documents

MDE$2583$6$PROJECT$MANAGEMENT - Universiti Teknologi … · ’’ innovave’ ’entrepreneurial’ global’ 5 References/Bibliography PMBOK (2013) MS Project 2013 Kerzner, R. (2013).Project