Chapter 3: Project Management

Project Management (importance)

time-based completion and achievement of quality standards

Three Phases

planning
scheduling
controlling

Project Organization

formed to ensure that programs (projects) receive the proper management and attention

Projects

related tasks directed to a major output

Work Breakdown Structure (WBS)

hierarchical framework that involves breaking a project down into a series of smaller tasks

Lowest Level in WBS

identifies activities that report work packages

Project Scheduling

involves sequencing and allotting time to all project activities

Gantt Chart

horizontal bar chart representation of a set of tasks

Network Techniques

PERT, CPM

Usefulness of Network Techniques

shows relationships of activities, identifies precedence, encourages setting realistic schedules and cost estimates, and enhances efficiency

Project Controlling

involves monitoring resources, costs, quality, and budgets; using a feedback loop to help make adjustments; produce extensive reports for project managers

Program Evaluation Review Technique (PERT)

technique that employs three time estimates for each activity which enables computations of worst and best case scenarios as well as probability that projects may become late

Critical Path Method (CPM)

technique that uses only one time factor per activity; assumes all activity times are known and fixed constants

Critical Path

the computed longest time path(s) through a network; if activities on path are delayed then the entire project will be delayed

Slack

the amount of time that an activity can be late without pushing back the completion date of the entire project

Activity-on-Node (AON)

network diagram in which nodes designate activities

Activity-on-Arrow (AOA)

network diagram in which arrows designate activities; nodes (events) consume neither time nor resources

Dummy Activities

consume no time or resources, used in AOA when two activities have same start and ending times or following some but not all preceding activities

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 finish so as to not delay the completion time of the entire project

Forward Pass

process that identifies all the early times

Backward Pass

process that identifies all the late start and late finish times

Critical Activities

activities with zero slack and are on the critical path

Three Time Estimates in PERT

optimistic time
pessimistic time
most likely time

Optimistic Time (a)

time an activity will take if everything goes as planned

Pessimistic Time (b)

time an activity will take assuming very unfavorable conditions

Most Likely Time (m)

most realistic estimate of time required to complete an activity

Beta Distribution Formula for Expected Activity Time

t = (a + 4m +b) / 6

Crashing

shortening the duration of the project in cheapest manner possible

Crash Time

shortest duration required to complete an activity