chapter 1 - GEOCITIES.ws
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Transcript chapter 1 - GEOCITIES.ws
CHAPTER 4
MANAGING PROJECT PROCESSES
THE CONCEPT
A project is an interrelated set of activities that has
a definite starting and ending point and that results
in a unique outcome for a specific allocation of
resources
Consisting of three major activities : defining &
organizing, planning, monitoring & controlling
DEFINING AND ORGANIZING PROJECT
Selecting the project manager and team :
organizational structure (functional, pure, matrix),
control and efficiency
Defining the scope and objectives : scope, time
frame and allocated resources
Planning the project format : guidelines for
meetings, resolving issues, communication
PLANNING PROJECTS
Defining the work breakdown structure : activity,
ownership and procedure
Diagramming the network - PERT/CPM :
identifying and organizing the data and the
interrelationship between activities
estimating the completion time of the project
highlighting the crucial activities to completing projects
on schedule
analyzing the time & cost implications of resources
trade-offs
Developing the schedule :
the critical path is the sequence of activities between
a project’s start and finish that takes the longest time
to complete
activity slack is the maximum length of time that an
activity can be delayed without delaying the entire
project (latest start - earliest start time or latest finish
- earliest finish time)
free slack = earliest start time of the next activities earliest finish time of the current activities
the
earliest finish time = earliest start time + t
the earliest start time is the earliest finish time of the
preceding activity or the latest of the earliest finish
time of the preceding activites
the latest start time = the latest finish time - t
the latest finish time is the latest start time of the
activity immediately following it or the earliest of the
latest start time of the subsequent activities
Analyzing cost-time trade-offs : keeping cost at
acceptable level as important as meeting schedule dates
total project cost = (direct + indirect + penalty) costs
crashing or expediting by shorten individual activities
(by increasing its direct costs) to reduce overall project
completion time and consequently its (indirect) costs,
gain additional revenues and to avoid penalty costs
cost to crash per week = (CC-NC)/(NT-CT)
minimizing cost
Assessing risk
the notion of uncertainty relates to project timing and
costs, such as weather, labor shortages, supply delays
etc
incorporating uncertainty into the network model by
using computer simulation or statistical analysis
computer simulation : choosing activity times of
critical path from probability distribution randomly
which will result in a probability distribution of
completing dates
statistical analysis
approach : optimistic, most
likely and pessimistic time derived from a beta
probability distribution to calculate the expected
time and variance
activity duration times are independent random
variables which approach normal distribution as
the number of random variables increases
the sum of (earliest) expected times and variances
of the critical path
MONITORING AND CONTROLLING PROJECT
Monitoring project status :
Open issues and risks
Schedule status : negative slack and crashing
Monitoring project resources :
resources leveling
resources allocation
resources acquisition