Project Management

Done By: Mohamed Ibrahim balaha

Project: is a series of activities directed to accomplishment of a desired objective. Project management: application of knowledge, skills, tools and techniques to project activities to meet or exceed stakeholders needs and expectations from a project. Process of successfully completing a project Successful PM: achieves project activities: within time within cost at desired technology level and performance utilizing assigned resources accepted by customers Characteristics of a project: A unique, one-time operational activity or effort Requires the completion of a large number of interrelated activates Established to achieve specific objective Resources such as time and money are limited Typically has its own management structure Need leadership Project management process: initiation planning scheduling control Project team Work breakdown structure: a method of breaking down a project into individual elements (components, subcomponents, activities and tasks) Project planning: Resource availability and limits: due date, late penalties, early completion incentives, budget Activity information: identify all required activities, estimate the resources required to complete each task, immediate predecessors to each activity needed to create interrelationships Gant chart: graph or bar chart with a bar for each project activity that shows passage time and provides visual display of project schedule. Factors for a successful project: user involvement, executive management support, clear statement of requirements, proper planning, realistic expectations, smaller project milestones, component staff, clear vision and objective, hard working focused team. How project management can help: Accountability for the overall success of the project Focuses on meeting customers needs and ensuring satisfaction Improves performance in time, cost and technical areas Focuses on managing project scope and controlling change Helps avoiding disasters by managing risks Strengthens project teams and improves internal morale

Project Management

Done By: Mohamed Ibrahim balaha

Why need project management: coordination of: people, resources, tasks, decision points, expenditure of funds, matching of people and resources to tasks Triple constraint: Cost / Resources, Schedule / Time, Scope/Quality Hierarchical view of PM: system, program, project, task, activity Project life cycle: Research and development Market introduction Growth Maturity Deterioration Death Steps in project management: Generate general definition of project with goals, constrains, and assumptions Identify project start and end dates List constrains: money, equipment, holidays Identify tasks to be accomplished and estimate their time and resources needed Identify critical path Monitor Evaluation of a project: Production factor: time, waste energy, facility, safety, time and cost Marketing factor: size, impact, consumer acceptance Financial factors: profitability, cash flow, payback period, break even Personnel factor: training, labor skills, availability Project selection criteria: Realism Capability Flexibility Ease of use Cost Easy computerization Project selection models: Numeric Nonnumeric Nonnumeric models: The sacred cow The operating necessity The competitive necessity The production line extension Comparative benefit models Q-sort Model

Project Management

Done By: Mohamed Ibrahim balaha

Where: A0=initial investment

K=required rate of return

Ft=net cash flow in period

Pt=inflation

Where: B=benefits to user C=total cost of supplier CR=capital recovery cost or equivalent annual cost O=equivalent uniform annual operating cost M=equivalent uniform maintenance cost Tools of project planning: Work breakdown structure Responsibility matrix Events and milestones Gant chart Project scheduling and control techniques: Gant chart Critical path method (CPM) Program evaluation and review technique (PERT) Project organization: Functional Product Matrix CPM: Developed by du pont for construction of new chemical plant Deterministic task time Activity-on-node network construction Repetitive nature of jobs PERT: Developed by US navy for missile program Multiple task times estimates Activity-on-arrow network construction Non-repetitive jobs Activity: a task or a certain amount of work required in the project work required to proceed from one event to another requires time to complete represented by an arrow

Project Management

Done By: Mohamed Ibrahim balaha

Event: signals the beginning or ending of an activity starting or ending point for a group of activities designates a point in time represented by circle Network: shows the sequential relationship among activities using nodes and arrows PERT is based in the assumption that an activitys duration follows a probability distribution instead of being a single value Pessimistic time(Tp): the time the activity would take if things did not go well Most likely time (Tm): the consensus best estimate of the activity duration Optimistic time (To): the time the activity would take if things did go well

where u=Te

and x=specific time

Benefits of CPM/PERT: useful at many stages of project management mathematically simple give critical path and slack time provide project documentation useful in monitoring cost CPM/PERT can answer the following questions: how long will the entire project take to be completed? What are the risks involved Which are the critical activities or tasks in the project which can delay the entire project Is the project on schedule What is the best way to crash a project Limitations of CPM/PERT: Over emphasis on critical path Activity time estimates are subjected and depend on judgment PERT assumes a beta distribution for these time estimates PERT consistently underestimates the expected project completion time due to alternate paths becoming critical