Project Management I

Project Management

• Project: A temporary endeavor undertaken to create a unique product, service, or result. It involves a set of interrelated activities (or TASKS) directed at achieving a particular goal or objective within a defined timeframe and budget. Projects are often distinct from ongoing operational work.

• Project Management: The application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. It is the process of planning and controlling key resources of the project and their critical TASKS to meet the specified time, cost, and functional objectives of a project. Effective project management ensures that projects are completed on time, within budget, and to the required quality standards.

• Project Management techniques will be essential throughout one's career, regardless of the industry. These techniques provide a structured approach to managing complex tasks and achieving desired outcomes.

The Project Workplan

• Statement of Work (SOW): A detailed written description of the objectives to be achieved, typically organized by Program. The SOW outlines the project's scope, deliverables, and responsibilities, serving as a foundational document for project planning and execution.

• Project Workplan: A comprehensive plan that defines all activities (or TASKS) required to complete a project, outlines the activity sequence and all dependencies, defines the resources needed (including human resources, equipment, and materials), and provides time estimates for each activity and the overall project. A well-developed project workplan serves as a roadmap for the project team.

• Work Breakdown Structure (WBS): A hierarchical decomposition of the project scope into manageable components. It refers to the hierarchy of project tasks, activities, and work packages; it breaks down the work plan into activities or sub-tasks to small components, making it easier to assign responsibilities, estimate costs, and track progress. The WBS ensures that all project deliverables are accounted for.

Example WBS: Large Optical Scanner Design

• Level 1: Large Optical Scanner Design

• Level 2 Tasks:

  • 1.1 Optical Design: Detailed design of the optical system, including lens selection, alignment, and performance analysis.

  • 1.2 System Performance Analysis: Evaluation of the scanner's performance characteristics, such as resolution, accuracy, and speed.

  • 1.3 System Integration Testing: Testing the integrated system to ensure that all components work together as expected.

  • 1.4 Cost Analysis: Comprehensive cost estimation and budget management for the entire project.

  • 1.5 HR Management: Allocation and management of human resources, including team roles, responsibilities, and training.

  • 1.6 Procurement: Acquisition of necessary equipment, materials, and services from external vendors.

Project Control Charts

• Charts offer a visual presentation that is easily understood, facilitating communication and decision-making among project stakeholders.

• Software is available to create these charts, providing automated tools for project planning, tracking, and reporting.

• Gantt Chart: A bar chart showing the amount of time involved, the sequence in which activities can be performed, and the relationship among the activities. Gantt charts are widely used for project scheduling and progress monitoring.

Gantt Chart Elements:

• Start and End Date: The planned start and end dates for each activity.

• Duration: The estimated time required to complete each activity.

• Dependency: The relationships between activities, indicating which activities must be completed before others can begin.

Key Tasks in Gantt Chart Example:

• Notice to Proceed: Official authorization to begin the project.

• Project Start: Commencement of project activities.

• Mobilization: Assembling the project team and resources.

• Mobilize: Physical mobilization of equipment and personnel to the project site.

• Construction: The primary construction phase of the project.

• Below Grade: Work performed below the ground level.

• Grade Site: Leveling and preparing the project site.

• Set Foundations: Pouring and setting the foundations for structures.

• Install Conduit: Installing electrical conduits.

• Dig Cable Trench: Excavating trenches for cable installation.

• Above Grade: Work performed above the ground level.

• Erect Steel Structures: Assembling steel frameworks.

• Install Equipment: Installing machinery and equipment.

• Install Grounding: Implementing grounding systems for electrical safety.

• Install Bus and Jumpers: Installing bus bars and jumpers for electrical connections.

• Lay Control Cable: Laying control cables for equipment operation.

• Fence: Fencing around the project site.

• Install Fence: Installing the fence.

• Site Restoration: Restoring the project site to its original condition.

• Remove Equipment: Removing equipment from the site after project completion.

• Lay Stoning: Laying stones for ground cover.

• Lay Roadway: Constructing roadways.

• Project Closeout: Formal closure of the project.

• Substantial Completion: Point at which the project is sufficiently complete for its intended use.

• Project Complete: Final completion of all project activities.

• Tasks can be in parallel, allowing for concurrent execution to expedite project completion.

Project Management Questions

• ACTIVITIES: What activities are required to complete a project? Identifying all necessary tasks is crucial for effective planning.

• SEQUENCE: What is the logical (optimal) sequence or PATH to completion? Determining the correct sequence ensures efficient project execution.

• TIME ESTIMATES: When should each activity be scheduled to begin and end? Accurate time estimates are essential for meeting project deadlines.

• CRITICAL PATH: Which activities are CRITICAL to completing the project on time? Managing the critical path is vital for preventing project delays.

• COMPLETION PROBABILITY: What is the probability of meeting the project completion due date or budget? Assessing completion probability helps in risk management and contingency planning.

• CHANGE IMPACT: What is the impact of a change in plans? Understanding the impact of changes is crucial for adapting to unforeseen circumstances.

The CPM Technique

• Identify each activity and estimate how long it will take, providing a realistic assessment of the project's duration.

• Determine the required sequence (predecessors & successors) and construct a network diagram, visualizing the project's workflow.

• Determine the Early start/finish and Late start/finish schedule, establishing a timeline for each activity.

• Identify activities with no slack time, highlighting those that are critical to project completion.

• Determine the Critical Path (path through activities with no slack time), focusing attention on the most important tasks.

Why Care About The Critical Path?

The critical path identifies the sequence of activities that directly impacts the project's completion date. Managing these activities closely is essential to ensure the project stays on schedule.

Critical Path Definitions

• Earliest Start (ES): The earliest time an activity can begin if all previous activities are begun at their earliest times. It represents the earliest opportunity to start a task.

• Earliest Finish (EF): The earliest time an activity can be completed if it is started at its early start time. It indicates the earliest possible completion date for a task.

• Latest Start (LS): The latest time an activity can begin without delaying the completion of the project. It sets the deadline for starting a task to avoid project delays.

• Latest Finish (LF): The latest time an activity can be completed if it is started at its latest start time. It signifies the latest acceptable completion date for a task without affecting the project timeline.

• Slack: The amount of time an activity can be delayed without delaying the completion of the project. Slack represents the flexibility in scheduling a task.

The Slack Time Rule

• If LS > ES, THEN You Have SLACK. This indicates that the activity has some flexibility in its schedule.

• IF Slack = 0, Then Activity Is On Critical Path. This means the activity must be completed on time to avoid delaying the project.

Key Takeaways

• Activities on the Critical Path have no slack time, requiring careful management to avoid delays.

• These activities must be managed tightly with deep oversight and low variance, or the project timeline will slip. Close monitoring ensures timely completion.

• Activities with slack allow for minor slippage without impacting the overall timeline, providing some scheduling flexibility.

• Excess resources from slack activities could be deployed to critical path activities if skill sets permit, optimizing resource allocation.

• Consider managing a project with the complexity of 10,000 activities, highlighting the need for effective project management tools and techniques.

Critical Path Formulas

• $ES = EF_{predecessor}$ (multiple predecessors goes to Max). The Earliest Start time is determined by the Earliest Finish time of the predecessor activity. If there are multiple predecessors, take the maximum EF.

• $EF = ES + Task Time$. The Earliest Finish time is the sum of the Earliest Start time and the Task Time.

• $LF = LS_{successor}$ (multiple successors goes to Min). The Latest Finish time is determined by the Latest Start time of the successor activity. If there are multiple successors, take the minimum LS.

• $LS = LF – Task Time$. The Latest Start time is the difference between the Latest Finish time and the Task Time.

• Slack Time = LF – EF > 0 OR Slack Time = LS – ES > 0. Positive slack indicates the amount of time an activity can be delayed without affecting project completion.

• CRITICAL PATH = Activities With 0 Slack Time. Activities on the critical path have no scheduling flexibility.

Incorporating Uncertainty in Activity Times

• Variables:

  • a = Optimistic (Minimum): The shortest possible time to complete the activity.

  • m = Most Likely: The most realistic estimate of the time required.

  • b = Pessimistic (Maximum): The longest possible time if everything goes wrong.

• $ET = (a+4m+b)/6$. This formula calculates the Expected Time (ET) for an activity, considering optimistic, most likely, and pessimistic estimates.

Uncertainty Example

(1) Determine Activity Expected Times and Variances

(2) Determine PROJECT Expected Times and Variances and standard deviation

• Project completion time = sum of expected times of critical path

• Project variance = sum of variance of critical path

• Project standard deviation = square root of project variance

• Critical Path Activities A,C,F,G

• $ET = 21, \, σ^2 = 9.00$

• $ET = 10, \, σ^2 = 1.78$

• $ET = 8, \, σ^2 = 0.11$

• $ET = 2, \, σ^2 = 0.00$

• 41 Weeks

• 10.89

• 3.30

(3) Calculate Probabilities For Completing A Project In Certain Number of Weeks or On-Time

• 3a. What is the Likelihood That We Complete the Project In 38 Weeks?

• 3b. What completion date provides a 95% confidence level in completing the project in that time?

(3a) What is the Likelihood That We Complete the Project In 38 Weeks?

• $z = (D - EC) / (\, \sqrt{∑σ^2_{cp}})$

• D (Due date) = 38 Weeks

• EC (Expected Completion Time) = 41 Weeks

• $z = (38 - 41) / \, \sqrt{10.89} = -0.909$

• From z table, .8389, so 1-.8389= 16.11% likelihood we will finish in 38 weeks

(3b) What completion date provides a 95% confidence level in completing the project?

• $z = (D - EC) / \, \sqrt{∑σ^2_{cp}}$

• $$D = EC + z \, \sqrt{∑σ