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Chapter 19 - Project Management

Terms in this set (60)

Project
A temporary (NON-repetitive) operation. They have a limited time frame, one or more specific objectives, and a temporary organizational structure, and thus often are operated in a more ad-hoc, improvised management style.
Activity Time
The amount of time it takes a resource to complete the activity once it has started to work on it. The concept of an activity time is the same as the processing time in a process analysis.
Precedence Relationships
The dependency of activities on each other

When one activity cannot start until the completion of another activity
Dependency Matrix
In this matrix, each column represents an activity that provides information and each row indicates an activity that receives information.

An entry in column i, and row j, suggests that the activity in the i'th column (Ai) provides information to the activity in j'th row (Aj)

Implicitly suggests a sequencing of the activities and thus dictates the flow of the project
Predecessor Activity
Ai is the predecessor activity of Aj if Ai needs to be completed before starting Aj
Sequentially Dependent
A form of dependence in which a successor depends on a predecessor

Sequentially dependent activities require information or physical outputs from the predecessor
Successor Activities
Ai is the successor activity of Aj if Aj needs to be completed before starting Ai.

"Downstream"
Independent
Two events are independent (i.e. their correlation is 0) when the outcome of one event has no relationship to the outcome of the other event.

If there exists no predecessor relationship between 2 activities, we say the two activities are independent of each other
Linear Flow
All dependencies are below the diagonal line which means that there exists some sequence of activities as you move through the project. Every time that we start a new activity, we can be comfortable that all predecessor activities have been completed.
Interdependent
A form of dependence in which 2 activities require input from each other.

When executing a project with this kind of activities, we have to carefully coordinate the activities
Coordinate
Information exchange among activities
Static Coordinate
The consultation with team members who are in charge of project activities that happen further downstream in the project.

An attempt to understand the objectives and constraints of other activities when executing your own activity.
Dynamic Coordinate
Iterative execution of interdependent activities where both activities provide input to each other.

The two activities are carried out simultaneously, with both activities providing information to each other.
Iteration
means that we go forth and back from one activity to the other
Concurrent Engineering
The (partially) simultaneous execution of multiple development activities with a strong emphasis on coordination.
Activity-on-Node (AON) Graph
A graph capturing the project activities and its dependencies in which nodes correspond to project activities and arrows correspond to precedence relationships (with an arrow going from the predecessor activity to the successor activity).

a.k.a. Activity Network
Fundamental Difference between Process Management and Project Management
Process - Attention directed to resource with lowest capacity (bottleneck), look at individual activity times

Project - Look at the completion time of the last activity. This completion time requires ALL activities to be completed
Path
A sequence of nodes (activities) and (directional) arrows
Critical Path
The path with the longest duration.

It's duration determines the duration of the overall project.
Earliest Start Time (EST)
The earliest time an activity can begin, which is given by the earliest time all predecessor activities have been completed.

The EST of the first activity is ZERO

EST(Ai) = Max{ECT(Aj)}
Earliest Completion Time (ECT)
The earliest time an activity can be completed, which is given by the earliest time all predecessor activities have completed + activity time.

ECT(Ai) = EST(Ai) + Activity Time (Ai)
Slack Time
The amount of time an activity can be delayed without affecting the overall completion time of the project.

= LST - EST
or
= LCT - ECT
Late Start Schedule
The latest possible timing of all activities that still allows for an on-time completion of the overall project.
Latest Start Time (LST)
The latest possible start time of an activity that still allows for an on-time completion of the overall project.

LST(Ai) = LCT(Ai) - Activity Time(Ai)
Latest Completion Time (LCT)
The latest possible completion time of an activity that allows for an on-time completion of the overall project.

LCT(Ai) = Min{LST(Aj)for which Aj is successor of Ai}
Benefits from knowing Slack Time
Potentially delay the start of the activity without delaying the overall project

Accommodate the availability of resources by adjusting our schedule without delay of project completion

Insights and understanding about the project dynamics
Gantt Chart
A time line with the activities included as bars

X-axis = Time
Y-axis = Activity

Most commonly used visualization for project time lines

Does NOT capture dependencies of activities
Random Activity Time
The fact that the time of an activity is not known with certainty but subject to some statistical variation

Uncertainty in activity times are BAD because it will, on average, lead to a later completion time of the project
Shifted Critical Path
A change in the activities making up the critical path triggered by some unexpectedly long activity time on a non critical path activity
Padded Activity Time
Forecasted activity time that is longer than the actual amount of time required
Rework
The repetition of activities or an extra set of activities that have to be completed by defective flow unit in order to be restored to a good flow unit
Low vs High Degree of Uncertainty
Low Degree of Uncertainty = Static Coordination

High Degree of Uncertainty = Iteration
When to focus on threat of Iteration
When faced with the potential of some activities taking longer than expected and an unexpected iteration requiring re-working one or multiple previously completed activities, a project manager should focus on the threat of iteration because it has a stronger effect of the overall completion time.
Unk-Unks
Unknown unknowns, which describes uncertainties in a project that the project manager is not yet aware of
Discovery-Driven Planning
An approach to project management that emphasizes iteration and dynamic adjustment

Helps to resolve some uncertainties and potentially identify new ones
Project Budget
Outline of the main expenses associated with the project

Often related to the resources required to carry out the activities
Project Scope
Description of what must be accomplished in order for the project to be complete

Should state a set of quality specifications
3 Objectives of Project Management
1. Project Completion Time
2. Project Budget
3. Project Scope
Project Management Triangle
The tension between the three objectives of a project: completion time, budget, scope
Inexpensive Actions to Accelerate the Completion Time of the Project without Sacrificing Quality or Budget
1. Start project early
2. Manage project scope
3. Crash activities
4. Overlap critical path activities

only work when applied to the critical path
Crashing
An increase in spending that allows for faster completion time of a project
Overlapping Dependent Activities
The simultaneous execution of dependent activities to facilitate info exchange and shorten project completion time
Defining the Project
Step 1 of organizing a project

Defining and negotiating the three variables making up the project management triangle
Work Breakdown Structure
The translation of the project scope into specific activities
Planning the Project
Step 2 of organizing a project

Preparation of the execution of the project. Start once you have defined the project

Examples: Dependency Matrix, Activity Network, Critical Path, Gantt Chart
Controlling the Project
Step 3 of organizing a project

Tracking the progress of the project as it unfolds
Dedicated Project Team
A project team in which the team members spend 100% of their work time on the project
Organizational Chart (Org Chart)
Visual graph of the reporting relationships in the organization. Shows chain of command, with the general at the top, and foot soldier at the bottom
Matrix Organization
An organization with multiple lines of reporting relationships

Problems: scope conflicts & resource conflicts
Heavyweight Project Manager
A project manager who has a strong influence on the scope and the resources of the project
Program Evaluation & Review Technique (PERT)
Developed to manage the Polaris missile project (1958)

Many tasks pushed the boundaries of science & engineering (tasks' duration = probabilistic)
Critical Path Method (CPM)
Developed to coordinate maintenance projects in the chemical industry (DuPont, 1957)

A complex undertaking, but individual tasks are routine (tasks' duration = deterministic)
PERT and CPM Commonalities
Graphically display the precedence relationships and sequence of activities on an activity board

Estimate the project's duration

Identify critical activities than cannot be delayed without delaying the project

Estimate the amount of slack associated with non-critical activities
Three-Time Estimate Approach
For uncertain activity times

For each activity, estimate the following times:
a = the optimistic time (min duration)
b = the pessimistic time (max duration)
m = the most likely time (normal duration)
Beta Probability Distribution
Has definite end points

An activity's mean completion time is: t = (a + 4m + b)/6

An activity's completion time variance is: O^2 = [(b-a)/6]^2
Using PERT
Finding the Critical Path:
-Use CPM with the mean activity times
-Obtain the expected project completion time

The overall project completion time is assumed to have a normal distribution with:
-mean equal to the sum of the means along the critical path, and
-variance equal to the sum of the variances along the critical path
Key Concepts of PERT
PERT is used to calculate the probability a project will be completed on time

PERT builds on the CPM to calculate the expected project completion time
Reducing Project Completion Time
Crashing a project needs to balance:
-Shorten a project duration
-Cost to shorten the project duration

Crashing a project requires you to know:
-Crash time of each activity
-Crash cost of each activity

Crash Cost/Time Period = (Crash Cost - Normal Cost)/(Normal Time - Crash Time)
When to Cease Crashing
1. the target completion time is reached

2. the crash cost exceeds the penalty cost
Project Management OM Across the Organization
Accounting uses project management (PM) information to provide a time line for major expenditures

Marketing uses PM information to monitor the progress to provide updates to the customer

Information Systems develop and maintain software that supports projects

Operations us PM information to monitor activity progress both on and off critical path to manage resource requirements
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