CHAPTER 3

OVERVIEW

Project—series of related jobs directed toward some major output (deliverable) and requiring a significant period of time = and effort to complete. Planning = and control pose complex problems that are unlike other types of production environments.

Project Structures (ways of organizing projects)

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2. Functional &= nbsp;

3. Matrix

Work Breakdown Structure (WBS)

SOW (statement of Work) describes = the project, very often in a narrative format. High level description of projec= t in terms of what is to be done, how long it will take (target completion date – projected start date), what it will cost, standards for performance (like milestones) etc.

Projects are divided into major tasks which m= ay be further divided into subtasks. Basically, these are the things to must be done to complete the proj= ect.

Groups of activities that are logically relat= ed comprise what we call Work Packages. Work packages c= an be assigned to organizational groups, or possibly individuals. Defines what is= to be done, when to start, when to finish, budget, performance metrics, and specific events that are to be reached at specific points in time. These events are called project Milestones.

Work Breakdown Structure (WBS) defines the hierarchy of project tasks, sub-tasks and work packages. Activities are def= ined within the context of the WBS. Activities are pieces of work that consume time.

PROJECT PLANNING and CONTROL CHARTS

A Gantt chart is a horizontal bar chart developed as a production control tool in 1917 by Henry L. Gantt, an American engineer and social scientist. Frequently used in project management, a Gantt chart provides a graphical illustration of a schedule that helps to plan, coordinate, and tr= ack specific tasks in a project. Gantt charts may be simple versions created on graph paper or more complex automated versions created using project manage= ment applications such as Microsoft Project or Excel.

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(Source:&nbs= p; Tech Target at http://searchsoftwarequality.techtarget.com/sDefinition/0,= ,sid92_gci331397,00.html)

Other tools:

NETWORK PLANNING MODELS

Pert (Program evaluation and review technique) was developed by the Navy for work being done on the Polaris submarine--the mis= sile system (nuclear) in particular--back in the 1950's.

It is a time/event/network =3D> a planning and control tool for projects= . (Spinoff of Gantt charts and miles= tone budgeting--antecedents)

CPM similar to PERT but doesn't use probabilitie= s as PERT typically does.

Events (culmination of an activity or group of activities)

Sequencing of activities shown by------><= /span>

Times are the time it takes for activities to be completed.

PERT/CPM:

Program Evaluation and Review Technique--Crit= ical Path Methods are techniques used to plan and control (track the progress activities and completion of events in a project.

Critical Path Algorithm

Critical Path--that sequence of activities that takes longest time to complete.

* Why important--planning/control<= /span>

Identification easy/difficult

ES for activity =3D EF of its predecessor. If more than one it is Latest = EF of predecessors.

LF of last activity =3D EF of project then you = work backwards. =

To get LS.&n= bsp; LF of activity is =3D LS for successor if there is only one. Otherwise it is the smallest (earliest) LS of all successors.

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Slack occurs when there is more time available to complete an activity, than it takes to complete it—time to spare, so = to speak!

Critical path--sequence of activities with no slack.

Use the estimates to come up with critical pa= th.

Read stuff on PERT and you can gain basic understanding of tradeoffs involved in using Cost in planning and control w= ith PERT/CPM. &nbs= p; &= nbsp; &nbs= p; &= nbsp; &nbs= p;