MGT 301 CHPT 8 Project Management – DePaul

a set of interrelated activities necessary to achieve established goals using a specified amount of time, budget, and resources
The primary characteristics are:
A well-defined goal or objective
Composed of a set of interrelated activities
A specified beginning and ending time
Specified resource and personnel requirements
A specified budget
Projects generally have or include:
Pre-specified deliverables after completion
Pre-established limits and exclusions
Specific intermediate goals or performance milestones.
An element of risk
Teams made up of several individuals who come from different departments or functional areas or who have unique skills
Team members work are working on multiple projects at the same time
Project management:
the application of the knowledge, skills, tools, and techniques necessary to successfully complete a project
five categories:
Project Initiation
During the project initiation phase, a business problem or opportunity is identified, a solution is identified and a project team is established.
The project manager is ultimately responsible for the successful execution of the project.
The Project Management Institution recommends that project managers need to gain expertise in areas such as: information integration, scope, time, cost, quality, human resources, communications, risk, and procurement.
Project Planning
Involves the creation of a number of planning documents such as:
Project plan
Resource plan
Financial plan
Quality plans
Communications plan
Risk plan
Project Execution
Involves the actual completion of all activities that are part of the project.
Requires the project manager to start constructing the deliverables.
The deliverables can be sequenced in series so that neither the project team nor the recipient is overburdened by them.
Project Control
Is the real-time assessment of the execution of a planned project
Real time data are compared with the proposed plan, and corrective actions are taken as necessary.
Requires time, cost, quality, resource, risk, and change management skills
Hardest job for a project manager
Project Closure
At the conclusion of all project activities and after submission of the required deliverables, a project is formally closed.
Conducting a critical assessment of all project phases that went well and those that did not allows the organization to learn and to improve the execution of the next project.
Project manager:
the person responsible for delivering the goals of a project
Project time:
the amount of time available to complete a project
Project cost:
the budgeted amount available for the project
Project scope:
the activities that must be completed to achieve a project’s end goal
Work breakdown structure (WBS):
an approach that defines a project in terms of its subprojects, tasks, and activities
Most fundamental technique for designing and organizing
the smallest work package that can be assigned to a single worker or a team
Precedence relationship analysis:
identification of the relationships and the sequence of activities within a project
Gantt chart:
a special type of horizontal bar chart used to display the schedule for an entire project
Network diagram
a diagram with arrows and nodes (circles) created to display a sequence of activities within a project
Activity on node (AON) approach:
a network diagram that shows each activity as a circle (or a node) and connects the activities with arrows
Activity on arrow (AOA) convention:
a network diagram in which each activity is represented by an arrow, and the nodes are used to show the beginning and end points
Critical path method:
an algorithm for scheduling activities within a project for the fastest and most efficient execution
Critical activities:
the project activities making up a critical path
Critical path:
the path within a project that takes the longest time to complete
Dictates the project completion time
a.k.a.: the bottleneck path or the binding constraint
the amount of flexibility in scheduling an activity within a project
Early start time (ES):
the earliest time at which an activity can start, considering the beginning and ending for each of the preceding activities
Early finish time (EF):
the sum of the early start time (ES) and the time required to complete the activity
Late state time (LS):
the latest time at which an activity can start, considering all the precedence relationships, without delaying the completion time for the project
Late finish time (LF):
the sum of the late start time and the time required to complete the activity
an approach for identifying the lowest-cost approach for reducing the project duration
Program evaluation and review technique:
a technique for addressing the impact of uncertainties in activity time estimates on the duration of the entire project
Optimistic time (to):
the minimum possible time required to complete an activity, assuming that everything proceeds better than is normally expected
Pessimistic time (tp):
the maximum possible time required to complete ac activity, assuming that everything proceeds at the slowest possible pace
Risk Assessment Plan
Step 1: Identify problems
Step 2: Analyze each potential problem.
Step 3: Once the risks are presented on the same scale, develop a prioritization scheme.
Step 4: Develop a contingency plan.
Step 5: Develop a potential upside for the project.
Step 6: Assign team members the responsibility for monitoring the signs of each potential problem