Project management harold kerzner

Project Management a System approach to Planning Scheduling & Controlling - Harold Kerzner Chapter Introduction to Project Management History of Project Management     One of the first examples of project management was the construction of the pyramids in Egypt Henry L Gantt (1861-1919) added an important visualization tool around 1917 with the Gantt Chart In the late 1950s, DuPont Company developed the Critical Path Method (CPM) Also in the late 1950s, Booz Allen Hamilton developed the Program Evaluation and Review Technique (PERT), which models uncertainty in project management Importance of Project Management     Project management effectively controls organizational change, allowing organizations to introduce new products, new processes, and new programs effectively Projects are becoming more complex, making them more difficult to control without a formal management structure Projects with substantially different characteristics, especially in IT, are emerging Project management helps cross-functional teams to become more effective Comment on the Importance of Project Management “At last we are beginning to see research which proves how important project management is without welltrained and capable project managers the percentage of GDP spent through projects is inflated due to many exceeding their budget through poor management.” Richard Pharro, author and consultant (2003) Still, many organizations underappreciate the contributions made by their project managers What is a Project?   A project is a “temporary endeavor undertaken to create a unique product or service” (PMBOK, 2000) A project is a well-defined set of tasks or activities that must all be completed in order to meet the project’s goals Two prevalent characteristics:   Each task may be started or stopped independently of other tasks; Tasks are ordered such that they must be performed in a technological sequence Examples of Projects         Construction of the pyramids Apollo moon landing mission Development of MS Windows Making The Lord of the Rings Organizing the Olympics Games Development and marketing of a new drug Implementing a new company wide IT system Design of this course Project management spans both the manufacturing and service sectors Manufacturing Perspective   Flowshop: The same sequence of operations is used to create each product or service Job Shop: A product or service only flows through centers which are required to create it Characteristics of Flowshop, Job Shop and Project Flowshop Job Shop Project Product Mass Custom Labor Low skill High skill High skill Capital High Medium Low Variable Highly variable Performance Good (time, cost, quality) Unique Project Management versus Process Management “Ultimately, the parallels between process and project management give way to a fundamental difference: process management seeks to eliminate variability whereas project management must accept variability because each project is unique.” J Elton, J Roe 1998 Bringing Discipline to Project Management Harvard Business Review See coursepack article: Oltra, Maroto and Segura 10 Multitasking Approach: Results Multiple projects Total completion time: Makespan: 293 Multiple Projects: Team-Designed Approach       The rules are mostly the same as for multitasking However, it is not necessary to progress all unfinished tasks in turn; instead, teams can choose which tasks to progress in each week Teams are encouraged to develop creative approaches to solving the problem One suggestion: identify the bottleneck tasks, or “critical chain”, and everything to progress them Reallocating resources is not allowed Record the time to complete Projects R, 294 S Multiple Projects: Team-Designed Approach Roll Value 1 3 Project R Week Completed _ Project S Week Completed _ Project T 295 Week Completed Team–Designed Approach: Results Multiple projects Total completion time: Makespan: 296 Multiple Projects: Comparison of Results Priority Approach Total completion time: Makespan: Multitasking Approach Total completion time: Makespan: Team-Designed Approach Total completion time: Makespan: 297 Conclusions  A priority approach is often ineffective at scheduling multiple projects, especially when measured by makespan  A multitasking approach is also often ineffective, especially when measured by total completion time  A critical chain approach focuses on the “bottleneck tasks” and often leads to significant improvements in performance  The improvements identified here will be even greater if resources are reallocated to the bottleneck tasks (as happens in practice) 298 Dynamically Arriving Projects    Projects arrive dynamically (a common situation in both manufacturing and service organizations) How to set due dates for new projects? How to schedule tasks in newly arrived projects? 299 Dynamically Arriving Projects: Research Study   Four due date assignment rules and five scheduling heuristics are investigated Simulated 250 projects that randomly arrive over 2000 days     Performance criteria:      average interarrival time = days - 49 tasks per project (average = 24); - resource types average critical path = 31.4 days (ranging from to 78 days) mean completion time mean project lateness standard deviation of lateness total tardiness of all projects Partial and complete control of setting due dates 300 Dynamically Arriving Projects: Research Study    Complete control environment: managers can set the due date for all arriving projects Partial control environment: a proportion of projects arrive with a preset due date Heuristics to set due dates:     Mean flow due date rule Number of activities rule Critical path rule Scheduled finish time due-date rule 301 Dynamically Arriving Projects: Research Study Heuristics to schedule tasks:      First in system, first served (FCFS) Shortest task from shortest project Minimum slack based on due date Minimum late finish based on due date Minimum task duration from the shortest remaining project 302 Dynamically Arriving Projects: Research Study     No single scheduling heuristic performs best across all due date setting combinations Mean completion times for all scheduling and due date rules are not significantly different FCFS scheduling rule leads to increased total tardiness SPT-based rules not work well in project management J Dumond, V Mabert 1988 Evaluating Project Scheduling and Due Date Assignment Procedures: An Experimental Analysis Management Science, 34, 1, 101-118 303 Cited References     Brown, K.A., T.G Schmitt, R.J Schonberger, S Dennis Quadrant Homes applies lean concepts in a project environment Interfaces 34 (2004), 442-450 Chaos Report, The The Standish Group International, Inc., 1994 Czuchry, A.J., M.M Yasin Managing the project management process Industrial Management & Data Systems 103 (2003), 39-46 Fox, T.L., J.W Spence Tools of the Trade: A Survey of project management tools Project Management Journal, September 1998 304 Cited References     Hall N.G., J.C Hershey, L.G Kessler, R.C Stotts A model for making project funding decisions at the National Cancer Institute Operations Research 40 (1992), 1040-1052 Hodder, J.E., H.E Riggs Pitfalls in evaluating risky projects Harvard Business Review (1985), 128-136 Mulder, L The importance of a common project management method in the corporate environment R&D Management 27 (1997), 189-196 Oltra, M.J., C Maroto, B Segura Operations strategy configurations in project process firms International Journal of Operations and Production Management 25 (2005), 429-448 305 Cited References     Patrick, F.S Critical chain scheduling and buffer management 1998 www.focusedperformance.com Pinto, J.K., O.P Kharbanda How to fail in project management (without really trying) Business Horizons, July-August 1996, 45-53 Raz, T., R Barnes, D Dvir A critical look at critical chain project management Project Management Journal, December 2003 Royer, I Why bad projects are so hard to kill Harvard Business Review, March-April 1987, 4974 306 MBA 820 307 ...Chapter Introduction to Project Management History of Project Management     One of the first examples of project management was the construction of the pyramids in... Evaluation and Review Technique (PERT), which models uncertainty in project management Importance of Project Management     Project management effectively controls organizational change, allowing... by management Project success is usually routine Cost and schedule performance usually conform to plan 27 Project Management Maturity Model Adaptive: Continuous improvement of the project management