Project Planning and Acquisition PDF

Chapter 8: Project Planning and Acquisition What is a Project? A project…  Represents a collection of tasks aimed toward a single set of objectives, culminating in a definable end point and having a finite life span.  Is a one-of-a-kind activity, aimed at producing some product or ou...

Chapter 8: Project Planning and Acquisition What is a Project? A project…  Represents a collection of tasks aimed toward a single set of objectives, culminating in a definable end point and having a finite life span.  Is a one-of-a-kind activity, aimed at producing some product or outcome that has never existed before The Project Proposal Process: A detailed description of …  What is to be accomplished  Time needed  Resources needed Preproposal: Should a bid be made? This is decided based on…  Is there an opportunity for a project?  Will we be capable of bidding for the project?  Do we have the needed resources (human and other) to complete the project?  Does the project fit our needs?  What is our chance of getting the project? Proposal: Scope Objectives Costs Benefits Constraints Project Planning Tools: Statement of Work: describes what is to be provided in the project. It itemizes the tasks to be performed, deliverables, and data and reports to be supplied. Milestone Schedule: Key project stages or phases. Each milestone involves many tasks, people, and resources. Assists in developing detailed project plan. Work Breakdown Structure (WBS): Product-oriented diagram that provides a level-by-level subdivision of the work to be performed in a contract. Terms to Know:  End-Item: Items to be delivered at end of project  Dimension 1: Project or program components.  Dimension 2: Functional organization/departments  Cost Account: Where two dimensions meet  Work Packages: Ultimate unit by which work is controlled. One or more work packages form a “cost account” Progra m Ground Engine Training Support Compresso Fan Turbine r Fan Full- Stator Assembl scale Fins y Fan Rig Test Design Mech. Cost Cost Cost Account Account Account Company Design Engineering Analytical Design Cost Cost Cost Account Account Account Mfg Drafting Cost Cost Cost Account Account Account Gantt Chart: Charting of tasks or activities versus time. To create a Gantt chart you need:  The project tasks.  The precedence relationship between the tasks.  The expected duration of each task. Network Scheduling Systems: Critical Path Method (CPM) Components: Activity Event Critical Path Duration Earliest Start Date Latest Finish Date Slack/Float Restrictions: No loops One start One end Example: Activity Duration Predecessor Step Action Time A 1.0 -- Part A Drill 1 B 0.6 -- Part B Lathe 2 C 2.0 -- Part C Lathe 1 D 2.0 B Part D Drill 1 E 0.9 B Part D Lathe 2 F 1.0 A, B Assemble A & B Assembly 1 G 0.3 D, F Paint AB Paint 1 H 0.2 G, E Assemble C & D Assembly 1 J 0.5 H, C Part CD Lathe 1 K 2.0 J Paint CD Paint 1 L 1.0 J Assemble AB & CD Assembly 2 M 0.4 L N 0.2 K, M Program Evaluation Review Technique (PERT): An important distinction of PERT is that activity duration is treated as a variable rather than a constant. Thus, each activity needs three time estimates: 1. Optimistic time (a) 2. Most likely time (m) 3. Pessimistic time (b) Assuming a beta distribution, the expected time and standard deviation of that time (assuming a and b are three standard deviations around estimated time) of an activity becomes: a  4m  b te  6 ba  6 Expected time for entire project, Te, is sum of te for activities on critical path only. T   2 Other Project Management Tools: Precedence Diagramming Method (PDM): Similar to above but allows for time delay constraints such as:  Finish to Start (FS): Next activity starts after end of previous activity by “x” time.  Start to Start (SS): Next activity starts after start of previous activity by “x” time. Used when you do not want to wait for end of previous activity before starting the next.  Finish to Finish (FF): Next activity ends after previous activity ends by “x” time. Graphical Evaluation and Review Technique (GERT): Allows for uncertain or probabilistic outcomes for activities. Thus, there can be more than one path for an activity. Resource Allocation: To effectively allocate resources, it may be better to use the slack in a project to defer purchase of resources or employment of personnel. Types of Contracts: Fixed Price Contracts: Project will be done for a predetermined and fixed price. Contractor will be motivated to reduce waste (i.e., increase his profit), but owner must ensure specifications are clear and adhered to. There are variations to this as seen in the book. Cost Type Contracts: Owner pays as per actual project costs. There are variations to this as seen in the book.