CH 5 - PM
CH 5 - PM
Course Title
Project management
1
Chapter Five
Project management /
3. Cost dimension
Cost minimization and maximize benefits
Areas of project planning
project activities .
Planning the information system
Information required for monitoring the
37 days
Activity 1
30 days
Activity 2
41 days
Activity 3
45 days
Activity 4 58 day
13
Project Planning (cont…)
Merit of Gantt chart
It is simple to understand
Can be used to show progress
Can be used for man power planning
Limitation of Gantt Chart
It can not show interrelationship among activities on large
and complex projects
14
Project Planning (cont…)
Net Work technique:
These are more sophisticated than the traditional Gantt chart.
Here the activities, events and their interrelationships are represented. by a net
work diagram.
This also called an arrow diagram
1 B
3
A 2
15
Project Planning (cont…)
This can be expanded to include more activities
B
3
41 days
A
C
1 2
7days 29 Days 4
5
62 days
Project Planning (cont…)
E
4 60 days
F H
5 7 8
55 days
55 days
G
6 68 days
Project Planning (cont…)
Advantage
It handle inter-relationship among project activities
They identify the activities which are critical to the completion
of the project on time
It can handle very large and complex projects
Limitation
They are not easily understood .
They do not define an operational schedule which tells
who does what
18
Project Planning
“If you plan for nothing – you will surely get there”
Project Start
Project End
Project plan and scheduling
A project plan is an extensive document that
includes project risks, budget, organization, scope,
goals, objectives, and also project schedule.
project schedules is forecasted dates and
sequences of the project activities.
A plan focuses on the entire deliverables and
processes,.
project schedules focus on the project activities,
start and finish dates, and dependencies
Project organization
Organizing: arranging appropriate resources
such as capital, material and human resources to
perform the project work.
Role of project manager
The project manager also assigns responsibility
and delegate’s authority to specific individuals
for the various tasks.
Project Organization
The traditional form of organization is a functional
division of management and a well-defined
hierarchical structure. Typically, a firm is organized
into various departments such as,
Production Department
Purchasing Department
Marketing
Finance
Human resource
Engineering (maintenance)
Research and Development
23
Project Organization (cont…)
Some of these departments have a line function and other
a staff function
Line managers have the principal responsibility for achieving
the goal of the firm and are vested with decision making
authority.
Staff Managers primarily serve in an advisory capacity
(supportive function).
.
24
Some of the most important project organizational
forms are;
Line Staff organization
Divisional organization
Matrix Organization
Project
Coordinator
Constructio Maintenanc
n e 26
Project Organization (cont…)
B) Divisional Organization
Under this form of organization a separate
division is set up to manage and control the
project.
It is headed by the project manager
In general, this form of organization implies the
creation of a separate goal oriented division of the
company with its own functional department.
This is strong form of project organization and it
facilitate
the process of planning and control, 27