Professional Documents
Culture Documents
Decision making:
“The process of organizing a problem,
generating and weighting alternatives
coming to a decision and taking action
with feedback.”
Project Management –A Managerial Prospective 7
Conditions of Decision making:
• Certainty
• Risk
• Uncertainty
• Ambiguity
Performance
Time
Cost
• An Organizational chart
• Not a flow chart showing temporal or
logical relationships among tasks
• A listing of skills required to complete the
task
Project Management
A. Interpersonal 1. Standard
Skills Regulation
Regulation:
project.”
project.
• Leadership
• Motivation
• Problem Solving
• MBO
• Cost Estimation
• Cost Budgeting
• Cost Controlling
• Sunk Cost
• Depreciation
project activities”
Cost Baseline
“The cost base line is a time phased budget that is used as a
basis against which to measure, monitor and control overall
cost performance on the project. The cost baseline is the
component of the project management plan.”
project budget.”
Triggers
• Indications that a risk has occurred or is about o occur.
Triggers may be discovered in the risk identifications
process and watched in the risk monitoring and control
process. Triggers are some time called risk symptoms or
warning signs.
Project Management –A Managerial Prospective 41
Project Risk Management
• Risk Management Planning
• Risk Identification
• Quantitative Risk Analysis
• Qualitative Risk Analysis
• Risk Response Planning
• Risk Monitoring & Controls
Contract Fundamentals
“A contract may be written or oral and is both a legal
document and a relationship between the parties
Contracts
Mountain
Bike
Tubing
Tubing
Structure
Time in Months
A – Do preliminary market analysis
B
ES EF
A (Duration) D
LS LF
C
ES = Early Start
EF = Early Finish
LS = Late Start
LF = Late Finish
E
B
A F I J
D
L
C G H K
5 6
1 4
E(1)
B(3) 4?
Or 5 8 9 10.5 10.5 11.5
0 1 42? 5
F(3) I(1.5) J(1) 13.5 15.5
A(1) D(1)
L(2)
1 2 5 8 8 9 10.5 13.5
5 6
1 4
E(1)
12.5 13.5
B(3)
5 8 9 10.5 10.5 11.5
0 1 1 4 4 5
A(1) F(3) I(1.5) J(1) 13.5 15.5
D(1)
6 9 9 10.5 12.5 13.5
0 1 L(2)
4 5
1 2 5 8 8 9 10.5 13.5
13.5 15.5
C(1) G(3) H(1) K(3)
3 4 5 8 8 9 10.5 13.5
The critical path lies through those activities with no slack time.
5 6
1 4
E(1)
12.5 13.5
B(3)
5 8 9 10.5 10.5 11.5
0 1 1 4 4 5
A(1) F(3) I(1.5) J(1) 13.5 15.5
D(1)
6 9 9 10.5 12.5 13.5
0 1 L(2)
4 5
1 2 5 8 8 9 10.5 13.5
13.5 15.5
C(1) G(3) H(1) K(3)
3 4 5 8 8 9 10.5 13.5
A-C-D-E-L 6
A-C-D-F-I-J-L 10.5
A-C-D-F-I-K-L 12.5
A-C-D-G-H-I-J-L 11.5 11
A-C-D-G-H-I-K-L 13.5 13
A-B-D-E-L 8
A-B-D-F-I-J-L 12.5
A-B-D-F-I-K-L (3) New CP 14.5
A-B-D-G-H-I-J-L 13 11 (2)
A-B-D-G-H-I-K-L 15 13 (1)
A-C-D-E-L 6
A-C-D-F-I-J-L 10.5
A-C-D-F-I-K-L 12.5
A-C-D-G-H-I-J-L 11 9 (2)
A-C-D-G-H-I-K-L 13 11 (2)
A-B-D-E-L 8 6
A-B-D-F-I-J-L 12.5 10.5
A-B-D-F-I-K-L 14.5 12.5
A-B-D-G-H-I-J-L 11 9
A-B-D-G-H-I-K-L 11
A-C-D-E-L 6
A-C-D-F-I-J-L 10.5
A-C-D-F-I-K-L 12.5
‘B’ and ‘I’ can both be crashed for
A-C-D-G-H-I-J-L 9 $60—pick one
optimistic time
most likely time
pessimistic time
Variable definitions
a = optimistic time for activity
m = most likely time for activity
b = pessimistic time for activity
ET = expected time of each activity
s2 = variance of ET for each activity
TE = expected project completion time (CP time)
D = desired project completion time
SsCP2 = sum of variances along CP
5 5.75
1 4
E(.75)
B(3) 13.75 14.5
11 12.5 12.5 13.5
0 1 1 4 5 7.5
4 5
F(2.5) I(1.5) J(1) 14.5 16
A(1) D(1) 11 12.5 13.5 14.5 L(1.5)
0 1 8.5 11
1 1.75 4 5 5 9 9 11 12.5 14.5 14.5 16
C(.75) G(4) H(2) K(2)
3.25 4 5 9 9 11 12.5 14.5
TE 16
sCP
2
.889 Using Appendix E, p. 742,
probability project will be completed
in 12 months is .00003 or .003%
D 12
The End
Project Management –A Managerial Prospective 81