COB 300C - The Operations Dimension

COB 300C - The Operations Dimension
Project Management
Project Management
• What is project management?
• Why is project management important?
– we want to complete projects on time
– we want to complete projects within budget
• Project management has made great
advancement over the past few years. This
is mainly due to increased computing
Project Management
• History of Project Management
– PERT - Project Evaluation & Review
Technique (Polaris Missile Development)
– CPM - Critical Path Method (Dupont Co.)
Today we use the terms PERT and CPM
Project Management
• At one point, ALL government bids were
required to be evaluated by PERT.
Therefore, we saw a huge rush of people
learning PERT.
However, the people did not understand it and
only “evaluated” the project itself and they
forgot to conduct continuous evaluation.
Project Management
• We still see shows like 60 Minutes and
Prime Time Live where overcharges are
taking place by contractors -- especially in
the Department of Defense.
• It’s all about budgets and timing. For
example, CISAT Campus.
• We will look at several problems to study
project management. We will look at
evaluation AND review.
Handout Problem Number 1
• Handout Problem
• Immediate Predecessor Column
– Note that some things occur simultaneously, while
others have tasks that must be completed beforehand.
– Time Estimates - CPM assumes that time estimates are
constant (e.g., someone tells you that the time that
design prototype will take is 12 weeks). This is fixed at
12 weeks. PERT, on the other hand, assumes some
variance in that time (optimistic, likely, pessimistic)
Handout Problem Number 1
AOA - Activity on Arc Network
AON - Activity on Network (preferred

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