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Chapter 15: Managing Service Projects Chapter 15 Managing Service Projects TEACHING NOTE With the emphasis on teamwork in organizations, project management skills will be expected of future leaders. Once a project manager has been selected and a team formed the management activities involve planning, scheduling, and controlling. However, these activities have been made easier with the use of personal computer software such as Microsoft Project for Windows. Using this software, visual displays such as Gantt charts and PERT charts can be produced and revised with ease. Performing critical path analysis is no longer a tedious process. Project managers are freed to focus on completing the project on time and within budget. SUPPLEMENTARY MATERIALS Case: Paymor Shopping Center (Stanford University case) The owner of a shopping center is preparing for the construction of a tire store on his property. He is interested in learning how long the project will take and what activities could be expedited to complete the construction in 58 days at minimum additional cost. Software: Microsoft Project This commercial software program automatically constructs a Gantt chart and project network diagram (both using color to highlight the critical path) based on inputs of project activity times and precedence requirements. Other features include managing resources, workloads, and calendars. Controlling the project costs, scheduling task constraints, and tracking project progress are made easy. LECTURE OUTLINE I. The Nature of Project Management Characteristics of Projects Project Management Process (Figure 15.1) Selecting the Project Manager Building the Project Team Principles of Effective Project Management II. Techniques for Project Management Gantt Project Charts (Figure 15.2) A Critique of Gantt Charts Constructing a Project Network (Table 15.1) Critical Path Method (Figures 15.3, 15.4, 15.5, 15.6 and Table 15.2) Microsoft Project for Windows Analysis (Figures 15.7, 15.8, 15.9) 15-1 III. Resource Constraints (Figures 15.10. 15.11) IV. Activity Crashing (Figures 15.12, 15.13 and Tables 15.3, 15.4, 15.5) V. Incorporating Uncertainty in Activity Times Estimating Activity Duration Distribution (Figure 15.14) Project Completion Time Distribution (Table 15.6 and Figuress 15.15, 15.16) A Critique of the Project Completion Time Analysis VI. Problems With Implementing Critical Path Analysis VII. Monitoring Projects (Table 15.7) Earned Value Chart (Figure 15.17) Project Termination Project History Report TOPICS FOR DISCUSSION 1. Give an example that demonstrates the trade-off inherent in projects between cost, time, and performance . The development of a military fighter best illustrates the trade-off found in projects. The government is interested in a fighter that will not exceed budget allocations but the military desires a plane that will push the performance envelope. Achieving outstanding performance requires the use of exotic materials and results in additional expenses. expenses.... View Full Document

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