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ProjectProject

Management Management

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Project Planning, Scheduling,Project Planning, Scheduling, and Controlling and Controlling

Project Planning1. Setting goals2. Defining the project3. Tying needs into timed project activities4. Organizing the team

Project Scheduling1. Tying resources to specific activities2. Relating activities to each other3. Updating and revising on a regular basis

Time/cost estimatesBudgetsEngineering diagramsCash flow chartsMaterial availability details

CPM/PERTGantt chartsMilestone chartsCash flow schedules

Project Controlling1. Monitoring resources, costs, quality, and budgets2. Revising and changing plans3. Shifting resources to meet demands

Reports• budgets• delayed activities• slack activities

Before Project During Project

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Project Scheduling:Project Scheduling:

Gantt ChartGantt Chart PERT/ CPMPERT/ CPM

• Project Scheduling with Known Project Scheduling with Known Activity Times Activity Times

• Project Scheduling with Project Scheduling with Uncertain Activity Times Uncertain Activity Times

• Considering Time-Cost Trade-OffConsidering Time-Cost Trade-Off• PERT/CostPERT/Cost

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_______________________________________________________________________

Activity Immediate ActivityActivity Description Predecessor Time(weeks)_______________________________________________________________________A Select office site - 3B Create org. & financial plan - 5C Determine personnel requirements B 3D Design Facility A, C 4E Construct interior D 8F Select Personnel to move C 2G Hire new employees F 4H Move records, key personnel, etc. F 2I Make financial arrangements B 5J Train new personnel H, E, G 3_______________________________________________________________________

Example: Moving the Global Oil’s Credit Card Operation

First Step: Define the activities in the project & establish the proper precedence relationships.

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Gantt ChartGantt Chart

Simplicity and clear graphical display for record-Simplicity and clear graphical display for record-keeping of progression in time of the subtasks of a keeping of progression in time of the subtasks of a project.project.

Activity is listed on vertical axis. Time is on the Activity is listed on vertical axis. Time is on the horizontal axis. Actual duration of each activity horizontal axis. Actual duration of each activity represents by a bar.represents by a bar.

Indicate the earliest possible starting time for each Indicate the earliest possible starting time for each activityactivity

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A Select site

B Plan

C Personnel Req.

D Design

E Construct

F Select personnel

G Hire

H Move

I Financial arrange.

J Train

Gantt Chart

10 15 20 2550 12

(weeks)

13At week 13, D, E, H are behind schedulebut G is ahead of schedule.

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Drawbacks of Gantt ChartDrawbacks of Gantt Chart

Fails to give important information on whether the oFails to give important information on whether the overall project is being delayed from the target scheduverall project is being delayed from the target schedule.le.

Fails to reveal which activities are “immediate predeFails to reveal which activities are “immediate predecessors” of other activities. From the chart, it seems cessors” of other activities. From the chart, it seems that F and I are immediate predecessors of G(but ,in that F and I are immediate predecessors of G(but ,in fact, it’s only F).fact, it’s only F).

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PERT/CPMPERT/CPM

PERT:PERT: PProgram rogram EEvaluation and valuation and RReview eview TTechniqueechnique

CPM:CPM: CCritical ritical PPath ath MMethodethod

Graphically displays project activities.Graphically displays project activities. Estimates how long the project will take.Estimates how long the project will take. Indicates most critical activities.Indicates most critical activities. Show where delays will not affect project.Show where delays will not affect project.

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Applications of PERT/CPMApplications of PERT/CPM Used to plan, schedule, and control a wide variety Used to plan, schedule, and control a wide variety

of projects:of projects:

• Construction of plants, building, and highways,Construction of plants, building, and highways,• Maintenance of large and complex equipment,Maintenance of large and complex equipment,• Design and installation of a new systems,Design and installation of a new systems,• R & D of new products and processes, R & D of new products and processes, • etc.etc.

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PERT/CPM can help to answer the following questions:PERT/CPM can help to answer the following questions:

1. 1. What is the total time to complete the What is the total time to complete the project?project? 2.2. What are the scheduled start and finish What are the scheduled start and finish

dates for each specific activity ?dates for each specific activity ? 3.3. Which activities are “critical” and must be Which activities are “critical” and must be

completed exactly as scheduled in order to completed exactly as scheduled in order to keep the project on schedule?keep the project on schedule?

4. 4. How long can “non-critical” activities be How long can “non-critical” activities be delayed before they cause an increase in the delayed before they cause an increase in the total project time ?total project time ?

5.5. How might resources be used on activities to How might resources be used on activities to speed up project completion?speed up project completion?

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The Pert/CPM Critical Part ProcedureThe Pert/CPM Critical Part Procedure

Step 1 Develop a list of the activities that make Develop a list of the activities that make up the project.up the project.

Step 2 Determine the immediate predecessors Determine the immediate predecessors for each activity in the project. for each activity in the project.

Step 3 Estimate the completion time for each Estimate the completion time for each activity.activity.

» With known activity times» With uncertainty activity times

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Step 4 Draw a project network a project network Method 1: Activity-on-Node (AON)

» Each activity is represented by a node in the network.

» A precedence relationship between two activities is represented by and arc or link between the two.

» May be less error prone because it does not need dummy activities or arcs.

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Step 4 Draw a project network Draw a project network

Method 2: Activity-on-Arc (AOA)

» The arcs of the network represent the activities.

» The nodes of the network represent points in time when an activity or a group of activities have been completed.

» The nodes are numbered so that each activity begins at a lower numbered node and ends at a higher numbered node.

» Dummy activities having 0 completion times can be created to help indicate that the proper set of activities has been completed prior to the start of another activity.

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AOA Network ConventionsAOA Network Conventions

a

b

c ab

c

a

b

c

d

a

b

c

Dummyactivity

1

2

3 4 1 2

3

4

1

2

3

4

5

1

2

3 4

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_______________________________________________________________________

Activity Immediate ActivityActivity Description Predecessor Time(weeks)_______________________________________________________________________A Select office site - 3B Create org. & financial plan - 5C Determine personnel requirements B 3D Design Facility A, C 4E Construct interior D 8F Select Personnel to move C 2G Hire new employees F 4H Move records, key personnel, etc. F 2I Make financial arrangements B 5J Train new personnel H, E, G 3_______________________________________________________________________

Example: Moving the Global Oil’s Credit Card Operation

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Project Network of Global Oil’ s Credit Card Operations(AON)

StartStartStartStart

BBBB

AAAA

FFFF

DDDD

HHHH

GGGG

EEEE

JJJJ FinishFinishFinishFinishCCCC

Select size

Plan

Personnelrequirement

Select Personnel

Hire

Move

Design

Construct

IIII

Train

Financial arrangement

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22225555

1111 4444

7777

3333

6666

8888

9999

A

BC

F

G

H

E

D

I

J

Project Network of Global Oil’ s Credit Card Operations(AOA)

Select size

Plan

Personnelrequirement

Financial arrangement

Train

ConstructDesign

Select Personnel

HireMove

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Step 5 Determine the earliest start and the Determine the earliest start and the earliest finish time for each activity by earliest finish time for each activity by making a forward pass through the making a forward pass through the network. The earliest finish time for network. The earliest finish time for the last activity in the project identifies the last activity in the project identifies the total time required to complete the the total time required to complete the project.project.

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Let Let ES ES = earliest start time for an activity= earliest start time for an activityEFEF = earliest finish time for an activity= earliest finish time for an activityt t = time= time

The earliest finish time for any activity isThe earliest finish time for any activity is

EF = ES + tEF = ES + t

Earliest Start Time RuleEarliest Start Time RuleThe earliest start time for an activity is equal to The earliest start time for an activity is equal to the largest of the earliest finish times for all of the largest of the earliest finish times for all of its immediate predecessorsits immediate predecessors..

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22225555

1111 4444

7777

3333

6666

8888

9999Train

A3

0 3

ES EF

I 5 105

B 0 55

C 5 83

D 8 124

E 12 208

F 8 102

G 10 144

H 10 122

J 20 233

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Step 6 Use the project completion time as the latest finish time for the last activity and make a backward pass through the network to identify the latest start and latest finish time for each activity

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Let Let LS LS = latest start time for an activity= latest start time for an activity

LFLF = latest finish time for an activity= latest finish time for an activity

t t = time= time

The latest start time for any activity isThe latest start time for any activity is

LS = LF - tLS = LF - t

Latest Finish Time Rule:Latest Finish Time Rule:

The latest finish time for an activity is the The latest finish time for an activity is the

smallest of the latest start times for all activities smallest of the latest start times for all activities

that immediately follow the activity.that immediately follow the activity.

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22225555

1111 4444

7777

3333

6666

8888

9999

A3 5 8

0 3

ES EF

I 5 105 18 23

B 0 55 0 5 C 5 8

3 5 8

D 8 124 8 12

E 12 208 12 20

F 8 102 14 16

G 10 144 16 20

H 10 122 18 20

J 20 233 20 23

LS LF

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Step 7Step 7 Use the difference between the latest Use the difference between the latest start time and the earlier start time for start time and the earlier start time for each activity to determine the slack for each activity to determine the slack for the activity.the activity.

Step 8Step 8 Find the activities with zero slack; Find the activities with zero slack; these are the critical path activities.these are the critical path activities.

Step 9 Use the information from steps 5 and Use the information from steps 5 and 6 to develop the activity schedule for 6 to develop the activity schedule for the project.the project.

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Earliest Latest Earliest Latest Start Start Finish Finish Slack CriticalActivity (ES) (LS) (EF) (LF) (LS - ES) Path ?____________________________________________________________

A 0 5 3 8 5 No B 0 0 5 5 0 Yes C 5 5 8 8 0 Yes D 8 8 12 12 0 Yes E 12 12 20 20 0 Yes F 8 14 10 16 6 No G 10 16 14 20 6 No H 10 18 12 20 8 No I 5 18 10 23 13 No J 20 20 23 23 0 Yes_____________________________________________________________

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22225555

1111 4444

7777

3333

6666

8888

9999

A3 5 8

0 3

ES EF

I 5 105 18 23

B 0 55 0 5 C 5 8

3 5 8

D 8 124 8 12

E 12 208 12 20

F 8 102 14 16

G 10 144 16 20

H 10 122 18 20

J 20 233 20 23

LS LF

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Contributions of PERT/CPMContributions of PERT/CPM

1.1. How long will the project take to complete ?How long will the project take to complete ?

2.2. What are the scheduled start and completion times What are the scheduled start and completion times for each activity?for each activity?

3.3. Which activities are critical and must be Which activities are critical and must be completed completed exactly as scheduled in order to keep the exactly as scheduled in order to keep the project on project on schedule?schedule?

4.4. How long can non-critical activities be delayed How long can non-critical activities be delayed before they cause an increase in the completion before they cause an increase in the completion

time time for the project?for the project?

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_______________________________________________________________________

Activity Immediate ActivityActivity Description Predecessor Time(days)_______________________________________________________________________A Design “Super” - 20B Built prototype Units A 10C Perform tests of prototype B 8D Estimate material costs A 11E Refine “Super” design C, D 7F Demonstrate “Super” to customer E 6G Estimate labor costs D 12H Prepare technical proposal E 13I Deliver proposal to customer G, H 5_______________________________________________________________________

Example: “Super” Vacuum Cleaner Project

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1 2 3 4 6 8

5 7

a b c e f

h i

g

d Dummy

A 0 2020 C 30 38

8 B 20 3010

D 20 3111

F 45 516

E 38 457

G 31 4312

I 58 635

H 45 5813

ES EF

EF = ES + t

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1 2 3 4 6 8

5 7

a b c e f

h i

g

d Dummy

A 0 2020 0 20 C 30 38

8 30 38 B 20 3010 20 30

D 20 3111 27 38

F 45 516 57 63

E 38 457 38 45

G 31 4312 46 58

I 58 635 58 63

H 45 5813 45 58

LS LF

Critical Activity

Critical Path : a-b-c-e-h-i

LS = LF - t

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Earliest Latest Earliest Latest Start Start Finish Finish Slack CriticalActivity (ES) (LS) (EF) (LF) (LS - ES) Path ?____________________________________________________________

A 0 0 20 20 0 Yes B 20 20 30 30 0 Yes C 30 30 38 38 0 Yes D 20 27 31 38 7 No E 38 38 45 45 0 Yes F 45 57 51 63 12 No G 31 46 43 58 15 No H 45 45 58 58 0 Yes I 58 58 63 63 0 Yes_____________________________________________________________

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Example: Building a park consists of nine activities. The activities and their immediate predecessors are shown. Develop the project network.

Activity Immediate Predecessor Activity Time (weeks)A - 9B - 6C A,B 6D A,B 3E B 0F C 3G D 2H D,F 6I E,G,H 3

a) What is the critical path for this network?b) Show the activity schedule for this project.c) If the governor wants to open the park within 6 months from the starting time. Is it possible?