lecture 4a1 (cba, gantt, pert)

8/3/2019 Lecture 4a1 (CBA, Gantt, PERT)

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PROJECT MANAGEMENT (PM)

WITHM

ICROSOFTP

ROJECT

What is it and Why should I care?


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ABCS OF PM

If you need to organize a company holiday party,

its a project. If you were handed a three-year Earth

exploration initiative to find oil in Iowa,coordinate subcontractors and government

permits, and work with a team of 300 people,thats definitely a project.

Even that speech you have to present is a project

because it has certain characteristics.


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CHARACTERISTICS OF PM

1. An overall goal2.

A project manager3. Individual tasks to be performed4. Timing for those tasks to be completed (such as

three hours, three days, or three months)

5. Timing relationships between those tasks (Forexample, you cant put a new manufacturing processin place until you train people in how to use theprocess.)

6. Resources (people, equipment, facilities, andsupplies, for example) to accomplish the work7. Abudget (the costs associated with those people,

equipment, facilities, and supplies)


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Project management is simply the process of

managing all the elements of a project, whetherthat project is large or small.


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PM 2TS AND A D

Task

TimingDependencies

If you dont know where youre going, any road willget you there. Lewis Caroll


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TASK

Simply one of those items you used to scribble on

your handwritten to-do lists, such as Write finalreport orApply for permits.

Typically organized intophases (appropriatestages) in Project, arranged in an outline like

structure. Timing is essential in any project, Project helps

you set up and view the timing relationships

among tasks.


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A task can be as broad or as detailed as you like. Forexample, you can create a single task to research yourcompetition, or you can create a project phase thatconsists of a summary task and subtasks below it. Forexample, the summary task might be Competitive

Research, with the subtasks Researching OnlineBusiness Databases, Assembling Company AnnualReports, and Reviewing Competitive Product Lines.

Adding tasks to a Project file doesnt cost you a thing

(except a Nano bit of memory), so a project can haveas many tasks and as many phases as you like. Yousimply use the outlining structure in Project to indentvarious levels of tasks. The more deeply indented in

an outline a task is, the more detailed the task.


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ITSALL IN THE TIMING: TIMING ISEVERYTHING

Rome wasnt built in a day, a stitch in time saves

nine, and dont even ask about choosing exactlywhen to sell your high-tech stocks.

Duration which is the amount of time neededto complete the task.

Milestone is a task of zero duration; in essence, itsimply marks a moment in time that must bereflected in your Project outline.


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DEPENDENCIES

Timing relationships among tasks

After you define and implement timingrelationships among tasks, your schedule canstretch over time like a long rubber band.

For example, one task might begin only afteranother is finished. Another task can starthalfway through the preceding task. The secondtask cannot start until a week after the first task

is finished. Only after you start to assign theserelationships can you begin to see a projectstiming as related to not just each tasks durationbut also the specific ways in which the tasks

relate to each other.


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EXAMPLE OF DEPENDECIES

You cant begin to use a new piece of equipment

until you install it. You must wait for a freshly poured concrete

foundation to dry before you can begin to build onit.

You cant start to ship a new drug product untilthe FDA approves it.


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CONSTRAINTS FOR DEPENDENCIES

For example, say that you dont want to start

shipping your new cake flavor until you get thead for it in your Christmas catalog, so you set adependency between those two events. You canalso set a constraint which says that you must

start producing the cakes no later thanNovember 3. In this case, if you dont make thecatalog deadline, the product will still ship onNovember 3; that task will not be allowed to slipits constraint because of this dependencyrelationship.


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LINING UP RESOURCES

Resources arent just people: Aresource can be

a piece of equipment you rent, a meeting room that you have to pay an hourly fee to

use,

a box of nails or

a software program you have to buy.


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KINDS OF RESOURCES

Awork resource is charged by how many hours or

days the resource (often human) works on a task.Amaterial resource, such as sewing supplies or steel,

is charged by a per-use cost or by a unit ofmeasurement (such as square yards or linear feet or

tons).Acost resource has a set cost, such as a conference

fee of $250; this cost doesnt vary by how much time

you spend at the conference or how many peopleattend.


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CONSIDERATIONS

Variations in work force

Rate differences

NOTE:Read Chapter 7:Using your Natural Resourcespage 129 of the MS Project 2007 for Dummiesby Nancy Muir

Read also the tutorial that I have uploaded in ouryahoo groups (punpse) located in the resources

folder


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COST BENEFITANALYSIS

Developmental Cost (DC)

Existing Operating Cost (EOC) Proposed Operating Cost (POC)

Savings(SN)

SN= EOC-POC Interest

I=(1+i)n

Wherein:

1 is constant

i is the actual interest rate (Phil. Rate is 20%)

n is the number of years


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Present Value (PV)

PV=SN/i Payback Period (PBP)

PBP=[DC-CPV of the last x mark/PV of the / mark]+number of x mark

Net Present Value (NPV)

NPV=CPV of the last / mark-DC

Return of Investment (ROI)

ROI=(NPV/DC)100%


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I. Developmental Cost

Name Price Quantity AmountNew Computer 25000 1 25000New Printer 4000 3 12000TOTAL 37000


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I. Existing System

A. Salaries

Personnel Monthly Annually Number ofPersonnel

Amount

Administrative Officer 10,000 120,000 1 120,000

Record Section 10,000 120,000 2 240,000

Faculty 16,000 192,000 330 63,360,000Department Heads 21,000 252,000 5 1,260,000

Principal 25,000 300,000 1 300,000TOTAL 65,280,000

B. Supplies

Name Quarterly Quantity(pieces)

Annually Quantity(pieces)

Price Amount

Envelope 125 500 3 1500

Folders 125 500 7 3500Grading Sheet 300 1200 5 6000Attendance Sheet 300 1200 2 2400

Form 137 0 12057 2 24114Bond Papers 0 2 rims 250 500Record Book 0 330 50 16500Report Card 0 12057 2 24114TOTAL 78628

C. Utilities

Monthly Yearly AmountElectric Bill 440,644.42 5,287,733.04 5,287,733.04

Internet 4000 48000 48000TOTAL 5,335,733.04

D. Other Fees

Miscellaneous 10000


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I. Proposed System

A. Salaries

Personnel Monthly Annually Number ofPersonnel

Amount

Administrative Officer 10,000 120,000 1 120,000

Record Section 10,000 120,000 2 240,000

Faculty 16,000 192,000 330 63,360,000

Department Heads 21,000 252,000 5 1,260,000

Principal 25,000 300,000 1 300,000

TOTAL 65,280,000

B. Supplies

Name Quarterly Quantity AnnuallyQuantity

Price Amount

Ink Refill 6 refills 24 refills 500 12000

Bond Papers 0 5 rims 250 1250

Report Card 12057 2 24114TOTAL 37,364

C. UtilitiesMonthly Yearly Amount

Electric Bill 442,644.42 5,311,733.04 5,311,733.04Internet 4000 48000 48000TOTAL 5,359,733.04

D. Other Fees

Miscellaneous 10000


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COMPUTATIONS:

Total Developmental Cost- 26200

Total Existing Operating Cost- 70,704,361.04 Total Proposed Operating Cost-

70,687,097.04

Savings(SN)SN= EOC-POC

SN= 70,704,361.04-70,687,097.04 = 17264


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Interest

I=(1+i)n

=(1+0.20)n

=1.20n

1st

year 2nd

yearI=(1+i)n I=(1+i)n

=(1+0.20)1 =(1+0.20)2

=1.20 =1.44


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COMPARATIVE TABLE

Year Savings InterestPresentValue

CumulativePresentValue

Mark

1 17264 1.20 14,386.67 14,386.67 X2 17264 1.44 11,988.89 26,375.56


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Present Value

PV=SN/i1st year

PV=17264/1.20

=14,386.672nd year

PV=17264/1.44

=11,988.89


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Pay Back Period

PBP=[DC-CPV of the last x mark/PV of the / mark]

+number of x mark=[26,200-14,386.67/11,988.89]+1

= 1.99

= 1 Year, 11 Months, 29 DaysNote: PBP result must always be converted to numberof years, months and days. Number of years may not beincluded if not applicable. Number of months should becomputed in its standard basis (12 months) and numberof days should be computed in 30 days (for 31 days-excess day should be considered rest day/ extra effort

income


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Net Present Value

NPV=CPV of the last / mark-DC=26375.56-26,200

=175.56

Return of InvestmentROI=(NPV/DC)100%

=(175.56/26200)100%

=0.67%


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PROJECT COST

The cost will be based on COCOMO

Note: COCOMO Calculator is available over theinternet. For your documentation please be guidedwith the example.


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archive = 23 linesbanner = 6 lineslogin = 273 linesprofile = 100 linesprofile online = 93 linesfooter = 5 linesnewsflash = 20 linespoll = 20 linesbreadcrumbs = 10 lines

feed = 30 linesmain menu = 40 linestabs = 10 lineswrapper = 20 lines

style = 200 lines

template = 100 linestypography = 50 lines

Total = 1000 lines

The cost according to COCOMO is 20,000

The following are

based on thenumber of lines foreach modules


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Development

Delivered Source Instructions (thousands)

(KDSI)1

Development Mode Organic

Average Cost Rate ($/PM) 10000

Maintenance

KDSI added (annual) 0

KDSI modified (annual) 0

Average Cost Rate ($/PM) 10000


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Effort 2 person-months (PM)

Schedule 3 monthsDevelopment Cost 20000Productivity 500 instructions per person-month

Average Staffing 0.7full-time-equivalent softwarepersonnel

Annual MaintenanceEffort

0 person-months

Annual Maintenance

Cost0


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Phase Distribution

Effort (PM) Schedule (mo.) Staff(avg.) Cost

Plans and

requirements *0.1 0.3 0.3 1000

Product Design 0.3 0.6 0.5 3000

Programming 1.4 1.9 0.7 14000

Detailed Design 0.5 5000

Code and unit test 0.8 8000Integration and test 0.3 0.5 0.6 3000


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Activity Distribution (Staff) by Phase

Phase

ActivityPlans and

RequirementsProductDesign

ProgrammingIntegration and

TestMaintenance

RequirementsAnalysis

0.2 0.1 0 0 0

Product Design 0.1 0.2 0.1 0 0

Programming 0 0.1 0.4 0.2 0

Test Planning 0 0 0 0 0

Verification

and Validation0 0 0 0.2 0

Project Office 0.1 0.1 0 0 0

CM/QA 0 0 0 0 0Manuals 0 0 0 0 0TOTAL 0.4 0.5 0.5 0.4


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PROJECT STAFFING

Project staffing is the part of the projectmanagement wherein staff are being allocated todifferent roles and responsibilities.

Steps Identify your staff and their capability

As the PM or team lead, based your role allocation interms of their field of expertise

Provide a role for each staff and give them theirduties and responsibilities.


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Names Role Duties and Responsibilities

Juan Dela Cruz Project Manager,

Programmer

As a project manager:

It is the manger's duty to supervise

and coordinate all the activities.

He has to see to it, that the task is

performed to the fullest of the

efficiency.

A manager has to plan out an

organizational structure to bring

out ease and flow in the task.

As a programmer: To develop the whole functionality

of the system

Perform monitoring tasks to

ensure that the programs which

they develop work as they are

supposed to. This is done by

reviewing programs on a frequent

basis and making adjustments as

are necessary to ensure the properworking of a computer program.


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PROJECT SCHEDULING

The procedural plan of a project that indicatesthe time and sequence of each operation involve.

2 important diagrams PERT

Gantt


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GANTT CHART: BASIC CONCEPT

A popular type of bar chart.

It illustrates the tasks that must be done tocomplete the project, the time frame they mustbe completed in, and the team members who areassigned to each task.

Each task takes up one of the rows. Dates runalong the top in increments of days, weeks ormonths. Rows of bars in the Gantt chart show the

start and finish dates of each task in the project.Tasks may run sequentially, in parallel oroverlapping.

Gantt is not all capitalized- it is not written as

GANTT


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Gantt charts indicate the exact duration of specific tasks,but they can also be used to indicate:

1 The relationship between tasks2 Planned and actual completion dates

3 Cost of each task

4 The person or persons responsible for each task5 The milestones in a project's development

Gantt charts are also used by supervisors and team leadersto schedule team members for various time dependent

tasks such as visiting clients, making sales calls, being onmedical call, being on guard duty, and more. There are twotypes of Gantt Charts: Load Charts and Project PlanningCharts.


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HISTORY

The first known tool of this type was reportedlydeveloped in 1896 by Karol Adamiecki, whocalled it a harmonogram. Adamiecki onlypublished his chart in 1931.

Gantt chart was developed by Henry L. Gantt

(1861-1919), an American engineer, in 1917. Hecreated the first Gantt chart for planningbuilding ships in the times of First World War.

The chart proved to be a powerful analyticalinstrument that it had not undergone anychanges for many years. It was only in 90s of thelast century when link lines between tasks were

added to the Gantt chart.


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One of the first major applications of Ganttcharts was during the First World War.

In the 1980s, personal computers allowed for

widespread creation of complex and elaborateGantt charts.

NOTE: For further information

about Henry Gantt, read further his

biography over the internet. This

might be included in the exam


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VARIANTS

Milestones: important checkpoints or interimgoals for a project.Resources: for team projects, it often helps tohave an additional column containing numbers orinitials which identify who on the team is

responsible for the task.Status: the projects progress, the chart is updatedby filling in the task's bar to a length proportionalto the amount of work finished.

Dependencies: an essential concept that someactivities are dependent on other activities beingcompleted first.


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COMPONENTS Activity ID (for easy reference) Activity/Task

The operation in the project

Predecessor

An indicator for the task to which another has succeeded Time Estimates

Optimistic Time Estimates (commonly denoted by O) The earliest time that the task will be accomplished

Normal Time Estimates (commonly denoted by M) Actual allocated time for a certain task to be accomplished

Pessimistic Time Estimates (commonly denoted by P) The latest time that the task will be accomplished

Expected Time

Formula (O+4M+P)+6

Task Duration (Start Date and Finish Date)

Milestone/ Deliverables Goal of a certain task


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HOW TO CREATE AGANTT CHART?Step 1 list the tasks with a corresponding task IDin the project

Step 2 add task durations

Step 3 add dependencies/ predecessor (whichtasks cannot start before another task finishes)

Step 4 provide the O and P based on the NStep 5- Calculate their expected time


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NOTE

42

NOTES

The arrows indicate dependencies.

Task 1 is a predecessor of task 2 i.e. task 2 cannot start before task 1 ends.

Task 3 is dependent on task 2. Task 7 is dependent on two other tasks

Electrics, plumbing and landscaping are concurrent tasks and can happen atthe same time, so they overlap on the chart. All 3 can start after task 4 ends.

Painting must wait for both electrics and plumbing to be finished.

Task 9 has zero duration, and is a milestone


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EXAMPLE

Activity

IDActivity

Predec

essor

Time estimates

Expected

time

Task DurationMilestone/Deliver

ablesOpt.(O) Normal(M) Pess.(P) StartTime

FinishTime

A Planning 2 4 6 4.00 Jan. 10 Jan. 14ProjectPlan

BRequirements

Gathering

A 3 5 9 5.33 Jan. 15 Jan. 20Data

gatheredC Data Analysis B 4 5 7 5.17 Jan. 20 Jan. 25 Findings

D Coding C 4 6 10 6.33 Jan. 25 Jan. 31 Modules

EComponentTesting

C,D 4 5 7 5.17 Feb. 1 Feb. 6 Findings

F

System andIntegrationTesting

E 3 4 8 4.50 Feb.6 Feb. 10 Findings

G Deployment F 3 5 8 5.17 Feb. 10 Feb. 15Documentation


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For the Ganttchart Lets do it

on the board.


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PERTCHARTProgram Evaluation andReview Technique


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PERT BASICS PERT is an acronym so its in capital letters Gantt is a name, so only has an initial capital In Gantt chart, the length of a tasks bar is

proportional to the length of the task. Thisrarely applies to PERT charts.

There are a few different flavours of PERT andGantt charts


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PERT CHARTS

This PERT chart follows the Activity on Arrow style.

The tasks are shown by arrows. Task name are shown by letters,in this case.

The circles are called nodes. The nodes indicate the startor endoftasks.

Task durations are the shown by the numbers.


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ACTIVITY ON NODE STYLE PERT

Activity on Nodeis a different flavour of PERT: this time

the nodesare tasks, and the arrowsare merelyconnectors.

The examiners prefer very simple PERT charts

sometimes hybrid beasts that defy categorisation.


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A PERT PROBLEMPERT PROBLEMS


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1: Which tasks are on the critical path? 2: What is the slack time for tasks C, D and G? 3: Task C is delayed by one day. What impact

would this have on the completion date of the

project? Why? 4: Task A will be delayed by 2 days because some

equipment has arrived late. If the projectmanager wants to finish the project on time he

will need to shorten the duration of one or moreof the tasks. How can he achieve this? 5: The project manager reduces the durations of

tasks D and F by one day each. How will this

affect the finishing date of the project?


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1: Which tasks are on the critical path?

ANSWER: A,B,D,F,I

Possible paths:

A,B,C,E,I = 2+3+1+4+3 = 13 daysA,B,D,F,I = 2+3+3+3+3 = 14 days

A,G,H,I = 2+2+5+3 = 12 days


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3: Task C starts one day late. What impact would thishave on the completion date of the project? Why?

No impact, because task Chas one days slack (as

discovered in previous

question!)

4 T k A ill b d l d b 2 d b


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4: Task A will be delayed by 2 days because some

equipment has arrived late. If the project manager stillwants to finish the project within the original timeframe, he will need to shorten the time for one or moreof the tasks. What steps can he take to reduce the

number of days allocated to a task?

The answer has NOTHING to do with

the chart! Just say how jobs can befinished more quickly, e.g. bringing in

extra workers from slack tasks,

working longer hours, working

weekend, streamlining work practices,

automating tasks etc.


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5: The project manager decides to reduce the time needed for

tasks D and F by one day each. How effective will this reductionbe in achieving his aim of maintaining the original finish timefor the project?

It is only partially effective. Reducing tasks D and F byone day each means the path A,B,D,F,I is now 12dayslong. However, path A,B,C,E,I is still 13days so itbecomes the longest path, and therefore becomes the

new critical path.

The project is now 13 days long instead of 14, a savingof only oneday.


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SOME GANTT / PERT TERMSLead time

Occurs when a task should theoretically wait for itspredecessor to finish, but can actually start a little

early. The time that the tasks overlap is lead time.E.g. when replacing computers in a computer lab,

you could actually start bringing in the newcomputers while the old ones were being packed upand moved out.


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SOME GANTT / PERT TERMSLag time

The minimum amount of time that must passbetween the finish of one activity and the start of its

successor(s).

For example, if task A is laying a houses concreteslab, and dependent task B is putting up the house

walls, there would need to be some lag timebetween the end of task A and the start of task B tolet the concrete set.

Lag time is shown in a PERT chart as an arrow with

a duration but no task assigned to it.


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SOME GANTT / PERT TERMSDummy Task

Shown by a dotted arrow on a PERT chart, it showsa dependency but no task. The next example showsthis

A FAMILY ROUTINE


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59

A FAMILYROUTINE

QUESTIONS


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QUESTIONS

Q1. What tasks are on the critical path?

Q2. What is the minimum time it would take for the

family to reach the footy game after the alarm goes

off?

Q3. How much more time could dad walk the dog

before eating breakfast got delayed? (Note: Muminsists the entire family eats together)

Q4. What is this time called?

Q5. If mum skipped her 40 minute shower, how much

earlier would they get to the game?


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Q1

What is the critical path?

Path 1 = 5+5+40+15+15+5+25 = 110 min

Path 2 = 5+5+30+15+5+25 = 85

Path 3 = 5+5+10+15+15+5+25 = 80

The critical path is the longest path : path 1


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Q2

What is the minimum time it would take for the familyto reach the footy game after the alarm starts ringing?

The duration of the critical tasks 110

minutes

Q3 & 4


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Q3 & 4

How much more time could dad walk the dog beforeeating breakfast got delayed?

What is this time called?

30 minutes

Shower+Prep Brekky = 55 min vs

Walk Dog+Dad Shower= 25 min 30 mindiff

Slack time (or float)

Q5


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Q

If mum skipped her 40 minute shower, how

much earlier would they get to the game? When the critical path is reduced by 40 minutes,it stops being the critical path.

Path 2, at 85 min, becomes the critical path.

Since it is 25 min shorter than the original 110minute critical path, there is a 25 minute saving.


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Better understanding to PM may yield to higherrevenue of a project and more fulfilling feelings.

lecture 4a1 (cba, gantt, pert)

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