lecture project planning

8/10/2019 Lecture Project Planning

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Project Planning and Control

Definition of Project Management

Work Breakdown Structure

Critical Path Scheduling

Ideal Completion Time

Time vs. Cost tradeoffs


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Project Management

Project

series of related jobs usually directed towardsome major output and requiring a significantperiod of time to perform.

Project Management

planning, directing, and controlling resources

(people, equipment, material) to meet thetechnical, cost, and time constraints of theproject.

Project or Program?


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Project Management

Personal Life Work-related


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Ways to manage project

complexity

Limit changes onceproject begins

Goal orientation(completion datefocus)

Attempt to reduce

uncertainty Expediters

Constantly updateinformation


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Program

Project 1 Project 2

Task 1.1

Subtask 1.1.1

Work Package 1.1.1.1

Level

1

2

3

4

Task 1.2

Subtask 1.1.2

Work Package 1.1.1.2


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Allow the elements to be worked onindependently

Make them manageable in size

Give authority to carry out the program

Monitor and measure the program

Provide the required resources


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Project Control: Gantt

ChartNew I-5 Bridge Design

Month Mar Apr May Jun Jul Aug Sep Oct Nov Dec JanPilot Study development

Pilot Study distribution

Pilot Study analysis

Time & Process analysis

Preliminary Report

Survey design & pretest

Survey translation & copy

Survey distribution

Market Model Report

Collect cost & price data

Simulation development

Simulation analysis

Final Report


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Critical Path Scheduling

A project must have:

well-defined jobs or

tasks whosecompletion marks theend of the project;

independent jobs ortasks;

and tasks that follow agiven sequence.


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CPM with Single Time Estimate

Consider the following HR consulting project:

Develop a critical path diagram and determine theduration of the critical path and slack times for allactivities

Activity Designation Immed. Pred. Time Weeks)

Assess customer's needs A None 2

Write and submit proposal B A 1Obtain approval C B 1Develop service vision and goals D C 2Train employees E C 5Quality improvement pilot groups F D, E 5

Write assessment report G F 1


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First draw the network

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1


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Moving forward on the diagram (left to right):

Determine early start and early finish times

ES=0

EF=2

ES=2

EF=3

ES=3

EF=4

ES=4EF=9

ES=4EF=6

?

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1


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When Fcan start depends on when

predecessors (D & E) finish

ES=9

EF=14

ES=14

EF=15

ES=0

EF=2

ES=2

EF=3

ES=3

EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1


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Moving backwards on the diagram (right to left):

Determine late starts and late finish times

ES=9

EF=14

ES=14

EF=15

ES=0

EF=2

ES=2

EF=3

ES=3

EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

LS=14LF=15LS=9LF=14

LS=4

LF=9

LS=7LF=9

?


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Dont delay the project

ES=9

EF=14

ES=14

EF=15

ES=0

EF=2

ES=2

EF=3

ES=3

EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

LS=14LF=15

LS=9LF=14

LS=4

LF=9

LS=7LF=9

LS=3LF=4

LS=2LF=3

LS=0LF=2


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Critical Path & Slackslack= amount of flexibility = LS-ES or LF-EF

Critical path= completion time of the project (project bottleneck). Connect all

points on path which have no slack

ES=9

EF=14

ES=14

EF=15

ES=0

EF=2

ES=2

EF=3

ES=3

EF=4

ES=4EF=9

ES=4EF=6

A, 2 B, 1 C, 1

D, 2

E, 5

F, 5 G, 1

LS=14LF=15

LS=9LF=14

LS=4

LF=9

LS=7LF=9

LS=3LF=4

LS=2LF=3

LS=0LF=2

Duration = 15 weeks

Slack=(7-4)=(9-6)= 3 Wks


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Time-Cost Models

BasicAssumption: Relationshipbetween activity completion time and

project cost

Time Cost Models: Determine the

optimum point in time-cost tradeoffs Activity direct costs

Project indirect costs

Activity completion times


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Time-cost Trade-offCrashing a project

Prepare a CPM-type network diagram

Determine the cost per unit of time (usuallyassume days) to expedite each activity.

NT=normal time CT= crash timeNC=normal cost CC=crash cost

cost to crash each day = (CC-NC)/(NT-CT)

Compute critical path

Shorten the critical path at the least cost

Determine the minimum cost schedule.


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A, 2

B, 5

C, 4

D, 3

Activity Cost per day to Expedite Number of possible Days activity may be shortenedA $ 4 1B $ 3 3C $ 2 1

D $ 2 2


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CrashingCurrent

Cri tical Path

Remaining

days activi ty

may be

shortened

Cost per Day

to Expedite

each Activi ty

Least cost

activity to

expedite

Total Cost of

all Activities

in network

Project

Completion

time

ABD All $26 10

ABD A-1, B-3,D-2

A-4, B-3,D-2

D $28 9

ABD A-1, B-3,D-1

A-4, B-3,D-2

D $30 8

ABD A-1, B-3 A-4, B-3 B $33 7

ABCD A-1, B-2,C-1

A-4, B-3,C-2

A $37 6

ABCD B-2, C-1 B-3, C-2 B & C $42 5

ABCD B-1 B-3 B $45 5


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In Class Exercise: Bike Path

Project


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Bike Path Project:

Activity Description Predecessor Estimated time

A Survey for paths None 2 weeks

B Re-route traffic None 1 weeks

C Move utilities None 4 weeks

D Prepare new pathbed

A,B,C 15 weeks

E Dig and preparedrainage

D 5 weeks

F Set forms andreinforcements

D 3 weeks

G Pour concrete E,F 2 weeks

H Build curbs G 3 weeks

I Pave surface G 2 weeks


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Cost Trade-offs

The contractor will get a $100,000 bonus forcompleting the project within 25 weeks. Some ofthe activities can be shortened, but will cost

more: Activity D: $10,000 per week for up to 3 weeks

Activity E: $8,000 per week for up to 1 week

Activity H: $6,000 per week for up to 1 week

Activity I: $8,000 per week for up to 1 week

What should he/she do?

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