production and operations management ch. 16: project management 1 pom - j. galván
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PRODUCTION AND PRODUCTION AND OPERATIONS OPERATIONS
MANAGEMENTMANAGEMENT
Ch. 16: Project ManagementCh. 16: Project Management
11POM - J. GalvánPOM - J. Galván
POM - J. GalvánPOM - J. Galván 22
Strategic Importance ofStrategic Importance of Project Management Project Management
Bechtel Kuwait Project:Bechtel Kuwait Project:• 8,000 workers8,000 workers• 1,000 construction professionals1,000 construction professionals• 100 medical personnel100 medical personnel• 2 helicopter evacuation teams2 helicopter evacuation teams• 6 full-service dining halls6 full-service dining halls• 27,000 meals per day27,000 meals per day• 40 bed field hospital40 bed field hospital
POM - J. GalvánPOM - J. Galván 33
Strategic Importance ofStrategic Importance of Project Management - Project Management -
continuedcontinued Microsoft Windows 98 ProjectMicrosoft Windows 98 Project::
• hundreds of programmershundreds of programmers• millions of lines of codemillions of lines of code• millions of dollars costmillions of dollars cost
Ford Redesign of Mustang Project:Ford Redesign of Mustang Project:• 450 member project team450 member project team• Cost $700-millionCost $700-million• 25% faster and 30% cheaper than 25% faster and 30% cheaper than
comparable project at Fordcomparable project at Ford
POM - J. GalvánPOM - J. Galván 44
Single unitSingle unit Many related activitiesMany related activities Difficult production planning and Difficult production planning and
inventory controlinventory control General purpose equipmentGeneral purpose equipment High labor skillsHigh labor skills
Project CharacteristicsProject Characteristics
POM - J. GalvánPOM - J. Galván 55
Building constructionBuilding construction
© 1995 Corel Corp.
An ExampleAn Example
POM - J. GalvánPOM - J. Galván 66
Research project Research project
An ExampleAn Example
POM - J. GalvánPOM - J. Galván 77
New product introductionNew product introduction
19 · Nude Sandalfoot19 · Nude Sandalfoot
Medium to Tall (B)Medium to Tall (B)
No nonsenseNo nonsense
Sheer to waist pantyhose
New! Improved!
New! Improved!
© 1995 Corel Corp.
An ExampleAn Example
What is a project?What is a project? A project is A project is unique/nonrepetitiveunique/nonrepetitive.. A project has a specific A project has a specific beginning, goal, purposebeginning, goal, purpose, ,
and and endend.. Thus a project is also Thus a project is also temporarytemporary.. Projects must be given Projects must be given specific resourcesspecific resources.. Projects usually cross Projects usually cross functional linesfunctional lines and are and are
organizedorganized as a as a matrixmatrix.. Projects are for use by others: the Projects are for use by others: the usufructuaryusufructuary
and the and the useruser.. Projects generate Projects generate systemic conflictsystemic conflict.. Projects are “Projects are “open veins” open veins” from which the entity from which the entity
loses blood and where infection enter.loses blood and where infection enter.POM - J. GalvánPOM - J. Galván 88
Formal definitionFormal definition
A project is usually a one-time activity A project is usually a one-time activity • With a well-defined set of desired end results. With a well-defined set of desired end results. • It can be divided into subtasks that must be It can be divided into subtasks that must be
accomplished in order to achieve the project goals. accomplished in order to achieve the project goals. • The project is complex enough that the subtasks require The project is complex enough that the subtasks require
careful coordination and control in terms of timing, careful coordination and control in terms of timing, precedence, cost, and performance.precedence, cost, and performance.
• The project itself must often be coordinated with other The project itself must often be coordinated with other projects being carried out by the same parent projects being carried out by the same parent organization.organization.
POM - J. GalvánPOM - J. Galván 99
POM - J. GalvánPOM - J. Galván 1010
Management of Large ProjectsManagement of Large Projects PlanningPlanning - goal setting, project - goal setting, project
definition, team organizationdefinition, team organization SchedulingScheduling - relating people, money, - relating people, money,
and supplies to specific activities and and supplies to specific activities and activities to one and otheractivities to one and other
ControllingControlling - monitoring resources, - monitoring resources, costs, quality, and budgets; revising costs, quality, and budgets; revising plans and shifting resources to meet plans and shifting resources to meet time and cost demandstime and cost demands
POM - J. GalvánPOM - J. Galván 1111
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
POM - J. GalvánPOM - J. Galván 1212
Establishing Establishing objectivesobjectives
Defining projectDefining project Creating work Creating work
breakdown structure breakdown structure Determining Determining
resourcesresources Forming organizationForming organization
© 1995 Corel Corp.
Project PlanningProject Planning
Project planning processProject planning process OverviewOverview – a short summary of objectives and scope – a short summary of objectives and scope ObjectivesObjectives – a more detailed statement of the general goals – a more detailed statement of the general goals General approachGeneral approach – managerial and technical approaches – managerial and technical approaches
to the workto the work Contractual aspectsContractual aspects – contractual reporting and – contractual reporting and
requirementsrequirements SchedulesSchedules – schedules and all milestone events – schedules and all milestone events ResourcesResources – budget and cost monitoring and control – budget and cost monitoring and control
proceduresprocedures PersonnelPersonnel – expected personnel requirements and their – expected personnel requirements and their
skillsskills Evaluation methodsEvaluation methods – procedure for monitoring and – procedure for monitoring and
evaluatingevaluating Potential problemsPotential problems – preparation for problems – preparation for problems
POM - J. GalvánPOM - J. Galván 1313
POM - J. GalvánPOM - J. Galván 1414
Acct.
Eng. Eng.Mkt.
Mgr.
Project OrganizationProject Organization
Often temporary structureOften temporary structure Uses specialists from entire companyUses specialists from entire company Headed by project managerHeaded by project manager
• Coordinates activities Coordinates activities • Monitors scheduleMonitors schedule
& costs & costs Permanent Permanent
structure called structure called ‘matrix organization’‘matrix organization’
POM - J. GalvánPOM - J. Galván 1515
A Sample Project A Sample Project OrganizationOrganization
Sales
President
FinanceHumanFactors
EngineeringQualityControl
Production
TechnicianTest
EngineerPropulsionEngineer
Physiologist
ProjectManager
PsychologistStructuralEngineer
InspectionTechnician
Technician
Project 1
Project 2
ProjectManager
POM - J. GalvánPOM - J. Galván 1616
Mkt Oper Eng Fin
Project 1
Project 2
Project 3
Project 4
Matrix OrganizationMatrix Organization
POM - J. GalvánPOM - J. Galván 1717
The Role ofThe Role of the Project Manager the Project Manager
Project Planand Schedule
Revisions andUpdates
ProjectManager
ProjectTeam
TopManagementResources
PerformanceReports
Informationregarding times,costs, problems,
delays Feedback Loop
POM - J. GalvánPOM - J. Galván 1818
Work Breakdown StructureWork Breakdown Structure
1.1. ProjectProject
2.2. Major tasks in the projectMajor tasks in the project
3.3. Subtasks in the major tasksSubtasks in the major tasks
4.4. ActivitiesActivities
POM - J. GalvánPOM - J. Galván 1919
Sequencing activitiesSequencing activities Identifying precedence Identifying precedence
relationshipsrelationships Determining activity times Determining activity times
& costs& costs Estimating material & Estimating material &
worker requirementsworker requirements Determining critical Determining critical
activitiesactivities
JF
MA
MJ
J
MonthActivity
Design
Build
Test
PE
RT
Project SchedulingProject Scheduling
POM - J. GalvánPOM - J. Galván 2020
Gantt chartGantt chart Critical Path Method Critical Path Method
(CPM)(CPM) Program Evaluation & Program Evaluation &
Review Technique (PERT)Review Technique (PERT)
Project Scheduling Project Scheduling TechniquesTechniques
POM - J. GalvánPOM - J. Galván 2121
J F M A M J J
Time PeriodActivity
Design
Build
Test
Gantt ChartGantt Chart
POM - J. GalvánPOM - J. Galván 2222
Project Control ReportsProject Control Reports
Detailed cost breakdowns for each taskDetailed cost breakdowns for each task Total program labor curvesTotal program labor curves Cost distribution tablesCost distribution tables Functional cost and hour summariesFunctional cost and hour summaries Raw materials and expenditure forecastsRaw materials and expenditure forecasts Variance reportsVariance reports Time analysis reportsTime analysis reports Work status reportsWork status reports
POM - J. GalvánPOM - J. Galván 2323
Network techniquesNetwork techniques Developed in 1950’sDeveloped in 1950’s
• CPM by DuPont for chemical plantsCPM by DuPont for chemical plants• PERT by U.S. Navy for Polaris missilePERT by U.S. Navy for Polaris missile
Consider precedence relationships Consider precedence relationships and interdependenciesand interdependencies
Each uses a different estimate of Each uses a different estimate of activity timesactivity times
PERT and CPMPERT and CPM
POM - J. GalvánPOM - J. Galván 2424
Questions Which May Be Questions Which May Be Addressed by PERT & CPMAddressed by PERT & CPM
Is the project on schedule, ahead of schedule, Is the project on schedule, ahead of schedule, or behind schedule?or behind schedule?
Is the project over or under cost budget?Is the project over or under cost budget? Are there enough resources available to finish Are there enough resources available to finish
the project on time?the project on time? If the project must be finished in less than the If the project must be finished in less than the
scheduled amount of time, what is the way to scheduled amount of time, what is the way to accomplish this at least cost?accomplish this at least cost?
POM - J. GalvánPOM - J. Galván 2525
The Six Steps Common to The Six Steps Common to PERT & CPMPERT & CPM
1 Define the project and all of its significant activities or Define the project and all of its significant activities or taskstasks
2 Develop relationships among the activities. (Decide Develop relationships among the activities. (Decide which activities must precede and which must follow which activities must precede and which must follow others.)others.)
3 Draw the network connecting all of the activitiesDraw the network connecting all of the activities4 Assign time and cost estimates to each activityAssign time and cost estimates to each activity5 Compute the longest time path through the network. Compute the longest time path through the network.
This is called the critical pathThis is called the critical path6 Use the network to help plan, schedule, monitor, and Use the network to help plan, schedule, monitor, and
control the projectcontrol the project
POM - J. GalvánPOM - J. Galván 2626
224 Years4 Years
Activity Activity (Arrow)(Arrow)
RegisterRegisterReceive diplomaReceive diploma
Project: Obtain a college degree (B.S.)Project: Obtain a college degree (B.S.)
Event (Node)Event (Node)
Attend class, Attend class, study etc.study etc.
11
Event (Node)Event (Node)
Network TermsNetwork Terms
POM - J. GalvánPOM - J. Galván 2727
11AA
BB
A & B can occur A & B can occur concurrentlyconcurrently
22
33
Activity RelationshipsActivity Relationships
POM - J. GalvánPOM - J. Galván 2828
11 44
22
33
AA
BB
CC
A must be done before A must be done before C & D can beginC & D can begin DD
Activity RelationshipsActivity Relationships
POM - J. GalvánPOM - J. Galván 2929
11 44
22
33
AA
BB EE
CC
B & C must be done B & C must be done before E can beginbefore E can begin
DD
Activity RelationshipsActivity Relationships
POM - J. GalvánPOM - J. Galván 3030
Activities are defined often by beginning & Activities are defined often by beginning & ending eventsending events• Example: Activity 2-3Example: Activity 2-3
Every activity must have unique pair of Every activity must have unique pair of beginning & ending eventsbeginning & ending events• Otherwise, computer programs get confusedOtherwise, computer programs get confused
Dummy activities maintain precedenceDummy activities maintain precedence• Consume no time or resources Consume no time or resources
Dummy ActivitiesDummy Activities
POM - J. GalvánPOM - J. Galván 3131
1111 444433331-21-2
2-32-3IncorrectIncorrect
1111 44442222
3333
5555
22222-32-3
3-43-4
1-21-2
2-32-3
2-42-4 4-54-5
3-4: Dummy 3-4: Dummy activityactivity
CorrectCorrect
Dummy Activity ExampleDummy Activity Example
POM - J. GalvánPOM - J. Galván 3232
3 time estimates3 time estimates• Optimistic times (Optimistic times (aa))• Most-likely time (Most-likely time (mm))• Pessimistic time (Pessimistic time (bb))
Follow beta distributionFollow beta distribution Expected time: Expected time: tt = ( = (aa + 4 + 4mm + + bb)/6)/6 Variance of times: Variance of times: vv = ( = (bb - - aa))22/6/6
PERT Activity TimesPERT Activity Times
POM - J. GalvánPOM - J. Galván 3333
Provides activity informationProvides activity information• Earliest (Earliest (ESES) & latest () & latest (LSLS) start) start• Earliest (Earliest (EFEF) & latest () & latest (LFLF) finish) finish• Slack (Slack (SS): Allowable delay): Allowable delay
Identifies critical pathIdentifies critical path• LongestLongest path in networkpath in network• ShortestShortest time project can be completedtime project can be completed• Any delay on activities delays projectAny delay on activities delays project• Activities have 0 slackActivities have 0 slack
Critical Path AnalysisCritical Path Analysis
POM - J. GalvánPOM - J. Galván 3434
Begin at starting event & work forwardBegin at starting event & work forward ES = 0 for starting activitiesES = 0 for starting activities
• ES is earliest startES is earliest start EF = ES + Activity timeEF = ES + Activity time
• EF is earliest finishEF is earliest finish ES = Maximum EF of all predecessors for non-ES = Maximum EF of all predecessors for non-
starting activitiesstarting activities
Earliest Start and Finish StepsEarliest Start and Finish Steps
POM - J. GalvánPOM - J. Galván 3535
Begin at ending event & work backwardBegin at ending event & work backward LF = Maximum EF for ending activitiesLF = Maximum EF for ending activities
• LF is latest finish; EF is earliest finishLF is latest finish; EF is earliest finish LS = LF - Activity timeLS = LF - Activity time
• LS is latest startLS is latest start LF = Minimum LS of all successors for non-LF = Minimum LS of all successors for non-
ending activitiesending activities
Latest Start and Finish StepsLatest Start and Finish Steps
POM - J. GalvánPOM - J. Galván 3636
1111 4444
2222
3333
Pour Pour foundation & foundation & frameframe
3 wk.3 wk.
3 wk.3 wk.
4 wk.4 wk.
2 wk.2 wk.6 wk. 6 wk.
Do interior Do interior workwork
LandscapeLandscape
RoofRoof
Buy Buy shrubs etc.shrubs etc.
Critical path is longest path: 12 weeks.Critical path is longest path: 12 weeks.
Critical Path in NetworkCritical Path in Network
POM - J. GalvánPOM - J. Galván 3737
1-2 Fdn & frame1-2 Fdn & frame1-3 Buy shrubs1-3 Buy shrubs2-3 Roof2-3 Roof2-4 Interior work2-4 Interior work3-4 Landscape3-4 Landscape
44 55 66 77 88 99 1100
1111
1122332211ActivityActivity
Build House ProjectBuild House Project
Gantt ChartGantt ChartEarliest Start and FinishEarliest Start and Finish
POM - J. GalvánPOM - J. Galván 3838
1-2 Fdn & frame1-2 Fdn & frame1-3 Buy shrubs1-3 Buy shrubs2-3 Roof2-3 Roof2-4 Interior work2-4 Interior work3-4 Landscape3-4 Landscape
44 55 66 77 88 99 1100
1111
1122332211ActivityActivity
Build House ProjectBuild House Project
Gantt Chart Gantt Chart Latest Start and FinishLatest Start and Finish
POM - J. GalvánPOM - J. Galván 3939
Expected project time Expected project time ((TT))• SumSum ofof critical path critical path
activity times, activity times, tt
Project variance (Project variance (VV))• Sum of critical path Sum of critical path
activity variances, activity variances, vv
Used to obtain probability of project completion!
Project TimesProject Times
An exampleAn example
St. Adolf’s Hospital setupSt. Adolf’s Hospital setup
POM - J. GalvánPOM - J. Galván 4040
St. Adolf’s HospitalSt. Adolf’s HospitalImmediate
Activity Description Predecessor(s)
ASelect administrative and medical staff.BSelect site and do site survey.CSelect equipment.DPrepare final construction plans and layout.EBring utilities to the site.FInterview applicants and fill positions in nursing,
support staff, maintenance, and security.GPurchase and take delivery of equipment.HConstruct the hospital.IDevelop an information system.JInstall the equipment.KTrain nurses and support staff.
4141POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalImmediate
Activity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,
support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop an information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
Example 4.14242POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalImmediate
Activity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
AON Network
4343POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
4444POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
B
4545POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
B
C
4646POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
B
C
D
4747POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
B
C
D
E
4848POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
B
C
D
E
F
4949POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
B
C
D
E
F
G
5050POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
B
C
D
E
F
G
H
5151POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
B
C
D
E
F
G
H
I
5252POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
B
C
D
E
F
G
H
I
J
5353POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
Start
A
B
C
D
E
F
G
H
I
J
K
5454POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
AON Network
FinishStart
A
B
C
D
E
F
G
H
I
J
K
Figure 4.25555POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalImmediate
Activity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
Completion Time
5656POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
Completion Time
FinishStart
K6
I15
F10
C10
D10
E24
G35
H40
J4
A12
B9
Figure 4.45757POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
Completion Time
FinishStart
K6
I15
F10
C10
D10
E24
G35
H40
J4
A12
B9
5858POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
Completion Time
FinishStart
K6
I15
F10
C10
D10
E24
G35
H40
J4
A12
B9
5959POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
Completion Time
FinishStart
K6
I15
F10
C10
D10
E24
G35
H40
J4
A12
B9
6060POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
Completion Time
FinishStart
K6
I15
F10
C10
D10
E24
G35
H40
J4
A12
B9
6161POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
Completion Time
FinishStart
K6
I15
F10
C10
D10
E24
G35
H40
J4
A12
B9
6262POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
Completion Time
FinishStart
K6
I15
F10
C10
D10
E24
G35
H40
J4
A12
B9
Path Expected Time (wks)
A-F-K 28A-I-K 33A-C-G-J-K 67B-D-H-J-K 69B-E-J-K 43
6363POM - J. GalvánPOM - J. Galván
ImmediateActivity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
St. Adolf’s HospitalSt. Adolf’s Hospital
Completion Time
FinishStart
K6
I15
F10
C10
D10
E24
G35
H40
J4
A12
B9
Path Expected Time (wks)
A-F-K 28A-I-K 33A-C-G-J-K 67B-D-H-J-K 69B-E-J-K 43
6464POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalImmediate
Activity Description Predecessor(s)
ASelect administrative and medical staff.—BSelect site and do site survey.—CSelect equipment.ADPrepare final construction plans and layout.BEBring utilities to the site.BFInterview applicants and fill positions in nursing,support staff, maintenance, and security.AGPurchase and take delivery of equipment.CHConstruct the hospital.DIDevelop and information system.AJInstall the equipment.E,G,HKTrain nurses and support staff.F,I,J
Completion Time
FinishStart
K6
I15
F10
C10
D10
E24
G35
H40
J4
A12
B9
Path Expected Time (wks)
A-F-K 28A-I-K 33A-C-G-J-K 67B-D-H-J-K 69B-E-J-K 43
6565POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Figure 4.5
6666POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
6767POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Earliest StartandEarliest Finish Times
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
I
15
F
10
FinishStart
6868POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Earliest StartandEarliest Finish Times
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0
I
15
F
10
Earliest start time
FinishStart
6969POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
Earliest StartandEarliest Finish Times
Earliest start time Earliest finish time
FinishStart
7070POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
0 9
Earliest StartandEarliest Finish Times
FinishStart
7171POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
9 33
0 9 9 19
Earliest StartandEarliest Finish Times
FinishStart
7272POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22
9 33
0 9 9 19
12 22
Earliest StartandEarliest Finish Times
FinishStart
7373POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22
19 59
9 33
0 9 9 19
12 22
Earliest StartandEarliest Finish Times
FinishStart
7474POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22
22 57
19 59
9 33
0 9 9 19
12 22
Earliest StartandEarliest Finish Times
FinishStart
7575POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22
22 57
59 6319 59
9 33
0 9 9 19
12 22
Earliest StartandEarliest Finish Times
Example 4.2
FinishStart
7676POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Earliest StartandEarliest Finish Times
Finish
Earliest start time Earliest finish time
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
Critical path
Start
7777POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
Latest StartandLatest Finish Times
FinishStart
7878POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Latest StartandLatest Finish Times
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
63 69 Latestfinishtime
FinishStart
7979POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Latest StartandLatest Finish Times
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
63 69Lateststarttime
Latestfinishtime
FinishStart
8080POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
53 63 63 69
59 63Latest StartandLatest Finish Times
FinishStart
8181POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
53 63 63 69
24 59
19 59
35 59
59 63Latest StartandLatest Finish Times
FinishStart
8282POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
53 63 63 69
14 24 24 59
9 19 19 59
35 59
59 63Latest StartandLatest Finish Times
FinishStart
8383POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Latest StartandLatest Finish Times
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
2 14 53 63 63 69
14 24 24 59
0 9 9 19 19 59
35 59
59 63
Earliest start time Earliest finish timeLatest start time Latest finish time
Critical path
FinishStart
8484POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalGantt charts
8585POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalGantt Charts
8686POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
2 14 53 63 63 69
14 24 24 59
0 9 9 19 19 59
35 59
59 63
Activity Slack Analysis
FinishStart
8787POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity Slack Analysis
Start
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
2 14 53 63 63 69
14 24 24 59
0 9 9 19 19 59
35 59
59 63
Activity Slack
Finish
8888POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity Slack Analysis
Start
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
2 14 53 63 63 69
14 24 24 59
0 9 9 19 19 59
35 59
59 63
Activity Slack
Slack = LS – ES
or
Slack = LF – EF
Finish
8989POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity Slack Analysis
Start
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
2 14 53 63 63 69
14 24 24 59
0 9 9 19 19 59
35 59
59 63
Activity Slack
SlackK = 63 – 63
or
SlackK = 69 – 69
Finish
9090POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity Slack Analysis
Start
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
2 14 53 63 63 69
14 24 24 59
0 9 9 19 19 59
35 59
59 63
Activity Slack
SlackK = 0
or
SlackK = 0
Finish
9191POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity Slack Analysis
Start
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
2 14 53 63 63 69
14 24 24 59
0 9 9 19 19 59
35 59
59 63
Finish
9292POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity Slack Analysis
Start
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
2 14 53 63 63 69
14 24 24 59
0 9 9 19 19 59
35 59
59 63
Node DurationES LS Slack
Finish
9393POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity Slack Analysis
Start
A
12
K
6
C
10
G
35
J
4
H
40
B
9
D
10
E
24
0 12
I
15
F
10
12 27
12 22 63 69
22 57
59 6319 59
9 33
0 9 9 19
12 22
48 63
2 14 53 63 63 69
14 24 24 59
0 9 9 19 19 59
35 59
59 63
Node DurationES LS Slack
A 12 0 2 2B 9 0 0 0C 10 12 14 2D 10 9 9 0E 24 9 35 26F 10 12 53 41G 35 22 24 2H 40 19 19 0I 15 12 48 36J 4 59 59 0
K 6 63 63 0Finish
9494POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
C
10
G
35
E
24
I
15
F
10
12 27
12 22
22 57
9 33
12 22
48 63
53 63
14 24 24 59
35 59
B
9
0 90 9
D
10
9 199 19
H
40
19 5919 59
J
4
59 6359 63
K
6
63 6963 69
Critical Path
Node DurationES LS Slack
A 12 0 2 2BB 99 00 00 00C 10 12 14 2DD 1010 99 99 00E 24 9 35 26F 10 12 53 41G 35 22 24 2HH 4040 1919 1919 00I 15 12 48 36JJ 44 5959 5959 00
KK 66 6363 6363 00Finish
9595POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
C
10
G
35
E
24
I
15
F
10
12 27
12 22
22 57
9 33
12 22
48 63
53 63
14 24 24 59
35 59
B
9
0 90 9
D
10
9 199 19
H
40
19 5919 59
J
4
59 6359 63
K
6
63 6963 69
Critical Path
A
12
0 122 14
FinishStart
9696POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
9797POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalActivity Slack
9898POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
9999POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
8000 —
7000 —
6000 —
5000 —
4000 —
3000 —
0 —
Dir
ect
cost
(d
olla
rs)
| | | | | |5 6 7 8 9 10 11
Time (weeks)
Cost-Time Relationships in Cost Analysis
100100POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
8000 —
7000 —
6000 —
5000 —
4000 —
3000 —
0 —
Dir
ect
cost
(d
olla
rs) Crash cost (CC)
Normal cost (NC)
| | | | | |5 6 7 8 9 10 11
Time (weeks)(Crash time) (Normal time)
Cost-Time Relationships in Cost Analysis
101101POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
8000 —
7000 —
6000 —
5000 —
4000 —
3000 —
0 —
Dir
ect
cost
(d
olla
rs) Crash cost (CC)
Linear cost assumption
Normal cost (NC)
| | | | | |5 6 7 8 9 10 11
Time (weeks)(Crash time) (Normal time)
Cost-Time Relationships in Cost Analysis
102102POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
8000 —
7000 —
6000 —
5000 —
4000 —
3000 —
0 —
Dir
ect
cost
(d
olla
rs)
5200
Crash cost (CC)
Linear cost assumption
Normal cost (NC)
Estimated costs for a 2-week reduction, from 10 weeks to 8 weeks
| | | | | |5 6 7 8 9 10 11
Time (weeks)(Crash time) (Normal time)
Cost-Time Relationships in Cost Analysis
103103POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
104104POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalMaximum
Normal Normal Crash Crash Time Cost ofTime Cost Time Cost ReductionCrashing per
Activity (NT) (NC) (CT) (CC) (wk) Week
A 12 $ 12,000 11 $ 13,000 1 $ 1,000B 9 50,000 7 64,000 2 7,000C 10 4,000 5 7,000 5 600D 10 16,000 8 20,000 2 2,000E 24 120,000 14 200,000 10 8,000F 10 10,000 6 16,000 4 1,500G 35 500,000 25 530,000 10 3,000H 40 1,200,000 35 1,260,000 5 12,000I 15 40,000 10 52,500 5 2,500J 4 10,000 1 13,000 2 1,000K 6 30,000 5 34,000 1 4,000
Totals $1,992,000 $2,209,000105105POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
106106POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalMinimum-Cost Schedule
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
107107POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Minimum-Cost Schedule
108108POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 69 weeksCrash Activity J by 3 weeks @ $1,000/week
Minimum-Cost Schedule
109109POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 69 weeksCrash Activity J by 3 weeks @ $1,000/week
3($28,000) – 3($1,000) = $81,000
Minimum-Cost Schedule
110110POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 66 weeksCrash Activity J by 3 weeks @ $1,000/week
3($28,000) – 3($1,000) = $81,000$2,624,000 – $81,000 = $2,543,000
Minimum-Cost Schedule
111111POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,543,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 66 weeksCrash Activity J by 3 weeks @ $1,000/week
3($28,000) – 3($1,000) = $81,000$2,624,000 – $81,000 = $2,543,000
Minimum-Cost Schedule
112112POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalMinimum Cost Schedule
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,543,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 69 weeksCrash Activity J by 3 weeks @ $1,000/week
3($28,000) – 3($1,000) = $81,000$2,624,000 – $81,000 = $2,543,000
FinishStart
A12
B9
C10
D10
E24
F10
G35
H40
I15
J1
K6
113113POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalMinimum Cost Schedule
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,543,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 69 weeksCrash Activity J by 3 weeks @ $1,000/week
3($28,000) – 3($1,000) = $81,000$2,624,000 – $81,000 = $2,543,000
FinishStart
A12
B9
C10
D10
E24
F10
G35
H40
I15
J11
K6
114114POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,543,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 66 weeksCrash Activity D by 2 weeks @ $2,000/week
Minimum-Cost Schedule
115115POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,543,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 66 weeksCrash Activity D by 2 weeks @ $2,000/week
$28,000 + $8,000 – 2($2,000) = $32,000$2,543,000 – $32,000 = $2,511,000
Minimum-Cost Schedule
116116POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,511,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 64 weeksCrash Activity D by 2 weeks @ $2,000/week
$28,000 + $8,000 – 2($2,000) = $32,000$2,543,000 – $32,000 = $2,511,000
Minimum-Cost Schedule
117117POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalMinimum Cost Schedule
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,511,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 69 weeksCrash Activity D by 2 weeks @ $2,000/week
$28,000 + $8,000 – 2($2,000) = $32,000$2,543,000 – $32,000 = $2,511,000
FinishStart
A12
B9
C10
D10
E24
F10
G35
H40
I15
J11
K6
118118POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalMinimum Cost Schedule
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,511,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 69 weeksCrash Activity D by 2 weeks @ $2,000/week
$28,000 + $8,000 – 2($2,000) = $32,000$2,543,000 – $32,000 = $2,511,000
FinishStart
A12
B9
C10
D88
E24
F10
G35
H40
I15
J11
K6
119119POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,511,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Paths B-D-H-J-K and A-C-G-J-K: 64 weeksCrash Activity K by 1 week @ $4,000/week
Minimum-Cost Schedule
120120POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,511,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Paths B-D-H-J-K and A-C-G-J-K: 64 weeksCrash Activity K by 1 week @ $4,000/week
$8,000 – $4,000 = $4,000$2,511,000 – $4,000 = $2,507,000
Minimum-Cost Schedule
121121POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,507,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeksCrash Activity K by 1 week @ $4,000/week
$8,000 – $4,000 = $4,000$2,511,000 – $4,000 = $2,507,000
Minimum-Cost Schedule
122122POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalMinimum Cost Schedule
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,511,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 69 weeksCrash Activity D by 2 weeks @ $2,000/week
$28,000 + $8,000 – 2($2,000) = $32,000$2,543,000 – $32,000 = $2,511,000
FinishStart
A12
B9
C10
D88
E24
F10
G35
H40
I15
J11
K6
123123POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalMinimum Cost Schedule
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,511,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 69 weeksCrash Activity D by 2 weeks @ $2,000/week
$28,000 + $8,000 – 2($2,000) = $32,000$2,543,000 – $32,000 = $2,511,000
FinishStart
A12
B9
C10
D88
E24
F10
G35
H40
I15
J11
K55
124124POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeksCrash Activities B and C by 2 weeks @ $7,000/week and $600/week
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,507,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Minimum-Cost Schedule
125125POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Critical Paths B-D-H-J-K and A-C-G-J-K: 63 weeksCrash Activities B and C by 2 weeks @ $7,000/week and $600/week
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,507,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
2($8,000) – 2($7,600) = $800$2,507,000 – $800 = $2,506,200
Minimum-Cost Schedule
126126POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Critical Paths B-D-H-J-K and A-C-G-J-K: 61 weeksCrash Activities B and C by 2 weeks @ $7,000/week and $600/week
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,506,200Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
2($8,000) – 2($7,600) = $800$2,507,000 – $800 = $2,506,200
Minimum-Cost Schedule
127127POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalMinimum Cost Schedule
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,511,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 69 weeksCrash Activity D by 2 weeks @ $2,000/week
$28,000 + $8,000 – 2($2,000) = $32,000$2,543,000 – $32,000 = $2,511,000
FinishStart
A12
B9
C10
D88
E24
F10
G35
H40
I15
J11
K55
128128POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalMinimum Cost Schedule
A-I-K: 33 weeks B-D-H-J-K: 69 weeksA-F-K: 28 weeks B-E-J-K: 43 weeksA-C-G-J-K: 67 weeks
Total cost = $2,624,000 $2,511,000Indirect costs = $8,000/weekPenalty cost = $20,000/week after week 65
Critical Path B-D-H-J-K: 69 weeksCrash Activity D by 2 weeks @ $2,000/week
$28,000 + $8,000 – 2($2,000) = $32,000$2,543,000 – $32,000 = $2,511,000
FinishStart
A12
B77
C88
D88
E24
F10
G35
H40
I15
J11
K55
129129POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A F
I
C G Finish
D
E
HB J
K
Start
Probabilistic Time Estimates
130130POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity B
MostOptimistic Likely Pessimistic
(a) (m) (b)7 8 15
Probabilistic Time Estimates
A F
I
C G Finish
D
E
HB J
K
Start
131131POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity B
MostOptimistic Likely Pessimistic
(a) (m) (b)7 8 15
Probabilistic Time Estimates
te = = 9 weeks7 + 4(8) + 15
6
A F
I
C G Finish
D
E
HB J
K
Start
132132POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity B
MostOptimistic Likely Pessimistic
(a) (m) (b)7 8 15
Probabilistic Time Estimates
te = = 9 weeks7 + 4(8) + 15
6
2 = = 1.78( )15 - 76
2
A F
I
C G Finish
D
E
HB J
K
Start
133133POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Optimistic Likely Pessimistic Expected VarianceActivity (a) (m) (b) Time (te ) (2 )
Time Estimates (wk) Activity Statistics
134134POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Optimistic Likely Pessimistic Expected VarianceActivity (a) (m) (b) Time (te ) (2 )
Time Estimates (wk) Activity Statistics
A 11 12 13 12 0.11B 7 8 15 9 1.78C 5 10 15 10 2.78D 8 9 16 10 1.78E 14 25 30 24 7.11F 6 9 18 10 4.00G 25 36 41 35 7.11H 35 40 45 40 2.78I 10 13 28 15 9.00J 1 2 15 4 5.44K 5 6 7 6 0.11
135135POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s HospitalProbabilities
Critical Path = B - D - H - J - K
T = 72 days TE = 69 days
136136POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
2 = (variances of activities) z = T –TE
2
Probabilities
Critical Path = B - D - H - J - K
T = 72 days TE = 69 days
137137POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
2 = (variances of activities) z = T – TE
2
2 = 1.78 + 1.78 + 2.78 + 5.44 + 0.11 = 11.89
Probabilities
Critical Path = B - D - H - J - K
T = 72 days TE = 69 days
138138POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
2 = (variances of activities) z = T – TE
2
2 = 1.78 + 1.78 + 2.78 + 5.44 + 0.11 = 11.89
z =72 – 69 11.89
Probabilities
Critical Path = B - D - H - J - K
T = 72 days TE = 69 days
139139POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
2 = (variances of activities) z = T – TE
2
2 = 1.78 + 1.78 + 2.78 + 5.44 + 0.11 = 11.89
z = = 0.8772 – 69 11.89
Probabilities
Critical Path = B - D - H - J - K
T = 72 days TE = 69 days
140140POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
2 = (variances of activities) z = T – TE
2
2 = 1.78 + 1.78 + 2.78 + 5.44 + 0.11 = 11.89
z = = 0.8772 – 69 11.89
Probabilities
Critical Path = B - D - H - J - K
T = 72 days TE = 69 days
From Appendix 2Pz = .8078 .81
141141POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
2 = (variances of activities) z = T - TE
2
2 = 1.78 + 1.78 + 2.78 + 5.44 + 0.11 = 11.89
z = = 0.8772 - 69 11.89
Probabilities
Critical Path = B - D - H - J - K
T = 72 days TE = 69 days
Project duration (weeks)
69 72
Probability of meeting the schedule is 0.8078
Length of critical path
Normal distribution: Mean = 69 weeks; = 3.45 weeks
Probability of exceeding 72 weeks is 0.1922
Figure 4.12
142142POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
2 = (variances of activities) z = T – TE
2
2 = 0.11 + 2.78 + 7.11 + 5.44 + 0.11 = 15.55
z = = 1.2772 – 67 15.55
Probabilities
Path = A - C - G - J - K
T = 72 days TE = 67 days
From Appendix 2Pz = .8980 .90
143143POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
A F
I
C G Finish
D
E
HB J
K
Start
144144POM - J. GalvánPOM - J. Galván
St. Adolf’s HospitalSt. Adolf’s Hospital
Activity Duration Earliest Start Latest Start Slack
C 10 16 14 –2G 35 26 24 –2J 4 61 59 –2K 6 65 63 –2D 10 10 9 –1H 40 20 19 –1E 24 10 35 25I 15 16 48 32F 10 16 53 37
145145POM - J. GalvánPOM - J. Galván
Project Life CycleProject Life Cycle
146146POM - J. GalvánPOM - J. Galván
Project Life CycleProject Life Cycle
Start Finish
Reso
urc
e r
equir
em
en
ts
Time147147POM - J. GalvánPOM - J. Galván
Project Life CycleProject Life Cycle
Definition and
organization
Planning Execution Close out
Start Finish
Reso
urc
e r
equir
em
en
ts
TimeFigure 4.13 148148POM - J. GalvánPOM - J. Galván