Chapter 17

1. Chapter 17 Project Management Part (a)

2. Elements Of Project Management • Project team • individuals from different departments within company • Matrix organization • team structure with members from different functional areas depending on skills needed • Project manager • leader of project team

3. Project Planning • Statement of work • written description of goals, work & time frame of project • Activities require labor, resources & time • Precedence relationship shows sequential relationship of project activities

4. 1 2 3 Simplified Project Network Construct forms Pour concrete

5. Elements Of Project Planning • Define project objective(s) • Identify activities • Establish precedence relationships • Make time estimates • Determine project completion time • Compare project schedule objectives • Determine resource requirements to meet objective

6. Project Control • Two phases • 1. planning • 2. control • Work breakdown structure (WBS) • determine subcomponents, activities & tasks

7. Gantt Chart • Popular tool for project scheduling • Graph with bar for representing the time for each task • Provides visual display of project schedule • Also shows slack for activities • (amount of time activity can be delayed without delaying project)

8. A Gantt Chart Month 0 2 4 6 8 10      Activity Design house and obtain financing Lay foundation Order and receive materials Build house Select paint Select carpet Finish work      1 3 5 7 9 Month

9. CPM/PERT • Critical Path Method (CPM) • DuPont & Remington-Rand (1956) • deterministic task times • activity-on-node network construction • Project Eval. & Review Technique (PERT) • US Navy, Booz, Allen & Hamilton • multiple task time estimates • activity-on-arrow network construction

10. 1 2 3 The Project Network Network consists of branches & nodes Node Branch

11. Network Construction • In AON, nodes represent activities & arrows show precedence relationships • In AOA, arrows represent activities & nodes are events for points in time • An event is the completion or beginning of an activity • A dummy shows precedence for two activities with same start & end nodes

12. Lay foundation 3 2 Order material Concurrent Activities 3 Lay foundation Dummy 2 4 Order material Incorrect precedence relationship Correct precedence relationship

13. a b c a c b a c a c Dummy activity b b d Network Convention: Activity-on-Arc (AOA)

14. Network Convention: Activity-on-Node (AON)

15. Problem 1 • Management Decision Systems (MDS) is a consulting company specializing in the development of decision support systems. MDS has just obtained the contract to develop a computer system to assist the management of a large company in formulating its capital expenditure plan. The project leader has developed the list of activities and immediate predecessors as shown in the table. Construct the precedence network (AOA and AON) for this problem.

16. Problem 1

17. Problem 1 - Solution Activity-On-Arc (AOA)

18. Problem 1 - Solution Activity-On-Node

19. Critical Path • A path is a sequence of connected activities running from start to end node in network • The critical path is the path with the longest duration in the network • Project cannot be completed in less than the time of the critical path

20. PERT and CPM • By utilizing project planning and control techniques (such as PERT and CPM), a variety of important questions can be answered, such as: • When will the project be completed? • Which activities are most critical regarding the projects completion time? • How long can individual tasks be delayed without causing the project itself to be delayed?

21. PERT and CPM: Solution Approaches • Enumerating all Paths in the Project Network. • By Calculating Early Start, Early Finish, Late Start, Late Finish, and Total Slack.

22. Example Project Network For Building A House 3 Dummy Lay foundation 0 Build house Finish work 2 3 1 7 6 1 2 4 3 1 Design house and obtain financing Order and receive materials 1 1 Select paint Select carpet 5

23. Solution: All Possible Paths A: 1-2-3-4-6-7 3 + 2 + 0 + 3 + 1 = 9 months (36 weeks); the critical path B: 1-2-3-4-5-6-7 3 + 2 + 0 + 1 + 1 + 1 = 8 months (32 weeks) C: 1-2-4-6-7 3 + 1 + 3 + 1 = 8 months (32 weeks) D: 1-2-4-5-6-7 3 + 1 + 1 + 1 + 1 = 7 months (28 weeks)

24. End of Part (a)

25. Chapter 17 Project Management Part (b)

26. Definitions • Early Start (ES), the earliest time an activity can start • Early Finish (EF), the earliest time an activity can finish EF = ES + Activity Time

27. Definitions • Late Start (LS), the latest time the activity can finish and not delay the project • Late Finish (LF), the latest time the activity can finish and not delay the project LS = LF – Activity Time

28. Definitions • Total Slack (TS) or Slack Time is: TS = LS – ES or TS = LF – EF

29. Definitions • A path is a sequence of connected activities running from start to end node in network • The Critical Path (CP) is the path with the longest duration in the network. Also, it is the path in the network along which the activities have a zero total slack value. • Project cannot be completed in less than the time of the critical path

30. Computing Algorithm • Forward Pass: Calculate the Early Finish Time for Each Activity • Backward Pass: Calculate the Late Start for Each Activity • Determine the Total Slack for Each Activity • Identify the Critical Path for the project

31. Problem 2 • For the given activities and their immediate predecessors, draw the precedence diagram. Then find the early start, early finish, late start, and late finish for each activity. Also, determine the length of the critical path and the activities along the critical path.

32. Problem 2

33. Problem 2 – Precedence Diagram (AON) B D G I A E K H J C F

34. Problem 2 – Precedence Diagram (AOA) D G 3 5 7 I B A K 1 2 E 9 10 C J 4 6 8 F H

47. Problem 2 – Precedence Diagram (AOA) D G 3 5 7 I B A K 1 2 E 9 10 C J 4 6 8 F H