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Project and Production Management

Project and Production Management. Module 2 Project Planning. Prof Arun Kanda & Prof S.G. Deshmukh , Department of Mechanical Engineering, Indian Institute of Technology, Delhi. 1. Developing the Project Network Work Break Down Structure AOA & AON networks

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Project and Production Management

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  1. Project and Production Management Module 2 Project Planning Prof Arun Kanda & Prof S.G. Deshmukh, Department of Mechanical Engineering, Indian Institute of Technology, Delhi

  2. 1. Developing the Project Network Work Break Down Structure AOA & AON networks Basic Scheduling for AOA networks Critical Path Floats Basic Scheduling for AON networks Critical path Floats 4. Scheduling Probabilistic Activities PERT assumptions Probability Statements 5. Illustrative Examples 6. Self Evaluation Quiz 7. Problems for Practice 8. Further exploration Module 2 Project Planning

  3. FORMATION OF PROJECT TEAM • Appointment of Project Manager • Selection of Project team members • Briefing meetings amongst team members • Broad consensus about scope of work and time frame • Development of work breakdown structure and allocation of responsibilities

  4. WORK BREAKDOWN STRUCTURE A breakdown of the total project task into components to establish • How work will be done? • How people will be organized? • How resources would be allocated? • How progress would be monitored?

  5. ALTERNATIVE WAYS TO BREAKDOWN WORK

  6. WORK BREAKDOWN STRUCTURE Project System I System II System N Subsystem Subsystem Subsystem Task Task Subtask Subtask Subtask Work package Work package

  7. WORK BREAKDOWN STRUCTURE • Hardware orientation (Identification of basic work packages) • Agency orientation (Based on assignment of responsibility to different agencies) • Function oriented (e.g Design, Procurement, Construction and Commissioning)

  8. WORK BREAKDOWN STRUCTURE (Continued) • Generally a WBS includes 6-7 levels. More or less may be needed for a situation. • All paths on a WBS do not go down to the same level. • WBS does not show sequencing of work. • A WBS should be developed before scheduling and resource allocation are done.

  9. WORK BREAKDOWN STRUCTURE (Continued) • A WBS should be developed by individuals knowledgeable about the work. This means that levels will be developed by various groups and the the separate parts combined. • Break down a project only to a level sufficient to produce an estimate of the required accuracy.

  10. ILLUSTRATIVE WORK BREAKDOWN STRUCTURE Missile Guidance Rocket Launching Warhead control sys platform Ballistic Propulsion Re entry shell engine vehicle I Stage Solid fuel II Stage

  11. MEANS OF PROJECT REPESENTATION • Project name and description. • List of jobs that constitute the project. • Gantt or bar chart showing when activities take place. • Project network showing activities, their dependencies and their relation to the whole. (A-O-A and A-O-N representations)

  12. WHY USE PROJECT NETWORKS ? • A convenient way to show activities and precedence in relation to the whole project. • Basis of project planning: • Responsibility allocation • Definition of subcontracting units • Role of different players • Basic scheduling and establishment of work time tables

  13. WHY USE PROJECT NETWORKS -II ? • Critical path determination and selective management control • Deterministic vs probabilistic activity times • Resource planning for projects • Project crashing with time cost tradeoffs • Resource aggregation • Resource levelling • Limited resource allocation

  14. WHY USE PROJECT NETWORKS - III ? • Project implementation: • Time table for implementation • Monitoring and reporting progress • Updation of schedules and resources • Coordination of work with different agencies The project network is thus a common vehicle for planning, communicating and implementing the project right from inception.

  15. EXAMPLE 1Organizing a one day Seminar Generate the list of jobs to be done: 1) Decide date ,budget, venue for seminar. 2) Identify speakers, participants. 3) Contact and finalize speakers. 4) Print seminar brochure. 5) Mail brochures to tentative participants 6) Estimate number of participants.

  16. Organizing a one day seminar 7) Decide menu for lunch, tea & coffee 8) Arrange for catering 9) Arrange projection facilities at venue. 10) Receive guests at registration. 11) Conduct seminar as per brochure 12) See off guests.

  17. EXAMPLE 1Organizing a one day Seminar Activity Predecessors 1) Decide date ,budget, venue for seminar. -- 2) Identify speakers, participants. -- 3) Contact and finalize speakers. A2 4) Print seminar brochure. A1, A3 5) Mail brochures to tentative participants A4 6) Estimate number of participants. A5

  18. Organizing a one day seminar Activity Predecessors 7) Decide menu for lunch, tea & coffee A6 8) Arrange for catering A1,A7 9) Arrange projection facilities at venue. A6 10) Receive guests at registration. A8, A9 11) Conduct seminar as per brochure A8, A9, A10 12) See off guests. A11

  19. DRAWING THE PROJECT NETWORK (A-O-A) A10 A1 A9 1 2 3 4 5 6 7 8 9 10 A2 A3 A4 A5 A6 A7 A8 A11 A12

  20. DEVELOPING THE PROJECT NETWORK (A-O-N) A1 A4 A5 A6 A7 A8 A9 A11 A12 A2 A3 A10

  21. EXAMPLE 2 Job Predecessors a -- b -- c -- d a,b e b,c 3 a d b 2 1 5 e c 4

  22. EXAMPLE 3 Job Predecessors a -- b -- c -- d a,b e a,c f a,b,c 3 d b f a 1 2 5 6 c e 4

  23. EXAMPLE 4 Job Predecessors a -- b a c a d a e b, c, d 3 b a c e 1 2 5 6 d 4 DUMMIES FOR UNIQUENESS OF ACTIVITY REPRESENTATION

  24. EXAMPLE 5 S T DUMMIES FOR CREATION OF A SINGLE SOURCE AND SINK

  25. THE ROLE OF DUMMIES IN PROJECT NETWORKS Role of Dummy I II III Network type A-O-A yes yes yes A-O-N no no yes I Correct representation of precedence logic II Uniqueness of activity representation III Creation of single source/ sink

  26. EXAMPLE 6Inconsistent Network 2 3 4 1 8 5 6 7 A closed loop in a project network is a logical inconsistency.

  27. EXAMPLE 7REDUNDANCY (A-O-N) Job Predecessors a -- b a c -- d a, b, c e d f d b e d a *********** c f Redundancy a in the predecessor set for activity d could be removed thereby deleting arc a-d above

  28. PREREQUISITES FOR A VALID PROJECT NETWORK • NECESSARY REQUIREMENT • The project network must not have any cycles or loops, since these represent logical inconsistencies in representation. • DESIRABLE FEATURES • The project network should have the minimum number of dummies and no redundancies since these unnecessarily clutter the network.

  29. PROJECT MANAGEMENT Basic Scheduling with A-O-A Networks

  30. Activity on Arc (A-O-A) Arrow diagrams Event oriented networks Activity on Node (A-O-N) Precedence networks Activity oriented networks ALTERNATIVE PROJECT REPRESENTATIONS activity, a i j a

  31. ACTIVITY DURATIONS • Deterministic (as in CPM) • when previous experience yields fairly accurate estimates of activity duration, eg construction activity, market surveys. • Probabilistic (as in PERT) • when there is uncertainty in times, as for instance in R&D activities, new activities being carried out for the first time.

  32. TIME ESTIMATES • Deterministic times • A single time estimate is used for each activity. This is taken from experts who have prior knowledge and experience of the activity. • Probabilistic times • Three time estimates (optimistic, most likely and pessimistic) are commonly used for each activity based on the consensus of the group.

  33. EXAMPLE 1 Job Predecessors Duration (days) a -- 2 b -- 3 c a 1 d a, b 4 e d 5 f d 8 g c, e 6 h c, e 4 i f, g, h 3

  34. PROJECT NETWORK FOR EXAMPLE 1 (A-O-A) c h 4 1 a g 2 e 5 6 i b f 3 d 3 4 8

  35. CRITICAL PATH • The longest path in the network • Lower bound on the project duration • Selective control for management of project • Can be determined by • Enumeration of all paths in the network • Event based computations (A-O-A networks) • Activity based computations (A-O-N networks)

  36. NODE NUMBERING FOR EXAMPLE 1 (A-O-A) c h 4 1 a g 2 e 5 6 i b f 3 d 3 4 8

  37. PATH ENUMERATION Level 0 Level 1 Level 2 Level 3 Level 4 Level 5 Level 6 Level 7

  38. FORWARD PASS • Initialization: E1 = 0 (or the project start time S) (This applies to all source nodes) • Ej= Max (Ei+ tij) for all i before node j ( Set B(j)) Ej j Ei tij B(j) i

  39. FORWARD PASSEXAMPLE 1 (A-O-A) c h 2 6 5 4 1 a g 2 8 e 5 6 i 1 b f 3 d 7 3 3 4 4 8

  40. BACKWARD PASS • Initialization: Ln (or the latest occurrence of all ending nodes) = Project duration, T as determined in the forward pass • Li = Min (Lj-tij) over all successor nodes j of the node i being investigated, (set A(i)) A(i) tij j i Lj Li

  41. BACKWARD PASS EXAMPLE 1 (A-O-A) 2 16 12 c h 2 6 5 4 1 21 a g 0 2 8 e 5 6 i 1 3 18 7 b f 3 d 7 3 3 4 4 8

  42. ACTIVITY SCHEDULE FROM EVENT TIMES Ej Ei tij j i Lj Li Early start of activity ij = ES(ij) = Ei Early finish of activity ij= EFij = ES(ij)+ tij FORWARD PASS Late finish of activity ij = LF(ij) = Lj Late start of activity ij = LS(ij) = LF(ij) -tij BACKWARD PASS

  43. EARLY & LATE SCHEDULE FOR EXAMPLE 1 Job duration ES EF LS LF TF a 2 0 2 1 3 1 b 3 0 3 0 3 0 c 1 2 3 11 12 9 d 4 3 7 3 7 0 e 5 7 12 7 12 0 f 8 7 15 10 18 3 g 6 12 18 12 18 0 h 4 12 16 14 18 2 i 3 18 21 18 21 0

  44. GANTT CHART SHOWING ACTIVITY SCHEDULE A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 a b ^^^^^^ c d ^^^^^^^^^ e ^^^^^^^^^^^^^ f g ^^^^^^^^^^^^^^^^ h i ^^^^^^^^

  45. CRITICAL PATH EXAMPLE 1 (A-O-A) 2 16 12 c h 2 6 5 4 1 21 a 12 3 18 g 0 2 8 e 5 6 i 1 3 18 7 b 21 f 3 d 7 3 3 4 0 4 8 7 18 3

  46. EVENT SLACKS Ei Ej tij i j Li Lj Ei Li Ej Lj Slack on node i = Li - Ei Slack on node j = Lj - Ej

  47. ACTIVITY FLOATS Ei Ej tij i j Li Lj Ei Li Ej Lj Total float = F1(ij) = Lj-Ei -tij Safety float = F2(ij) = Lj- Li-tij Free float = F3(ij) = Ej -Ei -tij Independent float =F4(ij) = Max (0, Ej -Li- tij)

  48. FLOAT COMPUTATIONS Ei Ej tij Li Lj Total float = LS - ES = LF-EF of activity Safety float = Total float - Slack on preceding node Free float = Total float - Slack on succeeding node Independent float = Max (0, Total float - Slack on preceding and succeeding nodes)

  49. FLOATS FOR EXAMPLE 1 Job Total Safety Free Independent a 1 1 0 0 b 0 0 0 0 c 9 8 9 8 d 0 0 0 0 e 0 0 0 0 f 3 3 3 3 g 0 0 0 0 h 2 2 0 0 i 0 0 0 0

  50. INTERPRETATION OF FLOATS • An activity , in general, has both predecessors and successors. Each of the four kinds of float depends on how these accommodate the activity. Predecessors Successors activity

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