Professional Documents
Culture Documents
3-1
Project Characteristics
Single unit
Many related activities
3-2
Examples of Projects
Building Construction
Research Project
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3-3
3-4
Management of Projects
1. Planning - goal setting, defining the
project, team organization
2. Scheduling - relates people, money,
and supplies to specific activities
and activities to each other
3. Controlling - monitors resources,
costs, quality, and budgets; revises
plans and shifts resources to meet
time and cost demands
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3-5
Project Management
Activities
Planning
Objectives
Scheduling
Resources
Project activities
Work break-down
structure
Network
Organization
Controlling
Monitor, compare, revise, action
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3-6
Project Planning,
Scheduling, and Controlling
Figure 3.1
Before
project
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Start of project
Timeline
During
project
3-7
Project Planning,
Scheduling, and Controlling
Figure 3.1
Before
project
2011 Pearson Education, Inc. publishing as Prentice Hall
Start of project
Timeline
During
project
3-8
Project Planning,
Scheduling, and Controlling
Figure 3.1
Before
project
2011 Pearson Education, Inc. publishing as Prentice Hall
Start of project
Timeline
During
project
3-9
estimates
Project Time/cost
Planning,
Budgets
Scheduling, and
Controlling
Engineering
diagrams
Cash flow charts
Material availability details
Budgets
Delayed activities report
Slack activities report
CPM/PERT
Gantt charts
Milestone charts
Cash flow schedules
Figure 3.1
Before
project
2011 Pearson Education, Inc. publishing as Prentice Hall
Start of project
Timeline
During
project
3 - 10
Project Planning
Establishing objectives
Defining project
Creating work
breakdown structure
Determining
resources
Forming organization
3 - 11
Project Organization
Often temporary structure
Uses specialists from entire company
Permanent
structure called
matrix organization
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3 - 12
Project Organization
Works Best When
1. Work can be defined with a specific
goal and deadline
2. The job is unique or somewhat
unfamiliar to the existing organization
3. The work contains complex
interrelated tasks requiring specialized
skills
4. The project is temporary but critical to
the organization
5. The project cuts across organizational
lines
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3 - 13
A Sample Project
Organization
President
Human
Resources
Marketing
Project 1
Project 2
Finance
Design
Quality
Mgt
Production
Mechanical
Engineer
Test
Engineer
Technician
Electrical
Engineer
Computer
Engineer
Technician
Project
Manager
Project
Manager
Figure 3.2
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3 - 14
Matrix Organization
Marketing
Operations
Engineering
Finance
Project 1
Project 2
Project 3
Project 4
3 - 15
The Role of
the Project Manager
Highly visible
Responsible for making sure that:
1. All necessary activities are finished in order
and on time
2. The project comes in within budget
3. The project meets quality goals
3 - 16
The Role of
the Project Manager
Highly visible
Responsible for making
sure that:
Project managers should be:
Goodare
coaches
1. All necessary activities
finished in order
and on time
Good communicators
2. The project comes
in within
budget activities
Able
to organize
a variety
3. The project meets from
quality
goals of disciplines
3 - 17
Ethical Issues
Project managers face many ethical
decisions on a daily basis
The Project Management Institute has
established an ethical code to deal with
problems such as:
1. Offers of gifts from contractors
3 - 18
3 - 19
Project Scheduling
Identifying precedence
relationships
Sequencing activities
Determining activity
times & costs
Estimating material &
worker requirements
Determining critical
activities
2011 Pearson Education, Inc. publishing as Prentice Hall
3 - 20
Purposes of Project
Scheduling
1. Shows the relationship of each activity to
others and to the whole project
2. Identifies the precedence relationships
among activities
3. Encourages the setting of realistic time
and cost estimates for each activity
4. Helps make better use of people, money,
and material resources by identifying
critical bottlenecks in the project
3 - 21
Scheduling Techniques
1. Ensure that all activities are planned
for
2. Their order of performance is
accounted for
3. The activity time estimates are
recorded
4. The overall project time is developed
3 - 22
Project Management
Techniques
Gantt chart
Critical Path Method
(CPM)
Program Evaluation
and Review
Technique (PERT)
3 - 23
Time
A M J
Design
Prototype
Test
Revise
Production
3 - 24
Galley servicing
Lavatory servicing
Drinking water
Cabin cleaning
Cargo and mail
Flight services
Operating crew
Baggage
Passengers
Deplaning
Baggage claim
Container offload
Pumping
Engine injection water
Container offload
Main cabin door
Aft cabin door
Aft, center, forward
Loading
First-class section
Economy section
Container/bulk loading
Galley/cabin check
Receive passengers
Aircraft check
Loading
Boarding
Figure 3.4
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10
20
30
Time, Minutes
40
3 - 25
3 - 26
Developed in 1950s
CPM by DuPont for chemical plants (1957)
PERT by Booz, Allen & Hamilton with the
U.S. Navy, for Polaris missile (1958)
3 - 27
3 - 28
3 - 29
3 - 30
3 - 31
Network Analysis
1.
2.
3.
of
new
ii)
Research
plant,
and
16-32
3 - 32
Network Analysis
4.
ii)
16-32
3 - 33
Activity
1. Each task within the job is called an
activity
2. What are the types of activity
i)
Actual activity
ii)
16-32
3 - 34
Activity Networks
Activity on Arc
(AOA) Network
Activity on Node
Representation (AON)
3 - 35
Activity Networks
The Activity on Arrow or Activity on Arc (AOA) representation which uses the set
of arcs or arrows A to represent the activities and the set of nodes N to represent events
The Activity on Node (AON) representation which uses the set of nodes N to denote
the activities or events and the set of set arc or arrows A to represent the precedence
relations.
3 - 36
Immediate Predecessor
Following activities with their immediate predecessors are given, draw the
corresponding AOA network diagram.
P
P
P
Q,R
R, S, T
U
V
3 - 37
Solution
Activities R, S, T all are having immediate predecessor of P. then the above
relationship can be depicted as follows.
3 - 38
Activities U and V have the common activity R. Therefore, the common activity R would
be followed by two dummy activities approaching in opposite direction. The exact
relationship is shown in the figure
3 - 39
b,c
3 - 40
s start , f- finish
3 - 41
AOA Network
AON Network
3 - 42
and provides the basis for insight in the time and cost
status of a project through various management tools.
3 - 43
B
A
(b)
B
B
(c)
A
C
Activity
Meaning
A comes before
B, which comes
before C.
A and B must both
be completed
before C can start.
B and C cannot
begin until A is
completed.
Activity on
Arrow (AOA)
A
B
B
A
Figure 3.5
C
3 - 44
(d)
(e)
B
Activity
Meaning
C and D cannot
begin until both
A and B are
completed.
C cannot begin
until both A and B
are completed; D
cannot begin until
B is completed. A
dummy activity is
introduced in AOA.
Activity on
Arrow (AOA)
A
C
Dummy activity
B
Figure 3.5
D
3 - 45
(f)
C
Activity
Meaning
B and C cannot
begin until A is
completed. D
cannot begin
until both B and
C are completed.
A dummy
activity is again
introduced in
AOA.
Activity on
Arrow (AOA)
A
Dummy
activity
Figure 3.5
D
C
3 - 46
AON Example
Milwaukee Paper Manufacturing's
Activities and Predecessors
Activity
A
Description
Build internal components
Immediate
Predecessors
A, B
D, E
F, G
Table 3.1
3 - 47
Activity A
(Build Internal Components)
Activity B
(Modify Roof and Floor)
Start
Start
Activity
Figure 3.6
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3 - 48
Start
Activities A and B
Precede Activity D
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Figure 3.7
3 - 49
C
E
Start
H
B
Figure 3.8
3 - 50
C
4
(Construct
Stack)
Dummy
Activity
D
5
(Pour
Concrete/
Install Frame)
H
(Inspect/
Test)
Figure 3.9
3 - 51
3 - 52
Description
Time (weeks)
Build internal components
2 Modify roof and floor
3 Construct collection stack
2 A
Pour concrete and install frame
4 B, A
Build high-temperature burner
4 C
Install pollution control system
3 C
Install air pollution device
5 D,E
Inspect and test
2 F,G
Total Time (weeks)
25
Table 3.2
3 - 53
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Earliest
Start
ES
EF
Latest
Start
LS
LF
Figure 3.10
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Earliest
Finish
Latest
Finish
Activity Duration
3 - 55
Forward Pass
Begin at starting event and work forward
Earliest Start Time Rule:
If an activity has only a single immediate
predecessor, its ES equals the EF of the
predecessor
If an activity has multiple immediate
predecessors, its ES is the maximum of
all the EF values of its predecessors
ES = Max {EF of all immediate predecessors}
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3 - 56
Forward Pass
Begin at starting event and work forward
Earliest Finish Time Rule:
The earliest finish time (EF) of an activity
is the sum of its earliest start time (ES)
and its activity time
EF = ES + Activity time
3 - 57
EF = ES + Activity time
Start
3 - 58
ES
of A
0
Start
A
0
3 - 59
2
0
Start
EF of B =
ES of B + 3
ES
of B
B
0
3
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3 - 60
2
0
Start
13
4
0
15
2
G
13
5
Figure 3.11
3 - 61
Backward Pass
Begin with the last event and work backwards
Latest Finish Time Rule:
If an activity is an immediate predecessor
for just a single activity, its LF equals the
LS of the activity that immediately follows it
If an activity is an immediate predecessor
to more than one activity, its LF is the
minimum of all LS values of all activities
that immediately follow it
LF = Min {LS of all immediate following activities}
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3 - 62
Backward Pass
Begin with the last event and work backwards
Latest Start Time Rule:
The latest start time (LS) of an activity is
the difference of its latest finish time (LF)
and its activity time
LS = LF Activity time
3 - 63
2
0
Start
13
13
4
0
15
15
LS = LF
D Activity time
G
3
13
5
LF = EF
of Project
3 - 64
2
0
Start
10
13
8 of
LF =4 Min(LS
following activity)
13
13
4
0
15
15
13
5
3 - 65
2
0
Start
10
4
4
0
0
13
13
13
15
15
13
13
3 - 66
0
0
Start
10
0
1
13
13
13
15
15
13
13
3 - 67
Slack = LS ES
or
Slack = LF EF
3 - 68
A
B
C
D
E
F
G
H
0
0
2
3
4
4
8
13
2
3
4
7
8
7
13
15
Latest
Start
LS
Latest
Finish
LF
Slack
LS ES
On
Critical
Path
0
1
2
4
4
10
8
13
2
4
4
8
8
13
13
15
0
1
0
1
0
6
0
0
Yes
No
Yes
No
Yes
No
Yes
Yes
Table 3.3
3 - 69
ES EF Gantt Chart
for Milwaukee Paper
1
10 11 12 13 14 15 16
A Build internal
components
B Modify roof and floor
C Construct collection
stack
3 - 70
LS LF Gantt Chart
for Milwaukee Paper
1
10 11 12 13 14 15 16
A Build internal
components
B Modify roof and floor
C Construct collection
stack
3 - 71
Free Float
Total Float
3 - 72
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3 - 74
3 - 75
3 - 76
Probability
Most Likely
Time (m)
Pessimistic
Time (b)
3 - 77
Computing Variance
Optimistic
Most
Likely
Pessimistic
Expected
Time
Variance
Activity
t = (a + 4m + b)/6
[(b a)/6]2
A
B
C
D
E
F
G
H
1
2
1
2
1
1
3
1
2
3
2
4
4
2
4
2
3
4
3
6
7
9
11
3
2
3
2
4
4
3
5
2
.11
.11
.11
.44
1.00
1.78
1.78
.11
Table 3.4
3 - 78
Probability of Project
Completion
Project variance is computed by
summing the variances of critical
activities
sp2 = Project variance
= (variances of activities
on critical path)
3 - 79
Probability of Project
Completion
Project variance is computed by
summing the variances of critical
Project variance
activities
Project variance
3 - 80
Probability of Project
Completion
PERT makes two more assumptions:
Total project completion times follow a
normal probability distribution
3 - 81
Probability of Project
Completion
Standard deviation = 1.76 weeks
15 Weeks
Figure 3.13
3 - 82
Probability of Project
Completion
What is the probability this project can
be completed on or before the 16 week
deadline?
Z = due expected date /sp
date
of completion
= 0.57
Probability of Project
Completion
From Appendix I
What is the probability
can
.00
.01 this project
.07
.08
be completed
on or before the
16 week
.1 .50000 .50399
.52790 .53188
deadline?
.2 .53983 .54380
.56749 .57142
.5
.6
date /s
Z.69146
= due .69497
expected.71566
.71904
p
date
.72575
of completion
.72907
.74857
.75175
= 0.57
Probability of Project
Completion
0.57 Standard deviations
Probability
(T 16 weeks)
is 71.57%
15
Weeks
16
Weeks
Time
Figure 3.14
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3 - 85
Determining Project
Completion Time
Probability
of 0.99
Probability
of 0.01
2.33 Standard
deviations
From Appendix I
Figure 3.15
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2.33
3 - 86
Variability of Completion
Time for Noncritical Paths
Variability of times for activities on
noncritical paths must be
considered when finding the
probability of finishing in a
specified time
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Cost ($)
A
B
C
D
E
F
G
H
2
3
2
4
4
3
5
2
1
1
1
2
2
2
2
1
Normal
22,000
30,000
26,000
48,000
56,000
30,000
80,000
16,000
22,750
34,000
27,000
49,000
58,000
30,500
84,500
19,000
750
2,000
1,000
1,000
1,000
500
1,500
3,000
Yes
No
Yes
No
Yes
No
Yes
Yes
Table 3.5
3 - 94
Crash
$34,000
Crash Cost/Wk =
Crash $33,000
Cost
$34,000 $30,000
31
$4,000
=
= $2,000/Wk
2 Wks
$32,000
$31,000
$30,000
Normal
Cost
Figure 3.16
Normal
|
1
Crash Time
|
2
|
3
Normal Time
Time (Weeks)
3 - 95
Advantages of PERT/CPM
1. Especially useful when scheduling and
controlling large projects
2. Straightforward concept and not
mathematically complex
3. Graphical networks help highlight
relationships among project activities
4. Critical path and slack time analyses help
pinpoint activities that need to be closely
watched
3 - 96
Advantages of PERT/CPM
5. Project documentation and graphics
point out who is responsible for various
activities
6. Applicable to a wide variety of projects
7. Useful in monitoring not only schedules
but costs as well
3 - 97
Limitations of PERT/CPM
1. Project activities have to be clearly
defined, independent, and stable in their
relationships
2. Precedence relationships must be
specified and networked together
3. Time estimates tend to be subjective and
are subject to fudging by managers
4. There is an inherent danger of too much
emphasis being placed on the longest, or
critical, path
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3 - 98
VisiSchedule
Time Line
Microsoft Project
3 - 99
Program 3.1
3 - 100
Program 3.2
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3 - 101
Program 3.3
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3 - 102