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Project Management

Lecture Note Five


Fahmy Radhi

Project Management

Project Planning
Project Planning a statement of work that written description of the goal setting, defining the project, and team organization. Elements of Project Planning: Defines project objectives Identify activities Establish precedence relationships Make time estimates Determine project completion time Compare project schedule objectives Determine resources requirements to meet objectives

Project Organization
Project Organization an organization formed to ensure that project receive the proper management Project Manager project heading that coordinates activities with other departments and reports directly to top management with reasonability:
To finish all activities in proper sequence and on time The project comes in within budget The project meets its quality goals

Project Organization Chart

Project Scheduling
Project Scheduling involves sequencing and allocating time to all project activities At this stage, managers decide how long each activity will take and compute how many people and material will be needed at each stage of production Gantt Chart is one popular project scheduling approach

Gantt Charts
Gantt Charts planning charts used to schedule resources and allocate time

Project Controlling
Project Controlling involves close monitoring of resources, cost, quality and budgets Control also means using a feedback loop to revise the project plan and having the ability to shift resources to where they are needed

PERT AND CPM


PERT (Program Evaluation and Review Technique) a PM technique that employs three time estimates for each activity CPM (Critical Path Method) a PM technique that uses only one time factor per activity There is a minor differences between PERT and CPM so both of them have been effectively merged into a single technique referred as

The Framework of PERT/CPM


1. Define the project and prepare the work breakdown structure 2. Develop the relationship among activities and decide which activities must preceded and which must follow others 3. Draw the network connecting all of the activities 4. Assign time and/or cost estimates to each activity 5. Compute the longest time path through the network. This is called the critical path 6. Use the network to help plan, schedule,

Network Diagrams and Approaches


Network Diagram - Diagram of project activities that shows the sequential relationships by the use arrows and nodes Activity-on-Node a network diagram in which nodes designate activities Activity-on-Arrow a network diagram in which arrows designate activities

Network Diagrams and Approaches


Dummy Activities an activity having no time that inserted into the network to maintain the logic of the network Path - A sequence of activities that leads from the starting node to finishing node Critical Path - The longest path Slack - The difference between the lengths of the critical path

General Hospital
Acvt Description Preds

A B C D
E F

G H

Build internal components Modify roof and floor Construct collection stack Pour concentrate and install frame Build high-temperature burner Install Pollution control system Install air pollution device Inspect and test

A A,B
C C

D,E F,G

Activity-on-Node for General Hospital

Activity-on-Arrow
Earliest Start (ES) - the earliest time activity can start, assuming all preceding activity start as early as possible Earliest Finish (EF) the earliest time the activity can finish. Last Start (LS) - the latest time the activity can start and not delay the project. LS = LF - t Last Finish (LF) - the last time the activity

EF = ES + t

General Hospital
Acvt A B C D E Description Build internal components Modify roof and floor Construct collection stack Pour concentrate and install frame Build high-temperature burner Preds Time A A,B C 2 3 2 4 4

F
G H

Install Pollution control system


Install air pollution device Inspect and test Total Time (weeks)

C
D,E F,G

3
5 2 25

Activity-on-Arrow for General Hospital

Activity-on-Arrow for General Hospital

Calculating Slack Time and Identifying Critical PathES EF LS LF LS-ES Act


A B C D E F G H 0 2 0 2 0 0 3 1 4 1 2 4 2 4 0 3 7 4 8 1 4 8 4 8 0 4 7 10 13 6 8 13 8 13 0 13 15 13 15 0 Slack = LS ES or Slack = LF-EF

CP

CP NCP CP NCP CP NCP CP CP

Activity-on-Arrow for General Hospital

Probabilistic Time Estimates


Optimistic time (a) - the length of time required under optimum condition Pessimistic time (b) - the length of time that will be required under the worst condition Most likely time (m) - the most probable of time that will required Expected time (te) - time estimates that are fairly certain.
te = (a + 4m + b)/6

Crashing
Crashing - Shortening activity duration on critical path to speed up the project Cost-Time Trade-Off of Crashing
decreasing the indirect cost: facilities and equipment cost, supervision and personnel cost increasing direct expenses

Procedure for crashing


Obtain estimates of normal time (Nt) and crash time (Ct), as well as normal cost (Nc) and crash cost (Cc) compute incremental cost (Ic)
IC = (Cc-Nc)/(Nt-Ct)
Cc = Crash Cost Nc = Normal Cost Nt = Normal Time Ct = Crash Time

determine the lengths of critical path determine total cost modified crash program

Crash and Normal Time Costs for Activity B

Critical Path and Slack Time for General Hospital

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