Outline » The Importance of Project Management » Project Planning » Project Scheduling » Project Controlling » Project Management Techniques: PERT > A Critique of PERTImportance of Project Management » Project: unique, one-time operations designed to accomplish a set of objectives in alimited time frame. ing Construction + ResearchProject Project Planning ae cc Planning the Project ‘/\ » Establishing objectives » Defining project > Creating work breakdown structure » Determining resources » Forming organization Importance of Project Management 1. Planning - goal setting, defining the project, team organization 2. Scheduling - relate people, money, and supplies to specific activities and activities to each other 3. Controlling - monitor resources, costs, quality, and budgets; ‘revise plans and shift resources to mest time and cost demands Planning reduling Controting Project Planning © Project Organization » Often temporary structure » Uses specialists from entire company » Headed by project manager > Coordinates actvlies > Monitors schedule and costs » Permanent structure calledProject Planning A Sample Project Organization [aEEzaee][Herscmn]| [Freres] [oeson | [Sume” | rear] Poet aR Te] nies [ttss [tems Lome Poet [paar Tamar eae ace cows, OE EEE He Project Planning The Role of Project Manager: 1 2 All necessary activities are finished in order and on time The project comes in within budget The project meets quality goals The people assignedito the projectreceive motivation, :ction, and information Project Planning Matrix Organization Marketing [Operations [Engineering [Finance ml wool |_ [Ao mel Be =r * Project Planning The Role of Project Manager: 1, All necessary activities are finished in order and on time 2. The project comes in within budget The project md 4, The people as| motivation, dir Project managers should be: + Good coaches » Good communicators » Able to organize activities from a variety of disciplinesProject Planning Work Breakdown Structure » Dividing a project into more and more detailed tasks (or activities) Level 1. Project 2. Major tasks in the project 3. Subtasks in the major tasks 4. Actinties (or ‘work packages’) fo be completed Project Scheduling Sings Project saw 1Y4 ogee Set EPRI] [te] ootoo fm 1. Shows the relationship of each actviy to others and to the whole project 2. Idenifies the precedence relationships among activities 3. Encourages the setting of reelisic ime and cost estimates for each activity 4. Helps make better use of people, money, and material resources by identifying critical bottienecks in the project Work Breakdown Structure omens) i guns Project Scheduling » Techniques » Gantt chart » Critical Path Method (CPM) » Program Evaluation and Review Technique (PERT)A Simple Gantt Chart Project Controlling ‘Controlling the Project (During project) ve ters | 1 sre ome say A= ene “Monitor resources, mains: coo. + Close monitoring ofresources, costs, quality, budgets. + Feedback enables revising the projectplan and shiftresources > Computerized tools produce extensive reports: Project Control Reports » Detailed cost breakdowns for each task » Total program labor curves » Cost distribution tables » Functional costand hour summaries » Raw materials and expenditure forecasts » Variance reports » Time analysis reports > Work status reportsPROJECT MGMT TECHNIQUES: PERT Six Steps PERT 1. Define the project and prepare the work breakdown structure 2. Develop relationships among the activities - decide which activities must precede and which must follow others 3. Draw the network connecting all of the activities PERT and CPM » Network techniques » Developedin 1950s » CPM by DuPont for chemical plants (1957) » PERT by Booz, Allen & Hamiton with the US. Navy, for Polaris missile (1958) » Consider precedence relationships and interdependencies » Each usesa differentestimate of activity times Six Steps PERT Assign time and/or cost estimates to . Compute the longest time path through the network — this is called the critical monitor, and control the projectPERT: AON Convention Activity on Neca Cry 30 25 © @@-@ 30 tb) 25 20 ‘A.comes before B, which ‘omen before € Aand 6 must both be ‘completed before (can store PERT: AON Convention ‘connote a sampled {Band C cannot begin until compl camsot begin and both B ‘are completed. PERT: AON Convention en) my LCC) eto 25, oJ Band C cannot begin until A is © aa mnt 3920 § gad D cannot bogin unt A and @ Bes have both been Completed AON Example Example 3.1: Milvaukee has idenified the eight activities that need to be performed in order to install air polltion control equipment in is facility Tnmesine [Esinrcetin| acct Deseret prececemes | (weet 5 [Moairoofertion = = © __[aniarigrenpsureoure = z F_fnstaoensconconsai stan € ei © [inns pnnmionaewce De 5seiviy | resecazas [ests | a = 2 ca = z a7 [38 z = € = a re z PERT > Important concepts » Path: A sequence of activities leading from the beginning node to the ending node of a PERT network. » Path length: The sum of the time estimates of the acivities on a path. » Critical path: The longest path in a PERT network » Critical activities: The activites on the critical path. » Project duration (or completion ime) The length of the cctical path. » Path slack: The difference between the length ofa path ‘and the project duration, zonmoow>| EX1 in class Construct @ PERT network {or this project by using ‘AON convention PERT Analysis » Deterministic PERT Analysis > Computational AlgorithmDeterministic PERT Analysis > Enumeration method » Calculate and compare the lengths of all paths » Determine the critical path, critical activities, and the path slacks Deterministic PERT Analysis ©, (1) Whatis the critical path? What are the cra acer? \ 21 What inthe aaron othe Qo, Wee ony pts aca? eo, how long ouch of the cee? Lona wooks) Slack (1) The ertical path fs Start— A—E -G. The critical activities are A, FG. {2) Tho duration of tho projoct I 20 wooks.. (0) Path Stat B-F-Ghos aslack of 2 weeks, and path Start CD Ghas aslack of § wooks. Deterministic PERT Analysis Example 3.2: Do deterministic PERT analysis. Estimated ime Task (weeks) oamooe>| Total 42 Deterministic PERT Analysis » The critical path is the longest path through the network » The critical path is the shortest time in which the project can be completed » Any delay in critical path act project » Critical path activities have no slack time s delays theCritical Path Deterministic PERT Analysis > Example3.3 (1) What the eres path? What ars the critical activities? Uinat & the divation of the £7 (3) PreeKre any path stacks? ‘e-e- 30, how long fs each ofthe slacks? Path ength (weeks) sack ‘Sart A-C-F-R 8 6 Sata 4 5 1" (w)Thecrtica patie Surt_A—€ FGM. The eel acules ae A.C, EG, (2) The durton of meprofectis 15 weeks. (Seah Stet ACF PERT Computational Algorithm Earliest start (ES) ~ earliest time at which an activity can start assuming all predecessors have been completed Earliest finish (EF) ~ earliest time at which an ativiy can befinished Latest start (LS) ~ atest time at which an activity ean ‘stat 20-8810 nO’ delay the completion time ofthe ene Project Latest finish (LF) = latest timo by wich an activity has to bejlisel 9 to nt dlay the completion tin the entire project, Es |EF Ls |LF EX2 in class " ny 5 ° co 7 Draw the diagram by using the information above determine the project duration, critical activity and path slacks PERT: Forward Pass Beginat starting eventand work forward Earliest Start Time Rule: 1D tfan activity has only one immediate predecessor, its ES equals the EF of the Predecessor Dian activity has multiple immediate Predecessors, its ES is the maximum of all the EF values ofits predecessors ES= Max (EF of all immediate predecessors)PERT: Forward Pass Beginat starting eventand work forward Earliest Finish Time Rul EF) of an ac Sunt es)” and its activity time EF = ES + Activity time PERT: Backward Pass Begin with the last event and work backwards Latest Finish Time Rute: 1 fan activity is an immediate predecessor forhatas Tete oquate ne 1 btthe actity that wnmediately Toons i 0 ian 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) PERT: Forward Pass (Example 3.4) Step 1: Use forward pass to calculate ES and EF PERT: Backward Pass Begin with the last event and work backwards Latest Start Time Rule: 1 The latest start time (LS) of ar difference of its latest finish its activity time tivity is the (LF) and LS= LF - Activity timePERT: Backward Pass (Example 3.4) PERT: Sic & Critical ep 2:Usebahuarpass oa LS ad es |e After computing the ES, EF, LS, and LF times us| 70 [is for all activities, compute the slack time for each activity, andidentify the critical activity. 1 Slackis the length of time an activity can be delayed without delaying the entire project Slack = L$ -ES= LF -EF 0 Critical activity is an activity with zero slack PERT: Critical activity & Project PERT: Critical Activity (Example 3.4) duration Step 3: Calculate activity slack and decide critical project duration Sick=0 — Slack=8 0 Noneritical activity is an activity with sicko aE at positive slack 2 1 Project duration is the time to finish the whole project. Project duration = LF of ending activity EF of ending activityPERT: Critical Activity (Example 3.4) Note Creal activites: 8, C,£,6, 11 Project duration I 19 wooks Sack-0 Stace 5 » Activity slack time: » PERT Algorithm > Example 3.4 » Path slack time: » Deterministic PERT Analysis > Example 3.3, 3.2 PERT: Computational Algorithm (Example 3.5) PERT: Example 3.5 ‘Step 1; Use forward pass tocalculateES and EF som | sine | “tar | (1) Constructa PERT es ler Se eaeipemety gh aly aly ce en conven mee ale ade = fe 5° O—O. A\e\44PERT: Example 3.5 ‘step 2 Use backward passto calcuateLS and LF a to Hp PERT: Example 3.5 Suck=5 Sock=0 sack=0 wiv af stack ok Fe He oe fe 18 . stock=0 aD ©. _a| 0 ng [eo Critical activities are 8, C,D,E. Project duration is 19 weeks. PERT: Example 3.5 ‘Step 3: Calculate activiy slack and decide critical activities & project duration Siack=8 —Slack=0 Slack =0 stack-0 5 [i 45 We a % stocw-0 Slack-0. Slack=0 Sack =2 EX3 in class Use the computational algorithm to determine the critical activities & project durationAdvantages of PERT/ICPM 1. Especially useful when scheduling and controlling large projects 2. Straightforward conceptand not ‘mathematically complex 3. Graphical networks help highlight relationships among projectactivities 4. Critical path and slack time analyses help pinpoint activities that need to be closely watched Limitations of PERT/CPM 1. Projectactivities 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 subjectto fudging by managers 4, There is an inherent danger of too much ‘emphasis being placed on the longest, or critical, path Advantages of PERTICPM 5. Project documentation and graphics point out who is responsible forvarious activities 6. Applicable to a wide variety of projects Usefulin monitoring not only schedules but costs as well _