Project Management Basics

Project Management Basics

Project
• A temporary non-repetitive operation
• Limited time frame
• One or more specific objectives
• A temporary organizational structure
 Project Management Basics
Example
Actvities Dependency Matrix
Expected
Activity Duration/days/ Information-Provividing Activity/Upstream/
A1 9 A1 A2 A3 A4 A5 A6 A7 A8 A9 A10
A1
A2 3 A2 X
A3 11 A3 X
A4 7 Information-Receiving A4 X
A5 8 Activity/Downstream/ A5 X
A6 X
A6 6 A7 X X
A7 21 A8 X X X
A8 10 A9 X
A9 15 A10 X X

A10 5
 Critical Path Method
Activity-on-Node (AON) Representation
Completion Time, Critical Path and Gantt Chart
Completion Time, Critical Path and Gantt Chart
Activity-on-Node (AON) Representation
 Completion Time, Critical Path and Gantt Chart

• A1 – A2 – A3 – A7 – A10 with a duration of 49 days

• A1 – A2 – A3 – A8 – A9 – A10 with a duration of 53 days
• A1 – A2 – A4 – A6 – A7 – A10 with a duration of 51 days
• A1 – A2 – A4 – A6 – A8 – A9 – A10 with a duration of 55 days
• A1 – A2 – A4 – A5 – A8 – A9 – A10 with a duration of 57 days
 Completion Time, Critical Path and Gantt Chart
Critical Path
• Earliest start time (EST)
• Earliest completion time (ECT) – the earliest start time plus the activity duration
Computing the Completion Time of a Project

Expected Earliest
Duration Completion
Activity Earliest Start Time/EST/ /days/ Time/ECT/
A1 0 9 9
A2 ECT(A1) = 9 3 12
A3 ECT(A2) = 12 11 23
A4 ECT(A2) = 12 7 19
A5 ECT(A4) = 19 8 27
A6 ECT(A4) = 19 6 25
A7 Max{ECT(A3),ECT(A6)} = Max{23,25} = 25 21 46
A8 Max{ECT(A3),ECT(A5),ECT(A6)} = Max{23,27,25} = 27 10 37
A9 ECT(A8) = 37 15 52
A10 ECT(A9) = 52 5 57
Completion Time, Critical Path and Gantt Chart
Gantt Chart

0 5 10 15 20 25 30 35 40 45 50 55
Time/days/
Computing Slack Time
 Computing Slack Time
Slack Time
• Amount of time an activity can be delayed without affecting the overall completion time of
the project
• Latest start time/LST/
• Latest completion time/LCT/
Computing the Slack Time
LST = LCT - Slack =
Activity EST Duration ECT LCT Duration LST - EST
A1 0 9 9 LST(A2) = 9 9-9 = 0 0
A2 9 3 12 Min{LST(A3),LST(A4)} = Min{16,12} = 12 12-3 = 9 0
A3 12 11 23 Min{LST(A7),LST(A8)} = Min{31,27} = 27 27-11 = 16 27-23 = 4
A4 12 7 19 Min{LST(A5),LST(A6)} = Min{19,21} = 19 19-7 = 12 0
A5 19 8 27 LST(A8) = 27 27-8 = 19 0
A6 19 6 25 Min{LST(A7),LST(A8)} = Min{31,27} = 27 27-6 = 21 27-25 = 2
A7 25 21 46 LST(A10) = 52 52-21 = 31 52-46 = 6
A8 27 10 37 LST(A9) = 37 37-10 = 27 0
A9 37 15 52 LST(A10) = 52 52-15 = 37 0
A10 52 5 57 57 57-5 = 52 0
 Computing Slack Time
Slack Time Benefits
• Potentially delay the start of the activity
• Accommodate the availability of resources
Dealing with Uncertainty
Dealing with Uncertainty
Random Activity Times
 Dealing with Uncertainty
A1: 5 days

A3: 6 days

A2: 4 days

A1: 3 or 7 days
Expected Completion Time = 0.25*13 + 0.25*12 +
A3: 6 days
0.25*13 + 0.25*9 = 11.75 days
A2: 2 or 6 days

Scenario Probability Explanation Start of A3 Completion

A1 late and A2 late 0.25 A1 would take 7 days (during wich time, 7 13
the 6 days of A2 will also be completed)
A1 early and A2 late 0.25 A2 would take 6 days (during wich time, 6 12
the 3 days of A1 will also be completed)
A1 late and A2 early 0.25 A1 would take 7 days (during wich time, 7 13
the 2 days of A2 will also be completed)
A1 early and A2 early 0.25 A1 would take 3 days (during wich time, 3 9
the 2 days of A2 will also be completed)
 Dealing with Uncertainty
Potential Iteration/Rework Loops

Decision Tree/Milestones/Exit Option

Unknown Unknowns
How to Accelerate Projects
 How to Accelerate Projects

Project
Project Cost
Completion Quality
/Budget/
Time

Accelerate Completion Time

• Start the project early
• Manage the project scope
• Crash activities
• Overlap critical path activities