Project Time Management

Project Time Management
PROJECT TIME MANAGEMENT

• Project time management involves :
 breaking the project down into individual
components
 allocating times or duration values to each
component.
 link these components together in a logical
progression.
 models may need to be generated to allow for
replanning and change.
CHAPTER OBJECTIVES
• By the end of this chapter student will be able to:
– understand the process for generating a work breakdown
structure (WBS);
– understand the basic sequence of works necessary to
produce a precedence diagram;
– appreciate the basic mechanics of scheduling using the
critical path method (CPM);
– appreciate the basic mechanics of the program evaluation
and review technique (PERT);
– clearly define the differences, advantages and
disadvantages of CPM and PERT;
– generate and execute crash scenarios;
– generate and present trade-off scenarios.
Time - Cost - Quality
Time Planing processes
The Process of Project Time Planning
FACTORS AFFECTING THE TIME
PLANNING PROCESS
Strategic Project Planning-SPP
• This includes time, cost and quality, and also a
wide range of other planning elements, including:
– organisational and authority planning;
– risk management planning;
– communications systems planning;
– financial planning;
– conflict and stress management planning;
– authorisation and compliance planning;
– health and safety planning;
– change management planning.
Project Time Planning and the Project
Lifecycle
A typical lifecycle for a project such as an extension to a house
would be as follows:
– Inception – where the basic idea is formed.
– Feasibility – where the basic idea is developed and indicative times and costs
are calculated.
– Brief – where the basic design requirements are established and recorded.
– Design.
• Design stage 1 – where a first basic design and cost plan are developed.
• Design stage 2 – where the design is worked up into more detail and indicative time
and cost planning information is generated.
• Design stage 3 – where the design is worked up into a near-final level of detail.
• Design stage 4 – where the design is finalised.
– Appointment of contractor – where the work is given to the company who will
implement it.
– Implementation – where the design is implemented.
– Completion – where implementation is finished.
– Commissioning and testing – where the final handover is agreed.
– Use – where the extension is inhabited and used for purpose.
Planning and replanning through the
life cycle
Reasons for Replanning
• Later-stage replanning may become necessary
for a number of reasons:
– Internal (optional) change: As the design firms up, it often
becomes apparent that things have been missed or not
specified.
– External (imposed) change: Comes from uncontrolled
conditions.
– Sequential disruption: results from interdependencies
within work packages.
– Miscalculation: Anyone can make a mistake.
• Variables that affect the time planning:
– planning strategy;
– sources of planning data;
– project uniqueness;
– people issues;
– complexity;
– uncertainty and change.
Planning strategy
• Project plan is based purely on the estimated time required to
complete the various activities, this can be changed due to
various strategic effects:
– Environmental conditions
– The overall portfolio of projects
– Stakeholder preferences
– Technical procedures
Sources of Planning Data
• Information sources can be:
– Knowledge and experience.
• In cases where similar projects have been run in the
past
– Industry standards.
• Many industries have generic estimating standards that
can be used to generate time estimates for a wide
range of different standard activities. (this usually
shared online on special sites)
Project Uniqueness
• The project manager should, of course, utilise
historical data and experience, but should always
remember the unique aspects of each individual
project as:
– geographical location of the project

– specific objectives of the project
– availability of contractors
– local labour force
– contractual conditions
– characteristics of the client
People Issues
• Project management structures often involve
project teams staffed by members who have
been seconded from different functional units
• People with little experience of working within
the type of planned environment may not
adhere to the project plan and may work
independently of it, or even against it.
• The project time plan will be stronger if all
project stakeholders ‘buy in’ and support it.
Complexity
• Large projects comprise tens of thousands of
individual activities.
• Time plan should estimate time required to
complete each activity and the time required to
complete all the activities.
• To manage complexity, project managers tend to
break projects down to a level where individual
control is easier.
• Each element can be given separate and discrete
time, cost and quality.
• Example : extension for a house
Example
The work is
broken
down
(rolled component
down or s are then
disintegrate added
d) into together
workable (rolled-up
component or re-
s. Each integrated)
component to give
is then overall
analysed for time, cost
time, cost and quality
and quality values for
the project
as a whole.
The planer job ?
• The position of each work package within the
immediate sequence of work;
• The importance of each work package to the
project as a whole;
• The criticality of each work package;
• The amount of cost or time overrun (slippage)
that is acceptable for each work package;
• The resources required by each work package.
• Continue the planning and replanning through
out the whole project life
Uncertainty and Change
• Even if it were possible to identify all of the
potential risks, it would be a fruitless exercise
because:
– it is not possible (or desirable) to eliminate them all;
– the cost of eliminating some risks may be prohibitively
high;
– eliminating some identified risks might give rise to
new risks;
– some risks cannot be accurately assessed;
– the relative importance of risks may change over time;
– a degree of risk is required in order to generate
opportunity.
Communication
• If the project plan is to be effectively implemented,
stakeholders must be fully aware of their
responsibilities.
• One significant advantage of the latest project
management software packages is that they are
capable of producing reports in many different
formats.
• One significant disadvantage of software is that it
produces volumes of data with a click of a mouse.
There is therefore a tendency to issue everyone with
far more information than they require
• Here filtering is a must
THE PLANNING PROCESS
The Planning Process
• The process of project planning can effectively
be broken down into six major stages:
1. Define the project through the statement of
work (SOW):The project is defined in terms of the
contract and other documents
2. Generate a work breakdown structure (WBS):The
project is broken down into work packages.
3. Execute project logic evaluation (PLE):represents
the chosen sequence of implementation of the packages
identified in step 2.
At this point the project manager separates time, cost and quality planning and
develops each thread separately.
The Planning Process
• For project time planning and control only, the
sequence then continues as follows:
4. Use network analysis (chiefly CPM or PERT) to
generate a draft master schedule (DMS): The
result is a draft master schedule in the form of a network
diagram, schedule or Gantt chart.
5. Use trade-off analysis to replan: (DMS) is modified
to meet client requirements.
6. Produce the project master schedule (PMS): the
final version of the schedule. It becomes a contract
document
The top-down strategic approach to
project planning
The Statement of Work (SOW)
• It can be any paper that describes the project and the clients need.
• But for large projects a formal paper should include:
– signature block and project title;
– definition of contract terms and scope;
– information and facilities to be provided by the client;
– project approval requirements;
– terms of payment and interim valuations;
– working drawings;
– specification;
– schedules;
– general conditions;
– specific conditions;
– provision for change and variation;
– form of tender;
– appendices;
– dispute resolution procedure;
– bonds and warranties/insurances to be provided
The Work Breakdown Structure (WBS)
• WBS is to break down a big, complicated task into a large
number of smaller, simpler tasks and can then work with
these.
• Example:
The Work Breakdown Structure (WBS)
• WBS will vary depending on the nature of the
project but the main characteristics are driven
by three main considerations:
1. basis of subdivision;
2. level of definition;
3. numbering
WBS - basis of subdivision
• The work can be disintegrated according to
different approaches, this is usually based on:
1. Work type
2. Responsibility
3. workplace
WBS - level of definition
• It depends on the project to know to which level of
divisions we may reach:
• Example 1: the construction of a new structural steel frame
• Level 1: The structural frame (everything).
• Level 2: Structural members (columns, beams and
connections).
• Level 3: Connections (bolted connections and welded
connections).
• Level 4: Welded connections (butt welds, fillet welds, other
types of weld).
• Level 5: Fillet welds (5 mm, 10 mm, 15 mm).
• Level 6: No requirement.
Example 2: Tree type Structure
WBS - Numbering
• It is usually necessary to develop a corresponding
numerical coding system for the purposes of
tracking each piece of work.
• Example in the previous chart how u can point to
external work activity?
Project Logic Evaluation (PLE)
• PLE simply involves taking the WBS elements
and deciding on the most efficient logical
order in which they should be carried out.
• Its very necessary for time and cost.
• Example: Let us make a cup of tea – can you
guess the WBS
Resources are:
teapot water
tea
kettle
Example
• WBS can be like:
Example
• Some of these WBS elements have to be done
before others.
• Other activities may not require a precedence
• Some activities should be sequential others
may be parallel
• But in the previous WBS we have a problem of
resources how many person we need ?
• So according to resources limitation we can
redraw our WBS as follows
Example
• This is called resources driven solution

• For complicated projects, this can be done by a
software, where we should specify the number of
resources
• Here the project management cab balance
between what is more important the finish date
or the cost of resources
Resource sheet
Think about it !!!
• Questions:
• What would a precedence diagram for
changing a flat tire on a car look like?
• Which activities involved in changing the tire
are logic-driven?
• Which activities are resource-driven?
• Which are both logic- and resource-driven?
Separate Time, Cost and Quality
Planning
• Here in this chapter we will continue with
time
• Cost and quality will come in the next chapters
Scheduling
THE DRAFT MASTER SCHEDULE
(DMS)
Draft Master Schedule (DMS)
• After finishing the PLE and all the network is
done.
• The planner should estimate the duration
required for each activity
• This allows the planner to calculate individual
start and finish times for each activity.
• To estimate an overall project completion date.
• These days this is done by the help of computer
software.
The DMS concept
• The DMS help us to define the critical path, namely the path through the
project that has the longest total activity duration. (The path of activities
that determines the overall project completion date)
• DMS is used to identify:
– an overall project completion date;
– key targets and milestone dates;
– notice periods (such as when to place orders for delivery on a set date);
– key report and review dates;
– mandatory dates that must be met;
– dates for the commencement of damages;
– key handover dates;
– key decision dates.
Two crucial uses are to identify:
– any spare or slack time in the project;
– the critical path.
The DMS concept
• The activity should have start and a finish date
and a duration.
• If the duration is shorter than the time
between the start and the finish dates here
we will have a slack time we call it Float
• Critical path is the path which link the
elements that has no float
The DMS concept
• Scheduling involves the following primary stages.
It is necessary to:
– assign durations to each activity;
– identify the start and finish windows for each activity;
– identify those activities with no float (critical path);
– replan as necessary;
– rationalize resources;
– form a draft master schedule (DMS);
– refine the draft to form a project master schedule
(PMS).
The DMS concept
• To assign the durations of the activities there are
two approaches:
1. CPM is a deterministic approach. This means that
the activity durations can be calculated or are
known with reasonable accuracy.
2. PERT is used where component activity times
cannot be accurately calculated or are not known.
There might be a maximum time, a minimum time
and a most likely time. PERT is therefore a
probabilistic approach.
• After finishing the DMS replanning is a must it is
just a draft
Gantt charts
• In its simplest form, a Gantt chart consists of:
– a horizontal timescale;
– a vertical list of tasks;
– a horizontal line or bar drawn to scale to represent the time
needed to complete the activity.
Gantt Chart for bridge construction
• Gantt charts have limitations when applied to very large and complex
projects. Some typical limitations are listed below.
 Gantt charts do not show the underlying links and interdependencies
between activities.
 Their visual impact becomes confused when large numbers of activities are
considered.
 They show mainly ‘finish-to-start’ relationships.
 They do not usually show resource requirements.
 Replanning can be complex and difficult.
Network Diagrams
• The advantage of a network diagram is that it express visually
the logic of detailing the dependencies between activities.
• Two common standard forms of representation for network:
1. activity-on-arrow (AOA)
2. activity-on-node (AON)
Dummy activities in AOA
• AOA diagrams often contain dummy activities,
shown as broken lines and represent dependencies
Durations in AOA
AON
• In AON there is no need for dummy activities
Types of Independencies
• Finish-to-start relationship.
• Start-to-start relationship.
painter following on behind the wallpaper hangers.
• Finish-to-finish relationship
components could be shipped in phases, but it is not possible
to complete the distribution until all the components have
been made.
• Start-to-finish relationship.
handover or acceptance procedure being dependent upon
the start of a preceding activity.
EXample
• Draw the AOA network of the activities in the
table
solution
Critical Path Method (CPM)
• The basic process of producing a CPM DMS is as
follows.
1. Identify the activities.
2. Establish the basic project logic and draw the network
diagram.
3. Assign durations to each activity.
4. Identify the start and finish window for each activity.
5. Identify the critical path.
6. Replan as necessary.
7. Form a draft master schedule (DMS).
8. Refine the draft to form a project master schedule (PMS).
follows.
diagram.
Identify the start and finish window for
each activity.
• In a DMS the activities have a start and finish window.
• This is the timescale within which the activity must
start and finish.
• The window is normally expressed in terms of the
earliest event time (EET) and the latest event time
(LET).
• The window is the difference between the EET and the
LET and is calculated using a simple arithmetic analysis
known as the pass.
• In most cases a forward pass and a backward pass are
needed to determine the activity windows.
each activity.
each activity.
each activity.
each activity.
follows.
diagram.
Identify the critical path
• The difference between the EET and LET is the float.
• The path through the network that has zero float is the
critical path
follows.
diagram.
Replan as necessary
• One of the most common requirements is to reduce
the overall time required, this can be achieved by:
– Import additional resources and allocate them to the
critical path activities.
– Reduce the total amount of work required (cut corners).
– Reduce the quality of the work (cut back on quality).
– Where possible re-evaluate the activity sequence and
logic.
– Increase efficiency.
– Where possible run more works in parallel.
– Where possible overlap or phase works.
– Negotiate with subcontractors and get them to increase
output.
– Use all available float.
Example
• Using this information perform
the following calculation.
– Draw a network showing each
activity and duration.
– Identify the critical path and
project duration.
– Work out the earliest and latest
event times for each activity.
– Work out the float on each
activity.
Example
Example
Example
Ecample double critical path
Another method
• Divide the Earliest Event Time (EET) into:
1. Earliest Start Time (EST)
2. Earliest Finish Time (EFT)
• Divide the Latest Event Time (LET) into:
1. Latest Start Time (LST)
2. Latest Finish Time (LFT).
This lead to present each activity as follows:
Example
• Let us build a Bridge:
Example
The basic rules are:

1. The EST for the first activity is zero, or the date the project will commence.
2. The EFT for each activity is calculated by adding the duration to the EST.
3. The EST of the next activity is the same as the EFT of its immediate predecessor.
4. Where an activity has more than one immediate predecessor, the EST is the highest of the EFTs of the immediate
predecessors.
5. The EFT of the last activity is the expected duration of the project.
Example
Example
Example
Program Evaluation and Review Technique (PERT)
• Recalled that CPM is a deterministic approach. It is used where it is

possible to accurately estimate how long something is likely to take.
• PERT is event-oriented as it works on calculating the probability of
events being completed within a given time.
• Example: Air plane flight
– Airplane rent an landing slot in the airport- with a penalty if it arrive
outside its time window
– The average might be 7 hours 22 minutes, but some flights may arrive
early while others arrive late, according to lots of reasons
– In (say) 100 observations:
 average time is 7 hours 22 minutes
 shortest observed time is 7 hours 10 minutes
 longest observed time is 9 hours exactly.
• The bigger the landing slot the more it cost
• So the company should accept that only (say) 95% of the flights land in
the slot
Study Case
• Engineering company is cutting a tunnel:
– The third tranche is payable when 75% of the tunnel is
complete.
– It is not possible to estimate the rate of future
progress with any accuracy as it depends on ground
conditions, mechanical failure, etc.
– The tunnel project manager calculates a 65% chance
of reaching the milestone to trigger the next tranche
payment by 1 December.
– The finance manager can then make a decision on
how to finance the works up to that point.
Steps of PERT
2. Establish the basic project logic and draw the network diagram.
3. Assign optimistic, likely and pessimistic durations to each activity.
4. Calculate activity mean duration and standard deviation.
5. Calculate forward and backward pass values.
7. Calculate the project mean duration and standard deviation.
8. Identify target completion date and calculate the mean difference
and standardised mean difference.
9. Calculate the likelihood of achieving the target.
11. Rationalise resources.
Steps Of PERT
 Identify the activities.
Establish the basic project logic and draw the
network diagram
Assign optimistic, likely and pessimistic
durations to each activity.
Steps Of PERT
Calculate activity mean duration and standard
deviation.
Calculate forward and backward pass values.

Identify the critical path.
Steps of pert
Calculate project mean duration and standard
deviation.
Identify target completion date and calculate

the mean difference and standardised mean
difference.
Steps Of PERT
Calculate the likelihood of achieving the
target.
Steps of PERT
 Replan as necessary.
Rationalise resources.
Form a draft master schedule (DMS).
Refine the draft to form a project master
schedule (PMS).
Example
Example
Example
1.32 standard deviations above the

mean
represents a value of greater than
84% (1 standard deviation above)
and less than 97.5%
(2 standard deviations above).
Using linear interpolation88.32%
Project Replanning
CRASH ANALYSIS
Replanning
• Project management is about optimising time, cost and
quality performance on projects and these three variables
are intrinsically linked.
• PM should use one of these combinations:
– Time against cost (with quality fixed);
– Time against quality (with cost fixed);
– Cost against quality (with time fixed).
• This is called Trade-Off analysis.
• The most common concerns time and cost (a time–cost trade-off).
• The analysis and execution of this time change, and its
attendant impact on cost, is commonly known as crash
analysis.
Crash analysis
• The basic process involved in generating a time–
cost (crash) curve is as follows:
1. Define the project logic.
2. Add the duration for each activity.
3. Establish the project critical path.
4. Calculate the cost of crashing each critical path
activity.
5. Calculate the cost of crashing per unit time.
6. Calculate the most cost-effective crash sequence.
7. Check the critical path.
8. Crash the network up to the crash limit.
Crash analysis
• The basic process involved in generating a
time–cost (crash) curve is as follows:
 Define the project logic.
 Add the duration for each activity.
 Establish the project critical path.
 Calculate the cost of crashing each critical path
activity.
Crash analysis
• The basic process involved in generating a time–cost
(crash) curve is as follows:
 Calculate the cost of crashing each critical path activity.
 Calculate the cost of crashing per unit time.
Crash analysis
• The basic process involved in generating a
time–cost (crash) curve is as follows:
 Calculate the cost of crashing each critical path
activity.
 Calculate the cost of crashing per unit time.
 Calculate the most cost-effective crash sequence.
cost-effective crash sequence
• The crash sequence will usually start with the
cheapest unit-crash-cost item and progress to
the most expensive unit-crash-cost item.
Crash analysis
activity.
 Calculate the most cost-effective crash sequence.
 Check the critical path.
If double critical paths do form, both sides have to be crashed by an equal amount
for any net reduction in the overall completion date to occur.
Crash analysis
activity.
 Calculate the most cost-effective crash sequence.
 Check the critical path.
 Crash the network up to the crash limit.
Crash limit
 Optimum cost point: is the starting
point where the lowest cost will be
established for a given time.
 First crash point: (point A) cheapest
crash cost per unit time for a critical
path component.
 Maximum crash point: (point D) is
all critical path activities have been
crashed right up to their limits.
 Fixed overhead curve: This is the
region in which additional time is
allowed for the project although no
extra resources are injected. Fixed
overheads, such as security,
continue to accrue, and overall
costs increase.
Example
Example
Example
Example Crash with damage
Assume the client wishes
the package to be
completed within 31 weeks
and we need to calculate
the most cost-effective way
of completing the package
within this time, giving
the cost increase associated
with this crash sequence.
Then assume liquidated and
ascertained damages apply
at a rate of £50 000 per
week for completion later
than the end of week 30.
The most logical course of action, in most cases, would be to crash back to
week 33 and leave it at that.
Trade-Off Analysis
METHODOLOGY OF TRADE OFF
ANLYSIS
Trade- Off Analysis
• Crash analysis (time against cost) is one type of trade-off
analysis.
• It is also possible to carry out time–quality and cost–quality
trade-off calculations.
• Trade-off may be
1. Pre-executional after DMS
2. Executional during the work
Methodology
• Six-stage methodology for trade-off analysis.
1. Identify the context.
2. Evaluate/re-evaluate the project objectives.
3. Allow for any other relevant factors.
4. Consider solution scenarios.
5. Select and test the best (or approved)
alternative.
6. Implement the best (or approved) alternative.
Trade-Off Analysis
TRADE-OFF CLASSIFICATION
Trade-off classification
• Trade-offs can take numerous different forms.
Over and above the standard (two objectives
variable and one fixed) time–cost, time–
quality and cost–quality classifications, limited
option trade-offs are possible with different
numbers of variables.
Type 1: Performance Is Fixed
• It is the typical time–cost trade-off and is
often represented by a crash curve.
• Companies are usually not prepared to trade
off on quality and/or they find it difficult to
quantify quality to an extent where it can be
used as a full trade-off variable.
• The most used
Type 2: Time Is Fixed
• A type 2 trade-off has fixed time and variable cost and
quality.
• This type occurs where time is the most important
element.
• Type 2 trade-offs are widely used in planning
production systems. Most mass and batch production
systems are set to manufacture products at a constant
rate, which cannot be compromised. The product
designers may vary the cost and performance of the
product, within limits, to meet customer demand while
maintaining production at a constant level.
Type 3: Cost Is Fixed
• A type 3 trade-off has fixed cost and variable time
and quality. Here cost is the most important
consideration.
• Type 3 trade-offs are often encountered in
government departments, schools, universities
and similar bodies, where fixed annual budgets
are often set and the budget holder wishes to
make sure the budget is spent, often as a way of
ensuring a similar level of funding for the
forthcoming financial year.
Type 4: Time and Cost Are Fixed
• A type 4 trade-off occurs where time and cost
are fixed but performance is variable.
• Type 4 trade-offs are rather unusual in a
project context. The relative complexity of
projects generally means that performance
standards have to be specified in some way.
Type 5: Time and Performance Are
Fixed
• A type 5 trade-off occurs where time and
performance are fixed but cost is variable. In
this case a company might establish a target
date for completion and a set of minimum
performance standards to be achieved.
• An obvious example would be something like
the preparations for a major international
sporting event such as the Olympic Games.
Type 6: Cost and Performance Are
Fixed
• A type 6 trade-off occurs where cost and
performance are fixed but time is variable.
• An example would be where a government
brings out a new statute imposing new
maximum levels of emissions on electricity
generators that requires electricity generators
to comply with new emissions standards by a
date 12 years in the future.
Type 7: Everything Is Fixed
• A type 7 trade-off occurs where all three
variables are fixed. There is no flexibility in
time, cost or quality.
• The project is relatively simple and small;
Type 8: Nothing Is Fixed
• A type 8 trade-off occurs where no variables are fixed.
This scenario is relatively unusual and is restricted
largely to emergency works.
• Type 8 trade-offs are sometimes encountered in stop-
lossing. This practice is used by contractors who have
lost money or prestige on a project and simply want to
comply with their contractual obligations as quickly as
possible and move on to another contract. In such
cases, contractors will sometimes ‘pull out all the stops’
and do whatever is possible to fulfil their contractual
obligations as quickly as possible.
Trade-Off Analysis
EXAMPLES OF TRADE-OFF CURVES
Time-Cost
Performance-Cost
• Curve A in Figure 5.65 represents a
standard performance–cost relationship.
There will generally be a linear relationship
between cost and performance up to a
point, but beyond that point there will
generally be a change in the linear
relationship.
• Curve B in represents a system where very
large injections of cash are needed to
achieve small improvements in
performance. This type of curve might be
present in high-technology development
or research programs.
• Curve C in the same diagram represents a
case where there is a linear relationship
between cost and performance, followed
by the first signs of a plateau, followed by a
cash injection that suddenly boosts
performance. A typical example is a
company decides to invest in a training
course.
Performance–Time
• Curve A It is likely that a system can produce
something better if it is allowed to take more
time. However, this will only apply up to a
point. Beyond that point it will require a lot
more time to gain additional improvements
in performance of the same size.
• Curve B shows a similar relationship. In this
case, large improvements are initially
possible by allowing more time. This type of
arrangement would be observed where a
new adaptation or breakthrough is being
exploited.
• Curve C represents a case where large
amounts of time are required to secure small
increases in performance.
• Curve D represents a stepped profile. Here
the overall level of performance reaches a
plateau, so the company invests a certain
amount of time and the result is a marked
increase in performance
Resource scheduling
RESOURCE AGGREGATION
Resources
• Resource availability is a key consideration in
all aspects of project planning and replanning.
• In practice most project plans are developed
from a resource-driven perspective for the
simple reason that resources incur cost
• You need to consider two issues:
– resource availability;
– resource productivity.
Resource Aggregation
• Resource aggregation is a way of estimating the total resource
requirements on an ongoing basis throughout the lifecycle of the project.
Resource utilisation
• Resource utilisation is often expressed in terms of an
efficiency index known as the resource utilisation percentage.
•
• The resource utilisation percentage is the total number of
person days actually worked on the project divided by the
total number of person days available for the project.
• If 100 people are employed on the project for 50 days, there are 5000 person days available. If each
person on average works on the project for only 25 days, the total number of person days worked is 2500.
The resource utilisation percentage is:
Resource utilisation percentage= (2500/5000) × 100% = 50%
• The project manager might set a minimum value for the

percentage. If it falls below a certain level, for example 70 per
cent, then some degree of resource leveling must take place
in order to increase the percentage to at least the minimum
level.
Resource leveling
• Resource leveling resource smoothing is the process of leveling out
the peaks and troughs in resource demand so that resource
utilisation approaches an average. Most project-planning software
has a facility to perform a resource-leveling function.
• There are a number of constraint scenarios within which resource
leveling can be considered:
1. The project completion date is fixed: The critical path cannot be
extended, so unless additional resources can be injected the only scope
for leveling is on non-critical activities.
2. The project completion date is variable: then resource leveling can be
carried out on all activities. The critical path activities can be leveled up
to whatever maximum duration
3. Resources are limited: There is nearly always a limit to the resources
available so it is only possible to level up to a certain point
4. Resources are unrestricted: In practice this scenario is unlikely as infinite
resources imply infinite costs.
Example
 Resource leveling works by consuming the
float that is available on each non-critical
activity.
 Resource leveling works by comparing the
resources required to achieve the Earliest
Start Time and comparing this to the Latest
Start Time.
 A compromise is then made that lies
somewhere between these minimum and
maximum resource values.
Example
Example 2
Example 2
• Reduced peaks in resource demand mean that the overall size of the resource pool can be
reduced. Smaller resource pool means less site accommodation, canteen, transportation
costs, etc.
• Individual people work for a longer period on the project. This has benefits in relation to the
development of team working and learning curves.
• Reduced float times on individual activities can lead to greater continuity between activities.
• Reduced activity durations may have an implication for external subcontractors. Resource
leveling may reduce the overall time that a particular subcontractor is required to attend the
project and in turn produce overall cost reductions.
Worked – Example
1. Draw a schedule showing the process

critical path and duration.
2. Assume the whole process has to be

completed within 36 weeks. Calculate the
most cost effective way of completing
the process within this time, giving the
cost increase associated with this crash
sequence. You should start with the
activity with the lowest cost per unit
crash time and progress to the activity
with the highest cost per unit crash time.
3. Discuss alternative approaches you might

take in making allowance within the
contract for works where the time and
cost required cannot be accurately
estimated before the work is carried out.
• Unforeseeable activity durations can be allowed for by the
inclusion of additional time within project activities to
create a time reserve for use where additional works are
required. Alternatively, the project schedule may contain
reserve or buffer activities that are built in, but actually
require no time.
• Project managers can allow for unforeseeable costs by

including provisional sums where the quantities are
unknown, but where additional work is expected. It is also
standard practice to include a management reserve or
contingency sum as a reserve that can be used as required
on extra works.

Project Time Management

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Project Time Management

PROJECT TIME MANAGEMENT

– geographical location of the project

• This is called resources driven solution

The basic rules are:

• Recalled that CPM is a deterministic approach. It is used where it is

Calculate forward and backward pass values.

Identify target completion date and calculate

1.32 standard deviations above the

• The project manager might set a minimum value for the

1. Draw a schedule showing the process

2. Assume the whole process has to be

3. Discuss alternative approaches you might

• Project managers can allow for unforeseeable costs by

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