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Project Time Management

By Eng. Ashraf Bahaa, PMP

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Project Time Management

1.0

Time Management

For most people, time is a resource that, when lost or misplaced, is gone forever. For a project manager, time is more of a constraint, and effective time management principles must be employed to make it a resource. Inexperienced project managers often work large amount of overtime, with the faulty notion that this is the only way to get the job done. While this may be true, experienced personnel soon learn to delegate tasks and to employ effective time management principles. In Mar/Apr 1981, a survey was conducted of more than 300 project managers in 24 different industries to identify the problems that exist in trying to obtain effective time management. The survey was conducted with written questionnaires and personal interviews. Fifteen areas were investigated: - Employee's background - Energy cycle per week - Overtime - Meeting - Time away from desk - Communications - Planning/re-planning - Delegation - Energy cycle per day - Daily/weekly work schedule - Productivity - Time Robbers - Priorities - Conflict management - Community service

Project managers typically understand the role of the project manager at project conception, but seem to forget it during project execution. Project managers must understand that even through they have the authority, responsibility, and accountability for a project, there are still parent company administrative duties that must be accepted. These items are usually additional work that the project manager has not considered.

1.1

Planning

The most important responsibilities of a project manager are planning, integrating, and executing plans. Planning, in general, can best be described as the function of selecting the enterprise objectives and establishing the policies, procedures, and programs necessary for achieving them. The project manager is the key to successful project planning. It is desirable that the project manager be involved from project conception through execution. Project planning must be systematic, flexible enough to handle unique activities, disciplined through reviews and control, and capable of accepting multifunctional inputs. Successful project manager realized that project planning is an iterative process and must be performed throughout the life of the project. Planning is determining WHAT needs to be done, by WHOM, and by WHEN, in order to fulfill one's assigned responsibility. Planning is the process of preparing for the commitment of resources in the most effective fashion.

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There are four reasons for project planning: 1. To eliminate or reduce uncertainty. 2. To improve efficiency of the operation. 3. To obtain a better understanding of the objectives. 4. To provide a basis for monitoring and controlling work. There are nine major components of the planning phase: 1. Objective: a goal and a target to be achieved by a certain time. 2. Program: The strategy to be followed and a major action to be taken in order to achieve or exceed objectives. 3. Schedule: a plan showing when individual or group activities or accomplishments will be started and/or completed. 4. Budget: Planned expenditures required to achieve or exceed objectives. 5. Forecast: a projection of what will happen by a certain time. 6. Organization: design of the number and kinds of positions, along with corresponding duties and responsibilities, required to achieve or exceed objectives. 7. Policy: a general guide for decision making and individual actions. 8. Procedure: a detailed method for carrying out a policy. 9. Standard: a level of individual or group performance defined as adequate or acceptable.

The contractor plans for the work in two stages: Pretender Planning : The planning undertaken by the contractor after receipt of tender notice and before submitting a bid. It enables the contractor to make a proper bid and prepares him for taking up the work speedily, in case his bid is successful. Contract Planning : After the tender has been accepted, the contractor has to undertake further intensive planning. It aims at organization all aspects of construction job so that the work may proceed without any interruptions or delay. The scheduling of activities is the first major requirement of the program office after program go-ahead. Activity scheduling is probably the single most important tool for determining how company resources should be integrated so that synergy is produced.

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Project Time Management

1.2

Preparation sequence for schedules and program plans

Contractor Program Office


1
Request for detailed schedule & plans Level 3

4
Individual Reviews

5
Program Team Review

6
Verification

7
Rough Drafts

8
Finalize Plans / Schedules

Functional Management

Program Team Managers

Customer Office

Supervise Preparation 2 3
Functional Management Review

Verify that all functional plans are integrated

Customer Review

Dept. / Section Level

Publications

Prepare Plans

10

Distribution

Detailed schedules are prepared for almost every activity. It is the responsibility of the program office to marry all of the detailed schedules into one master schedule to verify that all activities can be completed as planned. The program office submits a request for detailed schedules to the functional managers. The request may be in the form of a planning work authorization document. The functional managers then prepare summary schedules and detailed schedule. Each functional manager then reviews his schedules with the program office. The program office, together with the functional program team members, integrates all of the plans and schedules and verifies that all contractual dates can be met. Before the schedules are submitted to publications, rough drafts of each schedule and plan should be reviewed with the customer. After the document is published, it should be distributed to all the program office personnel, functional team members, functional management, and the customer.

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Project Time Management

2.0

Scheduling Techniques

Scheduling techniques have taken on paramount importance since World War II. The most common techniques are: Gantt or Bar Charts. Milestone Charts. Line of Balance Networks Program Evaluation and Review Technique (PERT) Critical Path Method (CPM) Arrow Diagram Method (ADM) Precedence Diagram Method (PDM) Graphical Evaluation and Review Technique (GERT)

2.1

Gantt (Bar) Chart

The most common type of display is the Gantt or Bar Chart, named for Henry Gantt, Who first utilized this procedure in the early 1900s. The bar chart is a means of displaying simple activities or events plotted against time or dollars. An activity represents the amount of work required to proceed from one point in time to another. Events are described as either the starting or ending point for either one or several activities. Bar charts are advantageous in that they are simple to understand and easy to change. Bar Charts are most commonly used for exhibiting program progress or defining specific work required to accomplish an objective. The primary advantage of the bar chart is that plan, schedule, and progress of the project can all be portrayed graphically together.

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Project Time Management

2.2

Milestone (Master) Schedule

A summary-level schedule, which identifies the major milestones.

2.3

Development of the network plan concept:

The Major discrepancy with Gantt and Milestone Charts is the inability to show the interdependencies between events and activities. Interdependencies are shown through the construction of networks. The heart of network-based planning methods is graphical portrayal of the plan for carrying out the program. Such a graph, called a network, shows the dependency relationship among the project activities using the simple logic that all activities preceding a given activity must be completed before the given activity may begin. The prime purpose of network planning is to eliminate the need for crisis management by providing a pictorial representation of the total program. The major use of project networks is scheduling-determining how long the project will take (Project Duration) and when each activity should be scheduled.

2.4

Network Fundamentals:

Networks are composed of events and activities. An event is defined as the starting or ending point for a group of activities, and an activity is the work required to proceed from one event or point of time to another. The standard nomenclature for a network is consisting of Node and Arrow.

2.4.1

Types of networks

Arrow Diagram Method (ADM) or Activity-on-Arrow (AOA) In case of ADM: the node represents an event and the arrow represents an activity. Activity Event Arrow Node Node
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Event

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Project Time Management

Precedence Diagram Method (PDM) or Activity-on-Node (AON) In case of PDM: the node represents an Activity and the arrow represents a Relationship.

Relationship Activity Activity

Arrow Node Node

Activity A

Relationship

Activity B

Predecessor

Successor

Activity A

Activity B

Predecessor

Successor

Activity A is predecessor of activity B Activity B is successor of activity A A<B or B>A

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Project Time Management

2.5

Dummy activity:

Sometimes, it is impossible to draw network dependencies without including dummy activities. Dummy activities are artificial activities, represented by a dotted line, and do not consume resources or require time. They are added into the network simply to complete the logic. Example A<C B<E C < D, E

A 1 B

2 C D 3 E 5 4

X
D 5

A 1

3 Dummy Activity 4

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Project Time Management

2.6

The Critical Path

TE = 3 TL = 3 TE = 0 TL = 0

TE = 6 TL = 9

A 3 2 B

C 3 7 E

4 6

T E = 15 TL = 15

6 5 G

3
TE = 2 TL = 5

5 D

5
T E = 10 TL = 10

The expected project duration is determined by finding the longest path through the network. A path is any route comprised of one or more activities connected in sequence. The longest path from the origin node to the terminal node is called the critical path; this gives the expected project duration. The bold line in the shown network represents the critical path, which is established by the longest time span through the total system of events. The critical path is composed of events 1-2-5-6. The critical path is vital for successful control of the project because it tells management two things: Because there is no float time in any of the events on this path, any slippage will cause a corresponding slippage in the end date of the project unless this slippage can be recovered during any of the downstream events on the critical path. Because the events on this path are the most critical for the success of the project, management must take a hard look at these events in order to improve the total project. The path is called critical in the sense that, should it be necessary to reduce the project completion time, the reduction would have to be made by shortening activities on the critical path. Shortening any activity on the critical path by, say one week, would have the effect of reducing the project duration by one week. In contrast, shortening activities not on the critical path has no effect on project duration.

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Project Time Management

2.7

Slack Time

Since there exists only one path through the network that is the longest, the other paths must be either equal in length to or shorter than that path. Therefore, there must exist events and activities that can be completed before the time when they are actually needed. The time differential between the schedule completion date and the required date to meet critical path is referred to as the slack time. Slack can be defined as the difference between the latest allowable date and the earliest expected date based on the nomenclature below: TE = the earliest date on which an event can be expected to take place. TL = the latest date on which an event can take place without extending the completion date of the project. Slack time = T E - T L The calculation of slack time is not difficult. For complex networks containing multiple paths, the earliest starting dates must be found by proceeding from start to finish through the network (Forward), while the latest allowable starting date must be calculated by working from finish to start (Backward). Some people prefer to calculate the earliest and latest times for each activity. ES = the earliest time when an activity can start. EF = the earliest time when an activity can finish. LS = the latest time when an activity can start. LF = the latest time when an activity can finish. To calculate the earliest starting times, we must make a forward pass through the network (from left to right). The earliest starting time of a successor activity is the latest of the earliest finish dates of the predecessors. The latest starting time is the total of the earliest starting time and the activity duration. To calculate the finishing times, we must make a backward pass through the network (from right to left) by calculating the latest finish time. Since the activity time is known, the latest starting time can be calculated by subtracting the activity time from the latest finishing time. The latest finishing time for an activity entering a node is the earliest finishing time of the activities exiting the node?

Activity ID (ES, EF) Duration (LS, LF)

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Project Time Management

2.8

Origin and use of PERT

PERT was developed by the U.S. Navy during the late 1950s to accelerate the development of the Polaris Fleet Ballistic Missile. The development of this weapon involved the coordination of the work of thousands of private contractors and other government agencies. The coordination with PERT was so successful that the entire project was completed 2 years ahead of schedule. This has resulted in further applications of PERT in other weapons development program in the Navy, Air Force, and Army. At the current time, it is extensively used in industries and other service organization as well. The time required to complete the various activities in a research and development (R&D) project is generally not known a priori. Thus, in its analysis PERT incorporates uncertainties in activity times. It determines the probabilities of completing various stages of the project by specified deadlines, and also calculates the expected time to complete the project. An important and extremely useful by product of PERT analysis is its identification of various "Bottlenecks" in the project. In other words, it identifies the activities that have high potential for causing delays in completing the project on schedule. Thus, even before the project has started, the project manager knows where to expect delays. He can take the necessary preventive measures to reduce possible delays so that project schedule is maintained. Because of its ability to handle uncertainties in job times, PERT is extensively used in research and development projects.

2.9

Origin and use of CPM

The critical path method closely resembles PERT in many aspects but developed independently by E.I. du Pont de Nemours Company in the period 1956-1959. As a matter of fact, the two techniques, PERT and CPM, were developed almost simultaneously. The objective of the CPM research team was to determine how best to reduce the time required to perform routine plant overhaul, maintenance, and construction work. The major difference between CPM and PERT is that CPM dose not incorporate uncertainties in job times. Instead, it assume that activity times are proportional to the amount of resources allocated to them, and that by changing the level of resources the activity times and the project completion time can be varied. Thus, CPM assumes prior experience with similar projects from which relationship between resources and job times are available. CPM then evaluates the trade-off between project cost and project completion time. CPM is mostly used in construction projects were one has prior experience in handling similar projects. PERT and CPM techniques are similar in that they divide project into manageable activities and identify those that are critical to project completion, that is, those where a variation in time affects project completion. All other activities are not critical.

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Project Time Management

The basic elements of both PERT and CPM are: Network diagram. Critical path through the network. The differences between PERT and CPM are

PERT

CPM

Uses three times estimates to each Uses one time estimate (Normal time) activity for each activity Probabilistic in nature Used for R&D projects Deterministic in nature

Used for construction projects Percent complete can be determined Percent complete is almost with reasonable accuracy and impossible to determine except at customer billing can be accomplished completed milestones based on percent complete.

The basic difference between PERT and CPM lies in the ability to calculate percent complete. PERT is used in R&D projects or just development activities, where a percent complete determination is almost impossible. Therefore, PERT is event oriented rather than activity oriented. In PERT, funding is normally provided for each milestone (event) achieved. CPM, on the other hand, is activity oriented because, in activities such as construction, percent complete along activity line can be determined. The CPM has been widely used in the process industries, in construction, and in single-project industrial activities.

2.10

Graphical Evaluation and Review Technique (GERT)

Graphical evaluation and review technique (GERT) are similar to PERT but have the distinct advantages of allowing for looping, branching, and multiple project end results

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Project Time Management

3.0 Program Evaluation and Review Technique (PERT)


3.1 Estimating activity time

We computed the Critical Path and slack times using best estimates for activity duration times. Instead of using one estimate for activity duration, PERT addresses uncertainty in the duration by using three time estimates {Optimistic, Most Likely, and Pessimistic}. These estimates are then used to calculate the "expected time" for an activity. The Optimistic Time: (a) is the minimum time an activity could take (the situation, where every thing goes well) There should be little hope of finishing before this time. The Most Likely Time: (m): is the normal time to complete the job. It is the time would occur most frequently if the activity could be repeated. The Pessimistic Time: (b): is the maximum time an activity could take (the situation, where bad luck is encountered at every step. The adverse conditions include mechanical breakdowns, minor labour troubles, and shortage of or delays in delivery of material. The estimates are obtained from the most qualified people, expert estimators or those who will actually perform or manage the activity. They should be the people most knowledgeable about difficulties likely to be encountered and about the potential variability in time. The three estimates are related in the form of a Beta probability distribution with parameters a and b as the end points, and m the modal, or most frequent.

Expected (t e) Optimistic (a)

Pessimistic (b)

e m i t f o y t i l i b a b o r P

Most Likely (m)

Beta Distribution

Activity duration time

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Project Time Management

Based on this distribution, the mean or expected time te and the variance ? activity are computed with the three time estimates: te = a + 4m + b 6 2 ?2 = ba 6

of each

The expected time te represents the point on the distribution where there is a 50/50 chance that the activity will be completes earlier or later than it.
2 The variance ?2 : is a measure of variability in the activity completion time.

Example:

Activity
1-2 1-3 2-4 3-4

A
5 7 3 2

Duration (week) m B
11 7 5 9 11 7 13 10

te
10 7 6 8

Variance 2 ?
1 0 2.78 1.78

10 1 7

6 4 8

Critical Path: 1-2-3-4: 18 weeks 2 Variance ? = 1+1.78 = 2.78 Standard deviation ? (2.78) = 1.67 =

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Project Time Management

3.2

Probability of completion the project

The expected duration of the project Te is the sum of the expected duration of the activity in the critical path. The project duration in PERT is not a single estimate but an estimate subject to uncertainty owing to the uncertainties of the activity times along the critical path . Thus, the project duration can be thought of as a probability distribution with an average of Te. So the probability completing the project prior to Te is less than 50 %, and the probability of completing it later than Te is greater than 50 %. The distribution of project durations Te's, is approximated using the familiar bell-shape, normal distribution. Giving this assumption, the probability of meeting any target project completion date Ts which dose not coincide with the expected date Te can be determined.

Normal Distribution

) x ( P y t i l i b a b o r P

Standard normal distribution for = 0 and = 1

Z = (x ) /
Probability of completing the project in less than Te = 50% Probability of completing the project in more than Te = 50% Probability of completing the project in exactly Te = 0% Probability of completing the project in (Te -1) to (Te +1) = 68% Probability of completing the project in (Te -2) to (Te +2) = 95% Probability of completing the project in (Te -3) to (Te +3) = 99.7%

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Probability of completing the project in less than (Te +1) = 84% Probability of completing the project in more than (Te +1) = 16% Probability of completing the project in less than (Te + 2) = 97.5% Probability of completing the project in more than (Te +2) = 2.5% Probability of completing the project in less than (Te + 3) = 99.85% Probability of completing the project in more than (Te + 3) = 0.15%

3.3

Case Study Duration (week) Activity


1-2 1-3 1-4 2-5 3-5 4-6 5-6

Variance te
2 4 3 1 6 5 7
2 ?

a
1 1 2 1 2 2 3

m
1 4 2 1 5 5 6
TE = 2 TL = 9 Slack = 7

B
7 7 8 1 14 8 15

1 1 1 0 4 1 4

TE = 0 TL = 0 Slack = 0

2 1 4

T E = 10 TL = 10 Slack = 0

6 7 3

TE = 4 TL = 4 Slack = 0 T E = 17 TL = 17 Slack = 0

TE = 3 TL = 12 Slack = 9

4 5

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Project Time Management

The critical path: 1-3-4-6 The expected project time = 17 weeks 2 Variance ?< = 9 Standard Deviation = 3 The probability that the project will be completed at least 3 weeks earlier than expected: Z = (x ) / Z = (14 17) / 3 = -1 The probability = 16% The probability that the project will be completed no more than 3 weeks later than expected: Z = (x ) / Z = (20 17) / 3 = 1 The probability = 84% If the project due date is 18 weeks: The probability of meeting the due date: Z = (x ) / Z = (18 17) / 3 = 0.33 The probability = 37.07% The probability of not meeting the due date = 62.93% For probability 90% Z = 1.28 Z = (x ) / 1.28 = (x 17) / 3 x = 20.84 weeks

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Project Time Management

4.0

Precedence Networks

An important extension to the original activity-on-node concept appeared around 1964 in the Users Manual for an IBM 1440 computer program. One of the principal authors of the technique was J. David Craig, who referred to the extended node scheme as "precedence diagramming". The computation and interpretation of early/late start/finish times for project activities for this scheme is considerable more complex than those shown for the basic finish-to-start constraint logic of arrow or node diagrams. The computation and interpretation of these times was both simple and unique. The basic computational approach to be used in this text is to adopt a procedure that will lead to activity early/late start/finish times for a precedence diagram network that are identical to those that would be obtained for the equivalent arrow diagram and the conventional forward and backward pass computations. The computational procedure to be given here is based on an extension of the PERT/CPM network logic from a single finish-to-start type of dependency to include three other types. The other dependency relationships are presented in figure below.

(A) Finish-To-Start

Activity (1)

FS12

Activity (2)

(B) Start-To-Start

Activity (1) SS12 Activity (2)

(C) Finish-To-Finish

Activity (1)

FF12

Activity (2) Activity (1) SF12 Activity (2)


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(D) Start-To-Finish

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Project Time Management

The arrow represents the relationship between activity (1) and activity (2) which are related activities in network (A) Finish-To-Start: FS12: is equal to the minimum number of time units that must transpire from the completion of the predecessor {activity (1)} prior to the start of the successor {activity (2)}. This is the sole logic constraint used in PERT/CPM with FS12 = 0 (B) Start-To-Start: SS12: is equal to the minimum number of time units that must be completed on the predecessor {activity (1)} prior to the start of the successor {activity (2)}. (C) Finish-To-Finish: FF12: is equal to the minimum number of time units that must remain to be completed on the successor {activity (2)} after the completion of the predecessor {activity (1)}. (D) Start-To-Finish: SF12: is equal to the minimum number of time units that must transpire from the start of the predecessor {activity (1)} to the completion of the successor {activity (2)}. The figure below show the typical information that appears in each of the activity boxes (nodes)

Activity Duration

Activity ID

Total Float (Slack)

Activity Description

Early Start ES

Late Start LS

Early Finish EF

Late Finish LF

4.1

Lag

The time period between the early start or finish of one activity and the early start or finish of another activity in the sequential chain. Lag is most commonly used in conjunction with precedence networks.

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Project Time Management

4.2

Precedence diagram computational procedures

Obviously the forward and backward pass computational problem becomes more complex with precedence diagramming. In the computational procedures we will assume that the specified activity durations are fixed and the activity splitting is not allowed on any activities.

4.2.1

Forward pass computations

The following two steps are applied to each project activity. The term called Initial Time is set equal to zero or to an arbitrarily specified project schedule start time. Step 1: Compute ES2, the early start time of the activity (2). It is the maximum (latest) of the set of start times which include the Initial Time, and one start time computed from each constraint going to the activity (2) from predecessor activities indexed by (1)

ES2 = Max1

Initial Time EF1 + FS12 ES1 +SS12 EF1 + FF12 D2 ES1 + SF12 D2

Step 2:

EF2 = ES2 + D2

4.2.2

Backward pass computations

The following two steps are applied to each project activity in the reverse order of the forward pass computations. The term called Terminal Time is set equal to the project duration or to an arbitrarily specified project schedule completion time. Step 1: Compute LF1, the late finish time of the activity (1). It is the minimum (earliest) of the set of finish times which include the terminal Time, and one finish time computed from each constraint going to the activity (1) to successor activities indexed by (2)

LF1 = Min2

Terminal Time LS2 - FS12 LF2 - FF12 LS2 - SS12 + D1 LF2 - SF12 + D1

Step 2:

LS1 = LF1 D1

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Project Time Management

4.3

Total Slack (Total Float)

The Es and Ls (EF and LF) are not always the same at each activity. The difference between ES and LS is referred to as total slack (float) TF. Slack is the range of allowable variation between when an activity can be scheduled and when it must be scheduled for the project to complete on target. Total Slack (Float) = LS ES Total Slack (Float) = LF EF The total slack for activities on the critical path is ZERO, meaning that a delay in any of the critical activities would delay the project. One reason why the longest path is called the "critical" path is because, besides being the longest path, slack along the critical path is always the smallest slack of any where in the project. Activities not on the critical path (non critical activities) can be delayed by their amount of total slack without affecting the completion date and the total slack is the maximum time they can be delayed, once their total slack time is used up, non critical activities become critical and further delays will delay the project completion date.

4.4

Free Slack (Free Float)

Some non critical activities can be delayed without affecting the slack of successor activities. The term Free Slack (Float) FF is used to refer to the amount of time an activity can be delayed without affecting the start time of any successor activities. Free Slack (Float) = ES earliest successor EF predecessor

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Project Time Management

4.5

Case Study:

Forward pass computation:


Activity (A): ESA = { INITIAL TIME = 0 } = 0 EFA = ESA + DA = 0 + 8 = 8 Activity (B): ESB = MaxA { INITIAL TIME = 0 } { ESA + SSAB = 0 + 3 = 3 } =3 { EFA + FFAB - DB = 8 + 4 - 12 = 0 } EFB = ESB + DB = 3 + 12 = 15 Activity (C): ESC = MaxB { INITIAL TIME = 0 } { ESB + SSBC = 3 + 6 = 9 } = 9 EFC = ESC + DC = 9 + 4 = 13 Activity (D): ESD = MaxB { INITIAL TIME = 0 } { EFB + FSBD = 15 + 0 = 15 } = 15 EFD = ESD + DD = 15 + 6 = 21 Activity (E): ESE = MaxC,D { INITIAL TIME = 0 } { EFC + FSCE = 13 + 0 = 13 } = 21 { EFD + FSDE = 21 + 0 = 21 } EFE = ESE + DE = 21 + 6 = 27 Activity (F): ESF = MaxD { INITIAL TIME = 0 } { ESD + SFDF - DF = 15 + 15 - 12 = 18 } = 18 EFF = ESF+ DF = 18 + 12 = 30
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Project Time Management

Backward pass computation:


Activity (F): LFF = { TERMINAL TIME = 30 } = 30 LSF = LFF - DF = 30 - 12 = 18 Activity (E): LFE = { TERMINAL TIME = 30 } = 30 LSE = LFE - DE = 30 - 6 = 24 Activity (D): LFD = MinE,F { TERMINAL TIME = 30 } { LSE - FSDE = 24 - 0 = 24 } = 21 { LFF - SFDF + DD = 30 - 15 + 6 = 21 } LSD = LFD - DD = 21 - 6 = 15 Activity (C): LFC = MinE { TERMINAL TIME = 30 } { LSE - FSCE = 24 - 0 = 24 LSC = LFC - DC = 24 - 4 = 20

} = 24

Activity (B): LFB = MinC,D { TERMINAL TIME = 30 } { LSC - SSBC + DB = 20 - 6 + 12 = 26 } = 21 { LSD - FSBD = 15 - 0 = 15 } LSB = LFB - DB = 15 - 12 = 3 Activity (A): LFA = MinB { TERMINAL TIME = 30 } { LFB - FFAB = 15 - 4 = 11 } =8 { LSB - SSAB + DA = 3 - 3 + 8 = 8 } LSA = LFA- DA = 8 - 8 = 0

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Project Time Management

5.0

Resource Management

Each activity in a network may have some form of resource associated in its execution. Typically, these are manpower, machine (equipment), material, and money (financial). In developing a program of work, its duration and the amount of resources it requires are totally dependent on each other. The next step is to consider the total demand for key resources. So far we have assumed that the requirements of each individual activity can be met but, when considering the project or contract as whole, there will be competition between activities and the demand may either exceed the planned availability of resources or produce a fluctuating pattern for their use. Two techniques : resource smoothing and resource leveling are available for the manipulation of resource demands. In both cases, it is essential to realize that this is a complex process and therefore only selected key resources should be considered. Manual adjustment can be attempted for small programs but schemes of 50 activities or more will normally require the use of a computer software.

5.1

Resource Loading

The discussion of work scheduling has assumed implicitly that any resources needed to do the work would always be available. The only schedule restriction was that predecessor activities must be completed first. A different, additional restriction will now be considered: constrained resources. While many resources are available in sufficient quantity so as not to pose scheduling problems, all resources are finite and many are scarce. In many cases, limited availability of skilled labor, equipment, and material dictate that activities must be scheduled at times other than the early or even late start date. In most situations, the resources available are limited, and it is obviously essential to see that the resources required are never greater than those available. Critical path analysis, while not resolving this situation uniquely, provides useful assistance in achieving an acceptable solution, since it shows which activities can be moved without increasing the total project time, and also the effect of moving time-limited activities. This type of manipulation can be very difficult if there are a large number of activities and a large number of resources, as the number of possible moves increases factorially with the number of activities. To allow a systematic procedure to be followed, a set of decision rules must be generated. These rules, which will differ from organization to organization, will not necessarily produce a best or optimum solution, but they will tend to produce feasible or workable solutions in a reasonable time.

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Project Time Management

Dur = 4 Res = 9

Dummy End

Dummy Start

Dur = 2 Res = 3

Dur = 3 Res = 8

Dur = 3 Res = 1

2
Dur = 2 Res = 6

5
Dur = 2 Res = 7

7
Dur = 3 Res = 2

Dur = 2 Res = 4

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Project Time Management

5.2

Resource Leveling

In many project scheduling situations, the total level of resource demands projected for a particular schedule by the resource loading diagram may not be of major concern because ample quantities of the required resources are available. But it may be that the pattern of resource usage has undesirable features, such as frequent changes in the amount of a particular manpower skill category required. Resource leveling techniques are useful in such situations; they provide a means of distributing resource usage over time to minimize the period-by-period variations in manpower, equipment, or money expended. They can also be used to determine whether peak resource requirements can be reduced with no increase in project duration.

As this simple example shows, the essential idea of resource leveling centers about the rescheduling of jobs within the limits of available float to achieve better distribution of resource usage. The float available in each activity is determined from the standard CPM calculations. When applying resource leveling to the activities that constitute a network, the author visualizes the network as a flexible framework that can be pushed and pulled in order to change its shape. Imagine this network superimposed onto a horizontal time axis and a vertical scale of resource availability. If unlimited resources are provided, the overall duration will be the critical path duration the minimum time to complete all the work with the given logic and activity durations and resource demand is likely to be very uneven. If resource levels are reduced, the network will be squashed and, once the available float is absorbed, the time scale must then be extended.

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Project Time Management

6.0

Project crashing

It is often true that the performance of some or all activities can be accelerated by the allocation of more resources at the expense of the higher activity direct cost. When this is so, there are many different combinations of activity durations that will yield some desired schedule duration. However, each combination may yield a different value of total project cost. Time/Cost trade-off procedures are directed at determining the least-cost schedule for any given project duration. Each activity can be performed at different duration ranging from an upper "Normal" value, at some associated "Normal" cost, down to a lower, "Crash" value, with an associated higher cost. The cost of intermediate activity durations between the normal and crash durations is easily determined from the single cost "Slope" value for each activity.

4 0 8

4 F 5

7 5 3

Activity Duration
0-1 0-2 1-2 1-4 2-3 2-4 3-5 4-5 4 8 6 9 4 5 3 7

ES
0 0 4 4 10 10 14 15

EF
4 8 10 13 14 15 17 22

LS
0 2 4 6 15 10 19 15

LF
4 10 10 15 19 15 22 22

TF
0 2 0 2 5 0 5 0

CP
* *

* *

Cost Slope = (Crash Cost Normal Cost) / (Normal Duration Crash Duration)

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Project Time Management

Normal Activity Duration Days 0-1 0-2 1-2 1-4 2-3 2-4 3-5 4-5 4 8 6 9 4 5 3 7 Cost L.E 210 400 500 540 500 150 150 600

Crash Duration Days 3 6 4 7 1 4 3 6 Cost L.E 280 560 600 600 1100 240 150 750

Cost Slope L.E 70 80 50 30 200 90 0 150

Total

3050

4280

If all activity durations are set at "Normal" values, the project duration is 22 days, as determined by the critical path (CP) 0-1-2-4-5. The associated cost of project performance is 3050 L.E; this cost could be increased to 3870 L.E through unintelligent decision-making by crashing all activity not on the critical path with no decrease in project duration. Between these upper and lower cost values for project duration of 22 days there are several other possible values, depending upon the number of non-critical activities crashed. If all activity durations are set at "Crash" values, the project duration can be decreased to 17 days, with total cost of 4280 L.E. Duration of 17 days can also be achieved at lower cost by not crashing activities unnecessarily. With all other activities set at crash value, the associated cost of performance for 17 days project duration is reduced to 3520 L.E. This value is the lowest possible value for 17 days project duration.
All crash point 4280 4000 4210 4080 3970 3920 3870 t s 3500 o C 3520 Line of max. cost Crash all except CP

4500

Region of possible costs


3370 3270

3150

3100 3050

3000 Line of min. cost 2500

All normal point

16

17

18

19

20

21

22

23

Days

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Project Time Management

7.0

Project Control

Controlling is a three-step process of measuring progress toward an objective, evaluating what remains to be done, and taking the necessary corrective action to achieve or exceed the objectives. These three steps: measuring, evaluating, and correcting are defined as follows: Measuring: determining through formal and informal reports the degree to which progress toward objectives is being made. Evaluating: determining cause of and possible ways to act on significant deviations from planned performance. Correcting: taking control action to correct an unfavorable trend or to take advantage of an unusually favorable trend. The project manager is responsible for ensuring the accomplishment of group and organizational goals and objectives. To affect this, he must have a thorough knowledge of standards and cost control policies and procedures so that a comparison is possible between operating results and pre-established standards. The project manager must then take the necessary corrective actions.

Objectives s n o i t c A e v i t c e r r o C

Planning

Execution

& p u w o l l o F

g n i r o t i n o M

Results

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The requirements for an effective control system should include: Through planning of the work to be performed to complete the project. Good estimating of time, labor, and costs. Clear communication of the scope of required tasks. A disciplined budget and authorization of expenditures. Timely accounting of physical progress and cost expenditures. Periodic re-estimation of time and cost to complete the remaining work. Frequent, periodic comparison of actual progress and expenditures to schedule and budgets, both at the time of comparison and at project completion. Management must compare the time, cost, and performance of the program to the budgeted time, cost, and performance, not independently but in an integrated manner. All three parameters (time, cost, and performance) must be analyzed as a group. The first purpose of control therefore becomes a verification process accomplished by the comparison of actual performance to date with the predetermined plans and standards set forth in the planning phase. The second purpose of control is that of decision making. Control provides an organization with ways to : Adapt to environment change. Limit the accumulation of error. Cope with organizational complexity. Minimize costs. There are three reports are required by management in order to make effective and timely decisions: Status reporting: describing where the project now stands. Progress reporting: describing what the project team has accomplished. Forecasting: predicting future project status and progress. Three useful results arise through the use of these reports, generated during a thorough decision-making stage of control: Feedback to management, the planners, and the doers. Identification of any major deviations from the current program plan, schedule, or budget. The opportunity to initiate contingency planning early enough that cost, performance, and time requirements can undergo corrected action without loss of resources. One way to increase the effectiveness of control is to fully integrate planning and control. The control system should be flexible, accurate, timely, and as objective as possible. Employees may resist organizational controls if they feel over-controlled, if they think that control is inappropriately focused, if they are being rewarded for inefficiency, or if they desired to avoid accountability. Managers can overcome this resistance by improving the effectiveness of control and by allowing employee participating and developing verification procedures.
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Project Time Management

References
Adel El-Shabrawy The professional program in project management PM10 Project Planning and Control Techniques, Oct. 1997 / AUC E.F.L.Brech Management Its Nature and Significance 4th Edition 1967 Frank T. Anbari "Quantitative Methods for Project Management" International Institute for Learing (IIL), 1997 Gamal Nassar The professional program in project management Dec. 1990 / AUC Harold Kerzner Project Management A System Approach to Planning, Scheduling, and controlling 6th Edition 1997. Keith Lockyer "Production Management" 4th Edition 1983 Mohamed Fahmy Hassan "Project Planning & Control" Center of advancement of post-graduate studies in engineering sciences Faculty of Engineering, Cairo University. Osama Hosny The professional program in project management PM20 Management of Project Resources, Oct. 1997 / AUC PMI. A Guide to the Project Management Body of Knowledge (PMBOK Guide) 2000 Edition. Project Management Institute, 130 South State Road, Upper Darby, 2000 Ricky W.Griffin Management 5th Edition 1996 R.S.Dwivedi "Manpower Management" An Integrated approach to personnel management and labour relation New Delhi 1980 S.A.Sherlekar "Business Administration and Management" 1st Edition 1979

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