Project Management

Techniques

Dr. Surya Prakash Singh
PhD(IIT Kanpur), PDF (NUS Sinagpore-MIT USA Alliance)

Department of Management Studies
Indian Institute of Technology Delhi
New Delhi-110016

2

Developing
Developing the
the Project
Project Plan
Plan
• The Project Network
– A flow chart that graphically depicts the sequence,
interdependencies, and start and finish times of the
project job plan of activities that is the critical path
through the network.
• Provides the basis for scheduling labor and equipment.
• Enhances communication among project participants.
• Provides an estimate of the project’s duration.
• Provides a basis for budgeting cash flow.
• Identifies activities that are critical.
• Highlights activities that are “critical” and can not be
delayed.
• Help managers get and stay on plan.
3

From
From Work
Work Package
Package to
to Network
Network
WBS/Work Packages to Network

FIGURE 1
4

From
From Work
Work Package
Package to
to Network
Network (cont’d)
(cont’d)
WBS/Work Packages to Network (cont’d)

FIGURE 1 (cont’d)
5

A – Merge Activity: an activity that has two or more preceding activities on which it depends.Constructing Constructing aa Project Project Network Network • Terminology – Activity: an element of the project that requires time. if desired. not at the same time. B – Parallel (Concurrent) Activities: Activities that can occur independently and. D C 6 .

the shortest expected time in which the entire project can be completed. dependent activities. C A B D 7 .Constructing Constructing aa Project Project Network Network (cont’d) (cont’d) • Terminology – Path: a sequence of connected. – Critical path: the longest path through the activity network that allows for the completion of all projectrelated activities. Delays on the critical path will delay completion of the entire project.

• Two Approaches B – Activity-on-Node (AON) • Uses a node to depict an activity. It does not consume time.Constructing Constructing aa Project Project Network Network (cont’d) (cont’d) • Terminology – Event: a point in time when an activity is started or completed. – Burst Activity: an activity that has more than one activity immediately following it (more than one dependency arrow flowing from it). D 8 . A C – Activity-on-Arrow (AOA) • Uses an arrow to depict an activity.

• Arrows indicate precedence and flow and can cross over each other. • An activity cannot begin until all of its activities are complete. • Looping is not allowed. 9 . this number must be greater than its predecessors. • Identify each activity with a unique number.Basic Basic Rules Rules to to Follow Follow in in Developing Developing Project Project Networks Networks • Networks typically flow from left to right. • Use common start and stop nodes. • Conditional statements are not allowed.

Activity-on-Node Activity-on-Node Fundamentals Fundamentals FIGURE 2 10 .

Activity-on-Node Activity-on-Node Fundamentals Fundamentals (cont’d) (cont’d) FIGURE 2 (cont’d) 11 .

Network Network Information Information TABLE 1 12 .

Koll Koll Business Business Center Center—Partial —Partial Network Network FIGURE 3 13 .

Koll Koll Business Business Center Center—Complete —Complete Network Network FIGURE 4 14 .

Network Network Computation Computation Process Process • Forward Pass—Earliest Times – How soon can the activity start? (early start—ES) – How soon can the activity finish? (early finish—EF) – How soon can the project finish? (expected time—ET) • Backward Pass—Latest Times – How late can the activity start? (late start—LS) – How late can the activity finish? (late finish—LF) – Which activities represent the critical path? – How long can it be delayed? (slack or float—SL) 15 .

Network Network Information Information TABLE 2 16 .

Activity-on-Node Activity-on-Node Network Network FIGURE 5 17 .

Activity-on-Node Activity-on-Node Network Network Forward Forward Pass Pass FIGURE 6 18 .

19 . • Carry the early finish (EF) to the next activity where it becomes its early start (ES) unless… • The next succeeding activity is a merge activity. in which case the largest EF of all preceding activities is selected.Forward Forward Pass Pass Computation Computation • Add activity times along each path in the network (ES + Duration = EF).

Activity-on-Node Activity-on-Node Network Network Backward Backward Pass Pass FIGURE 7 20 .

Backward Backward Pass Pass Computation Computation • Subtract activity times along each path in the network (LF .Duration = LS). 21 . • Carry the late start (LS) to the next activity where it becomes its late finish (LF) unless • The next succeeding activity is a burst activity. in which case the smallest LF of all preceding activities is selected.

Determining Determining Slack Slack (or (or Float) Float) • Slack (or Float) – The amount of time an activity can be delayed after the start of a longer parallel activity or activities. • The critical path is the network path(s) that has (have) the least slack in common. 22 . • Total slack – The amount of time an activity can be delayed without delaying the entire project.

Activity-on-Node Activity-on-Node Network Network with with Slack Slack FIGURE 8 23 .

Practical Practical Considerations Considerations • Network Logic Errors • Activity Numbering • Use of Computers to Develop Networks • Calendar Dates • Multiple Starts and Multiple Projects 24 .

Illogical Illogical Loop Loop FIGURE 9 25 .

Air Air Control Control Project Project FIGURE 10 26 .

Air Air Control Control Project Project (cont’d) (cont’d) FIGURE 11 27 .

• Lags – The minimum amount of time a dependent activity must be delayed to begin or end. • Lengthy activities are broken down to reduce the delay in the start of successor activities. 28 .Extended Extended Network Network Techniques Techniques to to Come Come Close Close to to Reality Reality • Laddering – Activities are broken into segments so the following activity can begin sooner and not delay the work.

Example Example of of Laddering Laddering Using Using Finish-to-Start Finish-to-Start Relationship Relationship FIGURE 12 29 .

New NewProduct ProductDevelopment Development Process Process FIGURE 16 30 .

Network Network Using Using Lags Lags FIGURE 20 31 .

Hammock Hammock Activities Activities • Hammock Activity – An activity that spans over a segment of a project. 32 . – Duration of hammock activities is determined after the network plan is drawn. – Hammock activities are used to aggregate sections of the project to facilitate getting the right amount of detail for specific sections of a project.

Hammock Hammock Activity Activity Example Example FIGURE 21 33 .

Activity-on-Arrow Activity-on-Arrow Network Network Building Building Blocks Blocks FIGURE 22 34 .

Activity-on-Arrow Activity-on-Arrow Network Network Fundamentals Fundamentals FIGURE 23 35 .

Activity-on-Arrow Activity-on-Arrow Network Network Fundamentals Fundamentals FIGURE 23 (cont’d) 36 .

Koll Koll Center Center Project: Project: Network Network Information Information TABLE 3 37 .

Partial Partial Koll Koll Business Business Center Center AOA AOANetwork Network FIGURE 24 38 .

Partial Partial AOA AOAKoll Koll Network Network FIGURE 25 39 .

Partial Partial AOA AOAKoll Koll Network Network (cont’d) (cont’d) FIGURE 25 (cont’d) 40 .

Activity-on-Arrow Activity-on-Arrow Network Network FIGURE 26 41 .

Activity-on-Arrow Activity-on-Arrow Network Network Forward Forward Pass Pass FIGURE 26 42 .

Activity-on-Arrow Activity-on-Arrow Network Network Backward Backward Pass Pass FIGURE 27 43 .

Pass. Pass. and and Slack Slack FIGURE 28 44 .Activity-on-Arrow Activity-on-Arrow Network Network Backward Backward Pass. Forward Forward Pass.

Air Air Control Control Inc. Custom Custom Order Order Project Project— — AOA AOA Network Network Diagram Diagram FIGURE 29 45 . Inc.

Comparison Comparisonof ofAON AONand andAOA AOA Methods Methods TABLE 4 46 .

PERT—PROGRAM PERT—PROGRAM EVALUATION EVALUATION REVIEW REVIEW TECHNIQUE TECHNIQUE • Assumes each activity duration has a range that statistically follows a beta distribution. 47 . pessimistic. and a weighted average to represent activity durations. • PERT uses three time estimates for each activity: optimistic. – Knowing the weighted average and variances for each activity allows the project planner to compute the probability of meeting different project durations.

Activity Activity and and Project Project Frequency Frequency Distributions Distributions FIGURE 30 48 .

Activity Activity Time Time Calculations Calculations The weighted average activity time is computed by the following formula: (1) 49 .

this is also called variance. This sum includes only activities on the critical path(s) or path being reviewed. 50 .Activity Activity Time Time Calculations Calculations (cont’d) (cont’d) The variability in the activity time estimates is approximated by the following equations: The standard deviation for the activity: (2) The standard deviation for the project: (3) Note the standard deviation of the activity is squared in this equation.

Activity Activity Times Times and and Variances Variances TABLE 5 51 .

in turn. (4) 52 .Probability Probability of of Completing Completing the the Project Project The equation below is used to compute the “Z” value found in statistical tables (Z = number of standard deviations from the mean). which. tells the probability of completing the project in the time specified.

Hypothetical Hypothetical Network Network FIGURE 31 53 .

Hypothetical Hypothetical Network Network (cont’d) (cont’d) FIGURE 31 (cont’d) 54 .

Possible Possible Project Project Duration Duration FIGURE 32 55 .

ZZ Values Values TABLE 6 56 .