Professional Documents
Culture Documents
Understand I C
Understand I C
Management
Chapter 3 –
Project Management
Single unit
Many related activities
Difficult production planning and
inventory control
General purpose equipment
High labor skills
Research Project
© 2008 Prentice Hall, Inc. 3 – 12
Management of Projects
1. Planning - goal setting, defining the
project, team organization
2. Scheduling - relates people, money,
and supplies to specific activities
and activities to each other
3. Controlling - monitors resources,
costs, quality, and budgets; revises
plans and shifts resources to meet
time and cost demands
© 2008 Prentice Hall, Inc. 3 – 13
Project Management
Activities
Planning
Scheduling
Objectives
Project activities
Resources
Start & end times
Work break-down
schedule Network
Organization
Controlling
Monitor, compare, revise, action
© 2008 Prentice Hall, Inc. 3 – 14
Project Planning,
Scheduling, and Controlling
Figure 3.1
Figure 3.1
Figure 3.1
Figure 3.1
Budgets
Delayed activities report
Slack activities report
CPM/PERT
Gantt charts
Milestone charts
Cash flow schedules
Figure 3.1
Human Quality
Resources Marketing Finance Design Production
Mgt
Project 1 Project
Manager
Mechanical Test Technician
Engineer Engineer
Project 2 Project
Manager
Electrical Computer Technician
Engineer Engineer
Figure 3.2
Project 1
Project 2
Project 3
Project 4
Figure 3.3
Time
J F M A M J J A S
Design
Prototype
Test
Revise
Production
C and D cannot A C
A C begin until both
(d) A and B are
B D completed
B D
C cannot begin
until both A and B
A C are completed; D A C
(e) cannot begin until Dummy activity
B D B is completed. A
dummy activity is B D
introduced in AOA
Figure 3.5
© 2008 Prentice Hall, Inc. 3 – 43
A Comparison of AON and
AOA Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
B and C cannot
begin until A is
completed. D
A B D cannot begin A B D
(f) until both B and
C are completed. Dummy C
C A dummy activity
activity is again
introduced in
AOA.
Figure 3.5
© 2008 Prentice Hall, Inc. 3 – 44
AON Example
Milwaukee Paper Manufacturing's
Activities and Predecessors
Immediate
Activity Description Predecessors
A Build internal components —
B Modify roof and floor —
C Construct collection stack A
D Pour concrete and install frame A, B
E Build high-temperature burner C
F Install pollution control system C
G Install air pollution device D, E
H Inspect and test F, G
Table 3.1
© 2008 Prentice Hall, Inc. 3 – 45
AON Network for
Milwaukee Paper
A Activity A
(Build Internal Components)
Start
Activity B
Start B
(Modify Roof and Floor)
Activity
Figure 3.6
© 2008 Prentice Hall, Inc. 3 – 46
AON Network for
Milwaukee Paper
Activity A Precedes Activity C
A C
Start
B D
Activities A and B
Precede Activity D Figure 3.7
© 2008 Prentice Hall, Inc. 3 – 47
AON Network for
Milwaukee Paper
F
A C
E
Start H
B D G
nt sta
ne ern
s)
(Build Burner)
A
ro l l
po nt
ls
m ld I
)
C o ui
H
E
Dummy
(B
1 6 7
Activity (Inspect/
Test)
Ro (M B G
of od l
/ F i fy t al n
s o
lo
or I( n luti e)
l ic
) 3
D
5 Po ev
D
(Pour
Concrete/
Install Frame) Figure 3.9
© 2008 Prentice Hall, Inc. 3 – 49
Determining the Project
Schedule
Perform a Critical Path Analysis
The critical path is the longest path
through the network
The critical path is the shortest time in
which the project can be completed
Any delay in critical path activities
delays the project
Critical path activities have no slack
time
© 2008 Prentice Hall, Inc. 3 – 50
Determining the Project
Schedule
Perform a Critical Path Analysis
Activity Description Time (weeks)
A Build internal components 2
B Modify roof and floor 3
C Construct collection stack 2
D Pour concrete and install frame 4
E Build high-temperature burner 4
F Install pollution control system 3
G Install air pollution device 5
H Inspect and test 2
Total Time (weeks) 25
Table 3.2
© 2008 Prentice Hall, Inc. 3 – 51
Determining the Project
Schedule
Perform a Critical Path Analysis
Earliest start (ES) = earliest time at
Activity Description
which an activity can start, Time (weeks)
assuming
A Build internal components
all predecessors have been completed 2
B ModifyEarliest
roof and floor(EF) =
finish 3 at
earliest time
C which
Construct an activity
collection can be finished 2
stack
D Pour concrete and(LS)
Latest start install
= frame latest time4 at
E which an activity can
Build high-temperature start so as to
burner 4 not
F Install delay the completion
pollution time of the entire
control system 3
project
G Install air pollution device 5
Latest finish (LF) = latest time by
H Inspect and test
which an activity has to be finished 2 so
Table 3.2
Total Time
as to(weeks)
not delay the completion time 25 of
© 2008 Prentice Hall, Inc.
the entire project 3 – 52
Determining the Project
Schedule
Perform a Critical Path Analysis
Activity Name
or Symbol
A Earliest
Earliest ES EF Finish
Start
Latest LS LF Latest
Start 2 Finish
EF = ES + Activity time
2
EF of B =
Start
ES ES of B + 3
0 0 of B
B
0 0 3
3
© 2008 Prentice Hall, Inc. 3 – 58
ES/EF Network for
Milwaukee Paper
A C
0 2 2 4
2 2
Start
0 0
B
0 3
2 2
Start
0 0
= Max (2, 3) D
0
3 7
B
0 3
3
4
© 2008 Prentice Hall, Inc. 3 – 60
ES/EF Network for
Milwaukee Paper
A C
0 2 2 4
2 2
Start
0 0
B D
0 3 3 7
3 4
2 2 3
Start E H
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
Figure 3.11
LS = LF – Activity time
2 2 3
Start E H
0 0 4 8 13 15
13 15
0 4 2
0
B
3
LS =3 LF
D – Activity time
7
G
8 13
3 4 5 LF = EF
of Project
© 2008 Prentice Hall, Inc. 3 – 65
LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7
10 13
2 2 3
Start E H
0 0
LF =4 Min(LS
8 of 13 15
following activity) 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
A C F
0 2 2 4 4 7
2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
8 13
3 4 5
0 2 2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
Slack = LS – ES or Slack = LF – EF
Table 3.3
0 2 2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-
temperature burner
F Install pollution
control system
G Install air pollution
device
H Inspect and test
A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-
temperature burner
F Install pollution
control system
G Install air pollution
device
H Inspect and test
Variance of times:
Probability of
1 in 100 of v = [(b − a)/6]2 Probability
Probability
Activity
Time
A 1 2 3 2 .11
B 2 3 4 3 .11
C 1 2 3 2 .11
D 2 4 6 4 .44
E 1 4 7 4 1.00
F 1 2 9 3 1.78
G 3 4 11 5 1.78
H 1 2 3 2 .11
Table 3.4
= (variances of activities
on critical path)
15 Weeks
(Expected Completion Time)
Figure 3.13
15 16 Time
Weeks Weeks
Figure 3.14
Probability
of 0.99
Probability
of 0.01
2.33 Standard Z
From Appendix I deviations
0 2.33
Figure 3.15
Table 3.5
—
Normal
Normal
Cost | | |
1 2 3 Time (Weeks)
Figure 3.16
Crash Time Normal Time
© 2008 Prentice Hall, Inc. 3 – 95
Critical Path And Slack Times
For Milwaukee Paper
A C F
0 2 2 4 4 7
0 2 2 4 10 13
2 2 3
0 0 4 8 13 15
0 4 2
B D Slack = 0 G Slack = 0
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
Program 3.1
© 2008 Prentice Hall, Inc. 3 – 101
Using Microsoft Project
Program 3.2
Program 3.3
Program 3.4
Program 3.5
Program 3.6
© 2008 Prentice Hall, Inc. 3 – 106
Using Microsoft Project
Program 3.7