# Project Time Management

Includes processes required to ensure timely completion of the project

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Project Time Management Topics
sWork

Breakdown Structure s. Network Diagram s Critical Path s PERT sDuration Compression

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Project Time Management Activity Definition Identify specific activities that must be performed to produce the various project deliverables s Activity Sequencing Identify and document interactivity dependencies s Activity Duration Estimating Estimate number of work periods that will be needed to complete individual activities s Schedule Development Analyze activity sequences. activity durations and resource reqts to create project schedule s Schedule Control s 3 .

Project Scheduling: PERT/CPM s s s s s s Project Evaluation and Review Technique (PERT) PERT Networks Project Scheduling with PERT/CPM PERT Analysis Algorithm PERT/Cost Critical Path Method (CPM) 4 .

PERT can be used to determine the earliest/latest start and finish times for each activity. 5 . the entire project completion time and the slack time for each activity. A critical path for the network is a path consisting of activities with zero slack.PERT s s s Program Evaluation Review Technique (PERT) is used to plan the scheduling of individual activities that make up a project.

The nodes of the network represent the activities. The arcs (or arrows) of the network indicate the precedence relationship among the activities.PERT Network s s s A PERT network can be constructed to model the precedence of the activities. 6 .

PERT s s s In the three-time estimate approach. An activity’s mean completion time is: t = (a + 4m + b)/6 An activity’s completion time variance is: σ 2 = ((b-a)/6)2 • a = the optimistic completion time estimate • b = the pessimistic completion time estimate • m = the most likely completion time estimate 7 . the time to complete an activity is assumed to follow a Beta distribution.

The overall project completion time is assumed to have a normal distribution with mean equal to the sum of the means along the critical path and variance equal to the sum of the variances along the critical path. the critical path is determined as if the mean times for the activities were fixed times. 8 .PERT s s In the three-time estimate approach.

PERT Analysis Algorithm s Step 1: Make a forward pass through the network as follows: For each of the activities. compute: • Earliest Start Time = the maximum of all earliest finish times of activities immediately preceding activity i.) • Earliest Finish Time = (Earliest Start Time) + (Time to complete activity i). The project completion time is the maximum of the Earliest Finish Times at the FINISH node. (For an activity with no predecessors this is 0. beginning at the START node. 9 .

PERT Analysis Algorithm s Step 2: Make a backwards pass through the network as follows: Move sequentially backwards from the FINISH node to the START node. compute: • Latest Finish Time = the minimum of the latest start times for the activities immediately following activity i.) • Latest Start Time = (Latest Finish Time) (Time to complete activity i). At a given node. i. (For FINISH node this is the project completion time. 10 .

from the START node to the FINISH node. with 0 slack times.PERT Analysis Algorithm s Step 3: Calculate the slack time for each activity by: Slack = (Latest Start) .(Earliest Finish). 11 .(Earliest Start) or = (Latest Finish) . A critical path is a path of activities.

5 5 C A 3 3 3 D A 4 5 6 E A 0.F 5 6 7 I E.5 F B.H 2. Time (Hr.) Time (Hr.F 2 5 8 J D.5 5 H E.75 4. Optimistic Most Likely Pessimistic Activity Predec.5 K G.) A -4 6 8 B -1 4.Example: ABC Associates s Consider the following project: Immed.C 1 1.) Time (Hr.I 3 5 7 12 .C 3 4 5 G B.5 1 1.5 2.

Example: ABC Associates s PERT Network Representation D H A E I J Start C F K Finish G B 13 .

Example: ABC Associates s Activity Expected Time and Variances t = (a + 4m + b)/6 σ 2 = ((ba)/6)2 Activity Expected Time Variance A 6 4/9 B 4 4/9 C 3 0 D 5 1/9 E 1 1/36 F 4 1/9 G 2 4/9 H 6 1/9 I 5 1 J 3 1/9 K 5 4/9 14 .

Example: ABC Associates s s Earliest/Latest Times Activity ES EF LS LF Slack A 0 6 0 6 0 *critical B 0 4 5 9 5 C 6 9 6 9 0* D 6 11 15 20 9 E 6 7 12 13 6 F 9 13 9 13 0* G 9 11 16 18 7 H 13 19 14 20 1 I 13 18 13 18 0* J 19 22 20 23 1 K 18 23 18 23 0* The estimated project completion time is the Max EF at node 7 = 23. 15 .

Example: ABC Associates s Critical Path (A-C-F-I-K) D 6 11 5 15 20 H 13 19 A 0 6 6 0 6 E 6 7 6 14 20 I 13 18 Finish K 18 23 B 0 4 4 5 9 G 9 11 5 18 23 2 16 18 1 12 13 C 3 6 9 6 9 F 9 13 4 9 13 5 13 18 J 19 22 3 20 23 Start 16 .

7612 71 17 .71) = .414. z = (24 .414 = .Example: ABC Associates s Probability the project will be completed within 24 hrs σ 2 = σ 2A + σ 2C + σ 2F + σ 2H + σ 2K = 4/9 + 0 + 1/9 + 1 + 4/9 = 2 σ = 1.2612 = .5 + .23)/σ = (24-23)/1. From the Standard Normal Distribution table: P(z < .

5000 .2612 23 24 x 18 .7612 .Example: ABC Associates s Probability the project will be completed within 24 hrs f(x) P(T< 24) = .

19 .PERT/Cost s s s s s PERT/Cost is a technique for monitoring costs during a project. A cost status report may be calculated by determining the cost overrun or underrun for each work package. For work in progress. overrun or underrun may be determined by subtracting the prorated budget cost from the actual cost to date. Cost overrun or underrun is calculated by subtracting the budgeted cost from the actual cost of the work package. Work packages (groups of related activities) with estimated budgets and completion times are evaluated.

20 .PERT/Cost s The overall project cost overrun or underrun at a particular time during a project is determined by summing the individual cost overruns and underruns to date of the work packages.

Example: How Are We Doing? s Consider the following PERT network: A 9 Start B 8 G 3 F 4 D 3 E 4 C 10 I 4 H 5 Finish J 8 21 .

Example: How Are We Doing? s Earliest/Latest Times Activity ES A 0 B 0 C 0 D 8 E 8 F 9 G 9 H 12 I 12 J 17 EF LS LF Slack 9 0 9 0 8 5 13 5 10 7 17 7 11 22 25 14 12 13 17 5 13 13 17 4 12 9 12 0 17 12 17 0 16 21 25 9 25 17 25 0 22 .

Example: How Are We Doing? s Activity Status (end of eleventh week) Activity Actual Cost % Complete A \$6.000 50 H 0 0 I 0 0 J 0 0 23 .000 75 G 2.000 25 F 5.200 100 B 5.700 100 C 5.600 90 D 0 0 E 1.

Example: How Are We Doing? s Cost Status Report (Assuming a budgeted cost of \$6000 for each activity) Activity Actual Cost Value Difference A \$6.50)x6000 = 3000 -1000 H 0 0 0 I 0 0 0 J 0 0 0 Totals \$25.75)x6000 = 4500 500 G 2.600 (.400 \$.000 (.00)x6000 = 6000 .000 (.90)x6000 = 5400 200 D 0 0 0 E 1.00)x6000 = 6000 \$200 B 5.500 F 5.000 (.500 \$26.200 (1.700 (1.900 24 .300 C 5.25)x6000 = 1500 .

5 8 25.5 1 11 12 H 12.5 Finish 11 I 12.Example: How Are We Doing? s PERT Diagram at End of Week 11 G A 0 B 0 11 11 F Start 11 11 D 3 E 3 C 1 11 14 11 14 11 12 J 17.5 4 16.5 12.5 1.5 25 .5 5 17.

5 week delay.5 weeks or a .Example: How Are We Doing? s Corrective Action Note that the project is currently experiencing a \$900 cost underrun. Management should consider using some of the \$900 cost savings and apply it to activity G to assist in a more rapid completion of this activity (and hence the entire project). 26 . but the overall completion time is now 25.

Mj. Using CPM.tj'. cj. can be crashed to a reduced time. tj. is linear and can be calculated by: Kj = (cj' . s 27 . tj'.cj)/Mj. under maximum crashing for an increased cost. It is assumed that its cost per unit reduction.Critical Path Method s In the Critical Path Method (CPM) approach to project scheduling. activity j's maximum time reduction. Kj. it is assumed that the normal time to complete an activity. which can be met at a normal cost. cj'. may be calculated by: Mj = tj .

The End of Chapter 12 28 .