Professional Documents
Culture Documents
Project
Management
To accompany
Quantitative Analysis for Management, Twelfth Edition,
by Render, Stair, Hanna and Hale
Power Point slides created by Jeff Heyl Copyright ©2015 Pearson Education, Inc.
LEARNING OBJECTIVES
After completing this chapter, students will be able to:
IMMEDIATE
ACTIVITY DESCRIPTION
PREDECESSORS
A Build internal components —
B Modify roof and floor —
C Construct collection stack A
D Pour concrete and install frame B
E Build high-temperature burner C
F Install control system C
G Install air pollution device D, E
H Inspect and test F, G
A C F
Build Internal Construct Install Control
Components Collection Stack System
E H
Start Build Burner Inspect Finish
and Test
B D G
Modify Roof Pour Concrete Install Pollution
and Floor and Install Frame Device
Probability of 1 in 100
of a Occurring
Probability
Probability of 1 in 100
of b Occurring
Activity Time
Most Most Most
Optimistic Likely Pessimistic
Time Time Time
(a) (m) (b)
A 2 C 2 F 3
E 4 H 2
Start Finish
B 3 D 4 G 5
A t=2
ES = 0 EF = 0 + 2 = 2
Start
B t=3
ES = 0 EF = 0 + 3 = 3
A 2 C 2 F 3
0 2 2 4 4 7
E 4 H 2
Start 4 8 13 15 Finish
B 3 D 4 G 5
0 3 3 7 8 13
A 2 C 2 F 3
0 2 2 4 4 7
E 4 H 2
Start 4 8 13 15 Finish
B 3 D 4 G 5
0 3 3 7 8 13
A 2 C 2 F 3
0 2 2 4 4 7
0 2 2 4 10 13
E 4 H 2
Start 4 8 13 15 Finish
4 8 13 15
B 3 D 4 G 5
0 3 3 7 8 13
1 4 4 8 8 13
A 2 C 2 F 3
0 2 2 4 4 7
0 2 2 4 10 13
E 4 H 2
Start 4 8 13 15 Finish
4 8 13 15
B 3 D 4 G 5
0 3 3 7 8 13
1 4 4 8 8 13
15 Weeks
Expected Completion Time
Probability
(T ≤ 16 Weeks)
Is 71.6%
15 16 Time
Weeks Weeks
D
Activity
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Copyright ©2015 Pearson Education, Inc. Week 11 – 47
Budgeting for General Foundry
TABLE 11.5 – Activity Cost for General Foundry, Inc.
WEEK
ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 TOTAL
A 11 11 22
B 10 10 10 30
C 13 13 26
D 12 12 12 12 48
E 14 14 14 14 56
F 10 10 10 30
G 16 16 16 16 16 80
H 8 8 16
308
Total to date 21 42 65 90 126 162 198 212 228 244 260 276 292 300 308
WEEK
ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 TOTAL
A 11 11 22
B 10 10 10 30
C 13 13 26
D 12 12 12 12 48
E 14 14 14 14 56
F 10 10 10 30
G 16 16 16 16 16 80
H 8 8 16
308
Total to date 11 32 55 78 104 130 156 182 198 214 240 266 292 300 308
200,000 –
Budget Using
Latest Start
150,000 –
Times, LS
100,000 –
50,000 –
| | | | | | | | | | | | | | |
0– 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Weeks
VALUE OF
TOTAL WORK ACTIVITY
BUDGETED PERCENT OF COMPLETED ACTUAL DIFFERENCE
ACTIVITY COST ($) COMPLETION ($) COST ($) ($)
A 22,000 100
22,000 20,000 –2,000
B 30,000 100
30,000 36,000 6,000
C 26,000 100
26,000 26,000 0
D 48,000 10
4,800 6,000 1,200
E 56,000 20
11,200 20,000 8,800
F 30,000 20
6,000 4,000 –2,000
G 80,000 0
0 Overrun
0 0
CopyrightH©2015 Pearson
16,000
Education, Inc. 0
0 0 0 11 – 55
Project Crashing
• Projects will sometimes have deadlines that
are impossible to meet using normal
procedures
• By using exceptional methods it may be
possible to finish the project in less time
• Costs usually increase
• Reducing a project’s completion time is called
crashing
Activity
Cost
Crash
$30,000 — Normal
Normal —
Cost
| | |
1 2 3 Time (Weeks)
Crash Time Normal Time
Copyright ©2015 Pearson Education, Inc. 11 – 62
Project Crashing with
Linear Programming
• Linear programming can be used to find the best
project crashing schedule
• Decision variables for General Foundry
A 2 C 2 F 3
Start E 4 H 2 Finish
B 3 D 4 G 5
YA ≤ 1 YE ≤ 2 Xfinish ≤ 12
YB ≤ 2 YF ≤ 1
YC ≤ 1 YG ≤ 3
YD ≤ 1 YH ≤ 1
Copyright ©2015 Pearson Education, Inc. 11 – 65
Project Crashing with
Linear Programming
Constraints Describing the Network
EF time ≥ EF time for predecessor + Activity time
EF ≥ EFpredecessor + (t – Y), or X ≥ Xpredecessor + (t
– Y)
For activity A, XA ≥ Xstart + (2 – YA) or XA – Xstart + YA ≥ 2
For activity B, XB ≥ Xstart + (3 – YB) or XB – Xstart + YB ≥ 3
For activity C, XC ≥ XA + (2 – YC) or XC – XA + YC ≥ 2
For activity D, XD ≥ XB + (4 – YD) or XD – XB + YD ≥ 4
For activity E, XE ≥ XC + (4 – YE) or XE – XC + YE ≥ 4
For activity F, XF ≥ XC + (3 – YF) or XF – XC + YF ≥ 3
For activity G, XG ≥ XD + (5 – YG) or XG – XD + YG ≥ 5
For activity G, XG ≥ XE + (5 – YG) or XG – XE + YG ≥ 5
For activity H, XH ≥ XF + (2 – YH) or XH – XF + YH ≥ 2
For activity H, XH ≥ XG + (2 – YH) or XH – XG + YH ≥ 2
H finished Xfinish ≥ XH
Copyright ©2015 Pearson Education, Inc. 11 – 66
Project Crashing with
Linear Programming
GRAM 11.2 – Solution to Crashing Problem via Solver in Excel