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Project Management Timelines

Project Management Timelines. Learning Objectives. Students will be able to Understand how to plan, monitor, and control projects with the use of PERT.

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Project Management Timelines

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  1. Project Management Timelines

  2. Learning Objectives Students will be able to • Understand how to plan, monitor, and control projects with the use of PERT. • Determine earliest start, earliest finish, latest start, latest finish, and slack times for each activity along with the total project completion time. • Reduce total project time at the least total cost by crashing the network using manual or linear programming techniques. • Understand the important role of software in project management.

  3. Chapter Outline 13.1 Introduction 13.2 PERT 13.3 PERT/COST 13.4 Critical Path Method 13.5 Other Topics in Project Management

  4. Project Management Models • PERT • PERT/Cost • Critical Path Method

  5. Questions Addressed by PERT and CPM 1. When will the project be completed? 2. What are the critical activities or tasks in the project? 3. Which are the noncritical activities? 4. What is the probability that the project will be completed by a specific date? 5. Is the project on schedule, ahead of schedule, or behind schedule? 6. Is the project over or under the budgeted amount?

  6. Questions - continued 7. Are there enough resources available to finish the project on time? 8. If the project must be finished in less than the scheduled amount of time, what is the best way to accomplish this at least cost?

  7. Project Planning, Scheduling, and Controlling Project Planning 1. Setting goals 2. Defining the project 3. Tying needs into timed project activities 4. Organizing the team Project Scheduling 1. Tying resources to specific activities 2. Relating activities to each other 3. Updating and revising on regular basis Project Controlling 1. Monitoring resources, costs, quality and budgets 2. Revising and changing plans 3. Shifting resources to meet demands Before Project During Project

  8. Six Steps Common toPERT and CPM 1. Define the project and all significant activities/tasks. 2. Develop relationships among the activities. Identify precedence relationships. 3. Draw the network. 4. Assign time and/or cost estimates to each activity. 5. Compute the longest time path (critical path) through the network. 6. Use the network to help plan, schedule, monitor, and control the project.

  9. Advantages of PERT/CPM • Useful at several stages of project management • Straightforward in concept, not mathematically complex • Uses graphical displays employing networks to help user perceive relationships among project activities • Critical path and slack time analyses help pinpoint activities that need to be closely watched

  10. Advantages - continued • Networks generated provide valuable project documentation and graphically point out who is responsible for various project activities • Applicable to a wide variety of projects and industries • Useful in monitoring not only schedules, but costs as well

  11. Limitations of PERT/CPM • Project activities must be clearly defined, independent, and stable in their relationships • Precedence relationships must be specified and networked together • Time activities in PERT are assumed to follow the beta probability distribution -- must be verified • Time estimates tend to be subjective, and are subject to fudging by managers • There is inherent danger in too much emphasis being placed on the critical path

  12. General FoundryPERT Activity Description Immediate Predecessors A Build internal components B Modify roof and floor C Construct collection stack A D Pour concrete and install B frame E Build high-temperature C burner F Install control system C G Install air pollution device D,E H Inspect and test F,G

  13. General Foundry, Inc.PERT Network A 2 C 2 F 3 Start E 4 H 2 Finish B 3 D 4 G 5

  14. Beta Probability Distribution with Three Time Estimates

  15. General Foundry, Inc. Time Estimates A B C D E F G H 1 2 1 2 1 1 3 1 2 3 2 4 4 2 4 2 3 4 3 6 7 9 11 3 2 3 2 4 4 3 5 2 a m b E(t) 2 Activity Total: 25 weeks

  16. General Foundry, Inc.PERT Network - with E(t) F 3 A 2 C 2 H 2 E 4 Start Finish G 5 ES LF LS LF B 3 D 3

  17. General Foundry, Inc.PERT Network ES/EF, LS/LF F 3 4 7 A 2 0 2 C 2 2 4 H 2 13 15 E 4 4 8 Start Finish G 5 8 13 ES LF LS LF B 3 0 3 D 3 3 7

  18. General Foundry, Inc.PERT Network ES/EF, LS/LF F 3 4 7 10 13 A 2 0 2 0 2 C 2 2 4 2 4 H 2 13 15 13 15 E 4 4 8 4 8 Start Finish G 5 8 13 8 13 ES EF LS LF B 3 0 3 2 5 D 3 3 6 5 8

  19. General Foundry, Inc.Critical Path ES EF LS LF F 3 4 7 10 13 A 2 0 2 0 2 C 2 2 4 2 4 Total Time = 15 H 2 13 15 13 15 E 4 4 8 4 8 Start Finish G 5 8 13 8 13 B 3 0 3 2 5 D 3 3 6 5 8

  20. General FoundrySchedule & Slacks On ES EF LS LF LS-ES Critical Activity Path? A 0 2 0 2 0 Yes B 0 3 1 4 1 No C 2 4 2 4 0 Yes D 3 7 4 8 1 No E 4 8 4 8 0 Yes F 4 7 10 13 6 No G 8 13 8 13 0 Yes H 13 15 13 15 0 Yes

  21. General Foundry Meeting a Deadline 0.57 Standard Deviations 15 16 Time - weeks

  22. PERT Provided • Project expected completion date: 15 weeks • Probability of finishing in 16 or fewer days: 71.6% • Identity of activities on critical path: A, C, E, G, and H • Identity of activities with slack: B, D, and F • Detailed schedule of start/finish dates

  23. PERT - Sensitivity Analysis Impact of Increase (Decrease) in Critical Path Activity time Activity Successor Parallel Predecessor Activity Time Activity Activity Increase No change No change ES (decrease) Increase No change No change EF (decrease) Increase Increase (Decrease) No change LS (decrease) Increase Increase (Decrease) No change LF (decrease) No Increase (Decrease) No change Slack change

  24. Gantt Chart for General Foundry

  25. General Foundry, Inc. PERT & Budgeting Total Budgeted Cost Budgeted Cost per Week ES LS) E(t) Activity 0 0 2 3 4 4 8 13 0 1 2 4 4 10 8 13 2 3 2 4 4 3 5 2 $22,000 $30,000 $26,000 $48,000 $56,000 $30,000 $80,000 $16,000 $11,000 $10,000 $13,000 $12,000 $14,000 $10,000 $16,000 $ 8,000 A B C D E F G H Total $308,000

  26. General FoundryBudget Ranges

  27. General FoundryMonitoring & Controlling

  28. Critical Path MethodSteps in Project Crashing 1. Find normal critical path and identify critical activities. 2. Compute crash cost per week for all activities. 3. Select critical activity with smallest crash cost per week. Crash this activity 4. Check to make sure critical path is still critical. If not, find the new one. Return to step 3.

  29. General FoundryNormal/Crash Costs & Times On the Critical Path? Normal Cost Normal Cost Crash Cost Per Week Crash Time Normal Time Activity A 2 1 22,000 23,000 1,000 Yes B 3 1 30,000 34,000 2,000 No C 2 1 26,000 27,000 1,000 Yes D 4 3 48,000 49,000 1,000 No E 4 2 56,000 58,000 1,000 Yes G 3 2 30,000 30,500 500 No G 5 2 80,000 86,000 2,000 Yes H 2 1 16,000 19,000 3,000 Yes

  30. Crash & NormalTimes and Costs Crash Cost Activity Cost Crash $34,000 $33,000 $32,000 $31,000 $30,000 Normal Normal Cost Time (Weeks) 1 2 3 Crash Time Normal Time

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