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Project Scheduling: Lagging, Crashing and Activity Networks Chapter 10 1

Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Page 1: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Project Scheduling: Lagging, Crashing and

Activity NetworksChapter 10

Page 2: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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1. Apply lag relationships to project activities.

2. Construct and comprehend Gantt charts. 3. Understand the trade-offs required in the

decision to crash project activities. 4. Develop activity networks using Activity-

on-Arrow techniques. 5. Understand the differences in AON and

AOA and recognize the advantages and disadvantages of each technique.

Learning Goals

Page 3: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Lags in Precedence Relationships

The logical relationship between the start and finish of one activity and the start and finish of another activity.

Four logical relationships between tasks1. Finish to Start2. Finish to Finish3. Start to Start4. Start to Finish

Page 4: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Most common type of sequencing Shown on the line joining the nodes

◦ Added during forward pass◦ Subtracted during backward pass

Finish-to-Start (FS) Lag

0 A 6Spec Design 6

6 B 11Design Check 5

15 C 22Blueprinting 7

Lag 4 days

This lag is not

the same as

activity slack

Page 5: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Two activities share a similar completion point◦ The interior construction cannot happen until

wiring, plumbing, and HVAC installation are complete

Finish-to-Finish (FF) Lag

31 S 33Plumbing 2

33 T 39HVAC 3

39 U 45Interior Const. 6

30 R 36Wiring 6

Lag 3 days

Page 6: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Often two or more activities must start at the same time

Start-to-Start (SS) Lag

31 S 33Plumbing 2

33 T 36HVAC 3

36 U 42Inspection 6

30 R 36Wiring 6

Lag 3

Logic must be maintained by both forward and backward pass

Page 7: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Least common type of lag relationship Successor’s finish dependent on

predecessor’s start

Start-to-Finish (SF) Lag

22 S 28Plumbing 6

28 T 33HVAC 5

33 U 34Inspection 1

30 R 36Wiring 6

Lag 3

Page 8: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Gantt Charts A graphical representation of the project schedule

that illustrates how work flows over time Shows activity start and end dates and durations Links project activities to a project schedule baseline Can be used as a tracking tool

Benefits of Gantt charts1. Easy to create, read, and comprehend2. Identify the project network and schedule baseline3. Allows for updating and control4. Useful to identify resource needs and assigning

resources to tasks

Page 9: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

Example

Create a Gantt chart based on the activities listed in the table.

Task Time Predecessor

Z 8 --

Y 5 Z

X 8 Z

W 4 Y,X

V 5 W

U 3 W

T 6 V

S 7 U,T

R 9 S9

Page 10: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

Gantt Chart Example from MSExcel

10

Z

Y

X

W

V

U

T

S

R

0 5 10 15 20 25 30 35 40 45 50

Task Start DurationZ 0 8Y 8 5X 8 8W 16 4V 20 5U 20 3T 25 6S 31 7R 38 9

http://office.microsoft.com/en-us/excel/HA102382531033.aspx

Page 11: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Sample Tracking Gantt Chart With Critical Path A-C-D-F-H

Critical path in red

Page 12: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Crashing Projects

Accelerating a project by committing more resources.

Principal options for crashing Improving existing resources’ productivity Changing work methods used Increasing the quantity of resources

Page 13: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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The initial schedule may be too optimistic.

Market needs change and the project is in demand earlier than anticipated.

The project has slipped considerably behind schedule.

The contractual situation provides even more incentive to avoid schedule slippage.

Crashing Projects – Under What Conditions?

Page 14: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Steps in Project Crashing

1. Compute the crash cost per time period. If crash costs are linear over time:

Crash costper period =

(Crash cost – Normal cost)

(Normal time – Crash time)

2. Using current activity times, find the critical path and identify the critical activities.

Page 15: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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3. If there is only one critical path, then select the activity on this critical path that

(a) can still be crashed, and (b) has the smallest crash cost per period.

4. If there is more than one critical path, then select one activity from each critical path such that

(a) each selected activity can still be crashed, and (b) the total crash cost of all selected activities is the

smallest.

Note: the same activity may be common to more than one critical path.

Steps in Project Crashing

Page 16: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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5. Update all activity times. 6. If the desired due date has been reached,

stop. If not, return to Step 2.

Steps in Project Crashing

Page 17: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Time-Cost Tradeoffs for Crashing Activities

| | |1 2 3 Time (Weeks)

$34,000 —

$33,000 —

$32,000 —

$31,000 —

$30,000 —

Activity Cost

Crash Point

Normal Point

Crash Time Normal Time

Crash Cost

Normal Cost

Crash Cost/Wk = Crash Cost – Normal CostNormal Time – Crash Time

=$34,000 – $30,000

3 – 1

= = $2,000/Wk$4,0002 WksHow far do you

need to speedup the process?

Page 18: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Formula Slope = crash cost – normal cost normal time – crash time

 Example – calculating the cost of crashing

Suppose: Normal activity duration = 8 weeksNormal cost = $14,000

Crashed activity duration = 5 weeksCrashed cost = $23,000 The activity cost slope =  

23,000 – 14,000 or, $9,000 = $3,000 per week 8 – 5 3

Crashing Activities – An Example

Page 19: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Managerial Considerations

Determine activity fixed and variable

costs The crash point is the fully expedited

activity Optimize time-cost tradeoffs Shorten activities on the critical path Cease crashing when

◦ the target completion time is reached◦ the crash cost exceeds the penalty cost

Page 20: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Crash Example

Activity Pred Normal Time Min Time

Normal Cost

Crash Cost

A -- 14 9 500 1500

B A 5 2 1000 1600

C A 10 8 2000 2900

D B, C 8 5 1000 2500

E D 6 5 1600 1900

F D 9 6 1500 3000

G E, F 7 4 600 1800

H G 15 11 1600 3600

Page 21: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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What is the lowest cost to complete this project in 53 weeks? Times are in weeks and costs in dollars.

Crash Example

Page 22: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Activities represented by arrows Event nodes easy to flag Forward and backward pass

logic similar to AON Two activities may not begin

and end at common nodes Dummy activities may be

required

Activity on Arrow (AOA) Networks

Event label

Earliest Event Time (ES)

Latest Event Time (LF)

Task Description

Duration

Page 23: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Sample AOA Network Diagram

1 2

3

4

A

B

C

111 2

3

4

A

B

C

222

333

444

A

B

C

Figure 10.18

Page 24: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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Activity on Arrow (AOA) Network

AH

F

E

D

C

B

K

G

Page 25: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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A Comparison of AON and AOA Network Conventions

Activity on Activity Activity onNode (AON) Meaning Arrow (AOA)

A comes before B, which comes before C

(a) A B CBA C

A and B must both be completed before C can start

(b)

A

CC

B

A

B

B and C cannot begin until A is completed

(c)

B

A

CA

B

C

Page 26: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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A Comparison of AON and AOA Network Conventions

Activity on Activity Activity onNode (AON) Meaning Arrow (AOA)

C and D cannot begin until both A and B are completed

(d)

A

B

C

D B

A C

D

C cannot begin until both A and B are completed; D cannot begin until B is completed. A dummy activity is introduced in AOA

(e)

CA

B D

Dummy activity

A

B

C

D

Page 27: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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A Comparison of AON and AOA Network Conventions

Activity on Activity Activity onNode (AON) Meaning Arrow (AOA)

B and C cannot begin until A is completed. D cannot begin until both B and C are completed. A dummy activity is again introduced in AOA.

(f)

A

C

DB A B

C

D

Dummy activity

Page 28: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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1. Please give examples of circumstances in which a project would employ lag relationships between activities using:

1. Finish to start2. Finish to finish3. Start to start4. Start to finish

2. The advantage of Gantt Charts lies in their linkage to the project schedule baseline. Explain this concept.

3. What are the advantages in the use of Gantt charts over PERT diagrams? In what ways might PERT diagrams be advantageous?

4. Under what circumstances might you wish to crash a project?

Discussion Questions

Page 29: Chapter 10 1. 1.Apply lag relationships to project activities. 2.Construct and comprehend Gantt charts. 3.Understand the trade-offs required in the decision

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5. In crashing a project, we routinely focus on those activities that lie on the critical path, not activities with slack time. Explain why this is the case.

6. What are some of the advantages in the use of AOA notation as opposed to AON? Under what circumstances does it seem better to apply AON methodology in network development? Explain the concept of a “dummy variable.” Why are they employed in AOA notation? Why is there no need to use dummy variables in an AON network?

7. Explain the concept of a “dummy variable.” Why are they employed in AOA notation? Why is there no need to use dummy variables in an AON network?

Discussion Questions