Ebtm443 Chap 06

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DEVELOPING A PROJECT PLAN

PRESENTED BY:

TUSHAR RATHOD

BS (MECHANICAL), MBA (FINANCE), PMP

SENIOR PROJECT MANAGER

EBAY / PAYPAL, INC.

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Study Plan

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DEVELOPING THE PROJECT

PLAN

The Project Network

A flow chart that graphically depicts thesequence, interdependencies, and start andfinish times of the project job plan ofactivities that is the critical path throughthe network

Provides the basis for scheduling laborand equipment

Provides an estimate of the projectsduration

Provides a basis for budgeting cashflow

Highlights activities that are criticaland should not be delayed

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FROM WORK PACKAGE TO

NETWORK

FIGURE 6.1

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FROM WORK PACKAGE TO NETWORK(CONTD)

FIGURE 6.1 (contd)

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CONSTRUCTING A PROJECT

NETWORK

Terminology

Activity: an element of the

project that requires time.

Merge activity: an activitythat has two or more precedingactivities on which it depends.

Parallel (concurrent)activities: Activities that canoccur independently and, ifdesired, not at the same time.

A

C

B D

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NETWORK (CONTD)

Terminology

Path: a sequence of connected, dependent

activities.

Critical path: the longest path through theactivity network that allows for thecompletion of all project-related activities;the shortest expected time in which theentire project can be completed. Delays onthe critical path will delay completion of theentire project.

D

C

A B

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NETWORK (CONTD)

Terminology

Event: a point in time when an activity isstarted or completed. It does notconsume time.

Burst activity: an activity that has morethan one activity immediately following it(more than one dependency arrowflowing from it).

Two Approaches

Activity-on-Node (AON)

Uses a node to depict an activity

Activity-on-Arrow (AOA)

B

D

A C

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BASIC RULES TO FOLLOW IN

DEVELOPING

PROJECT NETWORKS

Networks typically flow from left to right.

An activity cannot begin until all of its

activities are complete. Arrows indicate precedence and flow and can

cross over each other.

Identify each activity with a unique number;this number must be greater than its

predecessors.

Looping is not allowed.

Conditional statements are not allowed.

Use common start and stop nodes.

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ACTIVITY-ON-NODE

FUNDAMENTALS

FIGURE 6.2

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ACTIVITY-ON-NODE FUNDAMENTALS(CONTD)

FIGURE 6.2 (contd)

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NETWORK INFORMATION

TABLE 6.1

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KOLL BUSINESS CENTER

PARTIAL NETWORK

FIGURE 6.3

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KOLL BUSINESS CENTERCOMPLETE

NETWORK

FIGURE 6.4

NETWORK COMPUTATION

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NETWORK COMPUTATIONPROCESS

Forward PassEarliest Times How soon can the activity start? (early start

ES) How soon can the activity finish? (early finish

EF)

How soon can the project finish? (expectedtimeET)

Backward PassLatest Times

How late can the activity start? (late startLS)

How late can the activity finish? (late finish

LF)

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NETWORK INFORMATION

TABLE 6.2

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ACTIVITY-ON-NODE NETWORK

FIGURE 6.5

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FORWARD PASS

FIGURE 6.6

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FORWARD PASS

COMPUTATION

Add activity times along each path in thenetwork (ES + Duration = EF).

Carry the early finish (EF) to the nextactivity where it becomes its early start(ES) unless

The next succeeding activity is a merge

activity, in which case the largest EF of allpreceding activities is selected.

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BACKWARD PASS

FIGURE 6.7

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BACKWARD PASS

COMPUTATION

Subtract activity times along each pathin the network (LF - Duration = LS).

Carry the late start (LS) to the nextactivity where it becomes its late finish(LF) unless...

The next succeeding activity is a burst

activity, in which case the smallest LFof all preceding activities is selected.

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DETERMINING SLACK

(OR FLOAT)

Free Slack (or Float)

The amount of time an activity can bedelayed without delaying connectedsuccessor activities

Total Slack

The amount of time an activity can bedelayed without delaying the entireproject

The critical path is the network path(s)that has (have) the least slack incommon.

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SENSITIVITY OF A

NETWORK

The likelihood the original criticalpath(s) will change once the project

is initiated.

Function of:

The number of critical paths

The amount of slack across nearcritical activities

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WITH SLACK

FIGURE 6.8

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PRACTICAL

CONSIDERATIONS

Network logic errors

Activity numbering

Use of computers to develop networks

Calendar dates

Multiple starts and multiple projects

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ILLOGICAL LOOP

FIGURE 6.9

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AIR CONTROL PROJECT

FIGURE 6.10

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AIR CONTROL PROJECT (CONTD)

FIGURE 6.11

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EXTENDED NETWORK TECHNIQUES

TO COME CLOSE TO REALITY

Laddering

Activities are broken into segments so the

following activity can begin sooner and notdelay the work.

Lags

The minimum amount of time a dependentactivity must be delayed to begin or end

Lengthy activities are broken down toreduce the delay in the start of successoractivities.

Lags can be used to constrain finish-to-start, start-to-start, finish-to-finish, start-to-finish, or combination relationships.

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EXAMPLE OF LADDERING USING

FINISH-TO-START RELATIONSHIP

FIGURE 6.12

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USE OF LAGS

FIGURE 6.13

FIGURE 6.14

Start-to-Start Relationship

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USE OF LAGS (CONTD)

FIGURE 6.15

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NEW PRODUCT DEVELOPMENT

PROCESS

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USE OF LAGS (CONTD)

FIGURE 6.17

FIGURE 6.18

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NETWORK USING LAGS

FIGURE 6.20

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HAMMOCK ACTIVITIES

Hammock Activity

An activity that spans over a segment

of a project

Duration of hammock activities isdetermined after the network plan isdrawn.

Hammock activities are used toaggregate sections of the project tofacilitate getting the right amount ofdetail for specific sections of a project.

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HAMMOCK ACTIVITY EXAMPLE

FIGURE 6.21

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KEY TERMS

Activity

Activity-on-arrow (AOA)

Activity-on-node (AON)

Burst activity

Concurrent engineeringCritical path

Early and late times

Gantt chart

Hammock activity

Lag relationship

Merge activity

Network sensitivityParallel activity

Slack/floattotal and free

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Ebtm443 Chap 06