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8/10/2019 Lecture Project Planning
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Project Planning and Control
Definition of Project Management
Work Breakdown Structure
Critical Path Scheduling
Ideal Completion Time
Time vs. Cost tradeoffs
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Project Management
Project
series of related jobs usually directed towardsome major output and requiring a significantperiod of time to perform.
Project Management
planning, directing, and controlling resources
(people, equipment, material) to meet thetechnical, cost, and time constraints of theproject.
Project or Program?
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Project Management
Personal Life Work-related
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Ways to manage project
complexity
Limit changes onceproject begins
Goal orientation(completion datefocus)
Attempt to reduce
uncertainty Expediters
Constantly updateinformation
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Work Breakdown Structure
Program
Project 1 Project 2
Task 1.1
Subtask 1.1.1
Work Package 1.1.1.1
Level
1
2
3
4
Task 1.2
Subtask 1.1.2
Work Package 1.1.1.2
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Work Breakdown Structure
Allow the elements to be worked onindependently
Make them manageable in size
Give authority to carry out the program
Monitor and measure the program
Provide the required resources
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Project Control: Gantt
ChartNew I-5 Bridge Design
Month Mar Apr May Jun Jul Aug Sep Oct Nov Dec JanPilot Study development
Pilot Study distribution
Pilot Study analysis
Time & Process analysis
Preliminary Report
Survey design & pretest
Survey translation & copy
Survey distribution
Market Model Report
Collect cost & price data
Simulation development
Simulation analysis
Final Report
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Critical Path Scheduling
A project must have:
well-defined jobs or
tasks whosecompletion marks theend of the project;
independent jobs ortasks;
and tasks that follow agiven sequence.
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CPM with Single Time Estimate
Consider the following HR consulting project:
Develop a critical path diagram and determine theduration of the critical path and slack times for allactivities
Activity Designation Immed. Pred. Time Weeks)
Assess customer's needs A None 2
Write and submit proposal B A 1Obtain approval C B 1Develop service vision and goals D C 2Train employees E C 5Quality improvement pilot groups F D, E 5
Write assessment report G F 1
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First draw the network
A, 2 B, 1 C, 1
D, 2
E, 5
F, 5 G, 1
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Moving forward on the diagram (left to right):
Determine early start and early finish times
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4EF=9
ES=4EF=6
?
A, 2 B, 1 C, 1
D, 2
E, 5
F, 5 G, 1
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When Fcan start depends on when
predecessors (D & E) finish
ES=9
EF=14
ES=14
EF=15
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4EF=9
ES=4EF=6
A, 2 B, 1 C, 1
D, 2
E, 5
F, 5 G, 1
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Moving backwards on the diagram (right to left):
Determine late starts and late finish times
ES=9
EF=14
ES=14
EF=15
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4EF=9
ES=4EF=6
A, 2 B, 1 C, 1
D, 2
E, 5
F, 5 G, 1
LS=14LF=15LS=9LF=14
LS=4
LF=9
LS=7LF=9
?
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Dont delay the project
ES=9
EF=14
ES=14
EF=15
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4EF=9
ES=4EF=6
A, 2 B, 1 C, 1
D, 2
E, 5
F, 5 G, 1
LS=14LF=15
LS=9LF=14
LS=4
LF=9
LS=7LF=9
LS=3LF=4
LS=2LF=3
LS=0LF=2
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Critical Path & Slackslack= amount of flexibility = LS-ES or LF-EF
Critical path= completion time of the project (project bottleneck). Connect all
points on path which have no slack
ES=9
EF=14
ES=14
EF=15
ES=0
EF=2
ES=2
EF=3
ES=3
EF=4
ES=4EF=9
ES=4EF=6
A, 2 B, 1 C, 1
D, 2
E, 5
F, 5 G, 1
LS=14LF=15
LS=9LF=14
LS=4
LF=9
LS=7LF=9
LS=3LF=4
LS=2LF=3
LS=0LF=2
Duration = 15 weeks
Slack=(7-4)=(9-6)= 3 Wks
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Time-Cost Models
BasicAssumption: Relationshipbetween activity completion time and
project cost
Time Cost Models: Determine the
optimum point in time-cost tradeoffs Activity direct costs
Project indirect costs
Activity completion times
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Time-cost Trade-offCrashing a project
Prepare a CPM-type network diagram
Determine the cost per unit of time (usuallyassume days) to expedite each activity.
NT=normal time CT= crash timeNC=normal cost CC=crash cost
cost to crash each day = (CC-NC)/(NT-CT)
Compute critical path
Shorten the critical path at the least cost
Determine the minimum cost schedule.
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A, 2
B, 5
C, 4
D, 3
Activity Cost per day to Expedite Number of possible Days activity may be shortenedA $ 4 1B $ 3 3C $ 2 1
D $ 2 2
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CrashingCurrent
Cri tical Path
Remaining
days activi ty
may be
shortened
Cost per Day
to Expedite
each Activi ty
Least cost
activity to
expedite
Total Cost of
all Activities
in network
Project
Completion
time
ABD All $26 10
ABD A-1, B-3,D-2
A-4, B-3,D-2
D $28 9
ABD A-1, B-3,D-1
A-4, B-3,D-2
D $30 8
ABD A-1, B-3 A-4, B-3 B $33 7
ABCD A-1, B-2,C-1
A-4, B-3,C-2
A $37 6
ABCD B-2, C-1 B-3, C-2 B & C $42 5
ABCD B-1 B-3 B $45 5
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In Class Exercise: Bike Path
Project
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Bike Path Project:
Activity Description Predecessor Estimated time
A Survey for paths None 2 weeks
B Re-route traffic None 1 weeks
C Move utilities None 4 weeks
D Prepare new pathbed
A,B,C 15 weeks
E Dig and preparedrainage
D 5 weeks
F Set forms andreinforcements
D 3 weeks
G Pour concrete E,F 2 weeks
H Build curbs G 3 weeks
I Pave surface G 2 weeks
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Cost Trade-offs
The contractor will get a $100,000 bonus forcompleting the project within 25 weeks. Some ofthe activities can be shortened, but will cost
more: Activity D: $10,000 per week for up to 3 weeks
Activity E: $8,000 per week for up to 1 week
Activity H: $6,000 per week for up to 1 week
Activity I: $8,000 per week for up to 1 week
What should he/she do?