topic 8- project management

8/10/2019 Topic 8- Project Management

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Operat ions

Management

Top ic 8 -Projec t Management


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Unique, one-time operations designed to

accomplish a specific set of objectives in a

limited time frame.

Bui ld A

A Done

Bui ld B

B Done

Bui ld C

C Done

Bui ld D

Ship

JAN FEB MAR APR MAY JUN

On time!

Projects


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Usually relate to time, cost and performance/quality

If min cost, quality can be deteriorated. If min time, cost may increase

If max quality, cost may increase.

Projects Objectives


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Examples of Projects

Bu i ld ing Construct ion

Research Project


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Plann ing

Object ives

Resources

Work break-down

schedule

Organizat ion

Schedul ing

Project act iv i t ies

Start & end times

Network

Control l ing

Mon itor, compare, revise, action

Project Management Activities


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Project Planning, Scheduling,

and Controlling

Figure 3.1

Before Start of project During

project Timel ine project

Budgets

Delayed act iv i t ies reportSlack act iv i t ies repo rt

Time/cos t est im ates

Budgets

Engineer ing diagrams

Cash f low char tsMaterial availabi l i ty detai ls

CPM/PERT

Gantt ch arts

Mileston e charts

Cash f low schedules


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Deciding which projects to implement

Selecting a project manager

Selecting a project team

Planning and designing the project

Managing and controlling projectresources

Deciding if and when a project should beterminated

Key Decisions


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Highly visibleResponsible for making sure that:

1. All necessary activities are finished in orderand on time

2. The project comes in within budget3. The project meets quality goals

4. The people assigned to the project receivemotivation, direction, and information

The Role of

the Project Manager

Project managers should be:

Good coaches

Good communicators

Able to organize activities from

a variety of disciplines


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Ethical Issues


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Project Management

Techniques

Gantt chart

Critical Path Method(CPM)

Program Evaluation

and ReviewTechnique (PERT)


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Figure 3.3

Level IDLevel Number Act iv i ty

1 1.0 Develop/launch Window s Vista OS

2 1.1 Develop of GUIs

2 1.2 Ensu re com patib i l i ty w ith ear l ier

Windows vers ions

3 1.21 Compatib i l i ty w ith Windows ME

3 1.22 Compatib i l i ty w ith Windows XP

3 1.23 Compatib i l i ty w ith Window s 2000

4 1.231 Ensure abil i ty to impo rt fi les

Work Breakdown Structure


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Work Breakdown Structure


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Passengers

Baggage

Fuel ing

Cargo and mail

Gal ley servic ing

Lavatory servic ing

Drinking w ater

Cabin cleaning

Cargo and mail

Fl ight services

Operat ing crew

Baggage

Passengers

Deplaning

Baggage cla im

Container of f load

Pumping

Engine in ject ion w ater

Container of f load

Main cabin doorAf t cab in door

Aft, center, forw ard

Loading

First -c lass sect ion

Economy sect ion

Container/bulk loading

Gal ley/cabin check

Receive passengers

Aircraf t check

Loading

Board ing

0 10 20 30 40

Time, Minutes

Service For A Delta Jet

Figure 3.4


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Gantt Chart

Schedu l ing techn iqueshows the

relat ionship among the project tasks or

act iv i t ies w ithin t ime constraint

Takes p lace after WBS is drawn up and

work package are ident i f ied

Give clear pictor ia l model

Simple to cons truc t and easy to in terpret


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Netwo rk techn iques

Developed in 1950s

CPM by DuPon t for chemical plants(1957)

PERT by Booz, Al len & Ham il ton w iththe U.S. Navy , fo r Polaris m issi le (1958)

Cons ider precedence relat ionships andinterdependencies

Each uses a dif ferent est imate of act iv i tyt imes

PERT and CPM- Network Diagram


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Six Steps PERT & CPM

1. Def ine the pro ject and prepare the

work b reakdown s t ructure

2. Develop relat ionsh ips among theact iv i t ies - decide wh ich act iv i t ies

must precede and which must fo l low

others

3. Draw the network connect ing all o f

the act iv i t ies


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Six Steps PERT & CPM

4. Ass ign time and/o r cos t es timates to

each act iv i ty

5. Compute the longes t t ime paththrough the netwo rk th is is calledthe cri t ical path

6. Use the network to help p lan ,schedu le, mon i tor , and contro l the

project


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PathSequence of activities that leads from the starting

node to the finishing node

Crit ical path

The longest path; determines expected projectduration

Crit ical act iv i t ies

Activities on the critical path

Slack

Allowable slippage for path; the difference the

length of path and the length of critical path

PERT and CPM- Network Diagram


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1

2

3

5

6

Locate

facilities

Orderfurniture

Furniture

setup

Interview

RemodelMove

in

4

Hire and

train

7S

AON

Project Network Activity on Node


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1

2

3

4

5 6

Locate

facilities

Order

furniture

Furniture

setup

InterviewHire and

train

Remodel

Move

in

AOA

Project Network Activity on Arrow


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A Comparison of AON and AOANetwork Conventions

Act iv i ty on Act iv i ty Act iv i ty onNode (AON) Meaning Arrow (AOA)

A com es before

B, which comesbefor e C

(a) A B CBA C

A and B mus t bothbe com pletedbefore C can start

(b)

A

C

CB

A

B

B and C cannotbegin un t i l A iscompleted

(c)

B

A

C

A

B

CFigure 3.5


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C and D canno t

begin unt i l bothA and B arecompleted

(d)A

B

C

D B

A C

D

C cannot beginunt i l both A and Bare completed; Dcannot begin un t i lB is comp leted. Adummy act iv ity isin t roduced in AOA

(e)

CA

B D

Dumm y act iv i ty

A

B

C

D

Figure 3.5


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B and C cannotbegin unt i l A iscompleted. Dcannot beginunt i l both B andC are completed.A dummyact iv i ty is againin troduced inAOA.

(f)

A

C

DB A B

C

D

Dummy

activ i ty

Figure 3.5


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Determining the Project Schedule

Perfo rm a Cri t ical Path Analys is

Table 3.2

Ac tivi ty Desc r ipt ion Time (weeks )

A Bui ld internal com ponents 2

B Modi fy roof and f loor 3

C Construct col lect ion stack 2

D Pour conc rete and instal l frame 4

E Bu i ld high -temperature burn er 4

F Ins tall pol lut io n control sys tem 3G Ins tal l air po llut io n device 5

H Inspect and test 2

Total Time (weeks ) 25

Earl iest s tart (ES) = earl iest time at which an activ ity can

start , assum ing al l predecessors h ave

been com pleted

Earl iest fin ish (EF) = earl iest time at whic h an activ ity can

be fin ished

Latest start (LS) = latest t ime at wh ich an act iv i ty can

start so as to no t delay the comp let ion

t ime of th e entire project

Latest f in ish (LF) = latest t ime by which an act iv i ty has to

be f in ished so as to not delay the

com plet ion t ime of the entire project


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Perfo rm a Cri t ical Path Analys is

Figure 3.10

A

Ac t iv i ty Nameor Symbol

Earl iestStart

ESEarl iestFin ishEF

LatestStart

LS LatestFin ish

LF

Ac t iv i ty Durat ion

2


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Forward Pass

Begin at star t ing event and wo rk forward

Earl iest Start Time Rule:

If an activi ty has on ly a single immediatepredecesso r, i ts ES equals the EF of thepredecessor

If an activi ty has mult ip le immediatepredecessors , i ts ES is the maximum of

al l the EF values of i ts p redecessors

ES = Max {EF of al l immediate predecessor s}


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Forward Pass

Begin at starting event and work fo rward

Earl iest Finish Time Rule:

The earl iest finis h tim e (EF) of an act ivi t yis th e sum of i ts earl iest start t ime (ES)and i ts act iv i ty t ime

EF = ES + Activ i ty t im e


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AON Example

Activity Description

Immediate

Predecessors

A Build internal components

B Modify roof and floor

C Construct collection stack A

D Pour concrete and install frame A, B

E Build high-temperature burner C

F Install pollution control system C

G Install air pollution device D, E

H Inspect and test F, G

Milwaukee Paper Manu factur ing'sAc t iv i t ies and Predecesso rs

Table 3.1


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AON Network for Milwaukee

Paper

G

E

F

H

CA

Start

DB

Arrows Show Precedence

Relat ionships

Figure 3.8


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Perform a Cri tical Path Analysis

Ac tivi ty Descr ipt ion Time (weeks )

A Bui ld internal com ponents 2

B Modi fy roof and f loor 3C Construct col lect ion stack 2

D Pour concrete and instal l frame 4

E Bu i ld high -temperature burn er 4

F Insta ll pol lu t ion contro l system 3

G Instal l air pol lut io n device 5

H Insp ect and test 2

Total Time (weeks) 25Table 3.2


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ES/EF Network for Milwaukee

Paper

Start

0

0

ES

0

EF = ES + Act iv i ty t ime


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Paper

Start

0

0

0

A

2

2

EF of A =ES of A + 2

0

ESof A


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B

3


Paper

Start

0

0

0

A

2

20

3

EF of B =ES of B + 3

0

ESof B


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C

2

2 4


Paper

B

3

0 3

Start

0

0

0

A

2

20


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C

2

2 4


Paper

B

3

0 3

Start

0

0

0

A

2

20

D

4

73

= Max (2, 3)


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D

4

3 7

C

2

2 4


Paper

B

3

0 3

Start

0

0

0

A

2

20


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E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

D

4

3 7

C

2

2 4


Paper

B

3

0 3

Start

0

0

0

A

2

20

Figure 3.11


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Backward Pass

Begin w ith the last event and work backwards

Latest Finish Time Rule:

If an activi ty is an immediate predecesso rfor jus t a sing le act ivi ty, i ts LF equals th eLS of the act iv i ty that immediately fol low s i t

If an activi ty is an immediate predecesso rto more than one activi ty, i ts LF is the

m inimum of al l LS values of al l act iv i t iesthat immediately fol low i t

LF = Min {LS of al l immediate fol low ing activi t ies}


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Backward Pass

Begin w ith the last event and work backwards

Latest Start Time Rule:

The latest start t im e (LS) of an activi ty isthe dif ference of i ts latest f in ish time (LF)and i ts act iv i ty t ime

LS = LF Act iv i ty t ime


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LS/LF Times for

Milwaukee Paper

E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

LF = EFof Project

1513

LS = LF Act iv i ty t ime


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LS/LF Times for

Milwaukee Paper

E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

LF = Min(LS offo l low ing act iv i ty)

10 13


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LS/LF Times for

Milwaukee Paper

E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

LF = Min(4, 10)

42


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LS/LF Times for

Milwaukee Paper

E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

42

84

20

41

00


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Computing Slack Time

After compu ting the ES, EF, LS, and LF t imes

for al l act iv i t ies, compu te the slack or free

t ime for each act iv i ty

Slack is the leng th o f t ime an act iv i ty canbe delayed w ithout delaying the entireproject

Slack = LSES or Slack = LF EF


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Computing Slack Time

Earl iest Earl iest Latest Latest OnStart Finish Start Finish Slack Crit ical

Ac t iv i ty ES EF LS LF LSES Path

A 0 2 0 2 0 Yes

B 0 3 1 4 1 NoC 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 NoG 8 13 8 13 0 Yes

H 13 15 13 15 0 Yes

Table 3.3


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Critical Path for Milwaukee Paper

E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

42

84

20

41

00

What is the project completion time?


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Critical Path And Slack Times

For Milwaukee Paper

Figure 3.17

E

4

F

3

G

5

H

2

4 8 13 15

4

8 13

7

13 15

10 13

8 13

4 8

D

4

3 7

C

2

2 4

B

3

0 3

Start

0

0

0

A

2

20

42

84

20

41

00

Slack= 1 Slack= 1

Slack= 0 Slack= 6

Slack= 0

Slack= 0

Slack= 0

Slack= 0


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ES EF Gantt Chartfor Milwaukee Paper

A Bu i ld internal

components

B Modi fy roof and f loor

C Construc t col lect ion

stack

D Pour conc rete and

ins tal l frame

E Bui ld h igh-

temperature burner

F Instal l pol lut ion

cont ro l sys tem

G Instal l air po l lut ion

device

H Insp ect and test

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16


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LS LF Gantt Chartfor Milwaukee Paper

A Bu i ld internal

components

B Modi fy roof and f loor

C Construc t col lect ion

stack

D Pour conc rete and

ins tal l frame

E Bui ld h igh-

temperature burner

F Instal l pol lut ion

cont ro l sys tem

G Instal l air po l lut ion

device

H Insp ect and test

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16


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Advantages of PERT/CPM

1. Espec ial ly usefu l when schedu l ing and

con tro l ling large pro jects

2. St raigh t fo rward concep t and not

mathemat ically complex

3. Graph ical networks help h igh ligh t

relationsh ips among p roject act iv i t ies

4. Cri ti cal path and s lack t ime analyses helppinpo int act iv i t ies that need to be closely

watched


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Advantages of PERT/CPM

5. Projec t documen tation and graph icspoint ou t who is responsib le for var iousact iv i t ies

6. App licab le to a w ide var iet y o f pro jec ts

7. Usefu l in mon ito r ing no t on ly schedu lesbut costs as wel l


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1. Pro jec t act iv i ties have to be c lear lydef ined, independen t, and s table in theirrelat ionships

2. Precedence relat ionsh ips must bespeci f ied and netwo rked together

3. Time es t imates tend to be sub jec t ive andare sub ject to fudging by managers

4. There is an inherent danger of too muchemphasis being placed on the longest , orcri t ical , path

Limitations of PERT/CPM


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1. Ef fec t ively v isual technique for der iv ing aplan for manpower or machine basedrequ irement in a pro ject

2. Avai lab i li ty to determine whether theproject can be completed wi th in t ime andbudget

Resource Histogram


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01

2

3

4

5

6

7

8

9

10

No.ofResources

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Week

Resource Histogram

Resources

Resource Histogram

CPM Example 1


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CPM Example-1

Hij jaz Management is developin g a program in leadership training form iddle- level managers. Hij jaz has l isted several act iv i t ies that mu stbe completed b efore a train ing p rogram o f th is n ature could be

con ducted. The act iv i t ies, immediate predecesso rs, and t imes appearin the accompanying table

Activity Immediate Predecessor (s) Time (Days)

A - 2

B - 5

C - 1

D B 10

E A,D 3

F C 6

G E,F 8

a) Deve lop an AON network for th is prob lem

b) What is the cr it ical path?

c) What is the to tal comp let ion t ime?

d) What is the s lack t ime for each ind iv idua l act iv ity?


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CPM Example

Solution: AON network diagram


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(b) Critical path is BDEG

(c) Total project takes 26 days

(d) Slack time: please refer to the above table.

Activity Time ES EF LS LF Slack Critical

A 2 0 2 13 15 13 No

B 5 0 5 0 5 0 Yes

C 1 0 1 11 12 11 No

D 10 5 15 5 15 0 Yes

E 3 15 18 15 18 0 Yes

F 6 1 7 12 18 11 No

G 8 18 26 18 26 0 Yes

CPM Example

CPM Example - 2


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CPM Example 2

The act iv i t ies desc r ibed by th e fol low ing table are given for the

Standard Task Corp .

Activity Immediate Predecessor (s) Time (Days)

A - 9

B A 7

C A 3

D B 6

E B 9

F C 4

G E,F 6

H D 5

I G,H 3

a) Draw an appropriate AON CPM Diagram for Standard Task Corps Management

b ) Find the Cri ti cal Path

c ) What is the pro jec t comp let ion t ime? How can you shor ten the pro ject

com plet ion t ime.


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CPM Example

Solution: AON network diagram

S

CPM E l


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CPM Example

Task Time ES EF LS LF Slack

A 9 0 9 0 9 0

B 7 9 16 9 16 0

C 3 9 12 18 21 9

D 6 16 22 20 26 4

E 9 16 25 16 25 0

F 4 12 16 21 25 9

G 6 25 31 25 31 0

H 5 22 27 26 31 4I 3 31 34 31 34 0

Activities on the critical path: A, B, E, G, I

Project completion time 34

topic 8- project management

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