Project Planning: - Statement of Work
Project Planning: - Statement of Work
Project Planning: - Statement of Work
Given:
Statement of work
Activity Sequencing
Network Diagrams
Project Managment
Project Managment
Gantt Chart
A Gantt Chart
0
Month
Activity
Project Managment
Project Managment
10
CPM/PERT
Construct forms
Pour concrete
Project Managment
2
Branch
Project Managment
Network Construction
In AON, nodes represent activities & arrows
show precedence relationships
In AOA, arrows represent activities & nodes are
events for points in time
An event is the completion or beginning of an
activity
A dummy shows precedence for two activities
with same start & end nodes
Project Managment
Critical Path
A path is a sequence of connected activities
running from the start to the end node in a network
3
Dummy
Lay foundation
Design house
and obtain
financing
Build
house
Order and
receive
materials
Select
paint
Finish
work
1
1 Select
carpet
Project Managment
Project Managment
Concurrent Activities
Lay foundation
B: 1-2-3-4-5-6-7
Lay
foundation
3
2
3 + 2 + 0 + 1 + 1 + 1 = 8 months
C: 1-2-4-6-7
3 + 1 + 3 + 1 = 8 months
D: 1-2-4-5-6-7
3 + 1 + 1 + 1 + 1 = 7 months
Project Managment
Dummy
4
Order material
Order material
Incorrect
precedence
relationship
Correct
precedence
relationship
Project Managment
Early Times
(Housebuilding example)
Project Managment
Project Managment
Late Times
LS - latest time activity can start & not delay
project
Backward pass starts at end of network to
determine LS times
LF - latest time activity can be completed & not
delay project
LSij = LFij - tij
LFij = minimum (LSj)
Project Managment
LF67 = 9 months
LS67 = LF67 - t67 = 9 - 1 = 8 months
LF56 = minimum (LS6) = 8 months
LS56 = LF56 - t56 = 8 - 1 = 7 months
LF24 = minimum (LS4) = min(5, 6) = 5 months
LS24 = LF24 - t24 = 5 - 1 = 4 months
Project Managment
Activity Slack
ES=5, EF=5
ES=3, EF=5
ES=0, EF=3
ES=3, EF=4
LS=0, LF=3
LS=4, LF=5
ES=8, EF=9
ES=5, EF=8
LS=5, LF=5
LS=3, LF=5
LS=5, LF=8
3
1
ES=5, EF=6
LS=8, LF=9
ES=6, EF=7
LS=7, LF=8
LS=6, LF=7
Project Managment
Project Managment
LS
0
3
4
5
6
5
7
8
ES
0
3
3
5
5
5
6
8
LF
3
5
5
5
7
8
8
9
EF
3
5
4
5
6
8
7
9
Slack (S)
0
0
1
0
1
0
1
0
* Critical path
Project Managment
a = optimistic estimate
m = most likely time estimate
b = pessimistic time estimate
Project Managment
PERT Example
P (time)
P (time)
Equipment
installation
6
Final
debugging
Dummy
System
development
Manual
Testing
System
Training
System
changeover
P (time)
System
Testing
Job
training
Position
recruiting
Orientation
m=t
Project Managment
Mean Time
t
8
6
3
0
5
3
4
2
7
4
0
4
9
Project Managment
Project Managment
Activity Information
Activity
1-2
1-3
1-4
2-5
2-6
3-5
4-5
4-8
5-7
5-8
7-8
6-9
7-9
Dummy
Variance
2
.44
1.00
.44
.00
2.78
.11
.11
.00
1.78
.44
.00
1.00
4.00
t
8
6
3
0
5
3
4
2
7
4
0
4
9
2
0.44
1.00
0.44
0.00
2.78
0.11
0.11
0.00
1.78
0.44
0.00
1.00
4.00
ES
0
0
0
8
8
6
3
3
9
9
13
13
16
EF
8
6
3
8
13
9
7
5
16
13
13
17
25
LS
1
0
2
9
16
6
5
14
9
12
16
21
16
Project Managment
LF
9
6
5
9
21
9
9
16
16
16
16
25
25
S
1
0
2
1
8
0
2
11
0
3
3
8
0
Project Variance
ES=8, EF=13
( LS=16 LF=21 )
ES=0, EF=8
(LS=1, LF=9 )
(LS=9, LF=9 )
(LS=0, LF=6 )
6
ES=9, EF=13
(LS=2, LF=5 )
4
( LS=9, LF=16 )
ES=6, EF=9
(LS=6, LF=9 )
ES=0, EF=3
ES=0, EF=6
ES=13, EF=25
( LS=16 LF=25 )
ES=8, EF=8
( LS=12, LF=16)
(LS=5, LF=9 )
0
ES=13, EF=13
( LS=16 LF=16 )
2
ES=3, EF=5
( LS=14, LF=16)
( LS=16 LF=25 )
ES=9, EF=13
4
ES=3, EF=7
9
ES=13, EF=25
Project Managment
2 = 2 13 + 2 35 + 2 57 + 2 79
= 1.00 +0.11 + 1.78 + 4.00
= 6.89 weeks
Project Managment
Probability
x-
where
= tp = project mean time
= project standard deviation
x = proposed project time
Z = number of standard deviations x is from mean
Project Managment
= tp
Project Managment
Time
Determining Probability
From Z Value
Z = x - = 30 - 25 = 1.91
2.62
0.01
0.09
0.4719
0.4767
..
.
0.4713
Time (weeks)
Project Managment
Project Managment
..
.
= 25
Project Managment
0.00
..
.
1.9
x = 22
= 25
Time (weeks)
Benefits of PERT/CPM
Useful at many stages of project
management
Mathematically simple
Uses graphical displays
Gives critical path & slack time
Provides project documentation
Useful in monitoring costs
Project Managment
Advantages of PERT/CPM
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
Project Managment
PERT
Project Managment
Limitations of PERT/CPM
Assumes clearly defined, independent, &
stable activities
Specified precedence relationships
Activity times (PERT) follow
beta distribution
Subjective time estimates
Over-emphasis on critical path
Project Managment
Project Crashing
Crashing reduces project time by expending
additional resources
Crash time is the amount of time an activity is
reduced
Crash cost is the cost of reducing an activitys
time
The goal of crashing is to reduce a projects
duration at minimum cost
Project Managment
Housebuilding Network
Activity
3
0
8
1
12
12
4
1-2
2-3
2-4
3-4
4-5
4-6
5-6
6-7
Normal
Time
(wks)
Crash
Time Normal
(wks)
Cost
12 7
8
4
0
4
12 9
4
4
$3,000
$5,000
5
2,000
3,500
3
4,000
7,000
0
0
0
1
500
1,100
50,000
71,000
1
500
1,100
3
15,000
22,000
$75,000
$110,700
Project Managment
6,000
Crash cost
4,000
12
Normal cost
Crashed activity
Slope = crash cost per week
Normal activity
3,000
$3,000
4
$200
$7,000
12
4
4
6
$200
$7,000
4
2,000
Crash time
1,000
0
Normal time
8
10 12 14
5
Project Managment
200
7,000
5,000
$400
500
3,000
0
200
7,000
Crash cost per week = Total crash cost / Total crash time
= $2,000 / 5 = $400 per week
$ 400
3
1
0
3
7,000
3
1
Project Managment
$500
Crash
Cost
Total
Allowable
Crash
Crash Time Cost per
(wks)
Week
Project Managment
Weeks
Crashing Solution
Crashed Project
7
5
3
0
1
9
1
3
5
3
0
0
0
3
0
1
$ 400
500
3,000
0
200
7,000
200
7,000
12
0
12
$ 2,000
1,500
0
0
0
21,000
0
7,000
12
4
4
5
Original time
Crashed time
$31,500
Project Managment
Project Managment
Time-Cost Relationship
Time-Cost Tradeoff
Minimum cost = optimal project time
Cost ($)
Total cost
Indirect cost
Direct cost
Crashing
Project Duration
Project Managment
Project Managment
Time
Engineering Management 1
Precedence
Diagramming
Method
Project
Resources:
Loading
Project
Resources
Leveling
Project
Schedule
Compression
Class 3: Project
Scheduling II
Ruel Ellis
Department of Mechanical and
Manufacturing Engineering
Precedence
Diagramming
Method (PDM)
Precedence
Diagramming Method
Extension of basic PERT/CPM
Permits partial parallel
performance of mutually
dependent activities
Allowance of overlap of
activities - not just serial
Better recognition of real world
relationships between activities
Precedence
Diagramming Method
Used by virtually all project
management software
More popular than CPM/PERT
method
Allows more flexibility than
CPM/PERT in lead/lag relationships
different types of dependencies
PDM Lead-Lag
Relationships
PDM Activity
Relationships
SSAB = 2
A
FSAB = 3
FFAB = 4
SFAB = 6
A
Problem Exercise:PERT
Network Analysis
Complete the PERT
network AON diagram
for the project.
You want to determine
Critical Path
Duration of the Critical
Path
Example Project
Example Project
Activity
A
B
C
D
E
F
G
H
Description
Test Plan Design
Prototype Sample Const
Shock Testing
Environmental Testing
Shock Test Analysis
Shock Test Report
Final Testing Draft Report
Final Test Report Delivery
(b-a)/6
(a + 4m + b)/6
3
5
3
8
10
6
2
2
5
9
4
16
12
11
4
3
7
19
11
18
32
10
6
16
Activity
A
B
C
D
E
F
G
H
Description
Test Plan Design
Prototype Sample Const
Shock Testing
Environmental Testing
Shock Test Analysis
Shock Test Report
Final Testing Draft Report
Final Test Report Delivery
3
5
3
8
10
6
2
2
5
9
4
16
12
11
4
3
7
19
11
18
32
10
6
16
Constrained
Resources
5
10
5
15
15
10
4
5
0.67
2.33
1.33
1.67
3.67
0.67
0.67
2.33
Resource Constraining
CPM & PERT both assume
unlimited resources
NOT TRUE
may have only a finite number of skilled
assets (example - systems analysts,
programmers)
Project Constraints:
Principal Types
Technical constraints
Task inter-relationships
Resource Constraints
People
Materials
Equipment
Capital
Physical constraints
Constrained Resources
Constrained resource problem
activity, duration, and resources
SUBJECT TO ________ (fill in the blank)
Generally accepted approaches:
Heuristic Methods (rules of thumb)
used by software for leveling
resources
Optimization Models (mathematical)
not good for large complex
situations
Resource Loading
Resource
Loading
Resource Loading
Time-phased resources - describes
amount of individual resources an
existing schedule requires during
specific time periods
Resource loads (requirements) of
each resource type are listed as a
function of time period
The schedule becomes directly
linked to requirements for
supporting resources
Resource Loading
Resource loading is the time
individual resources (people,
subcontractors, groups) have
committed to a project
Introduction of constraints to the
schedule
Resource Loading
Constraints to the schedule
Can be given as a percentage
Can provide dates of availability
Work contour loading
A couple of issues:
Overloading Pay overtime, Work
over
Underloading 100% committed
(wasted resource)
Resource Leveling
Based on the results from the
resource loading identification of
peaks and valleys in resources
assigned to the project
Leveling is designed to create a
smoother distribution of resource
usage reduce variability of
resource commitment
Leveling also changes cost (cash
flow) distribution
Resource
Leveling
Resource Leveling
Resource leveling is the process of
shifting resource usage to distribute
workload of team members and
availability of equipment/critical
resources
This is where the project managers
earn their money making schedulecosts tradeoffs
Resource Leveling
Example: Unleveled
Resource Leveling
Approaches to resource leveling
Redistribution of work split/stagger
activities
Task shifting using slack as shifting
leverage
Add additional resources
Substitute resources (temporary)
Change scope Eliminate activities
Change schedule
40
35
30
25
analysts
programmers
trainers
20
15
10
5
0
1st Qtr 2nd
Qtr
Resource Leveling
Example: Leveled
25
20
15
analysts
programmers
trainers
10
5
0
1st Qtr 2nd
Qtr
3rd
Qtr
4th
Qtr
3rd
Qtr
4th
Qtr
Resources and
Scheduling
Resource Leveling:
An Illustrative Example
C
F
D
Leveling
Resources
2
2
2
1
1
1
1
DUR
2
6
4
2
2
4
2
ES
0
2
2
2
6
6
10
EF
2
8
6
4
8
10
12
LS
0
4
2
8
8
6
10
LF
2
10
6
10
10
10
12
SL
0
2
0
6
2
0
0
Task
A
B
C
D
E
F
G
Res DUR ES
2
2
0
2
6
2
2
4
2
1
2
2
1
2
6
1
4
6
1
2
10
LF
2
10
6
10
10
10
12
SL
0
2
0
6
2
0
0
Total
1
2
9 10 11 12
2
2
2
1
2
2
1
2
2
2
2
1
1
1
1
1
1
1
1
Leveling
Task Res DUR
A
2
2
B
2
6
C
2
4
D
1
2
E
1
2
F
1
4
G 1
2
SL
0
2
0
6
2
0
0
1
2
Leveling
6
9 10 11 12
Resources
2
2
2
1
2
2
1
2
2
2
2
6
5
1
1
1
1
1
1
Series1
Total
1
0
1
Leveling
Task Res DUR
A
2
2
B
2
6
C
2
4
D
1
2
E
1
2
F
1
4
G
1
2
SL
0
2
0
6
2
0
0
total
1
2
10
11
12
Leveling
Resources
9 10 11 12
2
X X
2 2
1 1
2
2
2
2
1
1
1
1
1
1
1
1
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
Series1
10
11
12
MS Project (automatic
leveling factors)
1. Predecessor delay tasks without
dependencies first
2. Total slack delay tasks with more
slack
3. Start Date delay tasks that start
earlier
4. Priority Value delay lower priority
tasks first
5. Constraints constrained tasks less
likely to be delayed
Short Exercise:
Shortening the Schedule
Identify several
possible reasons why
we might want to
shorten the duration for
a project.
Project
Schedule
Compression
Shortening the
Project Duration
Why would we want to shorten the
duration of a project?
Changed program deadlines
Change in project scope or technical
performance requirements
Budget timing shifts
Shift in Resources M5I
Shortening the
Project Duration
Descope or decontenting
Technical performance relief or
reduction
Sacrifice quality
Subcontract elements
Introduce different
approach/technology (risk?)
Assign additional resources
Increase utilization of current resources
Rearrange sequencing of tasks
Schedule Compression:
Crashing a Project
Crashing as a problem vs.
crashing as an exercise
Why is this so difficult?
Project system
Intended and unintended
consequences
Shortening a Project
Schedule
Shortening durations of critical tasks
usually requires: (1) adding more
resources, (2) changing the scope,
and/or (3) changing the sequencing
Schedule crashing - obtaining the
greatest amount of schedule
compression for the least
incremental cost
Fast tracking parallel processing
activities or overlapping them
Crashing a Project
Recognize a relationship between
project cost and schedule
Provides the project manager
information to make informed
decisions about tradeoff of
time for cost, or vice versa
Specify (normal time, crash time)
and (normal cost, crash cost)
Crashing Sequence
1. Determine critical path
2. Establish cost slope for each
3.
4.
5.
Crashing Example
Problem
Activity
Cost Slope
cost slope =
Cc C n
Tc Tn
CC = crash cost
Cn = normal cost
Tc = crash time
Tn = normal time
Predecessor Duration
--
D*
E**
Pred Dur
Dur
Normal Crash
--
400
800
-400
200
800
-600
200
200
---
D*
300
1200
-300
100
800
E** B,C
B
-700
(2 wks)
Pred Dur
Dur
Normal Crash
--
400
800
-400
200
800
-600
200
200
---
D*
300
1200
-300
100
800
E** B,C
B
-700
(2 wks)
Crashing
Limitations
Assumes linear relationship
between time and cost
Not usually true (indirect costs dont
change at same rate as direct costs)
Fast-Tracking
Project
Schedule Fast
Tracking
Shortening Project
Schedules
Original
schedule
Shortened
duration
Overlapped
tasks
Issues in
Project
Scheduling
Scheduling Issues
Scheduling Issues
Importance of estimating
Schedule trade-offs ---Cost = f(Performance, Scope,
Time)
Scheduling is only part of a
complete approach to project
management
Tradeoffs between sophistication
and cost of methods for
scheduling estimation & analysis
Scheduling Issues
Scheduling Issues
Increased costs
Unhappy customers
Unhappy management
Earned Value
Analysis
Project
Control
Monitoring Project
Progress