1. PROJECT MANAGEMENT week 7
Dr. Meryem Uluskan

2. Agenda Developing a Project Plan (cont’d)
Developing the Project Network
From Work Package to Network
Constructing a Project Network
Activity-on-Node (AON) Fundamentals
Network Computation Process
Using the Forward and Backward Pass Information
Level of Detail for Activities
Practical Considerations
Extended Network Techniques
Activity-on-Arrow (AOA) Fundamentals

3. Extended network techniques to come close to reality
Laddering
Activities are broken into segments so the following activity can begin sooner and not delay the work.
Lags
The minimum amount of time a dependent activity must be delayed to begin or end
Lengthy activities are broken down to reduce the delay in the start of successor activities.
Lags can be used to constrain finish-to-start, start-to-start, finish-to-finish, start-to-finish, or combination relationships.

4. Example of laddering using finish-to-start relationship

5. Extended Network Techniques to Come Closer to Reality- Laddering
All immediate preceding activities must be 100% complete is too restrictive for some situations.
Under the standard finish-to-start relationship
when an activity has a long duration and will delay the start of an activity immediately following it,
the activity can be broken into segments and the network drawn using a laddering approach
Laddering
Activities are broken into segments so the following activity can begin sooner and not delay the work.

6. Example of Laddering Using Finish-to-Start Relationship – Laying a Pipe

7. Extended network techniques to come close to reality – Using Lags
The minimum amount of time a dependent activity must be delayed to begin or end
Lengthy activities are broken down to reduce the delay in the start of successor activities.
Lags can be used to constrain finish-to-start, start-to-start, finish-to-finish, start-to-finish, or combination relationships.

8. Extended network techniques to come close to reality – Using Lags
Finish-to-Start Relationship
The next activity must be delayed even when the preceding activity is complete.
removing concrete forms cannot begin until the poured cement has cured for two time units
frequently used when ordering materials
take 1 day to place orders but take 19 days to receive the goods
activity cost is tied to placing the order only
useful to depict transportation, legal, and mail lags

9. Finish-to-Start Relationship Start-to-Start Relationship
Using Lags
Finish-to-Start Relationship
Start-to-Start Relationship
Activity Q cannot begin until five time units after activity P begins.

10. Extended network techniques to come close to reality – Using Lags
Start-to-Start Relationship
pipe-laying project

11. Extended network techniques to come close to reality – Using Lags
Start-to-Start Relationship
Instead of a finish-to-start activity “design house, then build foundation,”
a start-to-start relationship can be used where
foundation can be started five days (lag) after design has started
This start-to-start relationship with a small lag allows
a sequential activity to be worked on in parallel and
to compress the duration of the critical path.
Same concept is frequently found in projects in which concurrent engineering is used to speed completion of a project.

12. New product development process
Chrysler Corporation
The project was completed
six months ahead of schedule.

13. Finish-to-Finish Relationship Start-to-Finish Relationship
Using Lags
The testing of subcomponents can begin before the prototype is completed,
but four days of “system” testing is required after the prototype is finished.
Finish-to-Finish Relationship
System documentation cannot end
until three days after testing has started.
All the relevant information to complete the system documentation is produced after the first three days of testing.
Start-to-Finish Relationship

14. Both Start-to-Finish and Finish-to-Finish Relationships
Using Lags
Both Start-to-Finish and Finish-to-Finish Relationships

15. Hammock Activities An activity that spans over a segment of a project
Duration of hammock activities is determined after the network plan is drawn.
Are frequently used to identify the use of fixed resources or costs over a segment of the project.
Ex. inspection services, consultants, or construction management services
Hammock activities are used to aggregate sections of the project to facilitate getting the right amount of detail for specific sections of a project.

16. Hammock Activities

17. Hammock Activities
A special color copy machine is needed for a segment of a tradeshow publication project.
A hammock activity can be used to indicate the need for this resource and to apply costs over this segment of the project.
This hammock is linked from the start of the first activity in the segment that uses the color copy machine to the end of the last activity that uses it.
The hammock duration is simply the difference between the EF for the last activity and the ES of the first activity.

18. In Class 1- Network using lags

19. In Class 1 -Network using lags- Solution

20. Activity-on-Arrow network building blocks
The arrow represents an individual project activity that requires time.
The node represents an event; it is usually presented as a small circle.
Events represent points in time but do not consume time.

21. Activity-on-Arrow network fundamentals
Merge “event”, burst “event”

22. Activity-on-Arrow network fundamentals

23. Koll Center project: Network information

24. Partial Koll Business Center AOA network

25. Partial AOA Koll network

26. Partial AOA Koll network (cont’d)

27. Activity-on-Arrow network

28. Activity-on-Arrow network forward pass

29. Activity-on-Arrow network backward pass

30. Activity-on-Arrow network backward pass, forward pass, and slack

31. Comparison of AON and AOA methods

32. Agenda Managing Risk Risk Management Process
Step 1: Risk Identification
Step 2: Risk Assessment
Step 3: Risk Response Development
Opportunity Management
Contingency Planning
Contingency Funding and Time Buffers
Step 4: Risk Response Control
Change Control Management
PERT

33. Managing Risk
In the context of projects, risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on project objectives.
If any these uncertain events occurs, it will impact the cost, schedule, and quality of the project.
Some potential risk events can be identified before the project starts
such as equipment malfunction or change in technical requirements.
Risks can be anticipated consequences, like schedule slippages or cost overruns.
Risks can be beyond imagination like the 2008 financial crisis.

34. Risk Management Process
Uncertain or chance events that planning can not overcome or control.
Risk Management
A proactive attempt to recognize and manage potential and unforeseen internal events and external threats that affect may occur when the project is implemented.
Identifies as many risk events as possible
What can go wrong (risk event).
How to minimize the risk event’s impact (consequences).
What can be done before an event occurs (anticipation).
What to do when an event occurs (contingency plans).

35. Risk Management Process

36. Risk Management Process
The chances of a risk event occurring are greatest in the concept, planning, and start- up phases of the project.
The cost impact of a risk event in the project is less if the event occurs earlier rather than later.
The early stages of the project represent the period when the opportunity for minimizing the impact or a potential risk exists.
Conversely, as the project passes the halfway implementation mark, the cost of a risk event occurring increases rapidly.

37. Risk Management’s Benefits
A proactive rather than reactive approach.
Preventive process that reduces surprises and negative consequences.
Prepares the project manager to take advantage of appropriate risks.
Provides better control over the future.
Improves chances of reaching project performance objectives within budget and on time.

38. The external sources of project risks
“Threats”, such as inflation, market acceptance, exchange rates, and government regulations.
are not within the project manager’s or team’s responsibility area.
Since such external risks are usually considered before the decision to go ahead with the project, they will be excluded from the discussion of project risks.
However, external risks are extremely important and must be addressed.

39. Risk Management Process

40. Managing Risk Step 1: Risk Identification
Generate a list of possible risks through brainstorming, problem identification and risk profiling.
Macro risks first, then specific events
A common mistake is to focus on objectives and not on the events that could produce consequences.
Team may identify failing to meet schedule as a major risk.
They need to focus on the events that could cause this to happen (i.e., poor estimates, adverse weather, shipping delays, etc.).
Only by focusing on actual events can potential solutions be found.

41. The Risk Breakdown Structure (RBS)
Organizations use risk breakdown structures (RBSs) to help management teams identify and analyze risks.

42. Partial Risk Profile for Product Development Project
Good risk profiles
are tailored to the type of project in question,
are organization specific,
recognize the unique strengths and weaknesses of the firm,
address both technical and management risks.

43. Managing Risk Step 1: Risk Identification
Input from customers, sponsors, subcontractors, vendors, and other stakeholders should be included.
Relevant stakeholders can be formally interviewed or included on the risk management team.

44. Managing Risk Step 2: Risk assessment
Step 1 produces a list of potential risks.
Some are trivial and can be ignored, while others pose serious threats to the success of the project.
Techniques for analyzing risks:
Scenario analysis
Risk assessment matrix
Failure Mode and Effects Analysis (FMEA)
Probability analysis
Decision trees, PERT
Semiquantitative scenario analysis

45. The Gantt chart lays out task durations over the time of the project
places tasks and activities (groups of tasks gathered into broad tasks) as horizontal bars against a time line to show start and end dates for the tasks.
shows the timing of the big picture from the details of the work breakdown structure.
are useful in scheduling a project.
might be called a graphical WBS.
can be color coded to note who is responsible for what task.

46. The Gantt chart
Follow these guidelines as you complete your Gantt chart.
1. What is the total length of the project? Let that time be the length of the time axis (x-axis).
2. How long is the shortest task? Let that time help you set the divisions on the x-axis. (Use your judgment if you have a few tasks much shorter than most. They’ll show up as points in time - or vertical lines).

47. The Gantt chart
3. What are the tasks of the project? List them sequentially along the y-axis (either by short title or identifying number). Also, you can choose to list your tasks sequentially by starting date or by number.
4. Estimate the duration for each task in your task list. When does the task begin? When does the task end? Represent start date and end date by an empty bar horizontal to the x-axis for each task. The time between start date and end date is the duration of the task.

48. The Gantt chart
Note: When you use the Gantt chart during the project to see how well you’re doing, you’ll include a solid bar above or below each empty bar. Draw in the solid bar to show the progress (percent completed) of each task. So the empty bar shows plan and the solid bar shows actual.

49. The Gantt chart
Helpful Hints: • List short identifiers with numbers. • Determine how you want to define start and end date. • Use weeks for first iteration. • Add in non-project activity that affects the project; e.g., vacation or holiday periods.

50. Gantt chart

51. Gantt chart Mary’s house

52. In Class - 1 You are completing a group term paper.
Given the project network that follows,
complete the forward and backward pass, compute activity slack, and identify the critical path.
Use this information to create a Gantt chart for the
project. Be sure to show slack for noncritical activities.

53. In Class – 1 Solution

54. The network diagram shows dependence and precedence.
captures and shows how the project tasks influence one another.
The WBS gives us all the tasks for the task list as they are associated with each other in logical groups.
The Gantt chart shows these associated tasks against a time line so we get a sense of overlapping demands for resources and some sense of sequencing.
Now, we must add in the information of dependence.

55. The network diagram

56. The network diagram

57. The network diagram Definitions:
Precedence – Sequencing of tasks in terms of dependence.
Dependence – One task is dependent on another task such that for the dependent task to be undertaken, the other task must be in process (underway or complete).
Earliest start date – The earliest date a task can be started based on dependence and availability of resources.
Latest start date – The latest date a task can be started depending on dependence and availability of resources.
Earliest end date – The earliest date a task can be finished depending on dependence and availability of resources.

58. The network diagram

59. The network diagram Mary’s house

60. Next week’s deliverables - Gantt chart

61. Next week’s deliverables - The network diagram