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1 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 1

2 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 2 Chapter 3 Project Management

3 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 3  Definition of Project Management  Work Breakdown Structure  Project Control Charts  Structuring Projects  Critical Path Scheduling OBJECTIVES

4 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 4  Project is a series of related jobs usually directed toward some major output and requiring a significant period of time to perform  Project Management are the management activities of planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project Project Management Defined

5 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 5 Gantt Chart Activity 1 Activity 2 Activity 3 Activity 4 Activity 5 Activity 6 Time Vertical Axis: Always Activities or Jobs Horizontal Axis: Always Time Horizontal bars used to denote length of time for each activity or job.

6 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 6 Structuring Projects: Pure Project Advantages Pure Project A pure project is where a self-contained team works full-time on the project  The project manager has full authority over the project  Team members report to one boss  Shortened communication lines  Team pride, motivation, and commitment are high

7 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 7 Structuring Projects: Pure Project Disadvantages  Duplication of resources  Organizational goals and policies are ignored  Lack of technology transfer  Team members have no functional area "home"

8 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 8 Functional Project President Research and Development EngineeringManufacturing Project A Project B Project C Project D Project E Project F Project G Project H Project I A functional project is housed within a functional division Example, Project “B” is in the functional area of Research and Development.

9 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 9 Structuring Projects Functional Project: Advantages  A team member can work on several projects  Technical expertise is maintained within the functional area  The functional area is a “home” after the project is completed  Critical mass of specialized knowledge

10 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 10 Structuring Projects Functional Project: Disadvantages  Aspects of the project that are not directly related to the functional area get short-changed  Motivation of team members is often weak  Needs of the client are secondary and are responded to slowly

11 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 11 Matrix Project Organization Structure President Research and Development Engineering Manufacturing Marketing Manager Project A Manager Project B Manager Project C

12 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 12 Structuring Projects Matrix: Advantages  Enhanced communications between functional areas  Pinpointed responsibility  Duplication of resources is minimized  Functional “home” for team members  Policies of the parent organization are followed

13 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 13 Structuring Projects Matrix: Disadvantages  Too many bosses  Depends on project manager’s negotiating skills  Potential for sub-optimization

14 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 14 Work Breakdown Structure Program Project 1Project 2 Task 1.1 Subtask Work Package Level Task 1.2 Subtask Work Package A work breakdown structure defines the hierarchy of project tasks, subtasks, and work packages

15 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 15 Network-Planning Models  A project is made up of a sequence of activities that form a network representing a project  The path taking longest time through this network of activities is called the “critical path”  The critical path provides a wide range of scheduling information useful in managing a project  Critical Path Method (CPM) helps to identify the critical path(s) in the project networks

16 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 16 Prerequisites for Critical Path Methodology A project must have:  well-defined jobs or tasks whose completion marks the end of the project;  independent jobs or tasks;  and tasks that follow a given sequence.

17 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 17 Types of Critical Path Methods  CPM with a Single Time Estimate –Used when activity times are known with certainty –Used to determine timing estimates for the project, each activity in the project, and slack time for activities  CPM with Three Activity Time Estimates –Used when activity times are uncertain –Used to obtain the same information as the Single Time Estimate model and probability information  Time-Cost Models –Used when cost trade-off information is a major consideration in planning –Used to determine the least cost in reducing total project time

18 18  Network techniques  Developed in 1950 ’ s  CPM by DuPont for chemical plants (1957)  PERT by Booz, Allen & Hamilton with the U.S. Navy, for Polaris missile (1958)  Consider precedence relationships and interdependencies  Each uses a different estimate of activity times PERT and CPM

19 19 Six Steps PERT & CPM 1.Define the project and prepare the work breakdown structure 2.Develop relationships among the activities - decide which activities must precede and which must follow others 3.Draw the network connecting all of the activities

20 20 Six Steps PERT & CPM 4.Assign time and/or cost estimates to each activity 5.Compute the longest time path through the network – this is called the critical path 6.Use the network to help plan, schedule, monitor, and control the project

21 21 A Comparison of AON and AOA Network Conventions Activity onActivityActivity on Node (AON)MeaningArrow (AOA) A comes before B, which comes before C (a) A B C BAC A and B must both be completed before C can start (b) A C C B A B B and C cannot begin until A is completed (c) B A C A B C Figure 3.5

22 22 A Comparison of AON and AOA Network Conventions Activity onActivityActivity on Node (AON)MeaningArrow (AOA) C and D cannot begin until A and B have both been completed (d) A B C D B AC D C cannot begin until both A and B are completed; D cannot begin until B is completed. A dummy activity is introduced in AOA (e) CA BD Dummy activity A B C D Figure 3.5

23 23 A Comparison of AON and AOA Network Conventions Activity onActivityActivity on Node (AON)MeaningArrow (AOA) B and C cannot begin until A is completed. D cannot begin until both B and C are completed. A dummy activity is again introduced in AOA. (f) A C DB AB C D Dummy activity Figure 3.5

24 24 AON Example ActivityDescription Immediate Predecessors ABuild internal components — BModify roof and floor — CConstruct collection stackA DPour concrete and install frameA, B EBuild high-temperature burnerC FInstall pollution control systemC GInstall air pollution deviceD, E HInspect and testF, G Milwaukee Paper Manufacturing's Activities and Predecessors Table 3.1

25 25 AON Network for Milwaukee Paper A Start B Start Activity Activity A (Build Internal Components) Activity B (Modify Roof and Floor) Figure 3.6

26 26 AON Network for Milwaukee Paper Figure 3.7 C D A Start B Activity A Precedes Activity C Activities A and B Precede Activity D

27 27 AON Network for Milwaukee Paper G E F H C A Start DB Arrows Show Precedence Relationships Figure 3.8

28 28H (Inspect/ Test) 7 Dummy Activity AOA Network for Milwaukee Paper 6 F (Install Controls) E (Build Burner) G (Install Pollution Device) 5 D (Pour Concrete/ Install Frame) 4C (Construct Stack) B (Modify Roof/Floor) A (Build Internal Components) Figure 3.9

29 29 Determining the Project Schedule Perform a Critical Path Analysis  The critical path is the longest path through the network  The critical path is the shortest time in which the project can be completed  Any delay in critical path activities delays the project  Critical path activities have no slack time

30 30 Determining the Project Schedule Perform a Critical Path Analysis ActivityDescriptionTime (weeks) ABuild internal components2 BModify roof and floor3 CConstruct collection stack2 DPour concrete and install frame4 EBuild high-temperature burner4 FInstall pollution control system 3 GInstall air pollution device5 HInspect and test2 Total Time (weeks)25 Table 3.2

31 31 Determining the Project Schedule Perform a Critical Path Analysis Table 3.2 ActivityDescriptionTime (weeks) ABuild internal components2 BModify roof and floor3 CConstruct collection stack2 DPour concrete and install frame4 EBuild high-temperature burner4 FInstall pollution control system 3 GInstall air pollution device5 HInspect and test2 Total Time (weeks)25 Earliest start (ES) =earliest time at which an activity can start, assuming all predecessors have been completed Earliest finish (EF) =earliest time at which an activity can be finished Latest start (LS) =latest time at which an activity can start so as to not delay the completion time of the entire project Latest finish (LF) =latest time by which an activity has to be finished so as to not delay the completion time of the entire project

32 32 Determining the Project Schedule Perform a Critical Path Analysis Figure 3.10 A Activity Name or Symbol Earliest Start ES Earliest Finish EF Latest Start LS Latest Finish LF Activity Duration 2

33 33 Forward Pass Begin at starting event and work forward Earliest Start Time Rule:  If an activity has only one immediate predecessor, its ES equals the EF of the predecessor  If an activity has multiple immediate predecessors, its ES is the maximum of all the EF values of its predecessors ES = Max (EF of all immediate predecessors)

34 34 Forward Pass Begin at starting event and work forward Earliest Finish Time Rule:  The earliest finish time (EF) of an activity is the sum of its earliest start time (ES) and its activity time EF = ES + Activity time

35 35 ES/EF Network for Milwaukee Paper Start 0 0 ES 0 EF = ES + Activity time

36 36 ES/EF Network for Milwaukee Paper Start A2A2 2 EF of A = ES of A ES of A

37 37 B3B3 ES/EF Network for Milwaukee Paper Start A2A EF of B = ES of B ES of B

38 38 C2C2 24 ES/EF Network for Milwaukee Paper B3B3 03 Start A2A2 20

39 39 C2C2 24 ES/EF Network for Milwaukee Paper B3B3 03 Start A2A2 20 D4D4 7 3 = Max (2, 3)

40 40 D4D4 37 C2C2 24 ES/EF Network for Milwaukee Paper B3B3 03 Start A2A2 20

41 41 E4E4 F3F3 G5G5 H2H D4D4 37 C2C2 24 ES/EF Network for Milwaukee Paper B3B3 03 Start A2A2 20 Figure 3.11

42 42 Backward Pass Begin with the last event and work backwards Latest Finish Time Rule:  If an activity is an immediate predecessor for just a single activity, its LF equals the LS of the activity that immediately follows it  If an activity is an immediate predecessor to more than one activity, its LF is the minimum of all LS values of all activities that immediately follow it LF = Min (LS of all immediate following activities)

43 43 Backward Pass Begin with the last event and work backwards Latest Start Time Rule:  The latest start time (LS) of an activity is the difference of its latest finish time (LF) and its activity time LS = LF – Activity time

44 44 LS/LF Times for Milwaukee Paper E4E4 F3F3 G5G5 H2H D4D4 37 C2C2 24 B3B3 03 Start A2A2 20 Figure 3.12 LF = EF of Project 1513 LS = LF – Activity time

45 45 LS/LF Times for Milwaukee Paper E4E4 F3F3 G5G5 H2H D4D4 37 C2C2 24 B3B3 03 Start A2A2 20 LF = Min(LS of following activity) 1013 Figure 3.12

46 46 LS/LF Times for Milwaukee Paper E4E4 F3F3 G5G5 H2H D4D4 37 C2C2 24 B3B3 03 Start A2A2 20 LF = Min(4, 10) 42 Figure 3.12

47 47 LS/LF Times for Milwaukee Paper E4E4 F3F3 G5G5 H2H D4D4 37 C2C2 24 B3B3 03 Start A2A Figure 3.12

48 48 Computing Slack Time After computing the ES, EF, LS, and LF times for all activities, compute the slack or free time for each activity  Slack is the length of time an activity can be delayed without delaying the entire project Slack = LS – ES or Slack = LF – EF

49 49 Computing Slack Time EarliestEarliestLatestLatestOn StartFinishStartFinishSlackCritical ActivityESEFLSLFLS – ESPath A02020Yes B03141No C24240Yes D37481No E48480Yes F No G Yes H Yes Table 3.3

50 50 Critical Path for Milwaukee Paper Figure 3.13 E4E4 F3F3 G5G5 H2H D4D4 37 C2C2 24 B3B3 03 Start A2A

51 51 ES – EF Gantt Chart for Milwaukee Paper ABuild internal components BModify roof and floor CConstruct collection stack DPour concrete and install frame EBuild high- temperature burner FInstall pollution control system GInstall air pollution device HInspect and test

52 52 LS – LF Gantt Chart for Milwaukee Paper ABuild internal components BModify roof and floor CConstruct collection stack DPour concrete and install frame EBuild high- temperature burner FInstall pollution control system GInstall air pollution device HInspect and test

53 53  CPM assumes we know a fixed time estimate for each activity and there is no variability in activity times  PERT uses a probability distribution for activity times to allow for variability Variability in Activity Times

54 54  Three time estimates are required  Optimistic time (a) – if everything goes according to plan  Most – likely time (m) – most realistic estimate  Pessimistic time (b) – assuming very unfavorable conditions Variability in Activity Times

55 55 Estimate follows beta distribution Variability in Activity Times Expected time: Variance of times: t = (a + 4m + b)/6 v = [(b – a)/6] 2

56 56 Estimate follows beta distribution Variability in Activity Times Expected time: Variance of times: t = (a + 4m + b)/6 v = [(b − a)/6]2 Probability of 1 in 100 of > b occurring Probability of 1 in 100 of < a occurring Probability Optimistic Time (a) Most Likely Time (m) Pessimistic Time (b) Activity Time

57 57 Computing Variance MostExpected OptimisticLikelyPessimisticTimeVariance Activity ambt = (a + 4m + b)/6[(b – a)/6] 2 A B C D E F G H Table 3.4

58 58 Probability of Project Completion Project variance is computed by summing the variances of critical activities  2 = Project variance =  (variances of activities on critical path) p

59 59 Probability of Project Completion Project variance is computed by summing the variances of critical activities Project variance  2 = = 3.11 Project standard deviation  p = Project variance = 3.11 = 1.76 weeks p

60 60 Probability of Project Completion PERT makes two more assumptions:  Total project completion times follow a normal probability distribution  Activity times are statistically independent

61 61 Probability of Project Completion Standard deviation = 1.76 weeks 15 Weeks (Expected Completion Time) Figure 3.15

62 62 Probability of Project Completion What is the probability this project can be completed on or before the 16 week deadline? Z=–/  p = (16 wks – 15 wks)/1.76 = 0.57 dueexpected date dateof completion Where Z is the number of standard deviations the due date lies from the mean

63 63 Probability of Project Completion What is the probability this project can be completed on or before the 16 week deadline? Z=−/  p = (16 wks − 15 wks)/1.76 = 0.57 dueexpected date dateof completion Where Z is the number of standard deviations the due date lies from the mean From Appendix I

64 64 Probability of Project Completion Time Probability (T ≤ 16 weeks) is 71.57% Figure Standard deviations 1516 WeeksWeeks

65 65 Determining Project Completion Time Probability of 0.01 Z Figure 3.17 From Appendix I Probability of Standard deviations 02.33

66 66 Variability of Completion Time for Noncritical Paths  Variability of times for activities on noncritical paths must be considered when finding the probability of finishing in a specified time  Variation in noncritical activity may cause change in critical path

67 67 What Project Management Has Provided So Far  The project ’ s expected completion time is 15 weeks  There is a 71.57% chance the equipment will be in place by the 16 week deadline  Five activities (A, C, E, G, and H) are on the critical path  Three activities (B, D, F) have slack time and are not on the critical path  A detailed schedule is available

68 68 Trade-Offs And Project Crashing  The project is behind schedule  The completion time has been moved forward It is not uncommon to face the following situations: Shortening the duration of the project is called project crashing

69 69 Factors to Consider When Crashing A Project  The amount by which an activity is crashed is, in fact, permissible  Taken together, the shortened activity durations will enable us to finish the project by the due date  The total cost of crashing is as small as possible

70 70 Steps in Project Crashing 1.Compute the crash cost per time period. If crash costs are linear over time: Crash cost per period = (Crash cost – Normal cost) (Normal time – Crash time) 2.Using current activity times, find the critical path and identify the critical activities

71 71 Steps in Project Crashing 3.If there is only one critical path, then select the activity on this critical path that (a) can still be crashed, and (b) has the smallest crash cost per period. If there is more than one critical path, then select one activity from each critical path such that (a) each selected activity can still be crashed, and (b) the total crash cost of all selected activities is the smallest. Note that a single activity may be common to more than one critical path.

72 72 Steps in Project Crashing 4.Update all activity times. If the desired due date has been reached, stop. If not, return to Step 2.

73 73 Crashing The Project Time (Wks)Cost ($)Crash CostCritical ActivityNormalCrashNormalCrashPer Wk ($)Path? A2122,00022,750750Yes B3130,00034,0002,000No C2126,00027,0001,000Yes D4248,00049,0001,000No E4256,00058,0001,000Yes F3230,00030,500500No G5280,00084,5001,500Yes H2116,00019,0003,000Yes Table 3.5

74 74 Crash and Normal Times and Costs for Activity B ||| 123Time (Weeks) $34,000 $34,000 — $33,000 $33,000 — $32,000 $32,000 — $31,000 $31,000 — $30,000 $30,000 — — Activity Cost CrashNormal Crash Time Normal Time Crash Cost Normal Cost Crash Cost/Wk = Crash Cost – Normal Cost Normal Time – Crash Time = $34,000 – $30,000 3 – 1 = = $2,000/Wk $4,000 2 Wks Figure 3.18

75 75 Critical Path And Slack Times For Milwaukee Paper Figure 3.19 E4E4 F3F3 G5G5 H2H D4D4 37 C2C2 24 B3B3 03 Start A2A Slack = 1 Slack = 0 Slack = 6 Slack = 0

76 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 76 Steps in the CPM with Single Time Estimate  1. Activity Identification  2. Activity Sequencing and Network Construction  3. Determine the critical path –From the critical path all of the project and activity timing information can be obtained

77 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 77 CPM with Single Time Estimate Consider the following consulting project : ActivityDesignationImmed. Pred.Time (Weeks) Assess customer's needsANone2 Write and submit proposalBA1 Obtain approvalCB1 Develop service vision and goalsDC2 Train employeesEC5 Quality improvement pilot groupsFD, E 5 Write assessment reportGF1 Develop a critical path diagram and determine the duration of the critical path and slack times for all activities.

78 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 78 First draw the network A(2)B(1) C(1) D(2) E(5) F(5) G(1) ANone2 BA1BA1 CB1CB1 DC2DC2 EC5EC5 FD,E5 GF1GF1 Act.Imed. Pred. Time

79 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 79 Determine early starts and early finish times ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A(2)B(1)C(1) D(2) E(5) F(5) G(1) Hint: Start with ES=0 and go forward in the network from A to G.

80 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 80 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=4 EF=9 ES=4 EF=6 A(2)B(1) C(1) D(2) E(5) F(5) G(1) LS=14 LF=15 LS=9 LF=14 LS=4 LF=9 LS=7 LF=9 LS=3 LF=4 LS=2 LF=3 LS=0 LF=2 Hint: Start with LF=15 or the total time of the project and go backward in the network from G to A.

81 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 81 Critical Path & Slack ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A(2)B(1) C(1) D(2) E(5) F(5) G(1) LS=14 LF=15 LS=9 LF=14 LS=4 LF=9 LS=7 LF=9 LS=3 LF=4 LS=2 LF=3 LS=0 LF=2 Duration=15 weeks Slack=(7-4)=(9-6)= 3 Wks

82 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 82 Example 2. CPM with Three Activity Time Estimates

83 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 83 Example 2. Expected Time Calculations ET(A)= 3+4(6)+15 6 ET(A)= 3+4(6)+15 6 ET(A)=42/6=7

84 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 84 Ex. 2. Expected Time Calculations ET(B)=32/6=5.333 ET(B)= 2+4(4)+14 6 ET(B)= 2+4(4)+14 6

85 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 85 Ex 2. Expected Time Calculations ET(C)= 6+4(12)+30 6 ET(C)= 6+4(12)+30 6 ET(C)=84/6=14

86 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 86 Example 2. Network A(7) B (5.333) C(14) D(5) E(11) F(7) H(4) G(11) I(18) Duration = 54 Days

87 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 87 Example 2. Probability Exercise What is the probability of finishing this project in less than 53 days? What is the probability of finishing this project in less than 53 days? p(t < D) T E = 54 t D=53

88 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 88 (Sum the variance along the critical path.)

89 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 89 There is a 43.8% probability that this project will be completed in less than 53 weeks. p(Z < -.156) =.438, or 43.8 % (NORMSDIST(-.156)) T E = 54 p(t < D) t D=53

90 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 90 Ex 2. Additional Probability Exercise  What is the probability that the project duration will exceed 56 weeks?

91 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 91 Example 2. Additional Exercise Solution t T E = 54 p(t < D) D=56 p(Z >.312) =.378, or 37.8 % (1-NORMSDIST(.312))

92 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 92 Time-Cost Models  Basic Assumption: Relationship between 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

93 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 93 CPM Assumptions/Limitations  Project activities can be identified as entities (There is a clear beginning and ending point for each activity.)  Project activity sequence relationships can be specified and networked  Project control should focus on the critical path  The activity times follow the beta distribution, with the variance of the project assumed to equal the sum of the variances along the critical path  Project control should focus on the critical path

94 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 94 Question Bowl Which of the following are examples of Graphic Project Charts? a. Gantt b. Bar c. Milestone d. All of the above e. None of the above Answer: d. All of the above

95 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 95 Question Bowl Which of the following are one of the three organizational structures of projects? a. Pure b. Functional c. Matrix d. All of the above e. None of the above Answer: d. All of the above

96 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 96 Question Bowl Answer: a. SOW (or Statement of Work) A project starts with a written description of the objectives to be achieved, with a brief statement of the work to be done and a proposed schedule all contained in which of the following? a. SOW (statement of work) b. WBS (work breakdown structure) c. Early Start Schedule d. Late Start Schedule e. None of the above

97 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 97 Question Bowl For some activities in a project there may be some leeway from when an activity can start and when it must finish. What is this period of time called when using the Critical Path Method? a. Early start time b. Late start time c. Slack time d. All of the above e. None of the above Answer: c. Slack time

98 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 98 Question Bowl How much “slack time” is permitted in the “critical path” activity times? a. Only one unit of time per activity b. No slack time is permitted c. As much as the maximum activity time in the network d. As much as is necessary to add up to the total time of the project e. None of the above Answer: b. No slack time is permitted (All critical path activities must have zero slack time, otherwise they would not be critical to the project completion time.)

99 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 99 Question Bowl When looking at the Time-Cost Trade Offs in the Minimum-Cost Scheduling time-cost model, we seek to reduce the total time of a project by doing what to the least-cost activity choices? a. Crashing them b. Adding slack time c. Subtracting slack time d. Adding project time e. None of the above Answer: a. Crashing them (We “crash” the least-cost activity times to seek a reduced total time for the entire project and we do it step-wise as inexpensively as possible.)

100 McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc., All Rights Reserved. 100 End of Chapter 3


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