1. 6. Project Management

3. Project
A set of partially ordered, interrelated activities that must be completed to achieve a goal

4. Project Management
Decision-making, choosing between alternatives, managing activities as a part of the project
Planning
goal setting, project definition, team organization
Scheduling
relating people, money, and supplies to specific activities and activities to one and other
Controlling
monitoring resources, costs, and quality; revising plans and shifting resources to meet time and cost demands

5. Role of Project Manager
All necessary activities are finished in order and on time
The project comes in within budget
The project meets quality goals
The people assigned to the project receive motivation, direction, and information

6. Project Scheduling Identifying precedence relationships
Sequencing activities
Determining activity times & costs
Estimating material and worker requirements
Determining critical activities

7. Scheduling Techniques
Gantt chart
Network models
Critical Path Method (CPM)
Program Evaluation and Review Technique (PERT)
Identify the longest time-consuming path through a network of activities required to complete a project

8. Gantt Chart: Service for a Delta Jet
Passengers
Baggage
Fueling
Cargo and mail
Galley servicing
Lavatory servicing
Drinking water
Cabin cleaning
Flight services
Operating crew
Deplaning
Baggage claim
Container offload
Pumping
Engine injection water
Main cabin door
Aft cabin door
Aft, center, forward
Loading
First-class section
Economy section
Container/bulk loading
Galley/cabin check
Receive passengers
Aircraft check
Boarding
Minutes

9. Key Terms for Network Models
Forward pass
To compute the earliest start (ES) and finish (EF) times for each activity
Backward pass
To compute the latest start (LS) and finish (LF) times for each activity without delaying the completion of the entire project
Slack
The length of time an activity can be delayed without delaying the entire project
LS-ES or LF-EF

10. Key Terms for Network ModelsA
Activity Name or Symbol
Earliest Start ES
Earliest Finish EF
Latest Start LS
Latest Finish LF
Activity Duration 2

11. Key Terms for Network Models
Critical path
Zero slack for every activity on the path
The longest path through the network
The shortest time in which the project can be completed
Any delay in critical path activities delays the project
There may be several critical paths

12. Network Examples A B C A C B B A C A B C D A B C D A C D B

13. CPM and PERT Procedures
Develop relationships among the activities - decide which activities must precede and which must follow others
Draw the network connecting all of the activities
Assign time and/or cost estimates to each activity
Compute the longest time path through the network – this is called the critical path
Use the network to help plan, schedule, monitor, and control the project

14. Immediate Predecessors
CPM Example
Activity
Description
Immediate Predecessors
Time (Weeks) A
Build internal components — 2 B
Modify roof and floor 3 C
Construct collection stack D
Pour concrete and install frame
A, B 4 E
Build high-temperature burner F
Install pollution control system G
Install air pollution device
D, E 5 H
Inspect and test
F, G

15. Continued G E F H C A
Start D B

16. Continued E 4 F 3 G 5 H 2 8 13 15 7 10 D C B
Start A 1

17. PERT
PERT uses a probability distribution for activity times to allow for variability while CPM assumes fixed time estimate
PERT uses two or three time estimates for each activity
a: optimistic time, b: pessimistic time, m: most likely time
Uniform distribution approximation
expected time = (a+b)/2, variance = (b–a)2/12
Beta distribution approximation
t = (a+4m+b)/6, v = (b–a)2/36

18. PERT Example
Activity a m b t v A B C D E F G H

19. Probability of Project Completion
Project variance is computed by summing variances of critical activities
σ2 = = 3.11
Total project completion times follow a normal probability distribution
Probability to finish the project within 16 weeks?
Pr(T<16) = Pr(Z<(16-15)/1.76)) = Pr(Z<0.57)
= 0.716

20. (Dis)Advantages of CPM/PERT
Especially useful for large projects
Straightforward concept and not mathematically complex
Graphical networks help to perceive relationships among project activities
Critical path pinpoints activities that need to be closely watched
Time estimates tend to be subjective
Too much emphasis on the critical path

21. Project Crashing Shortening the duration of the project Steps:
Compute the crash cost per time period
Identify the critical path and activities
Select an activity on the critical path that can be crashed with the smallest crash cost
Repeat until the desired due date is reached

22. An Example
Time (Wks) Cost ($) Crash Cost Critical Activity Normal Crash Normal Crash Per Wk ($) Path?
A ,000 22, Yes
B ,000 34,000 2,000 No
C ,000 27,000 1,000 Yes
D ,000 49,000 1,000 No
E ,000 58,000 1,000 Yes
F ,000 30, No
G ,000 84,500 1,500 Yes
H ,000 19,000 3,000 Yes

23. Video Case Study
Develop the network for planning and construction of the new hospital at Arnold Palmer.
What is the critical path and how long is the project expected to take?
Why is the construction of this 11-story building any more complex than construction of an equivalent office building?
What percent of the whole project duration was spent in planning that occurred prior to the proposal and reviews? Prior to the actual building construction? Why?