1. Scheduling and Budgeting Engineers Without Frontiers CEE 402

2. Basic Project Management Cycle Initiation Phase Team formation Goals Objectives Planning Phase Scheduling of tasks Budgeting (resource management) Control Phase Periodic adjustment of the PLAN Closeout Phase

3. Basic Project Management Process

4. Project Planning Tools Work Breakdown Structure (WBS) Hierarchy of tasks Estimated task durations Responsibility Chart Allocation of tasks to individuals Gantt or bar chart Schedule Budget

5. Hierarchical Work Breakdown Structure (WBS)

6. Microsoft Project WBS

7. Building Renovation Example Design Pre-Renovation Renovation Furnish Post-Renovation

8. Example of a WBS with Details

9. Sample Responsibility Matrix

10. Project Scheduling Critical path method –Project network (arrow diagram) –Gantt or bar chart –Resource scheduling Program Evaluation & Review Technique (PERT ) (we won’t discuss)

11. Blast Furnace Relining Example Reduction of iron oxide to molten iron to make steel 30 meters 7 meters in diameter 1000 o C Main reaction Molten Iron and impurities

12. Construction Planning Bosh and stack are lined with firebrick Lining needs to be replaced every 2-4 years Pipefitters, carpenters, bricklayers, etc. needed Expensive to have furnace offline Work typically carried out using three shifts around the clock

13. Objectives Installation of new coke screening and weighing equipment Replacement and rebricking of the hot blast main Rebricking of the bustle main Extensive repairs to the uptakes and downcomers

14. Questions What is the expected project duration? How should the work tasks be scheduled so that the project is completed in the minimum time possible? How do costs accumulate through the course of the project? What are the financing needs?  Use Critical Path Method to answer

15. Project Network Example: Build a House 1 Excavate Foundation Rough Wall Roof 2 3 4 5 6 8 10 Rough Exterior Plumbing Dummy Exterior Siding Exterior Painting 7 Rough Electrical Work Rough Interior Plumbing 9 Wall Board 1112 13 Flooring Interior Plumbing Dummy Interior Fixtures Exterior Fixtures Activitity Event (usually point when activities leading to that point are done) Dummy activity Rules: 1 start node/1 end node 2 nodes can be directly connected by no more than 1 arc No unnecessary arcs Flow to right (or down)

16. How to Draw a Project Network 1.List all tasks. 2.Determine the precedence requirements. 3.Draw diagram a.Draw node 1. All activities with no precedence requirements emanate from it. b.One by one add activities for which precedence requirements have been satisfied. c.Renumber nodes.

17. List Tasks for Blast Furnace and Precedence Requirements ID Task Description Predecessors A Cool furnace none B Remove top A C Rake out A D Remove pipes A E Wreck stack B, C F Install safety platform E G Fit brick platform F H Wreck hearth F I Renew bosh F J Renew coolers H K Brick hearth I, J L Brick stack G, K M Fit top L N Fit pipes D, E O Rebrick bustle main A P Renew hot blast main A Q Repair uptakes & downcomers A R Install coke screen & weigh none S Complete top M, N, O, P, Q T Dry M, N, O, P, Q U Fill and heat R, S, T Duration (Hrs.) 128.0 18.0 6.0 14.7 56.0 22.7 37.3 46.0 96.0 56.0 169.3 300.0 41.3 82.7 160.0 633.3 586.7 126.7 36.0 128.0 98.7 2843.4

18. K 169.3 A 128 B,18 C,6 E,56 F 22.7 H,46 J 56 L 300 M 41.3 T,128 U 98.7 Critical Path for Blast Furnace Expected Duration = 1064 hrs Expected Duration = 1064 hrs. Sequence of activities through project network that determines project duration Since all activities must be completed, critical path is path with maximum duration 1 2 3 4 5 10 67 8 9 11 12 D,14.7 G, 37.3 I, 96 13 16 17 S,36 R, 126.7 N, 82.7 O, 160 P, 633.3 Q, 586.7 15 14

19. A Numbering Nodes on Project Network 1.Number start node 1, then erase all arrows coming out of it. 2.Find all nodes that have only outward-pointing arrows. 3.Number all such nodes consecutively (in any order), then erase all arrows emanating from these nodes. 4.Repeat steps 2 and 3 until final node is numbered. 12 3 4 5 10 67 8 911 12 B C D E FH G I JKLM 13 16 17 S T U R N O P Q 15 14

20. Time Definitions d IJ duration of activity IJ EST IJ earliest time activity IJ can start EFT IJ earliest time activity IJ can finish LST IJ latest time activity IJ can start without increasing project duration LFT IJ latest time activity IJ can finish without increasing project duration EFT IJ = EST IJ + d IJ LFT IJ = LST IJ + d IJ

21. Float Total float of activity IJ Max. time activity IJ can be delayed without increasing project duration, assuming predecessor activities started at EST TF IJ = LST IJ - EST IJ

22. Calculating Times 1.Forward pass to calculate EST IJ Max. of EFT of activities coming into node 2.Backward pass to calculate LST IJ Min.(LST JK ) - d IJ 3.EFT IJ = EST IJ + d IJ 4.LFT IJ = LST IJ + d IJ 5.TF IJ = LST IJ – EST IJ If EST IJ =LST IJ, then IJ is on critical path. Minimum project duration = Critical path duration

23. Activity Table

24. Completed Activity Table

25. Gantt Chart for Blast Furnace Activity A B C D E F G H I J K L M N O P Q R S T U Critical * * * * * * * * * * * 20040060080010001200 hours Scheduled duration Float Expected duration = 1,064 hours

26. Gantt Chart Variation Activity A B C D E F G Duration (days) 7/038/039/0310/0311/0312/02 mth. Progress to date September 2003 H 40 10 5 25 0 45 90 0 Milestone

27. Costs for Blast Furnace Tasks ID Task Description Imm. Pred. Duration (Hrs.) Cost ($1000) A Cool furnace none 60 B Remove top A 25 C Rake out A 65 D Remove pipes A 100 E Wreck stack B, C 125 F Install safety platform E 70 G Fit brick platform F 70 H Wreck hearth F 75 I Renew bosh F 50 J Renew coolers H 60 K Brick hearth I, J 190 L Brick stack G, K 230 M Fit top L 50 N Fit pipes D, E 50 O Rebrick bustle main A 220 P Renew hot blast main A 170 Q Repair uptakes & downcomers A 120 R Install coke screen & weigh none 80 S Complete top M, N, O, P, Q 60 T Dry M, N, O, P, Q 55 U Fill and heat R, S, T 75 128.0 18.0 6.0 14.7 56.0 22.7 37.3 46.0 96.0 56.0 169.3 300.0 41.3 82.7 160.0 633.3 586.7 126.7 36.0 128.0 98.7 2000 2843.4

28. Accumulated Project Cost for Blast Furnace ($1000) 0 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 010020030040050060070080090010001100 Time (hours) Project Cost ($1000)

29. Microsoft Project Gantt

30. Questions What is the expected project duration? How should the work tasks be scheduled so that the project is completed in the minimum time possible? How do costs accumulate through the course of the project? What are the financing needs?

31. Costs and Budgets Major concern of every project is to control –Time –Costs Issues affecting costs –Amount of time charged by workers –Duration from start to finish –Time lost due to Factors within control of management Factors beyond control of management –Resources required to perform project

32. Cost Classification Recurring vs. nonrecurring Fixed vs. variable Direct vs. indirect

33. Budgets A budget is a plan that describes expenses for a specified period of time. Budgets often include: –Start-up costs (fixed) –Resources needed, e.g., labor, materials (direct) –Unit cost for resources (direct) –Indirect costs –Total project cost –Cost sharing