1 Project Planning BA 339. 2 Project Planning and Control Definition of Project Management Work Breakdown Structure Critical Path Scheduling Ideal Completion.

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Presentation transcript:

1 Project Planning BA 339

2 Project Planning and Control Definition of Project Management Work Breakdown Structure Critical Path Scheduling Ideal Completion Time Time vs. Cost tradeoffs

3 Project Management Project series of related jobs usually directed toward some major output and requiring a significant period of time to perform. Project Management planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of the project. Project or Program?

4 Project Management Personal Life Work-related

5 Ways to manage project complexity Limit changes once project begins Goal orientation (completion date focus) Attempt to reduce uncertainty Expediters Constantly update information

6 Work Breakdown Structure Program Project 1Project 2 Task 1.1 Subtask Work Package Level Task 1.2 Subtask Work Package

7 Work Breakdown Structure Allow the elements to be worked on independently Make them manageable in size Give authority to carry out the program Monitor and measure the program Provide the required resources

8 Project Control: Gantt Chart New I-5 Bridge Design

9 Critical Path Scheduling 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.

10 CPM with Single Time Estimate Consider the following HR consulting project: Develop a critical path diagram and determine the duration of the critical path and slack times for all activities 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

11 First draw the network A, 2B, 1 C, 1 D, 2 E, 5 F, 5 G, 1

12 Moving forward on the diagram (left to right): Determine early start and early finish times ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 ? A, 2B, 1 C, 1 D, 2 E, 5 F, 5 G, 1

13 When F can start depends on when predecessors (D & E) finish 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, 2B, 1 C, 1 D, 2 E, 5 F, 5 G, 1

14 Moving backwards on the diagram (right to left): 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, 2B, 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 ?

15 Don’t delay the project 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, 2B, 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

16 Critical Path & Slack slack = amount of flexibility = LS-ES or LF-EF Critical path= completion time of the project (project bottleneck). Connect all points on path which have no 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, 2B, 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

17 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

18 Time-cost Trade-off “Crashing” a project Prepare a CPM-type network diagram Determine the cost per unit of time (usually assume days) to expedite each activity. NT=normal timeCT= crash time NC=normal costCC=crash cost cost to crash each day = (CC-NC)/(NT-CT) Compute critical path Shorten the critical path at the least cost Determine the minimum cost schedule.

19 A, 2 B, 5 C, 4 D, 3 ActivityCost per day to ExpediteNumber of possible Days activity may be shortened A$ 41 B$ 33 C$ 21 D$ 22

20 Crashing

21 In Class Exercise: Bike Path Project

22 Bike Path Project:

23 Cost Trade-offs The contractor will get a $100,000 bonus for completing the project within 25 weeks. Some of the activities can be shortened, but will cost more: Activity D: $10,000 per week for up to 3 weeks Activity E: $8,000 per week for up to 1 week Activity H: $6,000 per week for up to 1 week Activity I: $8,000 per week for up to 1 week What should he/she do?