Chapter 9 Project Management Critical Path Method Lecture

Chapter 9 Project Management (Critical Path Method)

Lecture Outline • • Project Planning Project Scheduling Project Control CPM Copyright 2011 John Wiley & Sons, Inc. 9 -2

Project Management Process • Project • unique, one-time operational activity or effort Copyright 2011 John Wiley & Sons, Inc. 9 -3

Project Management Process Copyright 2011 John Wiley & Sons, Inc. 9 -4

Project Management Process Copyright 2011 John Wiley & Sons, Inc. 9 -5

Project Elements • • Objective Scope Contract requirements Schedules Resources Personnel Control Risk and problem analysis Copyright 2011 John Wiley & Sons, Inc. 9 -6

Project Team and Project Manager • Project team • made up of individuals from various areas and departments within a company • Matrix organization • a team structure with members from functional areas, depending on skills required • Project manager • most important member of project team Copyright 2011 John Wiley & Sons, Inc. 9 -7

Scope Statement • Scope statement • a document that provides an understanding, justification, and expected result of a project • Statement of work • written description of objectives of a project Copyright 2011 John Wiley & Sons, Inc. 9 -8

Work Breakdown Structure • Work breakdown structure (WBS) • Breaks a project into components, subcomponents, activities, and tasks Copyright 2011 John Wiley & Sons, Inc. 9 -9

Work Breakdown Structure for Computer Order Processing System Project Copyright 2011 John Wiley & Sons, Inc. 9 -10

Responsibility Assignment Matrix • Organizational Breakdown Structure (OBS) • a chart that shows which organizational units are responsible for work items • Responsibility Assignment Matrix (RAM) • shows who is responsible for work in a project Copyright 2011 John Wiley & Sons, Inc. 9 -11

Responsibility Assignment Matrix Copyright 2011 John Wiley & Sons, Inc. 9 -12

Global and Diversity Issues in Project Management • Global project teams are formed from different genders, cultures, ethnicities, etc. • Diversity among team members can add an extra dimension to project planning • Cultural research and communication are important elements in the planning process Copyright 2011 John Wiley & Sons, Inc. 9 -13

Project Scheduling • Steps • • Define activities Sequence activities Estimate time Develop schedule Copyright 2011 John Wiley & Sons, Inc. • Techniques • Gantt chart • CPM/PERT • Software • Microsoft Project 9 -14

Gantt Chart • • Graph or bar chart Bars represent the time for each task Bars also indicate status of tasks Provides visual display of project schedule • Slack • amount of time an activity can be delayed without delaying the project Copyright 2011 John Wiley & Sons, Inc. 9 -15

Example of Gantt Chart 0 | 2 | Month 4 | 6 | 8 | 10 Activity Design house and obtain financing Lay foundation Order and receive materials Build house Select paint Select carpet Finish work 1 3 5 7 9 Month Copyright 2011 John Wiley & Sons, Inc. 9 -16

Project Control • Time management • Cost management • Performance management • Earned Value Analysis – standard procedure to • numerically measure a project’s progress • forecast its completion date and cost • measure schedule and budget variation Copyright 2011 John Wiley & Sons, Inc. 9 -17

Project Control • Quality management • Communication • Enterprise project management Copyright 2011 John Wiley & Sons, Inc. 9 -18

CPM/PERT • Critical Path Method (CPM) • Du. Pont & Remington-Rand • Deterministic task times • Activity-on-node network construction • Project Evaluation and Review Technique (PERT) • US Navy and Booz, Allen & Hamilton • Probabilistic task time estimates • Activity-on-arrow network construction Copyright 2011 John Wiley & Sons, Inc. 9 -19

Project Network • Activity-on-node (AON) • nodes represent activities • arrows show precedence relationships Branch 1 Node 2 3 • Activity-on-arrow (AOA) • arrows represent activities • nodes are events for points in time • Event • completion or beginning of an activity in a project Copyright 2011 John Wiley & Sons, Inc. 9 -20

AOA Project Network for a House 3 Lay foundation 1 3 Design house and obtain financing 2 2 Dummy 0 1 Order and receive materials 4 Select paint Build house 6 3 1 1 Finish work 1 7 Select carpet 5 Copyright 2011 John Wiley & Sons, Inc. 9 -21

Concurrent Activities • Dummy • two or more activities cannot share same start and end nodes Lay foundation 2 Lay foundation 3 Order material (a) Incorrect precedence relationship Copyright 2011 John Wiley & Sons, Inc. 2 3 Dummy 2 0 1 4 Order material (b) Correct precedence relationship 9 -22

AON Network for House Building Project Start Lay foundation Build house 2 2 4 3 Activity Number Activity Time 1 3 Design house and obtain financing 7 1 3 1 5 1 6 1 Order &receive materials Select paint Select carpet Copyright 2011 John Wiley & Sons, Inc. Finish work 9 -23

Critical Path 2 2 Start 1 3 7 1 3 1 A: B: C: D: 4 3 1 -2 -4 -7 3 + 2 + 3 + 1 = 9 months 1 -2 -5 -6 -7 3 + 2 + 1 + 1 = 8 months 1 -3 -4 -7 3 + 1 + 3 + 1 = 8 months 1 -3 -5 -6 -7 3 + 1 + 1 = 7 months Copyright 2011 John Wiley & Sons, Inc. 5 1 6 1 w Critical path n n Longest path through a network Minimum project completion time 9 -24

Activity Start Times Start at 5 months 2 2 Start 4 3 Finish at 9 months 1 3 7 1 3 1 Start at 3 months Copyright 2011 John Wiley & Sons, Inc. 5 1 Finish 6 1 Start at 6 months 9 -25

Node Configuration Activity number Activity duration Copyright 2011 John Wiley & Sons, Inc. Earliest start Earliest finish 1 0 3 3 0 3 Latest start Latest finish 9 -26

Activity Scheduling • Earliest start time (ES) • earliest time an activity can start • ES = maximum EF of immediate predecessors • Forward pass • starts at beginning of CPM/PERT network to determine earliest activity times • Earliest finish time (EF) • earliest time an activity can finish • earliest start time plus activity time • EF= ES + t Copyright 2011 John Wiley & Sons, Inc. 9 -27

Earliest Activity Start and Finish Times Lay foundation 2 3 Build house 5 4 2 Start 1 0 5 8 3 Finish work 3 7 1 Design house and obtain financing 8 9 1 3 3 4 1 Order and receive materials Copyright 2011 John Wiley & Sons, Inc. 6 6 7 1 5 5 6 1 Select carpet Select paint 9 -28

Activity Scheduling • Latest start time (LS) • Latest time an activity can start without delaying critical path time • LS= LF - t • Latest finish time (LF) • latest time an activity can be completed without delaying critical path time • LF = minimum LS of immediate predecessors • Backward pass • Determines latest activity times by starting at the end of CPM/PERT network and working forward Copyright 2011 John Wiley & Sons, Inc. 9 -29

Latest Activity Start and Finish Times Lay foundation Start 2 3 5 Build house 4 5 8 3 5 8 Finish work 1 0 3 7 8 9 1 0 3 1 8 9 Design house and obtain financing 3 3 4 1 4 5 Order and receive materials Copyright 2011 John Wiley & Sons, Inc. 5 1 5 6 6 6 7 1 6 7 Select carpet Select paint 9 -30

Activity Slack Activity LS ES LF EF Slack S *1 0 0 3 3 0 *2 3 3 5 5 0 3 4 3 5 4 1 *4 5 5 8 8 0 5 6 5 7 6 1 6 7 6 8 7 1 *7 8 8 9 9 0 * Critical Path Copyright 2011 John Wiley & Sons, Inc. 9 -31

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