Introduction to Project Management Developing a Network Plan

Introduction to Project Management Developing a Network Plan Kusdhianto Setiawan Gadjah Mada University

Rollup of Network Plans Figure 4 -1 Level 1 - Milestone Plan A B C D E F Level 2 - Plans Level 3 - Plans WP-1 WP-4 WP-3 WP-2 Kusdhianto Setiawan Gadjah Mada University

WBS/Work Packages to Network Figure 4 -2 Lowest element O r g a n i z a t i o U n i t s Circuit board Design cost account Production cost account Test cost account Software cost account B P-10 -1 Design WP D-1 -1 Specifications WP D-1 -2 Documentation A D-1 -1 D-1 -2 D P-10 -2 F S-22 -2 K T-13 -1 C S-22 -1 Production WP P-10 -1 Proto 1 WP P-10 -2 Final Proto 2 B Proto 1 5 Test systems WP T-13 -1 Test Software WP S-22 -1 Software preliminary WP S-22 -1 Software final version Kusdhianto Setiawan D Final proto 2 4 A Specifications and documentation 2 C Preliminary software 3 Gadjah Mada University F Final software 2 K Test 3

Activity-on-Node Network Fundamentals Figure 4 -3 J, K, & L can all begin at the same time, if you wish (they need not occur simultaneously) J A B C K A is preceded by nothing B is preceded by A C is preceded by B L (A) M (C) but All (J, K, L) must be completed before M can begin Y Y and Z are preceded by X X Z Z is preceded by X and Y Z Y and Z can begin at the same time, if you wish Y AA AA is preceded by X and Y X (B) Kusdhianto Setiawan (D) Gadjah Mada University

Activity-on-Node Network Fundamentals Figure 4 -6 KOLL BUSINESS CENTER County Engineers Design Department EF Kusdhianto Setiawan Gadjah Mada University

Activity-on-Node Network Forward Pass Figure 4 -7 20 15 35 20 200 15 10 KOLL BUSINESS CENTER County Engineers Design Department EF Kusdhianto Setiawan Gadjah Mada University

Activity-on-Node Network Backward Pass Figure 4 -8 185 20 185 5 10 20 15 20 KOLL BUSINESS CENTER County Engineers Design Department LS Kusdhianto Setiawan Gadjah Mada University

Activity-on-Node Network with Slack Figure 4 -9 185 20 185 5 20 15 10 20 10 15 20 KOLL BUSINESS CENTER County Engineers Design Department LS EF Kusdhianto Setiawan Gadjah Mada University

Software Conversion Project Responsibility Matrix Organization Unit/Individual Figure 4 -10 Legend R = Responsibility C = Contributes A = Advises Activities Kusdhianto Setiawan Gadjah Mada University

Air Control Inc. , Custom Order Project—Network Diagram Figure 4 -12 2 Software development 18 2 20 22 40 3 Order review 1 2 0 0 2 2 15 2 17 15 30 Order standard parts Produce standard 10 parts 2 12 5 15 8 Assemble 5 40 45 10 30 40 4 Design 5 custom parts 13 2 12 5 15 Kusdhianto Setiawan 7 Legend 6 Manufacture custom 15 hardware 15 30 8# Activity Duration ES EF LS LF Gadjah Mada University Test

Air Control Inc. , Custom Order Project—Gantt Chart Figure 4 -13 2 Order review Design custom parts 13 Order standard parts 15 Produce standard parts 10 18 Software development Manufacture custom hardware 15 10 Assemble 5 Test 0 Kusdhianto Setiawan 7 14 21 28 35 42 49 Gadjah Mada University

Air Control Inc. , Custom Order Project—Network with Dates Figure 4 -14 Software development 18 2 -Jan 20 -Jan 22 -Jan 9 -Jan 2 3 Order 1 review 2 1 -Jan 2 -Jan Order standard parts 15 2 -Jan 17 -Jan 15 -Jan 30 -Jan 4 Design 5 custom parts 13 2 -Jan 15 -Jan Assemble Legend 6 Manufacture custom hardware 15 15 -Jan 30 -Jan 8 Test 5 9 -Jan 14 -Jan 10 30 -Jan 9 -Jan Produce standard parts 10 2 -Jan 12 -Jan 5 -Jan 15 -Jan Kusdhianto Setiawan 7 8# Activity Duration ES date EF date LS date LF date Gadjah Mada University

Example of Laddering Using Finish-to-Start Relationship Figure 4 -15 Trench 1/3 Kusdhianto Setiawan Trench 1/3 Lay pipe 1/3 Refill 1/3 AON network Gadjah Mada University Refill 1/3

Finish-to-Start Relationship Figure 4 -16 X Kusdhianto Setiawan Lag 2 Y Gadjah Mada University

Start-to-Start Relationship Figure 4 -17 A B Activity M Activity P Activity N Kusdhianto Setiawan Lag 5 Activity Q Gadjah Mada University

Use of Lags to Reduce Detail Figure 4 -18 Trench 1 mile Lag 3 Lay pipe 1 mile Lag 3 Kusdhianto Setiawan Refill 1 mile Gadjah Mada University

Finish-to-Finish Relationship Figure 4 -19 Prototype Lag 4 Testing Kusdhianto Setiawan Gadjah Mada University

Start-to-Start Relationship Figure 4 -20 Testing System documentation Lag 3 Kusdhianto Setiawan Gadjah Mada University

Combination Relationships Figure 4 -21 Lag 4 Code Lag 2 Kusdhianto Setiawan Debug Gadjah Mada University

Network Using Lags Figure 4 -22 Lag 10 Lag 5 Lag 10 Legend Kusdhianto Setiawan Lag 5 Lag 10 Gadjah Mada University

Hammock Activity Example Figure 4 -23 Legend Kusdhianto Setiawan Gadjah Mada University

Activity-on-Arrow Method Kusdhianto Setiawan Gadjah Mada University

AOA Network Building Blocks Figure A 4 -1 Activity 79 Kusdhianto Setiawan Install software Event 80 Gadjah Mada University

KOLL Business Center Activity Description A Application Approval B C D Construction Plan E F G H Staff Report Traffic Study Service availability Check Commission Approval Wait for Construction Occupancy Preceding Activity None Activity Time 5 A A A 15 10 5 B, C, D F E, G 15 10 170 35

Partial Koll Business Center AOA Network Figure A 4 -3 1 Kusdhianto Setiawan A Application approval 2 B Construction plans 4 C Traffic study D Service availability check 3 5 Gadjah Mada University

Partial AOA Network Koll Network Figure A 4 -4 a 3 X 1 A C 2 1 3 2 1 Kusdhianto Setiawan 2 E X C 4 (B) E 4 B A 4 (A) B A B C X E 3 (C) Gadjah Mada University

Partial AOA Network Koll Network Figure A 4 -4 b 4 B A 1 X C 2 E 3 D (D) B 1 A 2 C 4 X 3 5 E ? 5 F D (E) Kusdhianto Setiawan Gadjah Mada University

Activity-on-Arrow Network Figure A 4 -5 B 15 X 1 A 5 2 Legend Activity Duration Kusdhianto Setiawan C 10 3 D 5 4 0 0 Y 5 E 15 F 10 6 G 170 7 H 35 KOLL BUSINESS CENTER County Engineers Design Department Gadjah Mada University 8

Activity-on-Arrow Network Forward Pass Figure A 4 -6 20 1 A 5 5 2 C 10 B 15 15 X 0 15 3 EF Kusdhianto Setiawan 0 Y 20 5 10 D 5 Legend 4 E 15 F 10 30 6 G 170 35 200 7 H 35 235 KOLL BUSINESS CENTER County Engineers Design Department Gadjah Mada University 8

Activity-on-Arrow Network Backward Pass Figure A 4 -7 5 1 0 A 5 2 10 15 C 10 B X 15 0 3 D 5 Legend LS Kusdhianto Setiawan EF 20 185 4 20 0 Y 5 E 15 20 F 10 6 G 170 30 7 200 H 235 35 KOLL BUSINESS CENTER County Engineers Design Department Gadjah Mada University 8

Activity-on-Arrow Network Backward Pass, Forward Pass, and Slack Figure A 4 -8 20 15 5 1 0 A 5 5 2 10 15 C 10 B 15 X 0 3 20 185 4 E 15 20 0 20 Y 5 20 10 D 5 Legend LS EF F 30 6 10 30 G 35 200 170 7 200 H 235 KOLL BUSINESS CENTER County Engineers Design Department SLACK = LS – ES or LF – EF Kusdhianto Setiawan 35 Gadjah Mada University 8

Air Control Inc. , Custom Order Project— AOA Network Diagram Figure A 4 -9 1 Order review 2 0 2 2 Software development 18 0 20 22 40 Order standard parts 15 2 17 15 30 Manufacture Custom Produce standard parts Hardware 4 5 10 15 2 12 15 30 15 15 15 30 Design custom parts 13 2 15 Kusdhianto Setiawan 3 Assemble 10 30 40 6 Test 5 40 45 Legend Dur. ES EF LS LF Gadjah Mada University 7

Critical Path Method Reducing Project Time Kusdhianto Setiawan Gadjah Mada University

Project Cost-Time Graph Figure 6 -1 60 Total costs 50 Optimum cost-time point Costs 40 Low-cost plan duration point 30 Direct costs 20 Indirect costs 10 0 4 6 8 10 12 14 16 Project duration Kusdhianto Setiawan Gadjah Mada University

Activity Graph Figure 6 -2 Crash cost $800 Crash point Activity cost 600 Normal point Normal cost 400 200 0 0 Kusdhianto Setiawan 5 Activity duration (units) 10 Gadjah Mada University

Cost-Time Trade-Off Example Figure 6 -3 Total direct cost $450 Legend Time 25 B 6 A 3 E 8 Time 24 C 10 D 11 G 6 F 5 A 2 x ACT E 8 DUR C 10 D 11 (a) Kusdhianto Setiawan B 6 G 6 Initial total direct cost $ 450 Total direct cost $ 470 F 5 (b) Activities changed A $20 Gadjah Mada University

Cost-Time Trade-Off Example (continued) Figure 6 -4 Time 23 B 6 A 2 x E 8 Total direct cost $ 495 C 10 D 10 G 6 F 5 Activities changed D $25 (a) Time 22 B 6 A 2 x E 6 Total direct cost $ 525 C 10 D 10 G 6 F 4 x Activities changed F $30 (b) Time 21 B 6 A 2 x E 7 Total direct cost $ 610 C 9 x D 9 G 6 F 4 x Activities changed F D E $30 $25 $30 (c) Kusdhianto Setiawan Gadjah Mada University

Summary Costs by Duration Figure 6 -5 Kusdhianto Setiawan Gadjah Mada University

Project Cost-Time Graph Figure 6 -6 Total project cost Optimum cost-time point $1000 800 $775 Total direct cost Cost 600 400 Total indirect cost 200 0 20 21 22 23 24 25 Duration (units) Kusdhianto Setiawan Gadjah Mada University

Probabilistic Case PERT and PERT Simulation Kusdhianto Setiawan Gadjah Mada University

Figure A 5 -1 Activity and Project Frequency Distributions ACTIVITY a PROJECT m Kusdhianto Setiawan (A) b TE (B) Gadjah Mada University

Activity Times & Variances Activity a m b te [(b-a)/6]2 1 -2 17 29 47 30 25 2 -3 6 12 24 13 9 2 -4 16 19 28 20 4 3 -5 13 16 19 16 1 4 -5 2 5 14 6 4 5 -6 2 5 8 5 1

Hypothetical Network Figure A 5 -2 3 13 1 30 16 2 5 20 6 5 6 TE=64 4 Kusdhianto Setiawan Gadjah Mada University

Figure A 5 -3 Possible Project Durations TS=67 TE=64 Kusdhianto Setiawan Gadjah Mada University