Project Management Planning Techniques Project manager responsible for

Project Management Planning Techniques Project manager responsible for developing project implementation plan. Duties includes: • • Defining tasks Making estimates (cost and timing) Preparing schedules Preparing budgets

Project Management Recall the house construction example: Task Definition: Description Step A: Step B: Step C: Step D: Step E: Step F: Step G: Step H: Step I: Step J: Step K: Step L: Step M: Step N: Prepare site. Build foundation. Frame walls and roof. Rough in Plumbing Rough in Electrical HVAC Venting Drywall Finish Electrical Finish Plumbing Finish HVAC Install Kitchen Install Baths Paint Landscape Duration(days) 5 8 15 12 10 8 11 5 4 2 8 14 5 5 Precedence A B C C C D, E, F G G H H, I J, K, L

Project Management Precedence Diagram Tasks must sometimes be performed in series, or may at times be performed in parallel. For the house example, let each arc represent a project task/job. H, 5 D, 12 1 A, 5 2 B, 8 3 C, 15 4 E, 10 5 G, 11 7 0 6 I, 4 M, 5 K, 8 9 0 F, 8 J, 2 11 10 L, 14 8 Each arc is identified by a job letter and duration. Note the dummy jobs indicating precedence that jobs H and I must complete before K or L begins. N, 5

Project Management Timing – Gantt Chart Tasks and task durations are often represented as Gantt Charts. With task precedence knowledge.

Project Management Critical Path H, 5 D, 12 1 A, 5 2 B, 8 3 C, 15 4 E, 10 5 G, 11 7 0 6 I, 4 8 M, 5 K, 8 9 0 F, 8 J, 2 11 10 L, 14 N, 5

Project Management Exercise – Task Definition Define tasks, duration and precedence for the Term Project. Description A. Form teams and select leader B. C. D. E. F. G. H. I. J. K. Duration(days) 1 Precedence -

Project Management Exercise – Precedence Diagram Create precedence diagram for the Term Project, and identify critical path. 1 A, 1 2

Project Management Exercise – Schedule/Gantt Chart Create a schedule in the form of a Gantt chart for the Term Project.

Project Management Exercise – Cost Estimation / Resource Allocation Estimate cost and define/allocate resource requirements for the Term Project. Note, your costs will be in time not $’s. Description A. Form teams and select leader B. C. D. E. F. G. H. I. J. K. Cost. 25 hours Resources All

Expediting/Crashing CPM – Critical Path Method Can normal task times be reduced? Is there an increase in direct costs? • Additional manpower • Additional machines • Overtime, etc… Can there be a reduction in indirect costs? • Less overhead costs • Less daily rental charges • Bonus for early completion • Avoid penalties for running late • Avoid cost of late startup CPM addresses these cost trade-offs.

CPM – Critical Path Method Example: Overhead cost = $5/day

CPM – Critical Path Method Enumerative Approach: Reduce job H by 1 day: Total Cost improves by $5 - $4 = $1. Reduce job A by 2 days: Total cost improves by $10 - $8 = $2. Reduce job A by an additional day, and job B by a day? Total cost improves by $5 - $4 - $2 = -$1. Therefore do not take this action. Reduce job A by an additional day, and job C by a day? Total cost improves by $5 - $4 - $2 = -$1. Therefore do not take this action. Evaluate combinations of reducing path 3 -4 -6 and 3 -5 -6 by one day. D & E = $5 - $3 = -$1 F & E = $5 - $3 = -$3 D & G = $5 - $3 - $1 = $1 F & G = $5 - $1 = -$1 Therefore, reduce job D & G by 1 day: TC improves by $5 - $3 -$1 = $1. Overall improvement: $1 + $2 + $1 = $4.