Project Management Basic Concepts

What is a Project? A Project is a series of activities and tasks that: Have a specific tasks and activities to be completed with certain objectives. Have a defined start and end dates Have funding limits (if applicable) Consume Resources

Typical Project Structure Definition Project Monitoring Project Planning Project Implementation Project Evaluation Project Adjustment

Project Life Cycle Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Resources and Effort Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Conceptual Design Advanced Development Detailed Design Project Implementation Project Termination Goals Scope Baseline Requirements Feasibility Desirability Plan Budget Schedule Management Commitment Define Responsibility Team Organization Structure Detailed Plan Kickoff Manage Measure Control Update and Modify Plan Problem Solve Closeout Document Suggest Improvements Reassign Dissolve Project Team

Successful Projects A successful project is one which achieves the following objectives: Completed On Time Completed Within Cost Meets Performance Criteria Minimum Disruption of the Main Work of the Organization Effective Utilization of Available Resources

The Triple Play of Project Management Constraints Time Cost Performance

Triple Constraint Trade-offs $ Budget Better Performance Specifications Worse Early Schedule Late TIME

Major causes of failure Selection of a unsound project Selecting the wrong person as a project manager Lack of support from upper management Misused management techniques Project termination not planned

Build Canoe Rental Building on Project Definition Build Canoe Rental Building on Coeur d A’lene Lake

Form Project Team Select Project Leader Identify Key People (TEAM) Gain Management Commitment / Support Empowerment. Involvement Define Project Team Operating Rules

Project Manager At this point: 1. Introduce yourself - your students are likely to want to know something about your qualifications and interests - overall, where you are coming from. 2. Have students introduce themselves. Ask why they are taking this class. If you are fortunate enough to have a Polaroid camera, take pictures of each student for later posting on a class “board” so both they and you get to know each other. 3. Discuss both choice of textbook and development of syllabus. 4. If you are expecting students to work in teams, at east introduce the choice of team members. If at all possible, have students participate in a team building or team study exercise. It works wonders. Most student have been told to work in teams in prior classes, but have never examined exactly what a team is and how it works. One hour spent in a team building/examination exercise saves many hours and avoids many problems later on.

Project Manager Skills Scheduling and time mgt. skills Technical skills ( scope of project ) Leadership skills ( goals, performance measures) Resource mgt., human relationship skills. Communication skills Negotiation skills Marketing, Contracting, customer relationship skills Budgeting and cost skills.

Major Interactions of project stakeholders Government agencies Top Management Consultants Client Financial Managers Project Manager Subcontractors Project Team Other Organization

Project Manager Responsibilities Responsibility to the parent Org. Responsibility to the project and client Responsibility to the member of the project team

Selecting Project Manager List of some of the most popular attributes: A strong technical background A hard-nosed manager A matured individual Someone who is currently avaiable Someone on good terms with senior executive A person who can keep the project team happy One who has worked in several departments A person who can walk on ( or part ) the waters.

Selecting the PM Credibility Sensitivity Technical credibility ( technical knowledge ) Administrative credibility ( managing resources( money, people, material) keeping the project on scheule. Sensitivity It is related to the ability of the manager to discover the problems at early stages and solve the team’s problems if we have some conflects Leadership and management style Leadership is defined as the ability of affecting others in away that gurantees the project profitability to the org. and sociey. Ability to work under stress

Project Planning There are several reasons why we must use considerable care when planning projects The primary purpose of planning is to establish a set of directions in sufficient detail to tell the project team exactly : What must be done? When it must be done? What resources to use ?

Project plan Elements: Overview : A short summary of the objectives and scope of the project Directed to top mgt. and contains a statement of goals of the project A description of the managerial structure that will be used for the project. A list of major milestones in the project schdule.

Project plan Elements: Objectives: More detailed statement of general goals noted on the overview section. The statement should include profit and competitive aims as well as technical goals. General approach: Describes both the managerial ( style of mgt. ) and the technical approaches ( required equipments, technology ) to the work.

Project plan Elements: Contractual aspects: ( list for ) All reporting requirements Customer-supplied resources. Advisory commitees Project review Cancellation procedures. Specific management agreements subcontracts

Project plan Elements: Schedules: Various schedules. Lists all milestones events. All tasks, and their durations….. Resources: The budget Both capital and expense requirements are detailed by task. ( Project budget ) Cost monitoring and control procedures.

Project plan Elements: Personnel : Expected personnel requirements Special skills needed Types of training needed Possible recruiting problems. Legal and political restrictions.

Project plan Elements: Evaluation Methods: Every project should be evaluated against standards and by methods established at the project inception. This section include : A brief description of the procedure to be followed in monitoring , collecting, storing, and evaluating the history of the project.

Project plan Elements: Potential problems: External and internal potential problems.

Work-Breakdown- Structure (WBS) It is a result family tree , subdivision of the major tasks( hw, services , etc ) and the data required to produce the final product , it acts as a vehicle for breaking down the work into smaller elements.

Work-Breakdown- Structure (WBS) We have 2 types of WBS: Managerial level Technical level

Earned Value Analysis It is a continuous comparison between the plan of the project data and the actual data. Budgeted and Committed Cost: Variance = Budgeted cost – committed cost Variance (+ve ) = Unconsumed Cost Variance ( -ve ) = Over spend activities

Cost and Schedule Variances

Cost and Schedule Variances

BCWS Budgeted Cost of Work Schedule A B C D E F G H I J X1 X2 X3 X4 X5 X6 X7 X8 X9 X10 NOW BCWS = X1 + X2 + X3 + X4 + X5 $ This is the sum of all the costs up to the specific activity that is stated in budget plan.

BCWP Budgeted Cost of Work Performed A B C D E 100% X1 X2 X3 80% X4 50% X5 BCWP = X1 + X2 + X3 + 0.8 X4 + 0.5 X5 $ This is the sum of all the costs up to the specific activity in relation with its completion percentage.

ACWP Actual Cost of Work Performed ACWP = Actual cost of work done. This is the total costs of the work done on reality provided by project manager on the financial monitor.

If BCWP > BCWS ( over spend ) If BCWP < BCWS ( time is late -ve ) If BCWP > BCWS ( +ve time is more than sufficient )

Forecasting Benefits of forecasting: It is the process of prediction of the future events. Benefits of forecasting: To estimate the cost of remaining parts of a project ( forecasted value ). To identify the source and places of certain problems in the budget plan. It is a tool for corrective actions.

Forecasting Mathematical Expressions The Cost Performance Index ( CPI ): CPI = BCWP / ACWP It gives a good indication whether the project is performing financially well or not. CPI > 1 : Good performance. CPI < 1 : Bad performance ( shortages Overspend ).

Forecasting Mathematical Expressions The Schedule Performance Index ( SPI ): SPI = BCWP / BCWS It is a good indicator for the project timing. SPI > 1 : Good performance. SPI < 1 : Bad performance (Poor ).

Forecasting Mathematical Expressions Budgeting Cost to Completion ( BCC ): The Amount of money needed to completion. BCC = BAC – BCWP It is defined as the amount of money required to complete a project where it is partially completed ( remaining money ).

Forecasting Mathematical Expressions Estimated Cost to Completion ( ECC ): Its more realistic value than budgeted. ECC = BCC / CPI It depends on CPI which is a by product of the actual cost of work performed. Forecasted Cost to Completion ( FCC ): FCC = ACWP + ECC

Example The R&D department of a company has been developing a new product line, the project manager is concerned whether the following provided data is exhibiting a good project performance, calculate the following and comment on the project status to convince the project manager. CPI,BCC, ECC, SPI, FCC.

Work Package Budgeted Cost Completion Time month Actual Cost % Complete B49 20000 1 23500 100% B50 2 20500 B51 37000 3 23000 70% B52 27000 4 B53 12000 5 4500 60% B54 28000 6 18500 75% B55 40000 7 ---- 184000

Solution BCWS = 20000 + 20000 + 37000 + 27000 + 12000 + 28000 = 144000 $ ACWP = 23500+20500+23000+27000+4500+18500 = 117000 $ BCWP = 20000 + 20000 + ( 37000 x 0.7 ) + 27000 + ( 12000 x 0.6 ) + ( 28000 x 0.75 ) = 119900 $ CPI = BCWP / ACWP = 119900 / 117000 = 1.02 good performance.

BAC = Budget at Completion = 184000 BCC = BAC – BCWP = 184000 – 119900 = 64100$ ECC = BCC / CPI = 64100/1.02 = 62843.14 $ SPI = BCWP / BCWS = 119900 / 144000 = 0.832 < 1 Poor performance according to time. FCC = ACWP + ECC = 117000 + 62843.14 = 179843.14 $

Comments We do not have any financial problem i.e the budgeted cost (money resources) is larger than the forecasted values, we conclude that the money is available , it is more than sufficient as the indicators were positive, the only problem we have is the time.

Comparing Projects Project SPI CPI A 0.78 (2) 0.68 (2) B 0.96 (1) 0.78 (2) 0.68 (2) B 0.96 (1) 0.98 (1) C 0.46 (3) 0.51 (4) D 0.46 (4) 0.64 (3)

Problem : Compare between the following projects according to the time and cost consumed: Project A Project B WP budget actual %comp A 435 395 100% B 320 409 90% C 125 - d 570 WP budget actual %comp A 820 800 100% B 750 920 90% C 1000 730 65% D E 700 850 -- ---

Scheduling Scheduling : is the process of converting a project action plan into an operating time table. Why scheduling ? To answer the following questions: If each activity goes according to plan , then when will the project be completed? Which tasks are most critical to ensure the timely completion of the project? Which tasks can be delayed , if necessary , without delaying project completion and by how much? More specifically , at what times should each activity begin and end? At any given time during the project, how much money should have been spent? Is it worthwhile to incur extra costs to accelerate some of the activities? If so, then which ones?

Network Techniques PERT CPM PERT/CPM is based on a diagram that represents the entire project as a network of arrows and nodes. Two most popular approaches are : AOA : activity on arrow ( PERT ) AON : activity on node ( CPM )

Project Representation A network is a form of project representation schemes that use arrows and nodes to represent activities and their relationships. A 3 days 1 5

Rules for constructing a network Arrow represents the activity Circles represents time event ( start, finish) Any activity can be represented by one arrow only All activities having no predecessor should start at the same “start node” of the network. All activities having no successors should finish in one “finish node” in the network. Two nodes can only represent one activity

Notes for constructing a network

Forward Path Calculation Early Start ( ES ) Early Finish ( EF ) The earliest possible start time of an activity leaving a node equals the maximum of the early finish time of all activities entering that node EF = ES + duration

Backward Path Calculation Late Finish ( LF ) Late Start ( LS ) The latest possible finish time of an activity entering a node equals the minimum of the late start time of all activities leaving that node LS = LF - duration

4 questions must be answered to begin modeling process: What are the major project activities? What are the sequencing requirements or constraints for these activities? Which activities can be conducted simultaneously? What are the estimated time requirements for each activity?

Estimating the duration of project activities The length of each activity should be approximately in the range 0.5% to 2% of the length of the project.( 1 year -> between a day and week) If the number of activities is very large ( above 250 ) then the project should be divided into subprojects.

Two approaches are used for estimating the length of an activity Deterministic approach Past data If not exist : Modular approach Benchmark job technique approach Parametric technique ( cause-effect analysis , reg. analysis ) Stochastic approach Expected time estimation for an activity depends on: a: Optimistic time : which will be required if execution goes extremely well m:most likely time, which will be required if execution is normal b: pessimistic time , which will be required if everything goes badly. Et(A) = ( a + 4 m + b ) / 6

Difference Between PERT and CPM PERT used the arrow to represent an activity and CPM used the node. PERT used three estimates ( Opti, Pess. and Most likely ) of an activity’s required time, whereas CPM used just a single, best-time estimate.

The Top Level Project Tasks Brainstorm the Major Tasks C Establish Work Flow B G A D E F

Define Top Level Tasks Canoe Example Site Preparation Build Dock Build Building Finish and Ready for Business

Sequence Top Level Tasks Build Dock Site Preparation Finish Build Building

Sub-Tasks Detailed Tasks C G B A D E F Develop Work Sequence Detailed

Brainstorm Sub-Tasks Site Preparation Build Dock Build Building Finish Dock Site Install Pilings Foundation Order Canoes Frame Landscape Building Site Build Dock Roof Assemble Canoes Power Siding Open for Business Paint

Work Breakdown Structure Top Level Task 2nd Level Task 2nd Level Task 2nd Level Task 2nd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task 3rd Level Task Lower Level Tasks

Sequence Sub-Tasks Task Description Immediate Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canoes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Build Network Diagram (PERT Chart) (Activities on Arrows) 1 Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Build Network Diagram (PERT Chart) 1 3 Prep Dock Site Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Build Network Diagram (PERT Chart) 2 J Order Canoes A 1 3 Prep Dock Site Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M

Build Network Diagram (PERT Chart) 2 J Order Canoes A 1 3 Prep Dock Site B Task Predecessor Prepare Hut Site A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M 4 D Hut Foundation 6

Build Network Diagram (PERT Chart) 2 J Order Canoes A C E 1 3 5 9 Prep Dock Site Install Pilings Build Dock B Task Predecessor Prepare Hut Site A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M 4 D Hut Foundation 6

Build Network Diagram (PERT Chart) 2 J Order Canoes A C E 1 3 5 9 Prep Dock Site Install Pilings Build Dock B Task Predecessor Prepare Hut Site A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M G Power To Hut 4 D Hut Foundation 6

Build Network Diagram (PERT Chart) 2 L J Order Canoes Assemble Canoes A C E 1 3 5 9 Prep Dock Site Install Pilings Build Dock B Task Predecessor Prepare Hut Site A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M G Power To Hut 4 D Hut Foundation 6

Build Network Diagram (PERT Chart) 2 L J Order Canoes Assemble Canoes A C E 1 3 5 9 Prep Dock Site Install Pilings Build Dock B Task Predecessor Prepare Hut Site A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M G Power To Hut Roof 4 I D Hut Foundation F 6 7 Frame Hut

Build Network Diagram (PERT Chart) Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M Build Network Diagram (PERT Chart) 2 L J Order Canoes Assemble Canoes A C E 1 3 5 9 Prep Dock Site Install Pilings Build Dock B Prepare Hut Site G Power To Hut Roof Paint Hut K 4 I D Hut Foundation F H 6 7 8 Frame Hut Side Hut

Build Network Diagram (PERT Chart) Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M Build Network Diagram (PERT Chart) 2 L J Order Canoes Assemble Canoes A C E M N 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B Prepare Hut Site G Power To Hut Roof Paint Hut K 4 I D Hut Foundation F H 6 7 8 Frame Hut Side Hut

Build Network Diagram (PERT Chart) Canoe Example Add Times Task Description Time A Prepare Dock Site 3 d B Prepare Hut Site 4 d C Install Dock Pilings 6 d D Foundation for Hut 3 d E Build Dock 4 d F Frame Hut 3 d G Power to Hut 2 d H Side the Hut 2 d I Roof the Hut 3 d J Order Canoes 2 d K Paint Hut 4 d L Assemble Canoes 10 d M Finish Landscaping 4 d NOpen for Business 2 d 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Roof Paint Hut 4 K (4) I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

Build Network Diagram (PERT Chart) Task Predecessor A Prepare Dock Site - B Prepare Hut Site - C Install Dock Pilings A D Foundation for Hut B E Build Dock C F Frame Hut D G Power to Hut D H Side the Hut F I Roof the Hut F J Order Canoes and Receive Canes - K Paint Hut H L Assemble Canoes J M Finish Landscaping L,I,K,E,G N Open for Business M Build Network Diagram (PERT Chart) 2 L J Order Canoes Assemble Canoes A C E M N 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B Prepare Hut Site G Power To Hut Roof Paint Hut K 4 I D Hut Foundation F H 6 7 8 Frame Hut Side Hut

Build Network Diagram (PERT Chart) Canoe Example Add Times Task Description Time A Prepare Dock Site 3 d B Prepare Hut Site 4 d C Install Dock Pilings 6 d D Foundation for Hut 3 d E Build Dock 4 d F Frame Hut 3 d G Power to Hut 2 d H Side the Hut 2 d I Roof the Hut 3 d J Order Canoes 2 d K Paint Hut 4 d L Assemble Canoes 10 d M Finish Landscaping 4 d NOpen for Business 2 d 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Roof Paint Hut 4 K (4) I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

Determining Project Length Option 1: Sum all the task durations: A Prepare Dock Site - 3 d B Prepare Hut Site - 4 d C Install Dock Pilings A 6 d D Foundation for Hut B 3 d E Build Dock C 4 d F Frame Hut D 3 d G Power to Hut D 2 d H Side the Hut F 2 d I Roof the Hut F 3 d J Order Canoes and Receive Canoes - 2 d K Paint Hut H 4 d L Assemble Canoes J 10 d M Finish Landscaping L,I,K,E,G 4 d N Open for Business M 2 d Sum = 52 days Anything wrong with this approach?

Determining Project Length Option 2: Determine duration of each network path

Network Diagram Project Paths A-C-E-M-N = 19 days Network Diagram Project Paths 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Roof Paint Hut 4 K (4) I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

Network Diagram Project Paths A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days Network Diagram Project Paths 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Roof Paint Hut 4 K (4) I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

Network Diagram Project Paths A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-I-M-N = 18 days Network Diagram Project Paths 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Roof Paint Hut 4 K (4) I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

Network Diagram Project Paths A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-J-M-N = 18 days B-D-G-M-N = 15 days Network Diagram Project Paths 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Roof Paint Hut 4 K (4) I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

Network Diagram Project Paths A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-J-M-N = 18 days B-D-G-M-N = 15 days J-L-M-N = 18 days Network Diagram Project Paths 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Roof Paint Hut 4 K (4) J (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

Critical Path The Critical Path is the Longest Path Through the Network.

Network Diagram Canoe Example Critical Path Paths: A-C-E-M-N = 19 days B-D-F-H-K-M-N = 22 days B-D-F-J-M-N = 18 days B-D-G-M-N = 15 days J-L-M-N = 18 days Network Diagram Canoe Example Critical Path 2 L (10) J (2) Order Canoes Assemble Canoes A (3) C (6) E (4) M (4) N (2) 1 3 5 9 10 11 Prep Dock Site Install Pilings Build Dock Finish Landscape Open for Business B (4) Prepare Hut Site G (2) Power To Hut Roof Paint Hut 4 K (4) I (2) D (3) Hut Foundation F (3) H (2) 6 7 8 Frame Hut Side Hut

Completed Task Timetable Task Description Immediate Predecessor Time ES LS EF LF A Prepare Dock Site - 3 d 0 3 3 6 B Prepare Hut Site - 4 d 0 0 4 4 C Install Dock Pilings A 6 d 3 6 9 12 D Foundation for Hut B 3 d 4 4 7 7 E Build Dock C 4 d 9 12 13 16 F Frame Hut D 3 d 7 7 10 10 G Power to Hut D 2 d 7 14 9 16 H Side the Hut F 2 d 10 10 12 12 I Roof the Hut F 3 d 10 13 13 16 J Order Canoes and Receive Canoes - 2 d 0 4 2 6 K Paint Hut H 4 d 12 12 16 16 L Assemble Canoes J 10 d 2 6 12 16 M Finish Landscaping L,I,K,E,G 4 d 16 16 20 20 N Open for Business M 2 d 20 20 22 22

Slack Time Total Slack = The length of time an activity can be delayed without affecting the project completion time. Total Slack = Late Start - Early Start Total Slack = Late Finish - Early Finish For Critical Activities Free Slack = The time a task can be delayed without delaying another task.

Slack Time Task Description Immediate Predecessor Time ES LS EF LF Slack A Prepare Dock Site - 3 d 0 3 3 6 3 B Prepare Hut Site - 4 d 0 0 4 4 0 C Install Dock Pilings A 6 d 3 6 9 12 3 D Foundation for Hut B 3 d 4 4 7 7 0 E Build Dock C 4 d 9 12 13 16 3 F Frame Hut D 3 d 7 7 10 10 0 G Power to Hut D 2 d 7 14 9 16 7 H Side the Hut F 2 d 10 10 12 12 0 I Roof the Hut F 3 d 10 13 13 16 3 J Order Canoes and Receive Canoes - 2 d 0 4 2 6 4 K Paint Hut H 4 d 12 12 16 16 0 L Assemble Canoes J 10 d 2 6 12 16 4 M Finish Landscaping L,I,K,E,G 4 d 16 16 20 20 0 N Open for Business M 2 d 20 20 22 22 0

Critical Path Tasks Critical Path = All tasks with slack = zero

Critical Path = B - D - F - H - K - M - N Critical Path Tasks Task Description Immediate Predecessor Time ES LS EF LF Slack A Prepare Dock Site - 3 d 0 3 3 6 3 B Prepare Hut Site - 4 d 0 0 4 4 0 *** C Install Dock Pilings A 6 d 3 6 9 12 3 D Foundation for Hut B 3 d 4 4 7 7 0 *** E Build Dock C 4 d 9 12 13 16 3 F Frame Hut D 3 d 7 7 10 10 0 *** G Power to Hut D 2 d 7 14 9 16 7 H Side the Hut F 2 d 10 10 12 12 0 *** I Roof the Hut F 3 d 10 13 13 16 3 J Order Canoes and Receive Canoes - 2 d 0 4 2 6 4 K Paint Hut H 4 d 12 12 16 16 0 *** L Assemble Canoes J 10 d 2 6 12 16 4 M Finish Landscaping L,I,K,E,G 4 d 16 16 20 20 0 *** N Open for Business M 2 d 20 20 22 22 0 *** Critical Path = B - D - F - H - K - M - N

CPM ( A-O-N) : Example CPM network for computer Design Project: Activity Designation Pred. Dura Design A - 21 Build prototype B 4 Evaluate equipment C 7 Test Prototype D 2 Write equipment report E C,D 5 Write methods report F 8 Write final report G E,F

C 7 F 8 A 21 G 2 B 4 E 5 D 2

Determine the Critical path Forward pass: ES : the earliest possible time the activity can begin. EF : the early start time the time needed to complete the activity. ( EF = ES + Dur ) Backwards pass