1. Project Planning & Scheduling
Chapter 14

2. Chapter 14 Outline What is a “project”? Objectives and tradeoffs
Planning and Control in Projects
Scheduling Methods
Constant-Time Networks
PERT Method
CPM Method
Use of Project Management Concepts

3. What is a “Project”? Unique item - often a single unit.
Often located on one place. The unit does not move during production.
Resources are brought to the project.
May be of any size, although we focus on large projects.

4. Examples of Projects A wedding A divorce Building construction
Bridge construction
Build aircraft carrier
R&D project
Audit
New product introduction
Open or close a facility
Make a movie
Fund raising campaign
Ad campaign
Software installation

5. Objectives and Tradeoffs
Stay within
the budget
Meet the
Deadline--schedule
Due Date!
Meet the
specifications

6. Project Management Stages
Planning
Scheduling
Execution
Control

7. Planning Activities & Decisions
Identify the project customer
Establish the end product or service
Set project objectives
Estimate total resources and time required
Decide on the form of project organization
Make key personnel appointments
Define major tasks required
Establish a budget

8. Scheduling Activities & Decisions
Develop a detailed work-breakdown structure
Estimated time required for each task
Sequence tasks in proper order
Develop a start/stop time for each task
Develop detailed budget for each task
Assign people to tasks

9. Execution & Control Monitor actual time, cost, and performance
Compare planned to actual figures
Determine whether corrective action is needed
Evaluate alternative corrective actions
Take appropriate corrective actions

10. Execution and Control What are ‘corrective actions?’
When one or more activities threaten the time, cost, or performance of the project, a corrective action is necessary:
Redefine the activity (e.g. split the activity).
Add resources to the activity.
Shift resources from one activity to another
Resources = people, equipment, money

11. Scheduling Methods Gantt Charts Network Methods Shown as a bar charts
Do not show precedence relations
Visual & easy to understand
Network Methods
Shown as a graphs or networks
Show precedence relations
More complex, difficult to understand and costly than Gantt charts

12. Gantt Chart Project Example (Figure 14.1)
Week
No. 1 2 3 4 5 6 7 8
Lease the site
Hire the workers
Arrange for the Furnishings
Install the furnishings
Arrange for the phones
Install the phones
Move into the Office

13. Constant-Time Networks
Activity times are assumed to be constant
Activities are represented by nodes in the network
Arrows show the precedence relationships
Notations used in calculating start and finish times:
ES(a) = Early Start of activity a
EF(a) = Early Finish of activity a
LS(a) = Late Start of activity a
LF(a) = Late Finish of activity a

14. ‘Write a Business Report’ Table 14.3
Immediate
Duration
Activity
Description
Predecessors
Days A
Decide on Topic
None 1 B
Collect Data 2 C
Search the Internet 3 D
Write the Report
B and C 5

15. Network Diagram for ‘Write a Business Plan’ (Figure 14.2)C

16. Forward Pass for ‘Write a Business Plan’ (Figure 14.3)
1 3 B
0 1
4 9 A D
ES EF
1 4 C

17. Calculating ES, EF, LS, LF, and Completion Time
Forward Pass:
ES (a) = 0 for the starting activity
EF (a) = ES (a) + t (a)*
ES (a) = max [EF (all predecessors of a)]
Project completion time = max [EF(all ending activities)]
Backward pass:
LF (a) = min [LS (all successors of a)]
LS (a) = LF - t(a)*
* t (a) denotes the duration of activity a

18. Backward Pass for ‘Write a Business Plan’ (Figure 14.4)
1 3 B
0 1
4 9
2 4 A D
0 1
4 9
ES EF
1 4 C
LS LF
1 4

19. Critical Path Critical Path = longest path in the network
All activities for which ES=LS and EF=LF
Length of critical path is equal to the project completion time
If there is any delay on the critical path, the project will be delayed (unless one takes ‘corrective actions’)

20. Slack Times
Slack time equals amount of time a path may be delayed without delaying the project
Paths not on the critical path have slack
Slack = LS-ES or LF-EF

21. Precedence and times for Opening a New Office (Table 14.4)
Immediate
Activity
Computed
Description
Predecessors
Time
Slack 1
Lease the site
None 2
Hire the workers 5 3
Arrange for the Furnishings 4
Install the furnishings
Arrange for the phones 6
Install the phones
4,5 7
Move into the Office
2,6,4

22. Network for ‘Open a New Office’ (Figure 14.5)
1 6 2
1 6
6 8
0 1
1 2
4 5 7 1 5 6
6 8
0 1
4 5
5 6
1 2
2 4
ES EF 3 4
LS LF
2 3
3 5

23. PERT Program Evaluation Review Technique
Used under conditions of uncertainty in activity times
Requires three time estimates for each activity
Optimistic
Most likely
Pessimistic
Times distributed according to beta distribution

24. PERT Activity Times Estimate three times for each activity
Compute mean completion time for each activity:

25. PERT Activity Times Compute the variance for each activity:
Assumes pessimistic and optimistic times cover six standard deviations

26. PERT Activity Times If T = total completion time of the project, then
and

27. CPM Critical Path Method
Used under conditions of certainty in activity times
Requires one time estimate for each activity
Looks at time/cost trade-offs
Normal activity time
Normal cost
Crash time
Crash cost

28. Time-Cost Relationship in CPM
Crash Cost
Cost
Normal Cost
Crash
Time
Normal
Time
Time

29. Use of Project Management Concepts
Scheduling is only part of a complete approach to project management
Trade-off between sophistication and cost of methods
Choice between constant time, PERT, CPM or more advanced techniques
Choice of project management software packages

30. Summary What is a “project”? Objectives and tradeoffs
Planning and Control in Projects
Scheduling Methods
Constant-Time Networks
PERT Method
CPM Method
Use of Project Management Concepts

31. End of Chapter Fourteen