1. Managing Project Processes Managing Project Processes

2. Characteristics of a Project A unique, one-time effort Requires completion of a large number of interrelated activities Resources, such as time and/or money, are limited Typically has its own management structure

3. Critical Path Method (CPM) Designed to provide intense micro-control System is dynamic; it continues to provide periodic reports as project progresses

4. Manager’s View of CPM List of project activities List of project activities Precedence relationship among activities Precedence relationship among activities Estimate of each activity’s duration Estimate of each activity’s duration Estimated duration of project Estimated duration of project Identification of critical activities Identification of critical activities Amount of slack for each activity Amount of slack for each activity CPM processing procedures

5. CPM Terminology Activity –A task or certain amount of work required in the project –Requires time to complete –Represented by an arc (AOA) or a node (AON) Dummy activity (AOA only) –Indicates only precedence relationships –Does not require any time of effort 1 1 2 2 3 3 5 5 6 6 4 4 7 7 8 8 a b e d c h g f i

6. CPM Terminology Network –Shows sequential relationships among activities using nodes and arrows 1 1 2 2 3 3 5 5 6 6 4 4 7 7 8 8 a b e d c h g f i

7. CPM Terminology Path –Connected sequence of activities leading from starting event to ending event Critical path –Longest path (time); determines project duration Critical activities –All of the activities that make up critical path

8. CPM Terminology Earliest start (ES) –Earliest that an activity can begin; assumes all preceding activities have been completed Earliest finish (EF) –ES + activity time Latest finish (LF) –Latest that an activity can finish and not change project completion time Latest start (LS) –LF - activity time

9. Steps in CPM Analysis Draw the CPM network –A graphic view of relationships among required activities Path analysis –Determine length of each path (time required to complete each path) –Longest path is the critical path

10. Steps in CPM Analysis Network analysis –Working from left to right, find the EF and ES for each activity –Working from right to left, find LF and LS for each activity –Compute activity’s slack Total Slack = LS - ES = LF - EF This slack is shared with other activities –Free slack Time an activity may be delayed without impacting the ES of successor activities

11. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff. BSelect site and do site survey. CSelect equipment. DPrepare final construction plans and layout. EBring utilities to the site. FInterview applicants and fill positions in nursing, support staff, maintenance, and security. GPurchase and take delivery of equipment. HConstruct the hospital. IDevelop an information system. JInstall the equipment. KTrain nurses and support staff.

12. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop an information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J

13. St. Adolf’s Hospital Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J Completion Time

14. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start A 12

15. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start A 12 B9B9

16. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start C 10 A 12 B9B9

17. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start C 10 D 10 A 12 B9B9

18. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start C 10 D 10 E 24 A 12 B9B9

19. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start F 10 C 10 D 10 E 24 A 12 B9B9

20. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start F 10 C 10 D 10 E 24 G 35 A 12 B9B9

21. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start F 10 C 10 D 10 E 24 G 35 H 40 A 12 B9B9

22. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start I 15 F 10 C 10 D 10 E 24 G 35 H 40 A 12 B9B9

23. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9

24. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time Start K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9

25. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9

26. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9 Path Expected Time (wks) A-F-K28 A-I-K33 A-C-G-J-K67 B-D-H-J-K69 B-E-J-K43

27. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9 Path Expected Time (wks) A-F-K28 A-I-K33 A-C-G-J-K67 B-D-H-J-K69 B-E-J-K43

28. Immediate ActivityDescriptionPredecessor(s) ASelect administrative and medical staff.— BSelect site and do site survey.— CSelect equipment.A DPrepare final construction plans and layout.B EBring utilities to the site.B FInterview applicants and fill positions in nursing, support staff, maintenance, and security.A GPurchase and take delivery of equipment.C HConstruct the hospital.D IDevelop and information system.A JInstall the equipment.E,G,H KTrain nurses and support staff.F,I,J St. Adolf’s Hospital Completion Time FinishStart K6K6 I 15 F 10 C 10 D 10 E 24 G 35 H 40 J4J4 A 12 B9B9 Path Expected Time (wks) A-F-K28 A-I-K33 A-C-G-J-K67 B-D-H-J-K69 B-E-J-K43

29. St. Adolf’s Hospital Earliest Start and Earliest Finish Times

30. St. Adolf’s Hospital Earliest Start and Earliest Finish Times

31. St. Adolf’s Hospital Earliest Start and Earliest Finish Times

32. St. Adolf’s Hospital Earliest Start and Earliest Finish Times

33. St. Adolf’s Hospital Earliest Start and Earliest Finish Times

34. St. Adolf’s Hospital Earliest Start and Earliest Finish Times

35. St. Adolf’s Hospital Earliest Start and Earliest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 19 59 9 33 0 9 9 19 12 22 Finish Start

36. St. Adolf’s Hospital Earliest Start and Earliest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 22 57 19 59 9 33 0 9 9 19 12 22 Finish Start

37. St. Adolf’s Hospital Earliest Start and Earliest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 22 57 59 6319 59 9 33 0 9 9 19 12 22 Finish Start

38. St. Adolf’s Hospital Latest Start and Latest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 Finish Start

39. St. Adolf’s Hospital Latest Start and Latest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 63 69 Latest finish time Finish Start

40. St. Adolf’s Hospital Latest Start and Latest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 63 69 Latest start time Latest finish time Finish Start

41. St. Adolf’s Hospital Latest Start and Latest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 53 63 63 69 59 63 Finish Start

42. St. Adolf’s Hospital Latest Start and Latest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 53 63 63 69 24 59 19 59 35 59 59 63 Finish Start

43. St. Adolf’s Hospital Latest Start and Latest Finish Times A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 53 63 63 69 14 24 24 59 9 19 19 59 35 59 59 63 Finish Start

44. St. Adolf’s Hospital Latest Start and Latest Finish Times

45. St. Adolf’s Hospital Gantt Charts

46. St. Adolf’s Hospital Activity Slack Analysis A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Start

47. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Activity Slack

48. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Activity Slack Slack = LS – ES or Slack = LF – EF

49. St. Adolf’s Hospital Activity Slack Analysis K6K6 63 69 Start A 12 C 10 G 35 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 22 57 19 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 14 24 24 59 0 9 9 19 19 59 35 59 Activity Slack Slack K = 63 – 63 or Slack K = 69 – 69 J4J4 59 63 Finish

50. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Activity Slack Slack K = 0 or Slack K = 0

51. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish

52. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Node DurationESLS Slack

53. St. Adolf’s Hospital Activity Slack Analysis Start A 12 K6K6 C 10 G 35 J4J4 H 40 B9B9 D 10 E 24 0 12 I 15 F 10 12 27 12 22 63 69 22 57 59 6319 59 9 33 0 9 9 19 12 22 48 63 2 14 53 63 63 69 14 24 24 59 0 9 9 19 19 59 35 59 59 63 Finish Node DurationESLS Slack A12022 B9000 C1012142 D10990 E2493526 F10125341 G3522242 H4019190 I15124836 J459590 K663630

54. St. Adolf’s Hospital Critical Path C 10 G 35 E 24 I 15 F 10 12 27 12 22 22 57 9 33 12 22 48 63 53 63 14 24 24 59 35 59 B9B9 0 9 D 10 9 19 H 40 19 59 J4J4 59 63 K6K6 63 69 Finish Node DurationESLS Slack A12022 B9000 C1012142 D10990 E2493526 F10125341 G3522242 H4019190 I15124836 J459590 K663630

55. St. Adolf’s Hospital Critical Path C 10 G 35 E 24 I 15 F 10 12 27 12 22 22 57 9 33 12 22 48 63 53 63 14 24 24 59 35 59 B9B9 0 9 D 10 9 19 H 40 19 59 J4J4 59 63 K6K6 63 69 A 12 0 12 2 14 Finish Start

56. St. Adolf’s Hospital Activity Slack

57. Program Evaluation and Review Technique (PERT) PERT is based on assumption that an activity’s duration follows a probability distribution instead of being a single value. Probabilistic information about activities is translated into probabilistic information about project.

58. PERT Three time estimates are required to compute parameters of an activity’s duration distribution: –Pessimistic time (b ) - time activity would take if things did not go well –Most likely time (m ) - consensus best estimate of activity’s duration –Optimistic time (a ) - time activity would take if things did go well

59. Steps in PERT Analysis Draw network as in CPM Analyze paths through network and find critical path Length of critical path is mean of project duration probability distribution –assumed to be normal (really beta) –50% probability the project will be completed in this amount of time

60. Steps in PERT Analysis Standard deviation of project duration is computed by adding variances of critical activities (all activities that make up critical path) and taking square root of that sum Probability computations can now be made using normal distribution table

61. Calculating Probabilistic Activity Times Three time estimates –optimistic (a) –most likely (m) –pessimistic (b)

62. a, m, and b Estimates

63. PERT Example

67. Question What is the probability of completing the project within 23 weeks?

69. Look up z value in normal distribution table – see page 457 in text Z=1.52 corresponds to area under the curve of.9357 Probability project completes within 23 days equals.9357

70. Probability project completes takes longer than 23 days equals.0643 (1.0 -.9357)

71. Project Life Cycle Definition and organization PlanningExecutionClose out StartFinish Resource requirements Time

72. Activity Cost-Time Tradeoffs Project managers may have option or requirement to crash project, or accelerate completion of project. This is accomplished by reducing length of critical path(s). Length of critical path is reduced by reducing duration of activities on critical path.

73. Cost-Time Tradeoffs If each activity requires expenditure of an amount of money to reduce its duration by one unit of time, then project manager selects least cost critical activity, reduces it by one time unit, and traces that change through remainder of network.

74. Cost-Time Tradeoffs As a result of a reduction in an activity’s time, a new critical path may be created. When there is more than one critical path, each of the critical paths must be reduced. If length of project needs to be reduced further, process is repeated.

75. Computer Software for Project Management Artemis Views (Artemis Management Systems) FastTrack Schedule (AEC Software) Microsoft Project (Microsoft Corp.) Oracle Projects (Oracle Corp.) PowerProject (ASTA Development) Primavera Project Planner (Primavera Systems) SuperProject (Computer Associates International) TurboProject (IMSI)

79. Evaluation of CPM/PERT Activities are assumed to be independent. A precise breaking point where one activity ends and another begins is also assumed. Initially-critical activities might not receive attention they deserve until it is too late. Activity time estimates might be biased. Cost of CPM/PERT might not be justified by value of information it provides. Employees might not understand statistical underpinnings of PERT.