1. Project Management

2. Project Planning, Scheduling, and Controlling
1. Setting goals
2. Defining the project
3. Tying needs into timed project
activities
4. Organizing the team
Project Scheduling
1. Tying resources to specific
2. Relating activities to each other
3. Updating and revising on a
regular basis
Time/cost estimates
Budgets
Engineering diagrams
Cash flow charts
Material availability details
CPM/PERT
Gantt charts
Milestone charts
Cash flow schedules
Project Controlling
1. Monitoring resources, costs, quality,
and budgets
2. Revising and changing plans
3. Shifting resources to meet demands
Reports
budgets
delayed activities
slack activities
Before Project
During Project

4. Project Scheduling: Gantt Chart PERT/ CPM
Project Scheduling with Known Activity Times
Project Scheduling with Uncertain Activity Times
Considering Time-Cost Trade-Off
PERT/Cost

5. First Step: Define the activities in the project &
establish the proper precedence relationships.
Example: Moving the Global Oil’s Credit Card Operation
_______________________________________________________________________
Activity Immediate Activity
Activity Description Predecessor Time(weeks)
A Select office site
B Create org. & financial plan
C Determine personnel requirements B 3
D Design Facility A, C 4
E Construct interior D 8
F Select Personnel to move C 2
G Hire new employees F 4
H Move records, key personnel, etc. F 2
I Make financial arrangements B 5
J Train new personnel H, E, G 3

6. Gantt Chart
Simplicity and clear graphical display for record-keeping of progression in time of the subtasks of a project.
Activity is listed on vertical axis. Time is on the horizontal axis. Actual duration of each activity represents by a bar.
Indicate the earliest possible starting time for each activity

7. Gantt Chart (weeks) A Select site B Plan C Personnel Req. D Design
E Construct
F Select personnel
G Hire
H Move
I Financial arrange.
J Train
Gantt Chart 5 10 12 13 15 20 25
At week 13, D, E, H are behind schedule
but G is ahead of schedule.
(weeks)

8. Drawbacks of Gantt Chart
Fails to give important information on whether the overall project is being delayed from the target schedule.
Fails to reveal which activities are “immediate predecessors” of other activities. From the chart, it seems that F and I are immediate predecessors of G(but ,in fact, it’s only F).

9. PERT/CPM PERT: Program Evaluation and Review Technique
CPM: Critical Path Method
Graphically displays project activities.
Estimates how long the project will take.
Indicates most critical activities.
Show where delays will not affect project.

10. Applications of PERT/CPM
Used to plan, schedule, and control a wide variety of projects:
Construction of plants, building, and highways,
Maintenance of large and complex equipment,
Design and installation of a new systems,
R & D of new products and processes,
etc.

11. PERT/CPM can help to answer the following questions:
1. What is the total time to complete the project?
2. What are the scheduled start and finish dates for each specific activity ?
3. Which activities are “critical” and must be completed exactly as scheduled in order to keep the project on schedule?
4. How long can “non-critical” activities be delayed before they cause an increase in the total project time ?
5. How might resources be used on activities to speed up project completion?

12. The Pert/CPM Critical Part Procedure
Step 1 Develop a list of the activities that make up the project.
Step 2 Determine the immediate predecessors for each activity in the project.
Step 3 Estimate the completion time for each activity.
With known activity times
With uncertainty activity times

13. Step 4 Draw a project network
Method 1: Activity-on-Node (AON)
Each activity is represented by a node in the network.
A precedence relationship between two activities is represented by and arc or link between the two.
May be less error prone because it does not need dummy activities or arcs.

14. Step 4 Draw a project network
Method 2: Activity-on-Arc (AOA)
The arcs of the network represent the activities.
The nodes of the network represent points in time when an activity or a group of activities have been completed.
The nodes are numbered so that each activity begins at a lower numbered node and ends at a higher numbered node.
Dummy activities having 0 completion times can be created to help indicate that the proper set of activities has been completed prior to the start of another activity.

15. AOA Network Conventionsb c d
Dummy
activity 1 3 3 4 1 2 2 4 1 4 1 3 4 3 2 5 2

16. Example: Moving the Global Oil’s Credit Card Operation
_______________________________________________________________________
Activity Immediate Activity
Activity Description Predecessor Time(weeks)
A Select office site
B Create org. & financial plan
C Determine personnel requirements B 3
D Design Facility A, C 4
E Construct interior D 8
F Select Personnel to move C 2
G Hire new employees F 4
H Move records, key personnel, etc. F 2
I Make financial arrangements B 5
J Train new personnel H, E, G 3

17. Project Network of Global Oil’ s Credit Card Operations (AON)
Construct E
Design
Select size D A
Hire
Train
Select
Personnel
Personnel
requirement G
Start C J
Finish F
Move B H
Plan I
Financial
arrangement

18. Project Network of Global Oil’ s Credit Card Operations (AOA)5 D 2
Design E A
Construct
Select size 6 H J 7 9
Move F
Train
Hire 1
Select
Personnel G 4 8
Personnel
requirement C I B
Financial arrangement
Plan 3

19. Step 5. Determine the earliest start and the
Step 5 Determine the earliest start and the earliest finish time for each activity by making a forward pass through the network. The earliest finish time for the last activity in the project identifies the total time required to complete the project.

20. Let ES = earliest start time for an activity
EF = earliest finish time for an activity
t = time
The earliest finish time for any activity is
EF = ES + t
Earliest Start Time Rule
The earliest start time for an activity is equal to
the largest of the earliest finish times for all of
its immediate predecessors.

21. D 4 5
ES EF 2 E 8 A 3 J 3 H 2 3 F 2 6 7 9
Train 1 4 G 4 8 I 5 B 5 C 3 3

22. Step 6. Use the project completion time as
Step 6 Use the project completion time as the latest finish time for the last activity and make a backward pass through the network to identify the latest start and latest finish time for each activity

23. Let LS = latest start time for an activity
LF = latest finish time for an activity
t = time
The latest start time for any activity is
LS = LF - t
Latest Finish Time Rule:
The latest finish time for an activity is the
smallest of the latest start times for all activities
that immediately follow the activity.

24. D 5
ES EF 2 E A 3 J H F 6 7 9 1 4 G 8 B I C 3
LS LF

25. Step 7. Use the difference between the latest
Step 7 Use the difference between the latest start time and the earlier start time for each activity to determine the slack for the activity.
Step 8 Find the activities with zero slack; these are the critical path activities.
Step 9 Use the information from steps 5 and 6 to develop the activity schedule for the project.

26. Earliest Latest Earliest Latest
Start Start Finish Finish Slack Critical
Activity (ES) (LS) (EF) (LF) (LS - ES) Path ?
____________________________________________________________
A No
B Yes
C Yes
D Yes
E Yes
F No
G No
H No
I No
J Yes
_____________________________________________________________

27. D 5
ES EF 2 E A 3 J H F 6 7 9 1 4 G 8 B I C 3
LS LF

28. Contributions of PERT/CPM
1. How long will the project take to complete ?
2. What are the scheduled start and completion times for each activity?
3. Which activities are critical and must be completed exactly as scheduled in order to keep the project on schedule?
4. How long can non-critical activities be delayed before they cause an increase in the completion time for the project?

29. Example: “Super” Vacuum Cleaner Project
_______________________________________________________________________
Activity Immediate Activity
Activity Description Predecessor Time(days)
A Design “Super”
B Built prototype Units A 10
C Perform tests of prototype B 8
D Estimate material costs A 11
E Refine “Super” design C, D 7
F Demonstrate “Super” to customer E 6
G Estimate labor costs D 12
H Prepare technical proposal E 13
I Deliver proposal to customer G, H 5

30. EF = ES + t ES EF 1 2 8 3 4 6 c a b e f h d i Dummy 5 7 g A 0 20 2010 C 8 E 7 F 6 1 2 8 3 4 6 c a b e f H 13 h d i
Dummy D 11 I 5 5 7 g G 12

31. Critical Path : a-b-c-e-h-i
Critical Activity
Critical Path : a-b-c-e-h-i A B C E F 1 2 8 3 4 6 c a b e f H h d i
Dummy D I 5 7 g
LS LF G
LS = LF - t

32. Earliest Latest Earliest Latest
Start Start Finish Finish Slack Critical
Activity (ES) (LS) (EF) (LF) (LS - ES) Path ?
____________________________________________________________
A Yes
B Yes
C Yes
D No
E Yes
F No
G No
H Yes
I Yes
_____________________________________________________________

33. Example: Building a park consists of nine activities. The activities
and their immediate predecessors are shown. Develop the project
network.
Activity Immediate Predecessor Activity Time (weeks) A B
C A,B 6
D A,B 3
E B 0
F C 3
G D 2
H D,F 6
I E,G,H 3
a) What is the critical path for this network?
b) Show the activity schedule for this project.
c) If the governor wants to open the park within 6 months from the
starting time. Is it possible?