1. EGR 312 - 20 1 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

2. EGR 312 - 20 2 Project Management Recall the house construction example: Task Definition: Description Duration(days) Precedence Step A: Prepare site. 5- Step B: Build foundation. 8A Step C: Frame walls and roof. 15B Step D: Rough in Plumbing 12C Step E: Rough in Electrical 10C Step F: HVAC Venting 8C Step G: Drywall 11D,E,F Step H: Finish Electrical 5G Step I: Finish Plumbing 4 G Step J: Finish HVAC 2H Step K: Install Kitchen 8H,I Step L: Install Baths 14 H,I Step M: Paint 5J,K,L Step N: Landscape 5J,K,L

3. EGR 312 - 20 3 Project Management Recall: Precedence Diagram Tasks must sometimes be performed in series, or may at times be performed in parallel. For the house example, let each node represent a project task/job. Each node is identified by a job letter and duration. Now we can determine how long it will take to finish the project … H,5J,2 B,8A,5C,15 D,12 G,11 I,4 E,10 F,8 K,8 L,14 N,5 M,5

4. EGR 312 - 20 4 Project Management Critical Path H,5J,2 B,8A,5C,15 D,12 G,11 I,4 E,10 F,8 K,8 L,14 N,5 M,5

5. EGR 312 - 20 5 Project Management Timing – Gantt Chart Tasks and task durations are often represented as Gantt Charts. Task precedence knowledge is shown graphically on the time line. Task NameDuration Apr 6, 09Apr 13, 09 MTWTFMTWTF

6. EGR 312 - 20 6 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.

7. EGR 312 - 20 7 CPM – Critical Path Method Example: Overhead cost = $5/day Step 1. Draw the precedence diagram

8. EGR 312 - 20 8 CPM – Critical Path Method Enumerative Approach: Reduce job D by 1 day: Total cost improves by ________________ Reduce job H by 1 day: Total cost improves by ________________ Reduce job A by 2 days: Total cost improves by ________________ Precedence diagram & critical path A,10 B,5C,3 D,4 E,3 F,6 G,5 H,5

9. EGR 312 - 20 9 CPM – Critical Path Method (cont.) Reduce job A by an additional day and job B by 1 day?: Total cost improves by ________________ Reduce job A by an additional day and job C by 1 day?: Total cost improves by ________________ A,10 B,5C,3 D,4 E,3 F,6 G,5 H,5

10. EGR 312 - 20 10 CPM – Critical Path Method (cont.) Any additional cost reductions possible? Overall improvement = ______________________________ A,8* B,5C,3 D,3* E,3 F,6 G,5 H,4* * task time after crashing