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

3. Project Management Precedence Diagram
Tasks must sometimes be performed in series, or may at times be performed in parallel.
For the house example, let each arc represent a project task/job.
Each arc is identified by a job letter and duration. Note the
dummy jobs indicating precedence that jobs H and I must complete before K or L begins.
J,2
D,12
H,5 7
M,5
K,8
A,5
B,8
C,15
G,11
E,10 1 2 3 4 5 6 9 10 11
L,14
N,5
F,8
I,4 8

4. Project Management Timing – Gantt Chart
Tasks and task durations are often represented as Gantt Charts.
With task precedence knowledge.

5. Project Management Critical Path 7 1 2 3 4 5 6 9 10 11 8 J,2 D,12 H,5
K,8
A,5
B,8
C,15
G,11
E,10 1 2 3 4 5 6 9 10 11
L,14
N,5
F,8
I,4 8

6. Project Management Exercise – Task Definition
Define tasks, duration and precedence for the Term Project.
Description Duration(days) Precedence
Form teams and select leader

7. Project Management Exercise – Precedence Diagram
Create precedence diagram for the Term Project, and identify critical path.
A,1 1 2

8. Project Management Exercise – Schedule/Gantt Chart
Create a schedule in the form of a Gantt chart for the Term Project.

9. Project Management Exercise – Cost Estimation / Resource Allocation
Estimate cost and define/allocate resource requirements for the Term Project. Note, your costs will be in time not $’s.
Description Cost Resources
Form teams and select leader hours All

10. 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.

11. CPM – Critical Path Method
Example:
Overhead cost = $5/day

12. CPM – Critical Path Method
Enumerative Approach:
Reduce job H by 1 day: Total Cost improves by $5 - $4 = $1.
Reduce job A by 2 days: Total cost improves by $10 - $8 = $2.
Reduce job A by an additional day, and job B by a day? Total cost
improves by $5 - $4 - $2 = -$1. Therefore do not take this action.
Reduce job A by an additional day, and job C by a day? Total cost
Evaluate combinations of reducing path and by one day.
D & E = $5 - $3 - $3 = -$1 F & E = $5 - $5 - $3 = -$3
D & G = $5 - $3 - $1 = $1 F & G = $5 - $5 - $1 = -$1
Therefore, reduce job D & G by 1 day: TC improves by $5 - $3 -$1 = $1.
Overall improvement: $1 + $2 + $1 = $4.