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Project Management
Project Management Techniques
Project Management ,[object Object],[object Object],[object Object],( to p4) ( to p5)
Objective ,[object Object],( to p3)
Project management technique ,[object Object],[object Object],[object Object],[object Object],[object Object],( to p6) ( to p12) ( to p29)
1. Represent a ‘project problem” graphically ,[object Object],[object Object],[object Object],[object Object],( to p7) ( to p9) ( to p4) -- A B 20 30 10 A B C Precedent constraints Processing Time Event
Semantic network to represent them ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],( to p8) ( to p6)
Example 1 2 3 A 4 C B 20 30 10 Rule1:   All nodes must  starts  from one Node and  ends  with one node ( to p7) -- A B 20 30 10 A B C 1-2 2-3 3-4 Pred Const Proc Time Event Path
Special case! ,[object Object],[object Object],[object Object],[object Object],( to p10) -- A A 3 5 7 A B C Precedent constraints Processing Time Event
Case 1 1 2 3 A B C 3 5 7 Wrong!  Rule2:   no node can have two outcomes and end  with the same note Solution  ( to p11)
Solutions for Rule 2 ,[object Object],1 2 3 4 5 A B C Dummy 1=0 Dummy 2 = 0 1 2 3 4 A B C Dummy = 0 1 2 3 4 A B C Dummy = 0 Solution 1: Solution 2: Solution 3: What one is better? A dummy activity shows a precedence relationship Reflects no processing time ( to p6)
2. Determine its completion time ,[object Object],[object Object],[object Object],[object Object],[object Object],( to p15) ( to p13)
The Project Network  All Possible Paths for Obtaining a Solution Figure 8.3 Expanded network for building a house showing  concurrent activities. Table 8.1 Possible Paths to complete  the  House-Building Network Then the completion time for paths A, B, C and D can be computed as  ( to p14)
The Project Network  Completion time for:  path A: 1  2    3    4    6    7,  3 + 2 + 0 + 3 + 1 = 9 months (Critical  Path)  path B: 1    2    3    4    5    6    7,  3 + 2 + 0 + 1 + 1 + 1 = 8 months  path C: 1    2    4    6    7,  3 + 1 + 3 + 1 = 8 months path D: 1    2    4    5    6    7,  3 + 1 + 1 + 1 + 1 = 7 months The  critical path  is the longest path through the network; the minimum time the network can be completed. Figure 8.5 Alternative paths in the  network This is the Solution ! ( to p12)
Critical Path Method  (CPM) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],( to p16)
How CPM works? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],ES ij  = max (EF i )  EF ij  = ES i  + t ij with  EF 1 =0 Critical path when LS-ES=0 ( to p4) ( to p17) ( to p26) ( to p22) LF LS EF ES Branch
Compute ES and EF ,[object Object],[object Object],[object Object],[object Object],[object Object],( to p18) ( to p22) ( to p19)
The starting point of ES and EF ,[object Object],[object Object],[object Object],[object Object],[object Object],1 2 t 12 ( to p17)
The overall computation is shown in next slide ( to p20) EF 12 =ES 12 +t 12 = EF 23 =ES 23 +t 23 = EF 24 = EF 34 = EF 45 = EF 46 = EF 56 = EF 67 = ES 12 = max(EF 1 )= ES 23 =max(EF 2 )= ES 24 =max(EF 2 )= ES 34 =max(EF 3 )= ES 45 =max(EF 4 )= ES 46 =max(EF 4 )= ES 56 =max(EF 5 )= ES 67 =max(EF 6 )= 1-2 2-3 2-4 3-4 4-5 4-6 5-6 6-7 EF ij =ES ij +t ij ES ij  = max(EF i ) Branches
-  ES is the earliest time an activity can start. ES ij  = Maximum (EF i ) - EF is the earliest start time plus the activity time. EF ij  = ES ij  + t ij (note: you can compute these values and show in the network diagram as well) Add all t to note 4 and take the longest time Max (node 3+t34, node2+t24)  max (5+0, 3+1) =max(5,4)=5 add all t i  for note 2 Max(node4+t46,node5+t56 =max(5+3,5+1)=8 Complete solution ( to p4) ( to p21)
The Project Network  Activity Scheduling- Earliest Times - ES is the earliest time an activity can start. ES ij  = Maximum (EF i ) - EF is the earliest start time plus the activity time. EF ij  = ES ij  + t ij Figure 8.6 Earliest activity start and finish times ( to p20)
Compute LS and LF ,[object Object],[object Object],[object Object],[object Object],[object Object],( to p23)
The overall computational is shown in next slide ( to p24) LF 12 =min(LS 2 )= LF 23 =min(LS 3 )= LF 24 =min(LS 4 )= LF 34 =min(LS 4 )= LF 45 =min(LS 5 )= LF 46 =min(LS 6 )= LF 56 =min(LS 6 )= LF 67 =min(LS 7 )= LS 12  = L i12 -t 12  = LS 23  = LF 23 -t 23  = LS 24  = LF 24 -t 24  = LS 34  = LF 34 -t 34  = LS 45  = LF 45 -t 45  = LS 46  = LF 46 - i46  = LS 56  = LF 56 -t 56  = LS 67  = LF 67 -t 67  = 1-2 2-3 2-4 3-4 4-5 4-6 5-6 6-7 LF ij =min(LS j ) LS ij  = LF ij -t ij Branches
-   LS is the latest time an activity can start without delaying critical path time. LS ij  = LF ij  - t ij - LF is the latest finish time    LF ij  = Minimum (LS j ) Start with the end node first Same as EF67 from the previous slide Again, you can place these values onto the branches  Min(node 6-t46,node5-t45) =Min(8-3,7-1) =Min(5,6)=5 Min(node3-t23,node4-t24) =Min(5-2,5-1)=Min(3,4)=3 Min(node 7-t67) =Min(9-1)=8 ( to p25) ( to p22)
The Project Network  Activity Scheduling - Latest Times - LS is the latest time an activity can start without delaying critical path time. LS ij  = LF ij  - t ij - LF is the latest finish time    LF ij  = Minimum (LS j ) Figure 8.7 Latest activity start and finish times ( to p24)
Compute LS-ES or LF-EF ,[object Object],[object Object],[object Object],( to p27) ( to p28) ( to p16)
The Project Network  Calculating Activity Slack Time - Slack, S ij , computed as follows:  S ij  = LS ij  - ES ij   or  S ij  = LF ij  - EF ij     Table 8.2   Activity Slack   Figure 8.9 Activity Slack * What does it mean? ( to p26)
The Project Network  Activity Slack ,[object Object],[object Object],[object Object],Figure 8.8 Earliest activity start and finish times ( to p26)
Sensitivity Analysis ,[object Object],[object Object],[object Object],[object Object],( to p30)
PERT ,[object Object],[object Object],[object Object],[object Object],[object Object],( to p31)
Probabilistic Activity Times ,[object Object],[object Object],[object Object],[object Object],( to p32)
PERT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],( to p33)
Procedures for PERT ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],( to p34) ( to p38) ( to p39)
PERT Example ,[object Object],[object Object],[object Object],( to p35) ( to p36) ( to p37) ( to p33)
Step 1: computer t and v values Figure 8.11 Network with mean activity times and variances Table 8.3 Activity Time Estimates for  Figure 8.10 ( to p34)
Step 2: determine the CPM Figure 8.12 Earliest and latest activity times Table 8.4 Activity Earliest and Latest Times and Slack ( to p34)
Step 3: determine v value ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],( to p34)
Probability Analysis of the Project Network - Using normal distribution, probabilities are determined by computing number of standard deviations (Z) a value is from the mean. - Value is used to find corresponding probability in Table A.1, App. A. Figure 8.13 Normal distribution of network duration Critical value ( to p33)
[object Object],[object Object],[object Object],[object Object],( to p40) ( to p41) ( to p42)
Probability Analysis of the Project Network Example 1 ,[object Object],[object Object],[object Object],[object Object],Figure 8.14 Probability the network will be completed in 30 weeks or less ( to p39)
Probability Analysis of the Project Network Example 2 Z = (22 - 25)/2.63 = -1.14 Z value of 1.14 (ignore negative) corresponds to probability of .3729 in Table A.1, appendix A. Probability that customer will be retained is .1271 (= 0.5- 0.3729) , or 12.71% (Again, why so low probability rate?) Figure 8.15 Probability the network will be completed in 22 weeks or less ( to p39)
Tutorial Assignment ,[object Object],[object Object],[object Object],[object Object],(to p43)
Probability Analysis of the Project Network CPM/PERT Analysis with QM for Windows Exhibit 8.1 (to p16)
The Project Network  Activity Slack ,[object Object],[object Object],[object Object],Figure 8.8 Earliest activity start and finish times
The Project Network  Calculating Activity Slack Time - Slack, S ij , computed as follows:  S ij  = LS ij  - ES ij   or  S ij  = LF ij  - EF ij     Table 8.2   Activity Slack   Figure 8.9 Activity Slack *

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Project Management Techniques

  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8. Example 1 2 3 A 4 C B 20 30 10 Rule1: All nodes must starts from one Node and ends with one node ( to p7) -- A B 20 30 10 A B C 1-2 2-3 3-4 Pred Const Proc Time Event Path
  • 9.
  • 10. Case 1 1 2 3 A B C 3 5 7 Wrong! Rule2: no node can have two outcomes and end with the same note Solution ( to p11)
  • 11.
  • 12.
  • 13. The Project Network All Possible Paths for Obtaining a Solution Figure 8.3 Expanded network for building a house showing concurrent activities. Table 8.1 Possible Paths to complete the House-Building Network Then the completion time for paths A, B, C and D can be computed as ( to p14)
  • 14. The Project Network Completion time for: path A: 1  2  3  4  6  7, 3 + 2 + 0 + 3 + 1 = 9 months (Critical Path) path B: 1  2  3  4  5  6  7, 3 + 2 + 0 + 1 + 1 + 1 = 8 months path C: 1  2  4  6  7, 3 + 1 + 3 + 1 = 8 months path D: 1  2  4  5  6  7, 3 + 1 + 1 + 1 + 1 = 7 months The critical path is the longest path through the network; the minimum time the network can be completed. Figure 8.5 Alternative paths in the network This is the Solution ! ( to p12)
  • 15.
  • 16.
  • 17.
  • 18.
  • 19. The overall computation is shown in next slide ( to p20) EF 12 =ES 12 +t 12 = EF 23 =ES 23 +t 23 = EF 24 = EF 34 = EF 45 = EF 46 = EF 56 = EF 67 = ES 12 = max(EF 1 )= ES 23 =max(EF 2 )= ES 24 =max(EF 2 )= ES 34 =max(EF 3 )= ES 45 =max(EF 4 )= ES 46 =max(EF 4 )= ES 56 =max(EF 5 )= ES 67 =max(EF 6 )= 1-2 2-3 2-4 3-4 4-5 4-6 5-6 6-7 EF ij =ES ij +t ij ES ij = max(EF i ) Branches
  • 20. - ES is the earliest time an activity can start. ES ij = Maximum (EF i ) - EF is the earliest start time plus the activity time. EF ij = ES ij + t ij (note: you can compute these values and show in the network diagram as well) Add all t to note 4 and take the longest time Max (node 3+t34, node2+t24) max (5+0, 3+1) =max(5,4)=5 add all t i for note 2 Max(node4+t46,node5+t56 =max(5+3,5+1)=8 Complete solution ( to p4) ( to p21)
  • 21. The Project Network Activity Scheduling- Earliest Times - ES is the earliest time an activity can start. ES ij = Maximum (EF i ) - EF is the earliest start time plus the activity time. EF ij = ES ij + t ij Figure 8.6 Earliest activity start and finish times ( to p20)
  • 22.
  • 23. The overall computational is shown in next slide ( to p24) LF 12 =min(LS 2 )= LF 23 =min(LS 3 )= LF 24 =min(LS 4 )= LF 34 =min(LS 4 )= LF 45 =min(LS 5 )= LF 46 =min(LS 6 )= LF 56 =min(LS 6 )= LF 67 =min(LS 7 )= LS 12 = L i12 -t 12 = LS 23 = LF 23 -t 23 = LS 24 = LF 24 -t 24 = LS 34 = LF 34 -t 34 = LS 45 = LF 45 -t 45 = LS 46 = LF 46 - i46 = LS 56 = LF 56 -t 56 = LS 67 = LF 67 -t 67 = 1-2 2-3 2-4 3-4 4-5 4-6 5-6 6-7 LF ij =min(LS j ) LS ij = LF ij -t ij Branches
  • 24. - LS is the latest time an activity can start without delaying critical path time. LS ij = LF ij - t ij - LF is the latest finish time LF ij = Minimum (LS j ) Start with the end node first Same as EF67 from the previous slide Again, you can place these values onto the branches Min(node 6-t46,node5-t45) =Min(8-3,7-1) =Min(5,6)=5 Min(node3-t23,node4-t24) =Min(5-2,5-1)=Min(3,4)=3 Min(node 7-t67) =Min(9-1)=8 ( to p25) ( to p22)
  • 25. The Project Network Activity Scheduling - Latest Times - LS is the latest time an activity can start without delaying critical path time. LS ij = LF ij - t ij - LF is the latest finish time LF ij = Minimum (LS j ) Figure 8.7 Latest activity start and finish times ( to p24)
  • 26.
  • 27. The Project Network Calculating Activity Slack Time - Slack, S ij , computed as follows: S ij = LS ij - ES ij or S ij = LF ij - EF ij Table 8.2 Activity Slack   Figure 8.9 Activity Slack * What does it mean? ( to p26)
  • 28.
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35. Step 1: computer t and v values Figure 8.11 Network with mean activity times and variances Table 8.3 Activity Time Estimates for Figure 8.10 ( to p34)
  • 36. Step 2: determine the CPM Figure 8.12 Earliest and latest activity times Table 8.4 Activity Earliest and Latest Times and Slack ( to p34)
  • 37.
  • 38. Probability Analysis of the Project Network - Using normal distribution, probabilities are determined by computing number of standard deviations (Z) a value is from the mean. - Value is used to find corresponding probability in Table A.1, App. A. Figure 8.13 Normal distribution of network duration Critical value ( to p33)
  • 39.
  • 40.
  • 41. Probability Analysis of the Project Network Example 2 Z = (22 - 25)/2.63 = -1.14 Z value of 1.14 (ignore negative) corresponds to probability of .3729 in Table A.1, appendix A. Probability that customer will be retained is .1271 (= 0.5- 0.3729) , or 12.71% (Again, why so low probability rate?) Figure 8.15 Probability the network will be completed in 22 weeks or less ( to p39)
  • 42.
  • 43. Probability Analysis of the Project Network CPM/PERT Analysis with QM for Windows Exhibit 8.1 (to p16)
  • 44.
  • 45. The Project Network Calculating Activity Slack Time - Slack, S ij , computed as follows: S ij = LS ij - ES ij or S ij = LF ij - EF ij Table 8.2 Activity Slack   Figure 8.9 Activity Slack *