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Project Controlling
Project Management Techniques:
PERT and CPM
The Framework of PERT and CPM
Network Diagrams and Approaches
Activity-on-Node Example
Activity-on-Arrow Example
Single unit
Many related activities
Difficult production planning and
inventory control
General purpose equipment
High labor skills
Building Construction
Research Project
© 2011 Pearson Education 3 - 12
Management of Projects
1. Planning - goal setting, defining the
project, team organization
2. Scheduling - relates people, money,
and supplies to specific activities
and activities to each other
3. Controlling - monitors resources,
costs, quality, and budgets; revises
plans and shifts resources to meet
time and cost demands
Controlling
Monitor, compare, revise, action
© 2011 Pearson Education 3 - 14
Project Planning,
Scheduling, and Controlling
Figure 3.1
Before Start of project During
project Timeline project
© 2011 Pearson Education 3 - 15
Project Planning,
Scheduling, and Controlling
Figure 3.1
Before Start of project During
project Timeline project
© 2011 Pearson Education 3 - 16
Project Planning,
Scheduling, and Controlling
Figure 3.1
Before Start of project During
project Timeline project
© 2011 Pearson Education 3 - 17
Project Planning,
Scheduling, and Controlling
Figure 3.1
Before Start of project During
project Timeline project
© 2011 Pearson Education 3 - 18
Project Time/cost
Planning,
Budgets
estimates
Budgets
Delayed activities report
Slack activities report
CPM/PERT
Gantt charts
Milestone charts
Cash flow schedules
Figure 3.1
Before Start of project During
project Timeline project
© 2011 Pearson Education 3 - 19
Project Planning
Establishing objectives
Defining project
Creating work
breakdown structure
Determining
resources
Forming organization
Human Quality
Resources Marketing Finance Design Production
Mgt
Project 1 Project
Manager
Mechanical Test
Technician
Engineer Engineer
Project 2 Project
Manager
Electrical Computer
Technician
Engineer Engineer
Figure 3.2
Project 1
Project 2
Project 3
Project 4
Level
1. Project
2. Major tasks in the project
3. Subtasks in the major tasks
4. Activities (or work packages)
to be completed
Develop Module
Level 3 1.1.1 Planning 1.2.1 1.3.1
GUIs Testing
Compatible with
Level 4 1.1.2.1
Windows ME
(Work packages)
Compatible with
1.1.2.2
Windows Vista
Time
J F M A M J J A S
Design
Prototype
Test
Revise
Production
C and D cannot
A C begin until both A C
(d) A and B are
completed.
B D B D
C cannot begin
until both A and B
A C are completed; D A C
(e) cannot begin until Dummy activity
B is completed. A
B D dummy activity is
introduced in AOA. B D
© 2011 Pearson Education Figure 3.5 3 - 43
A Comparison of AON and
AOA Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
B and C cannot
begin until A is
completed. D
A B D cannot begin A B D
until both B and
(f) C are completed. Dummy
A dummy activity
C
C
activity is again
introduced in
AOA.
Activity A
A
(Build Internal Components)
Start
Activity B
Start B (Modify Roof and Floor)
Activity
Figure 3.6
© 2011 Pearson Education 3 - 46
AON Network for
Milwaukee Paper
Activity A Precedes Activity C
A C
Start
B D
Activities A and B
Precede Activity D Figure 3.7
© 2011 Pearson Education 3 - 47
AON Network for
Milwaukee Paper
F
A C
E
Start H
B D G
H
1 Dummy 6 7
Activity (Inspect/
Test)
D
3 5
(Pour
Concrete/
Install Frame) Figure 3.9
© 2011 Pearson Education 3 - 49
Determining the Project
Schedule
Perform a Critical Path Analysis
The critical path is the longest path
through the network
The critical path is the shortest time in
which the project can be completed
Any delay in critical path activities
delays the project
Critical path activities have no slack
time
© 2011 Pearson Education 3 - 50
Determining the Project
Schedule
Perform a Critical Path Analysis
Activity Description Time (weeks)
A Build internal components 2
B Modify roof and floor 3
C Construct collection stack 2
D Pour concrete and install frame 4
E Build high-temperature burner 4
F Install pollution control system 3
G Install air pollution device 5
H Inspect and test 2
Total Time (weeks) 25
Table 3.2
© 2011 Pearson Education 3 - 51
Determining the Project
Schedule
Perform a Critical Path Analysis
Earliest start (ES) = earliest time at which an activity can
Activity Descriptionstart, assuming all predecessors Time (weeks)
have
A Build internal components
been completed 2
EarliestBfinish (EF)
Modify roof and
= earliest floor
time at which an activity can3
C be finished
Construct collection stack 2
LatestD start (LS)
Pour=concrete
latest timeandat install
which frame
an activity can4
E start so as to not delay
Build high-temperature burnerthe completion
4
F Install time of thecontrol
pollution entire project
system 3
LatestGfinish (LF) = latest
Install time bydevice
air pollution which an activity has 5 to
be finished so as to not delay the
H Inspect and test 2
completion time of the entire project
Total Time (weeks) 25
Table 3.2
© 2011 Pearson Education 3 - 52
Determining the Project
Schedule
Perform a Critical Path Analysis
Activity Name
or Symbol
A Earliest
Earliest ES EF Finish
Start
Latest LS LF Latest
Start 2 Finish
EF = ES + Activity time
ES EF = ES + Activity time
Start
0 0
2 EF of B =
ES ES of B + 3
0
Start
0 of B
B
0 0 3
3
© 2011 Pearson Education 3 - 58
ES/EF Network for
Milwaukee Paper
A C
0 2 2 4
2 2
Start
0 0
B
0 3
2 2
Start
0 0
= Max (2, 3) D
0
3 7
B
0 3
3
4
© 2011 Pearson Education 3 - 60
ES/EF Network for
Milwaukee Paper
A C
0 2 2 4
2 2
Start
0 0
B D
0 3 3 7
3 4
2 2 3
Start E H
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
Figure 3.11
LS = LF – Activity time
2 2 3
Start E H
0 0 4 8 13 15
13 15
0 4 2
B D – Activity time
LS = LF G
0 3 3 7 8 13
3 4 5 LF = EF
of Project
© 2011 Pearson Education 3 - 65
LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7
10 13
2 2 3
Start E H
0 0
LF =4 Min(LS
8 of 13 15
following activity) 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
8 13
3 4 5
0 2 2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
Slack = LS – ES or Slack = LF – EF
A 0 2 0 2 0 Yes
B 0 3 1 4 1 No
C 2 4 2 4 0 Yes
D 3 7 4 8 1 No
E 4 8 4 8 0 Yes
F 4 7 10 13 6 No
G 8 13 8 13 0 Yes
H 13 15 13 15 0 Yes
Table 3.3
0 2 2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-
temperature burner
F Install pollution
control system
G Install air pollution
device
H Inspect and test
A Build internal
components
B Modify roof and floor
C Construct collection
stack
D Pour concrete and
install frame
E Build high-
temperature burner
F Install pollution
control system
G Install air pollution
device
H Inspect and test
t = (a + 4m + b)/6
Variance of
Probability
1 in 100 of
oftimes:
Probability
Probability
Activity
Time
A 1 2 3 2 .11
B 2 3 4 3 .11
C 1 2 3 2 .11
D 2 4 6 4 .44
E 1 4 7 4 1.00
F 1 2 9 3 1.78
G 3 4 11 5 1.78
H 1 2 3 2 .11
Table 3.4
15 Weeks
(Expected Completion Time)
Figure 3.13
.5 = due .69497
Z.69146 − expected.71566
date /s
.71904
p
date of completion
.6 .72575 .72907 .74857 .75175
= (16 wks − 15 wks)/1.76
15 16 Time
Weeks Weeks
Figure 3.14
Probability
of 0.01
2.33 Standard Z
From Appendix I deviations
0 2.33
Figure 3.15
Table 3.5
$30,000 —
Normal
Normal —
Cost
| | |
1 2 3 Time (Weeks)
Figure 3.16
Crash Time Normal Time
© 2011 Pearson Education 3 - 95
Critical Path and Slack Times
for Milwaukee Paper
A C F
0 2 2 4 4 7
0 2 2 4 10 13
2 2 3
0 0 4 8 13 15
0 4 2
B D Slack = 0 G Slack = 0
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
Program 3.1
Program 3.2
© 2011 Pearson Education 3 - 102
Using Microsoft Project
Program 3.3