Project Planning, Scheduling, and Controlling

1
Project Planning, Scheduling, and Controlling
Project Planning 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
activities 2. Relating activities to each
other 3. Updating and revising on regular basis
Project Controlling 1. Monitoring resources,
costs, quality and budgets 2. Revising and
changing plans 3. Shifting resources to meet
demands
Before Project
During Project
2
Project Management Models

• PERT Program Evaluation and Review Technique
• CPM -Critical Path Method

3
Six Steps Common toPERT and CPM

• 1. Define the project and all of its significant
  activities or tasks.
• 2. Develop relationships among the activities.
  Decide which activities must precede and which
  ones must follow others.
• 3. Draw the network connecting all of the
  activities.
• 4. Assign time and/or cost estimates to each
  activity
• 5. Compute the longest time path through the
  network. This is called the critical path.
• 6. Use the network to help plan, schedule,
  monitor, and control the project.

4
Questions That May Be Addressed by PERT and CPM

• 1. When will the project be completed?
• 2. What are the critical activities or tasks in
  the project?
• 3. Which are the noncritical activities?
• 4. What is the probability that the project will
  be completed by a specific date?
• 5. Is the project on schedule, ahead of schedule,
  or behind schedule?
• 6. Is the project over or under the budgeted
  amount?
• 7. Are there enough resources available to finish
  the project on time?
• 8. If the project must be finished in less than
  the scheduled amount of time, what is the best
  way to accomplish this at least cost?

5
Advantages of PERT/CPM

• useful at several stages of project management
• straightforward in concept, and not
  mathematically complex
• uses graphical displays employing networks to
  help user perceive relationships among project
  activities
• critical path and slack time analyses help
  pinpoint activities that need to be closely
  watched
• networks generated provide valuable project
  documentation and graphically point out who is
  responsible for various project activities
• applicable to a wide variety of projects and
  industries
• useful in monitoring not only schedules, but
  costs as well

6
Limitations of PERT/CPM

• project activities must be clearly defined,
  independent, and stable in their relationships
• precedence relationships must be specified and
  networked together
• time activities in PERT are assumed to follow the
  beta probability distribution -- this may be
  difficult to verify
• time estimates tend to be subjective, and are
  subject to fudging by managers
• there is inherent danger in too much emphasis
  being placed on the critical path

7
Example of a Gantt Chart
A
B
C
Activities
D
E
Time
10-5
8
PERT/CPM TERMS

• ES earliest time activity can begin
• EF earliest time activity can end
• EF ES t
• LS latest time activity can begin without
  delaying project
• LS LF - t
• LF latest time activity can end without
  delaying project

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PERT/CPM TERMS

• SLACK TIME free time
• LS - ES or LF - EF
• CRITICAL PATH longest path, or the one with NO
  slack

10
Methods of Diagramming Projects
A
- Activity on arrow
A
- Activity on node
10-7
11
EXHIBIT 10.3 CPM Network for Computer Design
Project
8
7
F
C
21
2
A
G
4
5
2
B
E
D
10-8
12
Crash and Normal Times and Costs
Activity Cost
Crash
Crash Cost - Normal Cost
34,000 33,000 32,000 31,000 30,000
Crash Cost/Week
Normal Time - Crash Time
Crash Cost
34,000 - 30,000

3 - 1
4,000

2,000/Week
2 Weeks
Normal
Normal Cost
1
2
3
Time (Weeks)
Crash Time
Normal Time
PG 13.19
13
CRASH COSTING

• 1. Find critical path.
• 2. Find cheapest act. in critical path
• 3. Reduce time until
• a. Cant be reduced
• b. Another path becomes critical
• c. Increase in direct costs exceeds savings from
  shortening project
• 4. Return to Step 1, as long as savings.

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Time-Cost Trade-Off
10-9
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Beta Probability Distribution with Three Time
Estimates
Probability
Probability of 1 in 100 (b) Occuring
Probability of 1 in 100 (a) Occuring
Optimistic Time (a)
Most Likely Time (m)
Pessimistic Time (b)
Activity Time
PG 13.8
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Time Estimates (in weeks) for project
Optimistic a
Most Probable- m
Pessimistic b
Expected Time t (a 4m b)/6
Variance (b - a)/62
Activity
A B C D E F G H
1 2 1 2 1 1 3 1
2 3 2 4 4 2 4 2
3 4 3 6 7 9 11 3
2 3 2 4 4 3 5 2
Total 25 weeks
17
Probability of Project Meeting the Deadline
Project Standard Deviation, ?T

Project Variance
Due Date - Expected Completion Date
Z

?T
16 - 15


0.57
1.76
.57 Standard Deviations
Probability (T ? 16 Weeks) is 71.6
16 Weeks
15 Weeks
Time