SBCO 6240 Project Management HB Student

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Transcript of SBCO 6240 Project Management HB Student

D. Anthony Chevers

Lecture #8 Project Management Definition Project Schedule PERT Exercises Discussion Questions

Lecture 9 Project Management |

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Project ManagementDr. Tom Johns A project is an enterprise undertaken to achieve planned results within a time frame and at some cost of resource Project management is the business of creating appropriate behaviors within the organization to fulfill the objectives of the enterprise in the face of all the risks and problems encountered on the way. Success depends largely on carrying out the constituent tasks in a sensible sequence and deploying resources to best advantage, and project managers are appropriately empowered by the organization to orchestrate the project.

Lecture 9 Project Management |

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Project Schedule The process of scheduling forces

determination, first, of the order in which events must occur, and second, of the time it will take to do them all Schedules are also a fundamental basis for control Scheduling a process of communication

Lecture 9 Project Management |

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The Framework of PERTProgram Evaluation Review Technique (PERT) is a management tool used to manage and control large and complex projects. Define the project and prepare the WBS Develop the relationships among the activities. Decide which activities must precede and which must follow others Draw the network connecting all the activities Assign time and/or cost estimates to each activity Compute the longest time path through the network. This is called the critical path Use the network to help plan, schedule, monitor and control the project

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Importance: PERT When will the entire project be completed? What are the critical activities in the project i.e., the ones that

will delay the entire project if they are late? Which are the non-critical activities the ones that can run late without delaying the whole projects completion? What are the probabilities that the project will be completed by a specific date? At any particular date, is the project on schedule, behind schedule or ahead of schedule? On a given date, is the money spent equal to, less than or greater than the budgeted amount? Are there enough resources available to finish the project on time? If the project is to be finished in a shorter amount of time, what is the best way to accomplish this goal at the least cost?Source: Operations Management, Jay Heizer & Barry RenderLecture 9 Project Management |

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PERT Notation - AOL1. An event is an instant time, usually a starting or ending date. 2. An activity is a task or certain amount of work required in the project.Event Activity

PERT Example #1

Given the following information, develop a PERT Network. Activity A B C D Immediate Predecessor A B Start

Solution: A

2 3

C

End

1B DAssign each event a number

4

Lecture 9 Project Management |

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PERT Example #2Given the following table, develop a network Beginning Event Ending Event Activity1 1 2 3 3 4 5 2 3 4 4 5 6 6 1 - 2 1 - 3 2 - 4 3 - 4 3 - 5 4 - 6 5 - 6

Specify activities by their starting and ending event.

2 1All that is required to construct a network is the starting and ending event for each activity.

4 3 5Lecture 9 Project Management |

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PERT Example #3Develop a network based on the following information: Activity Immediate Predecessor (s)A B C D E F G H I ----A B C, D E E F G

Complete a network below A C

B

DLecture 9 Project Management |

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PERT Equations1. Elapsed time (t) = a+4m + b

6 Where a is optimistic time for activity completion, m is mort likely completion time and b is pessimistic time for activity completion.2. EF=ES+t 3. LF=LS+t 4. S=LS-ES

where EF is earliest finish & ES is earliest start where LF is latest finish & LS is latest start where S is slack2

5. Variance (v) = b-a

6i.e. The probability of success that the project will be completed within the specified time.

PERT and CPM are two widely used network techniques that have the ability to consider precedence relationships and interdependency of activities. Their objectives are the same and the analysis used in both techniques are the same. The major differences is that PERT employs three times estimates for each activity with levels of probabilities while CPM makes the assumption that activity times are known with certainty.Lecture 9 Project Management |

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PERT & Time Estimates For each activity in PERT techniques, we use three time estimates to

calculate an expected completion time & variance for each activity. Equations: t = (a + 4m + b)/6 V = [(b a)/6]2

Where a is optimistic time for activity completion Where b is pessimistic time for activity completion Where m is most likely time for activity completion Where t is expected time for activity completion Where v is variance of activity (the probability of success the project will be completed within the specified time

Example #5 Activity 1-2 1-3 2-4 3-4 Activity 1-2 1-3 2-4 3-4

a 3 1 5 6 (a+4m+b) 24 18 36 42

m 4 3 6 7

b 5 5 7 8 t 4 3 6 7

[Solution below]

(b-a)/62/6 4/6 2/6 2/6

Var 4/36 16/36 4/36 4/36

Lecture 9 Project Management |

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PERT Network Building a ChurchProject to build a Church[Duration in Weeks] 6 Start land nego 1 2 owner $[2] [3] [3]

3

Secure [3] men [4] draw Buy 4 plan land[5]

[1]

Men arrive 9 Build found[4]

End 10 erect bldg Deliver material[2] [8]

5

Plan apprv[16]

11

install

12

furni[2]

Bill of mtls[2]

7

Buy material

8 [Duration in Weeks]

Describe the Critical Path? Explain the importance of the Critical Path. DiscussLecture 9 Project Management |

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Project Completion Time & Critical PathPath # 1 2 3 Designation 1 -> 2 -> 3 -> 4 -> 5 -> 6 -> 9 -> 10 -> 11 -> 12 1 -> 2 -> 3 -> 4 -> 5 -> 9 -> 10 -> 11 -> 12 1 -> 2 -> 3 -> 4 -> 7 -> 8 -> 9 -> 10 -> 11 -> 12 Duration 27 weeks 44 weeks 30 weeks

Inference: Project Completion Time = 44 weeks Critical Path = 1->2->3->4->5->9->10->11->12

Lecture 9 Project Management |

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Milwaukee Paper Manufacturings Activities, Predecessors & TimesActivity A B C D E F G H Description Build internal components Modify roof and floor Construct collection stack Pour concrete and install frame Build high-temperature burner Install pollution control system Install air pollution device Inspect and test Total time (weeks) Immediate Predecessors A A, B C C D, E F, G Time (weeks) 2 3 2 4 4 3 5 2 25Lecture 9 Project Management |

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Exercise(a) Draw the AON network for Milwaukee Paper (b) (c) (d) (e) (f) (g)

Company Determine the project completion time Determine the critical path Calculate the Earliest start, Latest start, Earliest finish & Latest finish Calculate slack for each activity Calculate variances What is the probability of completing the project in 1q6 weeks?

Lecture 9 Project Management |

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Notation Used in Nodes for Forward and Backward PassActivity Name or Symbol

Earliest Start

A ES EF

Earliest Finish

Latest Start

LS 2

LF

Latest Finish

Activity Duration

Lecture 9 Project Management |

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Earliest Start and Earliest Finish Times for Milwaukee Paper[Completion Time = 15 weeks & Critical Path = A C E G H]

Lecture 9 Project Management |

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Lecture 9 Project Management |

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Earliest Start for Activity DWe now come to activity D. Both activities A and B are immediate predecessors for B. Whereas A has an EF of 2, activity B has an EF of 3. Using the earliest finish time rule, we compute the ES of activity D as follows: ES of D = Max (EF of A, EF of B) = Max (2, 3) = 3 The EF of D equals 7 (= 3 + 4). Next, both activities E and F have activity C as their only immediate predecessor. Therefore, the ES for both E and F equals 4 (= EF of C). The EF of E is 8 (= 4 + 4), and the EF of F is 7 (= 4 + 3).

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Activity G has both activities D and E as predecessors. Using the earliest start time rule, its ES is therefore the maximum of EF of D and EF of E. Hence, the ES of activity G equals 8 (= maximum of 7 and 8), and its EF equals 13 (= 8 + 5) Finally, we come to activity H. Since it also has two predecessors, F and G, the ES of H is the maximum EF of these two activities. That is, the ES of H equals 13 (= maximum of 13 and 7). This implies that the EF of H is 15 (= 13 + 2). Since H is the last activity in the project, this also implies that the earliest time in which the entire project can be completed is 15 weeks (the expected completion time of the project).

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Computing Latest Start and Finish Times

Lecture 9 Project Management |

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Latest Start and Latest Finish Times for Milwaukee Paper

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Progression on Measures

A c tiv ityLecture 9 Project Management |

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Gradual Progression on Measures

4 107 2 4 0 24 13 0 2 48 1 2 13 A c tiv ity 1 48 13 0 337 8Lecture 9 Project Management |

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Milwaukee Papers Schedule and Slack Times(Slack = LS ES or LF EF)

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AON Network for