Project Management - Advanced Project Management - Lecture Slides, Slides of Project Management

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Project Management

Project

“A project is a series of activities

directed to accomplishment of a

desired objective.”

Plan your work first…..then

work your plan

Project Network

• Activity-on-node (AON)
  • nodes represent activities, and arrows show precedence relationships
• Activity-on-arrow (AOA)
  • arrows represent activities and nodes are events for points in time
• Event
  • completion or beginning of an activity in a project

(^1 )

Branch

Node

AOA Project Network for a

House

3

2 0 1 3 1 1

Lay foundation

Design house and obtain financing

Order and receive materials

Dummy Finish work

Select carpet

Select paint

Build house

AON Network for House Building

Project

Start 1

Design house and obtain financing Order and receive materials Select paint

Select carpet

Lay foundations (^) Build house

Finish work

History

• Developed in 1950’s
• CPM by DuPont for chemical plants
• PERT by U.S. Navy for Polaris missile

PERT was developed by the US Navy for the planning and control of the Polaris missile program and the emphasis was on completing the program in the shortest possible time. In addition PERT had the ability to cope with uncertain activity completion times (e.g. for a particular activity the most likely completion time is 4 weeks but it could be anywhere between 3 weeks and 8 weeks).

CPM was developed by Du Pont and the emphasis was on the trade-off between the cost of the project and its overall completion time (e.g. for certain activities it may be possible to decrease their completion times by spending more money - how does this affect the overall completion time of the project?)

PERT - Project Evaluation & Review Techniques

• Definition: In PERT activities are shown as a network of precedence relationships using activity-on-arrow network construction - Multiple time estimates - Probabilistic activity times

USED IN : Project management - for non-repetitive jobs (research and development work), where the time and cost estimates tend to be quite uncertain. This technique uses probabilistic time estimates.

CPM/PERT

These deficiencies can be eliminated to a large extent by showing the interdependence of various activities by means of connecting arrows called network technique.

• Overtime CPM and PERT became one technique

• ADVANTAGES:

• Precedence relationships
• large projects
• more efficient

Activity Slack

Each event has two important times associated with it :

• Earliest time , Te , which is a calendar time when a event can occur when all the predecessor events completed at the earliest possible times
• Latest time , TL , which is the latest time the event can occur with out delaying the subsequent events and completion of project.
• Difference between the latest time and the earliest time of an event is the slack time for that event

Positive slack : Slack is the amount of time an event can be delayed without

delaying the project completion

Critical Path

• Is that the sequence of activities and events where there is no “slack” i.e.. Zero slack
• Longest path through a network
• minimum project completion time

Questions Answered by CPM & PERT

• Completion date?
• On Schedule?
• Within Budget?
• Critical Activities?
• How can the project be finished early at the least cost?

example

Illustration of network analysis of a minor redesign of a product and its associated packaging.

The key question is: How long will it take to complete this project? Activity Number

Activity Completion Time (Weeks) 1 Redesign Product 6 2 Redesign Packaging 2 3 Order and receive components for redesigned product 3 4 Order and receive Material for redesigned packaging 2 5 Assemble Products 4 6 Makeup packaging 1 7 Package redesigned product 1 8 Test Market Redesigned Product 6 9 Revised Redesigned Product 3 10 Revised Redesigned Packaging 1 11 Present Results to the Board 1

• "What activities must be finished before this activity can start"
• could we complete this project in 30 weeks?
• could we complete this project in 2 weeks?

One answer could be, if we first do activity 1, then activity 2, then activity 3, ...., then activity 10, then activity 11 and the project would then take the sum of the activity completion times, 30 weeks.

“What is the minimum possible time in which we can complete this project? “

Before starting any of the above activity, the questions asked would be

We shall see below how the network analysis diagram/picture we construct helps us to answer this question.