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LectureProjectPlanning.ppt

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LectureProjectPlanning.ppt

  1. 1. 1 Project Planning BA 339
  2. 2. 2 Project Planning and Control  Definition of Project Management  Work Breakdown Structure  Critical Path Scheduling  Ideal Completion Time • Time vs. Cost tradeoffs
  3. 3. 3 Project Management  Project • series of related jobs usually directed toward some major output and requiring a significant period of time to perform.  Project Management • planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of the project. • Project or Program?
  4. 4. 4 Project Management  Personal Life  Work-related
  5. 5. 5 Ways to manage project complexity  Limit changes once project begins  Goal orientation (completion date focus)  Attempt to reduce uncertainty  Expediters  Constantly update information
  6. 6. 6 Work Breakdown Structure Program Project 1 Project 2 Task 1.1 Subtask 1.1.1 Work Package 1.1.1.1 Level 1 2 3 4 Task 1.2 Subtask 1.1.2 Work Package 1.1.1.2
  7. 7. 7 Work Breakdown Structure  Allow the elements to be worked on independently  Make them manageable in size  Give authority to carry out the program  Monitor and measure the program  Provide the required resources
  8. 8. 8 Project Control: Gantt Chart New I-5 Bridge Design Month Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Pilot Study development Pilot Study distribution Pilot Study analysis Time & Process analysis Preliminary Report Survey design & pretest Survey translation & copy Survey distribution Market Model Report Collect cost & price data Simulation development Simulation analysis Final Report
  9. 9. 9 Critical Path Scheduling  A project must have: • well-defined jobs or tasks whose completion marks the end of the project; • independent jobs or tasks; • and tasks that follow a given sequence.
  10. 10. 10 CPM with Single Time Estimate Consider the following HR consulting project: Develop a critical path diagram and determine the duration of the critical path and slack times for all activities Activity Designation Immed.Pred. Time(Weeks) Assess customer's needs A None 2 Write and submit proposal B A 1 Obtain approval C B 1 Develop service vision and goals D C 2 Train employees E C 5 Quality improvement pilot groups F D, E 5 Write assessment report G F 1
  11. 11. 11 First draw the network A, 2 B, 1 C, 1 D, 2 E, 5 F, 5 G, 1
  12. 12. 12 Moving forward on the diagram (left to right): Determine early start and early finish times ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 ? A, 2 B, 1 C, 1 D, 2 E, 5 F, 5 G, 1
  13. 13. 13 When F can start depends on when predecessors (D & E) finish ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A, 2 B, 1 C, 1 D, 2 E, 5 F, 5 G, 1
  14. 14. 14 Moving backwards on the diagram (right to left): Determine late starts and late finish times ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A, 2 B, 1 C, 1 D, 2 E, 5 F, 5 G, 1 LS=14 LF=15 LS=9 LF=14 LS=4 LF=9 LS=7 LF=9 ?
  15. 15. 15 Don’t delay the project ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A, 2 B, 1 C, 1 D, 2 E, 5 F, 5 G, 1 LS=14 LF=15 LS=9 LF=14 LS=4 LF=9 LS=7 LF=9 LS=3 LF=4 LS=2 LF=3 LS=0 LF=2
  16. 16. 16 Critical Path & Slack slack = amount of flexibility = LS-ES or LF-EF Critical path= completion time of the project (project bottleneck). Connect all points on path which have no slack ES=9 EF=14 ES=14 EF=15 ES=0 EF=2 ES=2 EF=3 ES=3 EF=4 ES=4 EF=9 ES=4 EF=6 A, 2 B, 1 C, 1 D, 2 E, 5 F, 5 G, 1 LS=14 LF=15 LS=9 LF=14 LS=4 LF=9 LS=7 LF=9 LS=3 LF=4 LS=2 LF=3 LS=0 LF=2 Duration = 15 weeks Slack=(7-4)=(9-6)= 3 Wks
  17. 17. 17 Time-Cost Models  Basic Assumption: Relationship between activity completion time and project cost  Time Cost Models: Determine the optimum point in time-cost tradeoffs • Activity direct costs • Project indirect costs • Activity completion times
  18. 18. 18 Time-cost Trade-off “Crashing” a project  Prepare a CPM-type network diagram  Determine the cost per unit of time (usually assume days) to expedite each activity. NT=normal time CT= crash time NC=normal cost CC=crash cost  cost to crash each day = (CC-NC)/(NT-CT)  Compute critical path  Shorten the critical path at the least cost  Determine the minimum cost schedule.
  19. 19. 19 A, 2 B, 5 C, 4 D, 3 Activity Cost per day to Expedite Number of possible Days activity may be shortened A $ 4 1 B $ 3 3 C $ 2 1 D $ 2 2
  20. 20. 20 Crashing Current Critical Path Remaining days activity may be shortened Cost per Day to Expedite each Activity Least cost activity to expedite Total Cost of all Activities in network Project Completion time ABD All $26 10 ABD A-1, B-3, D-2 A-4, B-3, D-2 D $28 9 ABD A-1, B-3, D-1 A-4, B-3, D-2 D $30 8 ABD A-1, B-3 A-4, B-3 B $33 7 ABCD A-1, B-2, C-1 A-4, B-3, C-2 A $37 6 ABCD B-2, C-1 B-3, C-2 B & C $42 5 ABCD B-1 B-3 B $45 5
  21. 21. 21 In Class Exercise: Bike Path Project
  22. 22. 22 Bike Path Project: Activity Description Predecessor Estimated time A Survey for paths None 2 weeks B Re-route traffic None 1 weeks C Move utilities None 4 weeks D Prepare new path bed A,B,C 15 weeks E Dig and prepare drainage D 5 weeks F Set forms and reinforcements D 3 weeks G Pour concrete E,F 2 weeks H Build curbs G 3 weeks I Pave surface G 2 weeks
  23. 23. 23 Cost Trade-offs  The contractor will get a $100,000 bonus for completing the project within 25 weeks. Some of the activities can be shortened, but will cost more: • Activity D: $10,000 per week for up to 3 weeks • Activity E: $8,000 per week for up to 1 week • Activity H: $6,000 per week for up to 1 week • Activity I: $8,000 per week for up to 1 week  What should he/she do?

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