Project Management The Manegerial Process
- 1. Developing a Developing a Project Plan Project Plan CHAPTER SIX PowerPoint Presentation by Charlie Cook PowerPoint Presentation by Charlie Cook Copyright © 2014 McGraw-Hill Education. Copyright © 2014 McGraw-Hill Education. All Rights Reserved. All Rights Reserved.
- 2. 6 6– –2 2 Where We Are Now Where We Are Now
- 3. Chapter Learning Objectives Chapter Learning Objectives LO 6-1 Understand the linkage between WBS and the project network. LO 6-2 Diagram a project network using AON methods. LO 6-3 Calculate early, late, and slack activity times. LO 6-4 Identify and understand the importance of managing the critical path. LO 6-5 Distinguish free slack from total slack. LO 6-6 Demonstrate understanding and application of lags in compressing projects or constraining the start or finish of an activity. ~ ~– –3 3
- 4. 6 6– –4 4 Developing the Project Plan Developing the Project Plan • The Project Network – A flow chart that graphically depicts the sequence, interdependencies, and start and finish times of the project job plan of activities that is the critical path through the network. • Provides the basis for scheduling labor and equipment. • Enhances communication among project participants. • Provides an estimate of the project’s duration. • Provides a basis for budgeting cash flow. • Identifies activities that are critical. • Highlights activities that are “critical” and can not be delayed. • Help managers get and stay on plan.
- 5. 6 6– –5 5 WBS/Work Packages to Network FIGURE 6.1
- 6. 6 6– –6 6 WBS/Work Package to Network (cont’d) WBS/Work Package to Network (cont’d) FIGURE 6.1 (cont’d)
- 7. 6 6– –7 7 Constructing a Project Network Constructing a Project Network • Terminology – Activity: an element of the project that requires time. – Merge Activity: an activity that has two or more preceding activities on which it depends. – Parallel (Concurrent) Activities: Activities that can occur independently and, if desired, not at the same time. A C D B
- 8. 6 6– –8 8 Constructing a Project Network (cont’d) Constructing a Project Network (cont’d) • Terminology – Path: a sequence of connected, dependent activities. – Critical path: the longest path through the activity network that allows for the completion of all project- related activities; the shortest expected time in which the entire project can be completed. Delays on the critical path will delay completion of the entire project. A B D (Assumes that minimum of A + B > minimum of C in length of times to complete activities.) C
- 9. 6 6– –9 9 Constructing a Project Network (cont’d) Constructing a Project Network (cont’d) • Terminology – Event: a point in time when an activity is started or completed. It does not consume time. – Burst Activity: an activity that has more than one activity immediately following it (more than one dependency arrow flowing from it). • Two Approaches – Activity-on-Node (AON) • Uses a node to depict an activity. – Activity-on-Arrow (AOA) • Uses an arrow to depict an activity. B D A C
- 10. 6 6– –10 10 Basic Rules to Follow in Developing Basic Rules to Follow in Developing Project Networks Project Networks 1. Networks typically flow from left to right. 2. An activity cannot begin until all preceding connected activities are complete. 3. Arrows indicate precedence and flow and can cross over each other. 4. Each activity must have a unique identify number that is greater than any of its predecessor activities. 5. Looping is not allowed. 6. Conditional statements are not allowed. 7. Use common start and stop nodes.
- 12. 6 6– –12 12 Activity-on-Node Fundamentals (cont’d) Activity-on-Node Fundamentals (cont’d) FIGURE 6.2 (cont’d)
- 14. 6 6– –14 14 Automate Warehouse Automate Warehouse—Partial Network —Partial Network FIGURE 6.3
- 15. 6 6– –15 15 Automated Warehouse Automated Warehouse—Complete Network —Complete Network FIGURE 6.4
- 16. 6 6– –16 16 Network Computation Process Network Computation Process • Forward Pass—Earliest Times – How soon can the activity start? (early start—ES) – How soon can the activity finish? (early finish—EF) – How soon can the project finish? (expected time—ET) • Backward Pass—Latest Times – How late can the activity start? (late start—LS) – How late can the activity finish? (late finish—LF) – Which activities represent the critical path? – How long can activity be delayed? (slack or float—SL)
- 19. 6 6– –19 19 Activity-on-Node Network Forward Pass Activity-on-Node Network Forward Pass FIGURE 6.6
- 20. 6 6– –20 20 Forward Pass Computation Forward Pass Computation • Add activity times along each path in the network (ES + Duration = EF). • Carry the early finish (EF) to the next activity where it becomes its early start (ES) unless… • The next succeeding activity is a merge activity, in which case the largest EF of all preceding activities is selected.
- 21. 6 6– –21 21 Activity-on-Node Network Backward Pass Activity-on-Node Network Backward Pass FIGURE 6.7
- 22. 6 6– –22 22 Backward Pass Computation Backward Pass Computation • Subtract activity times along each path in the network (LF - Duration = LS). • Carry the late start (LS) to the next activity where it becomes its late finish (LF) unless • The next succeeding activity is a burst activity, in which case the smallest LF of all preceding activities is selected.
- 23. 6 6– –23 23 Determining Free Slack (or Float) Determining Free Slack (or Float) • Free Slack (or Float) – Is the amount of time an activity can be delayed after the start of a longer parallel activity or activities. – Is how long an activity can exceed its early finish date without affecting early start dates of any successor(s). – Allows flexibility in scheduling scarce resources. • Sensitivity – The likelihood the original critical path(s) will change once the project is initiated. – The critical path is the network path(s) that has (have) the least slack in common.
- 24. 6 6– –24 24 Forward and Backward Passes Completed with Slack Times Forward and Backward Passes Completed with Slack Times FIGURE 6.8
- 25. 6 6– –25 25 Practical Considerations Practical Considerations • Network Logic Errors • Activity Numbering • Use of Computers to Develop Networks • Calendar Dates • Multiple Starts and Multiple Projects
- 26. 6 6– –26 26 Network Logic Errors: Illogical Loop Network Logic Errors: Illogical Loop FIGURE 6.9
- 27. 6 6– –27 27 Automated Warehouse Order Picking System Network Automated Warehouse Order Picking System Network FIGURE 6.10
- 28. 6 6– –28 28 Automated Order Warehouse Picking System Bar Chart Automated Order Warehouse Picking System Bar Chart FIGURE 6.11
- 29. 6 6– –29 29 Extended Network Techniques Extended Network Techniques to Come Close to Reality to Come Close to Reality • Laddering – Activities are broken into segments so the following activity can begin sooner and not delay the work. • Lags – The minimum amount of time a dependent activity must be delayed to begin or end. • Lengthy activities are broken down to reduce the delay in the start of successor activities. • Lags can be used to constrain finish-to-start, start-to- start, finish-to-finish, start-to-finish, or combination relationships.
- 30. 6 6– –30 30 Example of Laddering Using Example of Laddering Using Finish-to-Start Relationship Finish-to-Start Relationship FIGURE 6.12
- 31. 6 6– –31 31 Use of Lags Use of Lags FIGURE 6.13 FIGURE 6.14 Finish-to-Start Relationship Start-to-Start Relationship
- 32. 6 6– –32 32 Use of Lags Cont’d Use of Lags Cont’d FIGURE 6.15 Use of Lags to Reduce Project Duration
- 33. 6 6– –33 33 New Product Development New Product Development Process Process FIGURE 6.16
- 34. 6 6– –34 34 Use of Lags (cont’d) Use of Lags (cont’d) FIGURE 6.17 FIGURE 6.18 FIGURE 6.19 Finish-to-Finish Relationship Start-to-Finish Relationship Combination Relationship
- 35. 6 6– –35 35 Network Using Lags Network Using Lags FIGURE 6.20
- 36. 6 6– –38 38 Key Terms Key Terms Activity Activity-on-arrow (AOA) Activity-on-node (AON) Burst activity Concurrent engineering Critical path Early and late times Free slack Gantt chart Hammock activity Lag relationship Merge activity Parallel activity Sensitivity Total slack