Homework n°12

Management of project

Prepared by

Bouhenni Abderrahmane ilyes

Group 02

2019/2020
 Introduction :
Project management is defined as the process of utilizing resources to get the
job done properly confirming specified time and cost, completing the definite
project with limited resource and cost is very difficult.

So as part of this work we will see how we can manage the project in terms of
time in both cases (uncertainty and certainty).

1/ We have two methods to display the project graphically : Activity-on-Node

network (AON) and Activity-on-Arrow network (AOA). So we will choose the
first method (AON) :

D (6) G(7) H(9) M(2)

K (4)

A(2) B (4) C(10) E (4) F (5) J (8) N (6)

L (5)

I(7)

Figure 1 :AON network diagram

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2/ The total time of the project is determine by the longest critical path which
is consiste of a sum of critical activities (that it has slack = 0)
16 D 22 22 G 29 29 H 38 38 M 40
4 4 4 4
20 6 26 26 7 33 33 9 42 42 2 44

33 K 37
1
34 4 38

0 A 2 2 B 6 6 C 16 16 E 20 20 F 25 25 J 33 38 N 44
0 0 0 0 0 0 0
0 2 2 2 4 6 6 10 16 16 4 20 20 5 25 25 8 33 38 6 44

33 L 38
ES ID EF 16 I 23 0
SL 2 33 5 38
LS DU LF 18 7 25

Figure 2 : AON network diagram

EF : early finish = early start + activity time

LS : late start = late finish – activity time

SL : slack = LF – EF

here we have one critical path : A-B-C-E-F-J-L-N

So the total time of the project is 44 weeks

3/ Determinetion of the beginnings and ends of the different

activities (ES.LS.EF.LF) :

Method of calculation :

1/ Activity without predecessor the ES=0 so ES(A)=0

2/ The EF=ES+Duration ex : EF(A)= 0+2=2

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Activity Early Early Late Late 3/ Activity with one predecessor
start finish start finish
the ES=EF of predecessor activity
A 0 2 0 2
ex : ES(B)=EF(A)=2
B 2 6 2 6
C 6 16 6 16 4/ Activity with more predecessor
D 16 22 20 26
The ES=Max (EF of all predecessor
E 16 20 16 20 activities)
F 20 25 20 25
G 22 29 26 33 ex : ES(N)=Max (37 ; 38)=38
H 29 38 33 42 5/ Activity without successor the
I 16 23 18 25 LF=time of completion ex : LF of
J 25 33 25 33 activity M and N = 44
K 33 37 34 38
6/LS=LF-duration
L 33 38 33 38
M 38 40 42 44 ex: LS(D)=26-6=20
N 38 44 38 44

7/ Activity with one successor LF=LS of successor activity ex : LF(F)=LS(J)=25

8/ Activity with more than one successor the LF=Min (LS of all successor
activity) ex : LF(J)=Min (33 ; 34)=33

And we calculat all the other activities in the same way…

4/ Critical activities are those if they are delayed will delay completion of the
project. (Slack=0)

And we can calculate that according to the following roles :

Slack = Late finish - Early finish or Late start - Early start

So from the second figure we can see that the critical activities

Are : A-B-C-E-F-J-L-N

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5/ the delays tolerated for other activities :

We can calculate the delays like that : the late start for each activity minus the
early start.

For activity I delay= 18-16 =2

So we can delay activity « I » with 2 weeks without influencing the duration of

the project.

For the other activities : D=4 ; G=4 ; H=4 ; K=1 ; M=4 ; I=2

 The second part : (if the durations are uncertain)

6/ The expected completion time is 44 weeks that means the probability of

completing the project on 44 weeks is 50%. As we can see here the expected
time is the same with estimated duration. critical path : A-B-C-E-F-J-L-N

7/ The probability of completing the project in 47 weeks is 84.13%.

Comment : we notice that each time the duration increases ; the probability of
completing the project will increase also.

8/ The probability of completing the project in 40 weeks is 9.18%.

Here the opposite when the duration decrease ; the probability decrease also.

Note : we can determine the porobability by using (z table) The calculations

are in the excel file.

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The diagram above shows the probability that the project has been completed
at different times.

9/ In the normal conditions, financially not necessarily the project should be

accelerated to finish it in 40 weeks, but if there are special cases we can do it,

Or if there are bonuses if the project is completed before the 40-week.

Now we will see how to accelerate the project by crashing activities in the
critical paths

We have 2 activities in the critical path more than 7 weeks C and J and each
activity can be reduced by 2 weeks as written in the question :

Crash cost per week =30000$

The different steps are in the next page (prepared in excel).

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 Time 43 weeks D G H M
additional cost 30000$ 6 7 9 2
critical path A-B-C-E-F-J-L-N
K
4

A B C E F J N
2 4 9 4 5 8 6

L
activities changed I 5
C 30000$ 7

Time 42 weeks D G H M
additional cost 60000$ 6 7 9 2
critical path A-B-C-E-F-J-L-N
K
4

A B C E F J N
2 4 8X 4 5 8 6

L
activities changed I 5
C 30000$ 7

Time 41 weeks D G H M
additional cost 90000$ 6 7 9 2
critical path A-B-C-E-F-J-L-N
K
4

A B C E F J N
2 4 8X 4 5 7 6

L
activities changed I 5
J 30000$ 7

Time 40 weeks D G H M
add cost 120000$ 6 7 9 2
critical path A-B-C-E-F-J-L-N
K
4

A B C E F J N
2 4 8X 4 5 6X 6

L
activities changed I 5
J 30000$ 7

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Conclusion :
It can be seen that the expected completion time is 44 weeks and we can
expedite the project by reducing the expected project duration from 44 weeks
to 40 weeks, by crashing activities C and J.

The additional cost for crashing activities C and J and to complete the project
by 40 weeks is 120000$.

This makes us get a reward of 150000$ and the net profit of reducing the
project to 40 weeks becomes as follows : 150000$-120000$=30000$.

Some references I used :

 Cours management of project ,third years , high school of

management Tlemcen , Pr Abdelmalek Bekkouche, 2019/2020.
 http://www.engineer4free.com