Topic 4-2-Developing A Project plan-ISB-el

Topic 4-2:
DEVELOPING A PROJECT PLAN
Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT 1
CONTENTS
1. Introduction
2. AON method
3. AOA method
4. Assignments
Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
2
Instructor: Dr. Nguyen Thi Duc Nguyen 1

3
INTRODUCTION
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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.
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From Work Package to Network

WBS/Work Packages to Network
6

From Work Package to Network
(cont’d)
WBS/Work Packages to Network (cont’d)
7
AOA METHOD
8

Activity-on-Arrow Network
Building Blocks
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Fundamentals
10

Fundamentals
11
Koll Center Project:

Network Information
12

Partial Koll Business Center
AOA Network
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Partial AOA Koll Network
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Partial AOA Koll Network
(cont’d)
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Forward Pass
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Backward Pass
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Activity-on-Arrow Network Backward
Pass, Forward Pass, and Slack
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Air Control Inc. Custom Order Project—

AOA Network Diagram
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AON METHOD
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Constructing a Project Network
1. Terminology
Activity: an element of the A
project that requires time.
Merge Activity: an activity that B D
has two or more preceding
activities on which it depends.
Parallel (Concurrent) C
Activities: Activities that can
occur independently and, if
desired, not at the same time.
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(cont’d)
1. 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. 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.)

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(cont’d)
1. 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). B
2. Two Approaches
Activity-on-Node (AON) A C
• Uses a node to depict an activity.
Activity-on-Arrow (AOA)
• Uses an arrow to depict an activity. D
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Basic Rules to Follow in Developing
Project Networks
Networks typically flow from left to right.
An activity cannot begin until all of its activities are
complete.
Arrows indicate precedence and flow and can cross over
each other.
Identify each activity with a unique number; this number
must be greater than its predecessors.
Looping is not allowed.
Conditional statements are not allowed.
Use common start and stop nodes.
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Activity-on-Node Fundamentals
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Activity-on-Node Fundamentals
(cont’d)
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Network Information
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Koll Business Center
—Partial Network
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Koll Business Center—Complete

Network
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Network Computation Process
1. 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)
2. 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 it be delayed? (slack or float—SL)
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Network Information
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Activity-on-Node Network
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Forward Pass
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Forward Pass Computation
1. Add activity times along each path in the network (ES + Duration =
EF).
2. Carry the early finish (EF) to the next activity where it becomes its
early start (ES) unless
3. The next succeeding activity is a merge activity, in which case the
largest EF of all preceding activities is selected.
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Backward Pass
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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.
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Determining Slack (or Float)
Slack (or Float)

The amount of time an activity can be delayed after the start of a
longer parallel activity or activities.
Total slack
The amount of time an activity can be delayed without delaying
the entire project.
The critical path is the network path(s) that has (have)

the least slack in common.
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with Slack
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PRACTICAL
CONSIDERATIONS
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Practical Considerations
Network Logic Errors
Activity Numbering
Use of Computers to Develop Networks
Calendar Dates
Multiple Starts and Multiple Projects
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Illogical Loop
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Air Control Project
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Air Control Project (cont’d)
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Extended Network Techniques
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.
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Example of
Laddering Using Finish-to-Start Relationship
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Use of Lags
Finish-to-Start Relationship
FIGURE 6.13
Start-to-Start Relationship
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Use of Lags Cont’d
Use of Lags to Reduce Detail
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New Product
Development
Process
New Product
Development Process
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Use of Lags (cont)
Finish-to-Finish
Relationship
Start-to-Finish
Relationship
Combination
Relationship
50

Network Using Lags
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Hammock Activities
An activity that spans over a segment of a project.

Duration of hammock activities is determined after
the network plan is drawn.
Hammock activities are used to aggregate sections
of the project to facilitate getting the right amount of
detail for specific sections of a project.
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Hammock Activity Example
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Comparison of
AON and AOA Methods
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Key Terms
• Activity
• Activity-on-arrow (AOA)
• Activity-on-node (AON)
• Burst activity
• Concurrent engineering
• Critical path • Gantt chart
• Early and late times • Hammock activity
• Lag relationship
• Merge activity
• Network sensitivity
• Parallel activity
• Slack/float—total and free

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Topic 4-2:

DEVELOPING A PROJECT PLAN

Instructor: Dr. Nguyen Thi Duc Nguyen 1

Instructor: Dr. Nguyen Thi Duc Nguyen 2

From Work Package to Network

Instructor: Dr. Nguyen Thi Duc Nguyen 3

Instructor: Dr. Nguyen Thi Duc Nguyen 4

Instructor: Dr. Nguyen Thi Duc Nguyen 5

Koll Center Project:

Instructor: Dr. Nguyen Thi Duc Nguyen 6

Partial AOA Koll Network

Instructor: Dr. Nguyen Thi Duc Nguyen 7

Instructor: Dr. Nguyen Thi Duc Nguyen 8

Instructor: Dr. Nguyen Thi Duc Nguyen 9

Air Control Inc. Custom Order Project—

Instructor: Dr. Nguyen Thi Duc Nguyen 10

Constructing a Project Network

Instructor: Dr. Nguyen Thi Duc Nguyen 11

(Assumes that minimum of A + B > minimum of C in length of times to complete activities.)

Constructing a Project Network

Instructor: Dr. Nguyen Thi Duc Nguyen 12

Instructor: Dr. Nguyen Thi Duc Nguyen 13

Instructor: Dr. Nguyen Thi Duc Nguyen 14

Koll Business Center—Complete

Instructor: Dr. Nguyen Thi Duc Nguyen 15

1. Forward Pass—Earliest Times

Instructor: Dr. Nguyen Thi Duc Nguyen 16

Instructor: Dr. Nguyen Thi Duc Nguyen 17

Instructor: Dr. Nguyen Thi Duc Nguyen 18

Subtract activity times along each path in the network

Determining Slack (or Float)

Slack (or Float)

The critical path is the network path(s) that has (have)

Instructor: Dr. Nguyen Thi Duc Nguyen 19

Instructor: Dr. Nguyen Thi Duc Nguyen 20

Network Logic Errors

Use of Computers to Develop Networks

Multiple Starts and Multiple Projects

Instructor: Dr. Nguyen Thi Duc Nguyen 21

Air Control Project (cont’d)

Instructor: Dr. Nguyen Thi Duc Nguyen 22

Instructor: Dr. Nguyen Thi Duc Nguyen 23

Use of Lags Cont’d

Use of Lags to Reduce Detail

Instructor: Dr. Nguyen Thi Duc Nguyen 24

Use of Lags (cont)

Instructor: Dr. Nguyen Thi Duc Nguyen 25

An activity that spans over a segment of a project.

Instructor: Dr. Nguyen Thi Duc Nguyen 26

Instructor: Dr. Nguyen Thi Duc Nguyen 27

Instructor: Dr. Nguyen Thi Duc Nguyen 28

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