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OM Chapter3 PM - Students
OM Chapter3 PM - Students
Project
Management
What is Project Management?
• Management is generally perceived as concerned with
…………………………………………………………………………………………………
………………………………………………………………..
• Project Management is concerned with …………….of an activity for a
relatively short period of time after which management effort ends.
• It is nothing more (or less) than knowing what the status of a project is:
• when it should be done,
• how much (and if) it has slipped from the original schedule,
• what the bottlenecks are, and
• what you might drop to save some time.
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Project Management
Activities
Planning Scheduling
● Objectives ● Project
● Resources activities
● Work break- ● Start &
● Organizatio
n
Controlling
● Monitor, compare,
revise, action
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Project Management Models:
History
One of the earliest techniques was the
……………………. (Used by US Navy).
This type of chart shows the start and finish times of
one or more activities, as shown below:
Time Period
Activity
J F M A M J J
Design
Build
Test
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Project Management
Techniques/Models: Today
………………………….
(CPM)
……………………………
…………………………..
(PERT)
PERT/Cost
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PERT and CPM
…………………………………………………
Developed in 1950’s
CPM by DuPont for chemical plants (1957)
PERT by Booz, Allen & Hamilton with the U.S.
Navy, for Polaris missile (1958)
Consider precedence relationships and
interdependencies
Each uses a different estimate of activity times
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Framework of PERT and
CPM
There are six steps common to both PERT and CPM.
1. Define the project and all of its significant activities or
tasks.
2. Develop the ………………………… among the activities.
Decide which activities must precede others.
3. …………………………….. connecting all of the activities.
4. Assign time and/or cost estimates to each activity.
5. Compute the longest time path through the network; this is
called the …………………………………...
…………………………………..
6. Use the network to help plan, schedule, monitor, and
control the project.
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Framework of PERT and CPM
(continued)
……………………………………………………………
………………………………………………………...
………………………………………………………..
…………….
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A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
A comes before
(a) A B C B, which comes
before C A B C
A A
A and B must both
(b) C be completed
before C can start C
B B
B
B and C cannot
(c) A begin until A is B
completed A
C C
Figure 3.5 10
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A Comparison of AON and AOA
Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
C and D cannot
A C begin until A A C
(d) and B have
both been
B D completed B D
C cannot begin
until both A and B
A C are completed; D A C
(e) cannot begin until Dummy activity
B is completed. A
B D dummy activity is
introduced in AOA B D
Figure 3.5 11
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A Comparison of AON and
AOA Network Conventions
Activity on Activity Activity on
Node (AON) Meaning Arrow (AOA)
B and C cannot
begin until A is
completed. D
A B D cannot begin A B D
until both B and
(f) C are completed. Dummy
A dummy C
C activity
activity is again
introduced in
AOA.
Figure 3.5
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AON Example: Milwaukee General
Hospital’s Activities and Predecessors
Table 3.1 13
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AON Network for
Milwaukee Paper
Activity A
A (Build Internal Components)
Activity B
Start B (Modify Roof and Floor)
Activity
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AON Network for
Milwaukee Paper
Activity A Precedes Activity C
A C
Start
B D
Activities A and B
Precede Activity D Figure 3.7 15
MANAGEMENT SCIENCE/PROJECT
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AON Network for
Milwaukee Paper
F
A C
E
Start H
B D G
nt sta
n e e rn
s)
(Build Burner)
om ld A
ro ll
po Int
ls
)
C ui
H
Dummy 7
(B
E
1 6
Activity (Inspect/
Test)
Ro (M B G
of od l
/ F i fy t al n
s o
lo
or I( n luti e)
D o l ic
) 3 5 P ev
D
(Pour
Concrete/
Install Frame) Figure 3.9 17
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Determining the Project Schedule
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Determining the Project Schedule
Activity Name
or Symbol
A Earliest
Earliest ES EF Finish
Start
Latest LS LF Latest
Start 2 Finish
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Forward Pass
Begin at starting event and work forward
Earliest Finish Time Rule:
The earliest finish time (EF) of an activity
is the sum of its earliest start time (ES)
and its activity time
EF = ES + Activity time
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ES/EF Network for
Milwaukee Paper
ES EF = ES + Activity time
Start
0 0
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ES/EF Network for
Milwaukee Paper
A C F
0 2 2 4 4 7
2 2 3
Start E H
0 0 4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
Figure 3.11
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Backward Pass
Begin with the last event and work backwards
LS = LF – Activity time
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LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7
2 2 3
Start E H
0 0 4 8 13 15
13 15
0 4 2
B LS = LF
D – Activity time
G
0 3 3 7 8 13
3 4 5 LF = EF
of Project
Figure 3.12
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LS/LF Times for
Milwaukee Paper
A C F
0 2 2 4 4 7
10 13
2 2 3
Start E H
0 0
LF =4 Min (LS
8 of 13 15
following activity) 13 15
0 4 2
B D G
0 3 3 7 8 13
3 4 5
Figure 3.12
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LS/LF Times for Milwaukee Paper
LF = Min(4, 10)
A C F
0 2 2 4 4 7
2 4 10 13
2 2 3
Start E H
0 0 4 8 13 15
4 8 13 15
0 4 2
B D G
0 3 3 7 8 13
8 13
3 4 5
Figure 3.12
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Project Network for Milwaukee General
Hospital (Includes Critical Path)
A C FF
0 H2 2 H4 4 H7
0 A2 2 C4 1 13
2 2 3
E 0
Slack Slack 4 H 8 Slack=6 13H 15
0 H 0 =0
Star F H
=0 4 8 15
0 t 0 4 13
0 2
BB DD Slack=0 G
Sta 0 H3 3 H7 8 G
rt H 13
1 4 4 8 8 13 Slack=0
3 4 5
Slack=1 Slack=1 Slack=0
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Computing Slack Time
After computing the ES, EF, LS, and LF times
for all activities, compute the slack or free
time for each activity
Slack is the
……………………………………………………
……………………………………………………
…………………………………………………….
………………………………………………………..
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Computing Slack Time
A 0 2 0 2 0 Yes
B 0 3 1 4 1 No
C 2 4 2 4 0 Yes
D 3 7 4 8 1 No
E 4 8 4 8 0 Yes
F 4 7 10 13 6 No
G 8 13 8 13 0 Yes
H 13 15 13 15 0 Yes
Table 3.3
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Critical Path And Slack Times
For Milwaukee Paper
Figure 3.19
A C F
0 2 2 4 4 7
0 2 2 4 10 13
2 2 3
0 0 4 8 13 15
0 4 2
B D Slack = 0 G Slack = 0
0 3 3 7 8 13
1 4 4 8 8 13
3 4 5
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Advantages of PERT/CPM
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Limitations of PERT/CPM
1. Project activities have to be …………………………,
…………………………………. in their relationships
2. Precedence relationships must be …………… and
…………………………. together
3. Time estimates tend to be ……………… and are
subject to …………………………. by managers
4. There is an inherent danger of too much emphasis
being placed on the longest, or critical, path
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