Developing a Project Plan

Planning Projects
Developing tasks

Develop the overall scope

Work Breakdown schedules
Tasks

Scheduling Projects
Tasks:
Develop/revise detailed guides for each resource
indicating quantity, quality, and timing

Means of Task Accomplishment:

Milestone charts for departments, subcontractors,
and suppliers; cash flow schedule; CPM/PERT:
begin-activity and complete-activity dates, and
updated activity slack

Timing of Tasks:
Slightly before project is begun and continued
throughout project

Controlling Projects
Tasks:
Sense noncompliance of resources with schedules,
standards, and budgets; take corrective actions, shift
resources, develop alternatives

Means of Task Accomplishment:

Department budget reports, activity cost reports,
quality compliance reports, time performance reports

Timing of Tasks:
During project

SMART Criteria
Milestones should be:
Specific
Measurable
Assignable
Realistic
Time-framed

Project Time Management Processes

Project time management involves the processes required to
ensure timely completion of a project. Processes include:
Activity definition: involves developing a more detailed WBS and
supporting explanations to understand all the work to be done so you can
develop realistic duration estimates

Activity duration estimating: Duration includes the actual amount of

time worked on an activity plus elapsed time

Activity sequencing: Involves reviewing activities and determining

dependencies so as to use critical path analysis

Schedule development: creates a realistic project schedule to provide

a basis for monitoring project progress for the time dimension of the project.
Important tools and techniques include Gantt charts, PERT analysis, critical
path analysis, and critical chain scheduling

Schedule control

Visual Tools for Project Management

Gantt/bar chart
Project network

Gantt Charts
Gantt charts provide a standard format for displaying project
schedule information by listing project activities and their
corresponding start and finish dates in a calendar format
Symbols include:
A black diamond: milestones or significant events on a
project with zero duration
Thick black bars: summary tasks
Lighter horizontal bars: tasks
Arrows: dependencies between tasks

Gantt Chart for Software Launch Project

Sample Tracking Gantt Chart

As the project progresses, the status of activities is plotted on the chart,
compared to the plan, and, if necessary, corrective action is taken

10

Scheduling and Control Charts

Horizontal Bar Charts/Gantt Chart (continued)
Advantages

Easy to understand
Easy to modify and update
Low cost

Disadvantages

Cumbersome for large project

Must be keep up to date
Does not indicate the relationships among the activities

Project Network in Developing Project Plan

The Project Network is a flow chart that graphically
depicts the sequence, task interdependencies with start
and finish times of the project job/activities.
Provides the basis for scheduling labor and equipment
Provides an estimate of the projects duration
Provides a basis for budgeting cash flow
Highlights activities that are critical and should not be
delayed
Help managers get and stay on plan
WBS is hierarchical, Network is sequential, emphasizing
interdependencies

Project Networks
Showing Interrelationship between various
tasks
Scheduling tasks on a time line
Arrange
Finance
Avail
Holidays

Make
Bookings

Decide
Destination
Contact
Travel Agent

Travel

2 Versions of Network Diagrams

Activity-on-Arrow (AOA) networks

also called Arrow Diagramming Method (ADM)

simpler for projects with many dependencies
emphasizes events; milestones can be easily flagged
sometimes requires dummy activities

Activity-on-Node (AON) networks

also called Precedence Diagramming Method (PDM)

easier to draw for simple projects
emphasizes activities
no dummy activities

Activity-on-Arrow (AOA) Networks

c

b
g
d

k
k

or

Dashed lines are called dummy activities

Activity Predecessor
_
m
_
n
m, n
r
n
s

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.

Burst activity: an activity that has more than one activity

immediately following it (more than one dependency arrow
flowing from it).

Parallel (concurrent) activities: Activities that can

occur independently and, if desired, at the same timeor not
B

A
B
C

C
D

Project Network Terminology

Event: a point in time when an activity is started or
completed. It does not consume time.
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;
It is also the shortest expected time in which the entire project
can be completed. Delays on the critical path will delay
completion of the entire project.
C

Install rough
electrical & plumbing

Pour
basement
floor

Install
finished
plumbing
Install
drywall

Install
cooling &
heating

11

Install
drains

10
9

Erect
frame & roof

Excavate
& pour
footings

Pour
foundation

Lay
flooring

12

Install
kitchen
equipment

Paint

4
Lay
brickwork

Finish
carpeting

16

Finish
electrical
work

Finish
roof

Project Network for

House Construction

Lay
storm
drains

13

14

Finish
floors

Install
roof
drainage

(AOA network)
15

Finish
grading

18

Pour
walks;
Landscape

17

Project Network Representation

Activity-on-Node (AON)
Uses a node to depict an activity
Used in Software Industry

Activity-on-Arrow (AOA)
Uses an arrow to depict an activity
Traditional in Construction

Network Computation Process

Forward PassEarliest Times
How soon can the activity start? (early startES)
How soon can the activity finish? (early finishEF)
How soon can the project finish? (expected timeET)

Backward PassLatest Times

How late can the activity start? (late startLS)
How late can the activity finish? (late finishLF)
Which activities represent the critical path?
How long can it be delayed? (slack or floatSL)

Rules for drawing networks

Networks flow from left to right

A task cannot begin until all immediate predecessors have been
completed
Arrows on networks indicate precedence and flow and arrows can
cross over each other
Each task should have a unique identification (ID) number
A task identification number must be larger than any tasks that precede
it (topological order)
Looping is not allowed
Conditional statements are not allowed
When multiple tasks commence the project, create a common Project
Start task, and similarly, a common Project End task to indicate a
clear termination

Managers View of CPM

INPUTS
List of project activities
Precedence relationship among activities
Estimate of each activitys duration
CPM processing procedures
OUTPUTS
Estimated duration of project
Identification of critical activities
Amount of slack for each activity

Critical Path Method (CPM)

CPM is a project network analysis technique used to predict
total project duration
A critical path for a project is the series of activities that
determines the earliest time by which the project can be
completed
The critical path is the longest path through the network
diagram and has the zero slack or float

Steps in CPM Analysis

Draw the CPM network
A graphic view of the relationships among the
required activities

Analyze the paths through the network

Determine the length of each path (the time required
to complete each path)
Starting at the beginning of the network and working
toward the end (from left to right), determine the ES
and the EF for each activity
Identify the critical path(s) (the longest path[s]
through the network)

Slacks in CPM Analysis

Free slack or free float is the amount of time an
activity can be delayed without delaying the early
start of any immediately following activities [ES of
following activity-EF of the activity]
Tends to happen as the last activity in a path before a merge
activity (when another path is the critical one).

Total slack or total float is the amount of time an

activity may be delayed from its early start without
delaying the planned project finish date [LS-ES]

Steps in CPM Analysis

Determine the slack for each activity
Working from the end of the project network (from
right to left), find the LF and the LS for each
activity
Compute the activitys slack
slack = LS - ES = LF - EF
Slack is the maximum amount of time that this
activity can be delayed in its completion before it
becomes a critical activity, i.e., delays completion
of the project

 CPM Network

CPM Example
A(6)

F(15)

H(9)

G(17)
I (6)
Start

B (8)

D(13)

J(12)

C(5)

E(9)

END

Find Critical Path of Project & Slacks in each activity

A(6)

CPM Network

F(15)

H(9)

G(17)
I (6)

Start

B (8)

D(13)

J(12)

C(5)

E(9)

END

CPM Example
Paths Enumerated
Path

Length of Path

A-F-H
A-G-I
B-D-J
C-E-J

6 + 15 + 9 = 30
6 + 17 + 6 = 29
8 + 13 + 12 = 33*
5 + 9 + 12 = 26

* Critical path

CPM Example
ES and EF Times

0 6

A(6)
0 0

F(15)

H(9)

G(17)
I (6)

0 8

Start

B (8)

D(13)

J(12)

0 5
C(5)
Forward Scheduling

E(9)

END

CPM Example
ES and EF Times

0 6

A(6)
0 0

6 21
F(15)

G(17)

H(9)

6 23
I (6)

0 8

Start

B (8)

D(13)

J(12)

0 5
C(5)
Forward Scheduling

8 21

E(9)

5 14

END

CPM Example
ES and EF Times

0 6

A(6)
0 0

6 21
F(15)

G(17)

H(9)

6 23
23 29
I (6)

0 8

Start

B (8)

D(13)

Forward Scheduling

8 21

J(12)

0 5
C(5)

21 30

E(9)

5 14

21 33

END

CPM Example
ES and EF Times

0 6

A(6)

6 21
F(15)

0 0
Start

21 30

G(17)

H(9)

6 23
23 29
I (6)

0 8
B (8)

D(13)

J(12)

0 5
C(5)
Project Completion Time = 33 wks

8 21

END

33 33

21 33

E(9)

5 14 Projects EF = 33

CPM Example
LS and LF Times

0 6
A(6)

6 21
F(15)

0 0
Start

G(17)

H(9)

6 23
I (6)

0 8
B (8)

D(13)

C(5)
Project Completion Time = 33 wks

23 29
27 33

8 21

J(12)

0 5

21 30
24 33

E(9)

5 14

END

33 33

21 33
21 33

CPM Example
LS and LF Times 0 6
3 9
A(6)
0 0
Start

F(15)

6 21
9 24

G(17)

0 8
0 8
B (8)

0 5
7 12
C(5)
Project Completion Time = 33 wks

H(9)

6 23
10 27
I (6)

D(13)

23 29
27 33

8 21
8 21
J(12)

E(9)

21 30
24 33

5 14
12 21

END

33 33

21 33
21 33

CPM Example
Slack

0 6
3 9
A(6)

F(15)

4
0 0
Start

0 8
0 8
B (8)

6 21
9 24

H(9)

6 23
G(17) 10 27
0
D(13)

21 30
24 33

4
I (6)

23 29
27 33

8 21
8 21

0 5
7
7 12
E(9) 5 14
C(5)
12 21
Project Completion Time = 33 wks

J(12)

END

33 33
0
21 33
21 33

CPM Example
Critical path

3
A(6)

F(15)

H(9)

G(17)
Start

0
B (8)

D(13)

7
C(5)

END

I (6)

E(9)

J(12)

More on the Critical Path

If one or more activities on the critical path takes
longer than planned, the whole project schedule will
slip unless corrective action is taken
Misconceptions:
The critical path is not the one with all the critical activities; it
only accounts for time.
There can be more than one critical path if the lengths of two
or more paths are the same
The critical path can change as the project progresses

Techniques for Shortening a Project Schedule

Shorten durations of critical tasks by adding more
resources or changing their scope

Fast tracking tasks by doing them in parallel or overlapping

them.

Crashing tasks by obtaining the greatest amount of

schedule compression for the least incremental cost

Critical Chain Approach

Crashing and Fast Tracking

Original
schedule

Shortened
duration thru
crashing

Overlapped
Tasks or fast
tracking

Another Way to Find SlackThe Gantt Chart

Once activity precedence and durations are established,
we can determine the critical path and slack via a Gantt
chart.
Gantt charts can be hand-drawn, but practitioners
generally use MS-Project.

Sensitivity of a Network
Defined as the likelihood the original critical
path(s) will change once the project is
initiated.
It is a function of:

The number of critical paths

The amount of slack across near critical
activities

But..
Uncertainty

Program Evaluation
and Review Technique (PERT)
The technique is based on the assumption
that an activitys duration follows a probability
distribution instead of being a single
deterministic value.
The probabilistic information about the
activities is translated into probabilistic
information about the project.

PERT
Three time estimates are required to compute
the parameters of an activitys duration
distribution:
pessimistic time (tp ) - the time the activity would
take if things did not go well
most likely time (tm ) - the consensus best estimate
of the activitys duration
optimistic time (to ) - the time the activity would
take if things did go well

PERT
From these three time estimates about an
activity, two probability distribution
parameters are calculated: the mean time
estimate (te ) and the variance (Vt ).
te = ( to + 4tm + tp ) / 6
Vt = [ ( tp - to ) / 6 ] 2

Standard PERT Assumptions

1.

The activities are independent

2.

The critical path contains a large no. of activities so that we

can invoke the Central Limit Theorem.

3.

Activity times follow a Beta distribution.

PERT Procedure
Compute mean and variance of all jobs.
Conduct forward and backward pass on the project network
with expected times of all activities.
Identify the Critical Path.
Obtain variance of critical path by adding variance of activities.
Obtain the distribution of the Project Duration.
Make probability statements about the project
Chances of meeting the target date.
Probability of exceeding a given ceiling date.
Probability that the project duration is confined to an interval of time.

Steps in PERT Analysis

Draw the network.

Analyze the paths through the network and
find the critical path.
The length of the critical path is the mean of
the project duration probability distribution
which is assumed to be normal.

Steps in PERT Analysis

The standard deviation of the project duration
probability distribution is computed by adding
the variances of the critical activities (all of the
activities that make up the critical path) and
taking the square root of that sum
Probability computations can now be made
using the normal distribution table.

PERT Example
Immed. Optimistic Most Likely Pessimistic
Activity Predec. Time (Hr.) Time (Hr.) Time (Hr.)
A
-4
6
8
B
-1
4.5
5
C
A
3
3
3
D
A
4
5
6
E
A
0.5
1
1.5
F
B,C
3
4
5
G
B,C
1
1.5
5
H
E,F
5
6
7
I
E,F
2
5
8
J
D,H
2.5
2.75
4.5
K
G,I
3
5
7

PERT Example
D

A
C

F
Finish

Start

I
B

PERT Example
Activity Expected Time and Variance
Activity
A
B
C
D
E
F
G
H
I
J
K

Expected Time
6
4
3
5
1
4
2
6
5
3
5

Variance
4/9
4/9
0
1/9
1/36
1/9
4/9
1/9
1
1/9
4/9

PERT Example
Earliest/Latest Times
ES
Activity
A
0
B
0
C
6
D
6
E
6
F
9
G
9
H
13
I
13
J
19
K
18

EF
6
4
9
11
7
13
11
19
18
22
23

LS
0
5
6
15
12
9
16
14
13
20
18

LF
6
9
9
20
13
13
18
20
18
23
23

Slack
0 *critical
5
0*
9
6
0*
7
1
0*
1
0*

PERT Example
Probability the project will be completed within
24 hours
Vpath = VA + VC + VF + VI + VK
= 4/9 + 0 + 1/9 + 1 + 4/9
= 2
path = 1.414
z = (24 - 23)/ = (24-23)/1.414 = .71

PERT Example
Probability the project will be completed
within 24 hours

23 24

PERT Example
Probability the project will be completed
within 24 hours
0

23 24

0.71

PERT Example

0.2612

Probability the project will be completed

within 24 hours
0

.2612
.5000

23 24
From the Standard Normal Distribution table:

P(z < .71) = .5 + .2612 = .7612

0.71

PERT Example

0.2612

Probability the project will be completed

within 24 hours
0

.2612
.5000

23 24
From the Standard Normal Distribution table:

P(z < .71) = .5 + .2612 = .7612

0.71

Class Exercise-1
ID

Activity

Duration

Market Analysis

Activities25

Predecessor

1
2

Product Design

40

Manufacturing Study

20

Product Design Selection

10

2,3

Detailed Marketing Plan

15

Manufacturing Process

30

Detailed Product Design

50

Test Prototype

10

Finalized Product design

25

6,8

10

Order Components

11

Order Production equipment

14

12

Install production equipment

25

10,11

13

Celebrate

12

Rules for drawing networks

Networks flow from left to right

A task cannot begin until all immediate predecessors have been
completed
Arrows on networks indicate precedence and flow and arrows can cross
over each other
Each task should have a unique identification (ID) number
A task identification number must be larger than any tasks that
precede it (topological order)
Looping is not allowed
Conditional statements are not allowed
When multiple tasks commence the project, create a common Project
Start task, and similarly, a common Project End task to indicate a
clear termination

200

14

5
2

10

15

40

7
12

25

10

30

25

25

11

20

14
50

10

13

What is the completion time of the project,

activities? Which are critical activities

200

200
75
25

65

10

16
0

15

65

75

75

10

25

16
7

25

25

200

90

40

14

10
5

13
5

30

12
5

16
0
12
5

20

12

19
9

25

25

45
75

17
4

16
0

11

17
4

13
5

14
50

10

199

13

200

75
25

25

65

40

65

185

75

25

25

25
25

45

3
20

65

75

65

10

75

10
5

200

15

10
5

30

13
5

12
5

13
5

13
5

9
25

12
5

50

12
5

200

12
5

10

16
0

10

16
7

200

200

16
7

17
4

16
0

16
0
16
0

11

17
4

16
0

14

17
4

17
4

12

19
9

17
4

25

19
9

13
5

65

75

14

90

45
75

200

13
5

199

13

200

199

200

200
75
25

25

40

185

16
7

65

0
0

25

75

10
5

25

65

3
20

10
5

75

30

75

12
5

13
5

200

75

50

12
5

17
4
17
4

16
0

25

12
5

17
4

16
0

12
5

10

11

17
4

14

17
4

13
5

12

19
9

16
0

65

13
5

45
20

45

10

13
5

30

25

200

16
7

65

25

10

16
0

200

15

200

110

75

0 1

90

65

14

25

19
9

0
16
0

13
5

199

200

0
199

Critical Activities : 1-2-4-7-8-9-11-12

13

200

EXTENSIONS TO PERT/CPM

Precedence Diagramming

Finish-to-start linkage
Start-to-start linkage
Finish-to-finish linkage
Start-to-finish linkage

Task Dependency Types

Precedence Diagramming Conventions

Other Methods
Graphical Evaluation and Review Technique
(GERT)
combines flowgraphs, probabilistic networks, and
decision trees
allows loops back to earlier events and
probabilistic branching

New Product
Development
Process

The Five Secrets of Project Scheduling

1. Create deliverables-based project schedules
2. Determine the appropriate level of detail
3. Implement a regular status update and
reporting process
4. Review and adjust the schedule regularly
5. Create and follow project scheduling standards

Things to Think About When Making

Your Project Plan
No Project Ever Runs To Plan
Leave Slack (Spare Time) In Your Plan

Dont Plan To Work 20 Hour Days You Wont

Plan For Suppliers To Let You Down
Plan For Things To Go Wrong Additional Laboratory Time
Plan To Finish Early

Track Your Progress Against Your Plan

If You Are Going Off Track Apply Remedies

Increase Work Rate!!

Chase Delays
Modify Your Plans To Accommodate The Difficulty

NOTE IGNORING A PROBLEM WONT MAKE IT GO AWAY

The Main Reason For Failure

You Didnt Start Soon Enough

1-74

Questions