Learning Objectives

When you complete this chapter you

should be able to:
Chapter 3.3 1. Create a work breakdown structure and
Project Management Gantt chart
2. Draw AOA and AON networks
3. Determine a critical path
4. Calculate the slack time for the project
and for each activity
5. Crash a project

Projects Projects
JAN FEB MAR APR MAY JUN
Build A • Has a set of pre-defined objectives usually
A Done related to time, cost and performance
Build B
(quality).
B Done

Build C • Conflicting – if cost min, quality deteriorate, if

C Done
On time!
quality increase, cost will increase
Build D
time
Ship

Unique, one-
one-time operations designed to
accomplish a specific set of objectives in a
limited time frame. Involve Planning, cost quality
Scheduling and Control.

1
 Project Life Cycle Project Manager
Responsible for:

Gantt

PERT Work Quality

WBS
Resource Human Resources Time
Loading Communications Costs

What are the tools? Work Breakdown Structure

Project X
– Work breakdown structure (WBS)
Level 1
– Gantt charts
– PERT, CPM or Network diagram Level 2
– Risk Management
Level 3

Level 4

Composing detailed definition – into activities

A hierarchical listing of what must be done
during a project

2
Work Breakdown Structure (WBS) Planning and Scheduling
• WBS Gantt Chart MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

• A hierarchical listing of what must be done during Locate new

facilities
a project
• Establishes a logical framework for identifying the Interview staff
required activities for the project Hire and train staff
1. Identify the major elements of the project
Select and order
2. Identify the major supporting activities for each of furniture
the major elements
Remodel and install
3. Break down each major supporting activity into a phones
list of the activities that will be needed to
accomplish it Move in/startup

Gantt Chart PERT, CPM, Network Diagram

• To monitor progress over time by comparing • PERT: Program Evaluation and
planned to actual. Review Technique
– Identify activities • CPM: Critical Path Method
– Estimate time • Graphically displays project activities
– Determine sequence
• Estimates how long the project will take
• Disadvantage: fail to reveal certain
• Indicates most critical activities
relationship among activities can be crucial
(can’t see critical path) • Show where delays will not affect project

3
 The Network Diagram Advantages
• Path
Forces managers to organize
– Sequence of activities that leads from the starting node to
the finishing node
Provides graphic display of activities
• Critical path

Identifies
– The longest path; determines expected project duration
• Critical activities – Critical activities
– Activities on the critical path – Slack activities
• Slack
– Allowable slippage for path; the difference the length of – Expected length of project
path and the length of critical path – Length of each path

Project Network: Activity on Arrow

Limitations
Order
• Important activities may be omitted AOA furniture 4
• Precedence relationships may not be correct 2
Furniture
Locate setup
• May focus solely on critical path facilities
Remodel
1 5 6
Move
in
Interview
Hire and
train
3

17-16

4
 Critical path and slack time
Project Network: Activity on Node
Order
furniture
Furniture
Locate
facilities
2 setup Critical path
AON The critical path is the path with longest duration
1 6 Move
in
Remodel

5
Slack time (path)
S 7 = duration of critical path – path duration

Hire and
Interview train

3 4
17-17

Example 1 Example 1 Solution

Figure 17.5

6 weeks
Critical Path
Deterministic 4
time estimates

8 weeks 2
3 weeks
Path Length Slack
(weeks)
11 weeks Move
in
1-2-3-4-5-6 18 2
1 5 6 1-2-5-6 20 0
1 week
1-3-5-6 14 6
4 weeks
9 weeks

17-19

17-20

5
 Example of Network Diagram (AON)
Task Duration Preceding
(days) Task
A 2 -
B 3 A
C 3 A
D 4 B
E 8 C
F 4 C
G 1 D
H 8 E
I 4 F,G,H

Slack time for activity Slack time for activity

Earliest start (ES) = earliest time at which an activity can Perform a Critical Path Analysis
start, assuming all predecessors have Activity Name or
been completed Symbol
Earliest finish (EF) = earliest time at which an activity can be
finished Earliest
A Earliest
ES EF Finish
Latest start (LS) = latest time at which an activity can start Start
so as to not delay the completion time of
the entire project
Latest finish (LF) = latest time by which an activity has to be LS LF Latest
Latest
finished so as to not delay the completion Start Finish
time of the entire project 2

Table 3.2 Figure 3.10 Activity Duration

6
 EST-EFT
Choose bigger

• Assign tasks into network diagram and determine: 0 0

start
– The EST, EFT, LST, LFT for each tack 9 10
– The critical path 2 5 5 9 G
B D 1
– Project duration 3 4
0 2
– Draw a Gantt Chart A
2 5 13 13 21 21 25
2 5 I
E H
C 4
8 8
3
EST A EFT
LST 2 LFT 5 9
25 25
F
End
4

LST-LFT Slack (bottom-top)

Choose smaller Critical Path (slack = 0)
0 0 0 0
start start
0 0 9 10 0 0 9 10
2 5 5 9 G 2 5 5 9 G
20 21 20 21
13 B 16 16 D 20 1 13 B 16 16 D 20 1
3 4 3 4
0 2 0 2 11
A A 11 11
0 2 0 2
2 5 13 13 21 21 25 2 5 13 13 21 21 25
2 5 I 2 5 I
5 E 13 13 H 21 21 25 5 E 13 13 H 21 21 25
C 4
0 C 4
2 5 8 8 2 5 8 8
3 3
0 0 0
5 9 0 5 9
25 25 25 25
17 F 21 17 F 21
End End
4 25 25 4 25 25
A-C-E-H-I 12

7
 Gantt Chart Assignment
Activity Duration Preceding
DAY
(weeks) Activity
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A 1 -
A B 4 A
B
C 3 A
C
D 7 A,B
D

E E 6 B
F F 2 C,D
G
G 7 E
H
H 9 E,F
I

a) Construct network diagram for the project

b) Determine the Earliest and Latest times for all
activities
c) Determine the critical path and duration of the
project
d) Which activity could be delayed taking the most
time without affecting the project completion time
(based on Gantt Chart and floats)
e) If one of the worker who is supposed to perform
activity E resigns, and no replacement is made,
would this effect the critical path and project
completion time? Show the new critical path in the
network diagram.