Lecture 2

Project Scheduling and Control

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani

Copyright © 2020-2021, American University of Beirut, All Rights Reserved

Outline
▪ An overview of project management

▪ Project scheduling

▪ Resource allocation

▪ Time, resource and budget monitoring

▪ Agile project management

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
2
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Overview of Project Management

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
3
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Objectives of project management
▪ Complete the project
▪ in time

▪ within budget

▪ while respecting specifications

▪ Use resources efficiently

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
4
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Integration Management
▪ Unify, consolidate and integrate actions required to achieve project
objectives

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
5
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Scope management
▪ Ensure that all, and only the work required is completed
▪ Define what is included (and excluded) in the project

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
6
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Schedule management
▪ Ensure that the project is completed in time.

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
7
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Cost management
▪ Ensure that project is completed within budget

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
8
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Quality management
▪ Ensure that project conforms to specifications

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
9
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Resource management
▪ Operation, organization, management and leadership

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
10
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Communication management
▪ Ensure that project information is collected and disseminated

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
11
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Risk management
▪ Identify, analyze, mitigate risk (probability and impact) and plan risk
responses

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
12
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Procurement management
▪ Ensure availability of what is required to complete the project; manage
contracts with suppliers

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
13
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Stakeholder management
▪ Identify and communicate with people that impact or are impacted by the
project

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
14
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Project Scheduling

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
15
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Project schedule
▪ Initial planning of stages of project
▪ Minimization of delays, interruptions and conflicts
▪ Coordination and synchronization
▪ Communication and monitoring tool
▪ Large selection of specialized software
▪ Activity networks
▪ Agile methods
▪ Adjustable during the project

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
16
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Work breakdown structure
▪ Identify what needs to be done to produce the deliverable

▪ The WBS identifies deliverables; the lower level is a work package

▪ Work packages are further decomposed into activities

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
17
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Work breakdown structure
Project

Primary Primary Primary

Deliverable Deliverable Deliverable

Secondary Secondary Secondary Secondary Secondary

Deliverable Deliverable Deliverable Deliverable Deliverable

Lowest Lowest Lowest Lowest Lowest Lowest

deliverable = deliverable = deliverable = deliverable = deliverable = deliverable =
Work Package Work Package Work Package Work Package Work Package Work Package

Activity 1 Activity 1 Activity 1 Activity 1 Activity 1 Activity 1

Activity 2 Activity 2 Activity 2 Activity 2 Activity 2 Activity 2
Activity… Activity… Activity… Activity… Activity… Activity…

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
18
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Example: building a house
Level 1 Construction of a house
Work: 100% Budget: 100%
Level 2 Internal Foundation External
Work: 46% Budget: 40% Work: 24% Budget: 20% Work: 30% Budget: 40%
Level 3 Electricity Plumbing Excavation Steel erection Masonry Finishes
12%, 11% 34%, 29% 18%, 17% 6%, 3% 18%, 29% 12%, 11%
Level 4 Rough-in Rough-in Concrete Columns Lay masonry Paint
Install Fixtures Cure Beams Roof drains Tile ceiling
HVAC Test & clean Strip forms Joists Tiling Wallpaper
Roofing Carpets
Hardware

//www.youtube.com/watch?v=I2HqW-AAb20

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
19
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Projects represented by activity networks
▪ Well defined set of work elements (activities)
▪ Come to an end when all activities are completed
▪ Required sequence in activities
▪ Activities can be started and concluded independently one from the other

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
20
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Elements of a network
▪ Activity
▪ work required to accomplish a given task
▪ consumes resources or time
▪ has a beginning and end
▪ Event
▪ specific instant of time (occurrence)
▪ consumes neither time nor resources
▪ Milestone
▪ important or significant event
▪ Precedence relations
▪ relate activities
▪ happen naturally (and exclusively) because of technical constraints
ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
21
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Outputs
▪ Time to complete project (expected)
▪ Potential bottlenecks, activities that can be delayed
▪ Chance to complete project on time
▪ Optimal resource allocation
▪ Trigger mechanism and contingency plans

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
22
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Freedom plant and power plant - Example
▪ Clear river is to be harnessed for water, electricity and flood control

▪ Appropriate site has been chosen for the construction

▪ Project manager asked various department heads to submit detailed

proposals of activities to realize, resources needed, and time and cost
estimates

▪ The project is to be completed before deadline (44 weeks), otherwise

penalty is $20 000 per week late
ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
23
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Freedom Dam Project
Activities Symbol Immediate
predecessors
Hire employees HIR -
Transport construction equipment TCE HIR
Order electrical equipment ORE HIR
Transport construction material TCM HIR
Excavate earth EXC TCE
Construction CON TCE
Transport electrical equipment TEE ORE
Divert the river’s water DIV EXC
Install generators and electical equipment INS TCM CON TEE DIV
Operate and test system TST INS

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
24
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Activity-on-arc representation

EXC

HIR TCM INS TST

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
25
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Activity-on-arc representation

▪ Most frequent

▪ Nodes are events (beginnings, completions)

▪ Arrows can be scaled to duration

▪ May require the use of dummy activities

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
26
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Activity-on-node representation

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
27
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Activity-on-node representation

▪ Usual in software

▪ Arcs represent precedence relations

▪ Does not require dummy activities

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
28
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Modeling tips
▪ Beginning and end of the project, milestones

▪ Represent precedence relations correctly

▪ Find the right level of detail

▪ Redundancy is not necessary

▪ Many types of precedence relations can be modeled (finish-to-start, finish-

to-finish, start-to-start, start-to-finish, leads and lags)

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
29
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Estimation of activity durations
▪ Expert opinion (comparisons or extrapolations)
▪ Three-point estimates
▪ Top-down vs. bottom-up estimates
▪ Data analysis, parametric estimating

▪ Independent

▪ Normal level of resource

▪ No security factors or systematic bias

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
30
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
 Deterministic case

▪ Standard tasks

▪ Precise time estimates

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
Summer 2011 Project Management 31
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Time estimates for the freedom dam project

Activities Symbol Activity

time
Hire employees HIR 3
Transport construction equipment TCE 4
Order electrical equipment ORE 20
Transport construction material TCM 16
Excavate earth EXC 20
Construction CON 28
Transport electrical equipment TEE 3
Divert the river’s water DIV 7
Install generators and electical equipment INS 9
Operate and test system TST 4

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
32
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Probabilistic case
▪ Probabilistic Time Estimates approach refer to a method under Project Evaluation Review
Technique (PERT) which predicts and estimates accomplishment duration of events or
activities in operations by an approach called three-time estimates.
▪ Usually, 3 times estimates are provided
▪ most probable
▪ optimistic
▪ pessimistic
▪ This approach facilitates the calculation of mean and variance of the BETA distribution of
time of each activity.
▪ It is assumed that BETA distribution is an efficient way to approximate activity duration.
BETA distribution in graphical representation is continuous and seems like bell-shaped
curvature in skewed form.

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
33
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Probabilistic case
𝑎 + 4𝑚 + 𝑏 𝑏−𝑎
𝑑= , 𝑠=
6 𝑝

▪ 𝑑: expected duration
(Beta distribution)
▪ 𝑠: standard deviation
▪ 𝑎: optimistic
▪ 𝑏: pessimistic
▪ 𝑚: most probable
▪ 𝑝: parameter (3.2 or 6)
(percentiles)
ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
34
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Freedom dam project time estimates
activity opt prob pess mean std dev
HIR 1 3 5 3 1.25
TCE 3 4 5 4 0.625
ORE 18 19 26 20 2.5
TCM 9 17 19 16 3.125
EXC 14 21 22 20 2.5
CON 23 27 37 28 4.375
TEE 2 3 4 3 0.625
DIV 4 6 14 7 3.125
INS 6 8 16 9 3.125
TST 3 4 5 4 0.625
ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
35
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Dates of events
▪ Earliest dates (start, end)

▪ Latest dates (start, end)

▪ Longest paths

▪ Earliest and latest schedules

▪ Float (slack)

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
36
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Example: earliest schedule
20 3
OEE
3-23 23-26
3 4 20 7 9 4
beg HIR EXC INS TST end

0-3 3-7 7-27 28 27-34 35-44 44-48

16
7-35
TCM

3-19
ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
37
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Earliest and latest schedule

EXCEL EXAMPLE

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
38
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Critical path
▪ Longest path

▪ Critical activities

▪ Delay in a critical activity

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
39
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Float and possible schedules
▪ Total float, also called float or slack, is the
amount of time an activity can be delayed
without delaying the overall project duration TST
INS
DIV
TEE
▪ Free float is the amount of time an activity can CON
be delayed without delaying the early start of EXC
any immediate successor activity TCM
OEE
TCE
▪ Probabilistic Time Estimates is a method HIR
Activity time
which predicts and estimates accomplishment Slack

duration of events/activities in operations by

using the most likely time (m), optimistic time
(a) and pessimistic time (b)
ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
40
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Crashing
▪ The process of accelerating a project
▪ How?
▪ Improving existing resources’ productivity
▪ Changing work methods
▪ Increasing the quantity of resources

▪ Linear problem, can be solved using LP

▪ Variables: starting times, amount of crashing
▪ Objective: minimize project completion time, or minimize total cost, or both
▪ Constraints: precedence relationships

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
41
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Re-organizing the network: crashing or fast-tracking
activities
▪ Dynamic process (delays, adjustments)
▪ More resources  reduction of activity time
▪ Move resources from non-critical activities to critical ones or affect more
resources

time • normal Optimize time-cost tradeoffs

• crash

cost
ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
42
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Freedom dam crashing
In order to meet the deadline and reduce fixed management costs, some
tasks could be accelerated.

Normal Crash
Activity Time Cost Time Cost
ORE 20 2 18 4 EXCEL
EXC 20 30 17 45 EXAMPLE
CON 28 80 16 176
INS 9 15 7 27

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
43
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Fast tracking

▪ Activities are executed in parallel rather than in sequence

▪ Can only be used if overlapping is possible

▪ High risk and cost (rework)

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
44
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Probabilistic analysis
▪ Project completion time is uncertain
▪ Assumptions:
▪ critical path will not change
▪ activity times are independent
▪ critical path is made of a large number of activities EXCEL
▪ Project time is a normal variable EXAMPLE
▪ mean=sum of means
▪ variance=sum of variances

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
45
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Risk analysis

▪ What if : evaluating the impact of uncertain events on the project finish date

▪ Monte-Carlo simulation

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
46
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
 Resource Allocation

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
Spring 2020Project Risk Management - Introduction 47
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Using common resources
▪ Activities use common resources and must be scheduled accordingly

▪ Three objectives
▪ satisfy availability constraints
▪ smooth resource usage in time
▪ Find optimal resource level

▪ Heuristic: order activities and plan them as soon as possible ( early start 
margin)

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
48
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Resource optimization
▪ Resource levelling
▪ Used when there are constraints on the available resources. It simply answers the question
‘With the resources available, when will the work be finished?’.

▪ Resource smoothing
▪ Used when the time constraint takes priority. The objective is to complete the work by the
required date while avoiding peaks and troughs of resource demand.

▪ Resource leveling is used when resources are under or over allocated. Resource
smoothing is used when resources are unevenly allocated.

▪ Resource leveling can be applied to activities on the critical path while in resource
smoothing you do not touch activities on the critical path.
ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
49
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Time, Resource and Budget Monitoring

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
50
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Schedule baseline
▪ The approved schedule is used to compare to actual realizations
▪ Project calendar
▪ Resource calendar
▪ Cost calendar

▪ Modifications or updates to the schedule should be approved by

stakeholders

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
51
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Bar charts (Gantt charts)
▪ Commonly used communication tool
▪ Show activities start and finish dates
▪ Useful for monitoring projects and costs
TST
INS
DIV
TEE
CON
EXC
TCM
OEE
TCE
HIR

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
52
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Work /cost monitoring

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
53
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Performance reviews
▪ Estimate performance

▪ Schedule forecast

▪ Change requests

▪ Updates

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
54
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Agile project management

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
55
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Context
▪ High level of uncertainty

▪ Frequent changes

▪ High level of competition

▪ Specifications evolving with time

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
56
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Agile and adaptive approaches
▪ Short cycles facilitating adaptation

▪ Rapid feedback on deliverables

▪ Iterative approach (incremental steps)

▪ Integration of the planning and execution phases

▪ Benefits are released throughout the process rather than at the end.

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
57
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Agile principle
▪ Deliver maximum value in the time and budget allowed

▪ Promote collaboration

▪ Constant learning and adjustment

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
58
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
What is different
▪ Customer collaboration vs. contract negotiation

▪ Individuals and interaction vs. process and tools

▪ Responding to change vs. following a structured plan

▪ Prototyping/working solutions vs. comprehensive documentation.

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
59
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Most popular methods
▪ Scrum
▪ A framework for project management that emphasizes teamwork, accountability and
iterative progress toward a well-defined goal. The framework begins with a simple premise:
Start with what can be seen or known. After that, track the progress and tweak as necessary.
The three pillars of Scrum are transparency, inspection and adaptation.
▪ Kanban
▪ A framework used to implement agile development. It requires real-time communication of
capacity and full transparency of work. It aims to help you visualize your work, maximize
efficiency, and improve continuously.
▪ Lean
▪ A framework that supports the concept of continuous improvement, a long-term approach to
work that systematically seeks to achieve small, incremental changes in processes in order to
improve efficiency and quality.
For more info about Scrum, Kanban and Lean:
https://youtu.be/XU0llRltyFM https://youtu.be/wfsRAZUnonI
https://youtu.be/R8dYLbJiTUE https://youtu.be/rIaz-l1Kf8w

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
60
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Where is the risk?

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
61
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Readings

▪ Trietsch, D., & Baker, K. R. (2012). PERT 21: Fitting PERT/CPM for use in the
21st century. International journal of project management, 30(4), 490-502.

▪ Sundararajan, S., Bhasi, M., & Vijayaraghavan, P. K. (2014). Case study on risk
management practice in large offshore-outsourced Agile software
projects. IET software, 8(6), 245-257.

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
62
Copyright © 2020-2021, American University of Beirut, All Rights Reserved
Assignment
Part 1: Choose one of the two papers for a critical reading
▪ What is the paper about?
▪ What have you learned?
▪ Is the paper useful? New? Interesting? Why or why not?
▪ How could it be completed/modified/improved?

Part 2: Using the example in your first assignment, represent the project by a
network of activities, estimate activity durations and find the critical path.

This an individual assignment, and the response to each part should not
exceed one page

ENMG 698c: Special Topics - Project Risk Management - Dr. Rayan Khraibani
63
Copyright © 2020-2021, American University of Beirut, All Rights Reserved