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Week3 Moodle

This document discusses the critical path method for project risk management. It provides instruction on applying CPM to identify critical activities and calculate a project's completion time. It includes examples of using CPM to find critical paths and includes practice problems for students to work through.

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16 views36 pages

Week3 Moodle

This document discusses the critical path method for project risk management. It provides instruction on applying CPM to identify critical activities and calculate a project's completion time. It includes examples of using CPM to find critical paths and includes practice problems for students to work through.

Uploaded by

xxuu0120
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ENG5200

Engineering Project Risk Management

Critical Path Method (CPM) – Part 1


• Quiz questions are for you to prepare for the final
assessment. It is your task to develop and document
solutions after each session for your reference prior to the
exam. Quiz questions are also briefly discussed in weekly
sessions.
• Project reports – 30% of the total mark for this unit (due
on Friday of week 12).

2
Application time!

Please apply what you learned each week to your project report.

To find 20-30 activities, please focus on processes involved,


including design, construction, procurement,...

Applying learned risk management techniques is more important


than the accuracy of time/cost estimations. Please make reasonable
assumptions or use an online search…

3
Important notes

• Weekly sessions are unique opportunities to ask any questions


related to your individual project submission.

• According to the handbook, the required workload for this unit is at


least 6 hours of independent study per week (in addition to the 3-
hour contact time). Please spend 3- 4 hours each week working on
your project report. This is the absolute minimum for applying the
learning from each week to your project report.

4
1.
RISK
MANAGEMENT
PROCESSES 2.
(ISO31000)

3.

4.

5.

5
Risk scenario is an event with undesirable impact on
project's objectives.

These objectives could be related to the project's schedule…

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(critical activities)

(normal activities)
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normal Critical activities

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Visualisation – Different methods

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Visualisation – Best Practice

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12
13
CPM-

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CPM-

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=> Top row of activity blocks

16
17
(when populating the top
row of activity blocks)

Given

Given

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(project completion time can be found
but not critical activities yet)

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Practice
Practice: Calculate the project completion time
CPM- (project finish time can
be found but not critical
activities yet)

Project early completion time


= expected time

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=> bottom row of activity blocks

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CPM- Step three: backward pass
(when populating bottom
row of activity blocks)

Given

Given

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(in critical activities, early times and late times are
the same = no buffer)

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Quiz question 1 What is the latest finish time for activity “C”? And what
activities are on the critical path?

Response: 15 weeks, Critical path: A-D-F-G-H


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Practice: Find the critical path using the backward path

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(early times and late times are
the same for critical activities,
i.e. there is no time buffer)
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Quiz question 2
For the below project, the contractor will receive a $500 bonus for completing the project
within 15 working days. The contract also contains a penalty clause in which the contractor will
lose $100 for each day the project takes longer than 15 working days. How much
bonus/penalty is expected to be paid? And What is the latest finish time for activity “E”?

Response: $100 Penalty,


10 days

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Lag (time buffer)

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13

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Practice:
Find the latest start and finish times for project activities

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33
What is the latest finish time for activity “C”? And what
Quiz question 3
activities are on the critical path?

Response: 16 weeks, Critical path: A-D-G-J-K


34
1.
RISK
MANAGEMENT
PROCESSES 2.
(ISO31000)

3.

4.

5.

35
Thank you

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