CVEN3101 Engineering Operations and Control

Workshop 1 Solution

Introduction to Project Management

1. Provide a list of tasks which must be conducted in each life cycle phase of the
construction of a complex of townhouses in Sydney.

Solution:

a) Initiation
Project objective development
Conceptual designs
Project Scope identification
Brainstorming
Rough cost and time estimation
Feasibility study
Market analysis and predictions
Stakeholders identification

b) Planning
Detailed construction cost and time
Construction plans and drawings
Getting development approval (DA)
WBS development
Gantt chart development
Project scope statement

c) Execution
Getting construction certificate (CC)
Conducting construction activities
Communications with subcontractors
Site supervision

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 Progress tracking
Ordering materials
Contracting with supplires and contractors
Meetings

d) Monitoring and controlling

Quality control
Inspections
Budget tracking
HSE
Monitoring milestones
Controlling modifications and changes
Corrective actions

e) Closure
Contracts closing
Project closing report preparation
Project evaluation and archiving
Project handing over

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2. Developing a table, map the project life cycle phases and project management
knowledge areas.

Knowledge Areas Project Life Cycles (Process Groups)

Initiation Planning Execution Monitoring and Closure
Controlling
Integration Develop Develop Project Direct and Monitor and Close
Project Management Plan Manage Project Control Project Project
Charter Work Work or
Phase
Perform
Integrated
Change Control
Scope Plan Scope Validate Scope
Management
Control Scope
Collect
Requirements

Define Scope

Create WBS
Schedule Plan Schedule Control Schedule
Management

Define Activities

Sequence Activities

Estimate Activity
Resources

Estimate Activities
Durations

Develop Schedule
Cost Plan Cost Control Costs
Management

Estimate Costs

Determine Budget
Quality Plan Quality Perform Quality Control Quality
Management Assurance
Human resources Plan Human Acquire Project
Resource Team
Management
Develop Project
Team

Manage Project
Team
Communications Plan Manage Control
Communications Communications Communications
Management
Risk Plan Risk Control Risks
Management

Identify Risks

Perform Qualitative
Risk analysis

Perform Quantitative
Risk

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 Plan Risk
Responses
Procurement Plan Procurement Conduct Control Close
Management Procurements Procurements Procure
ments
Stakeholder Identify Plan stakeholder Manage Control
stakeholders Management Stakeholder Stakeholder
Engagement Engagement
2 24 8 11 2

3. Develop a process-oriented WBS for a pipeline construction project.

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4. Construction of a small granny flat takes 15 months which includes seven main
construction processes provided in the Gantt chart below. The numbers in the
Gantt chart are project progress (percentage) and activity costs (thousand
dollars), respectively.

M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15

A 1,3 2,5

B 2,3 3,5 5,8

C 1,2 8,13 9,10 6, 9

D 9,15 13,18 5,8

E 8,15 9,15 4, 9

G 2, 4 2, 3 2, 3

3, 2 2, 1 2, 2 1, 1 1, 1
H

Based on the signed contract, client will release the following payments during
construction of the project in the beginning of the outlined months.

Payment time M1 M4 M8 M11 W14

Payment amount ($k) 20 60 50 20 20

a) Draw the project’s percentage completion S-curve of the project.

b) Develop project cash flow diagram of the project.
c) Calculate the profit of project management company.

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Solution:
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15

A 1,3 2,5

B 2,3 3,5 5,8

C 1,2 8,13 9,10 6, 9

D 9,15 13,18 5,8

E 8,15 9,15 4, 9

G 2, 4 2, 3 2, 3

3, 2 2, 1 2, 2 1, 1 1, 1
H

Com% 1 4 3 6 8 9 15 13 13 9 7 4 4 3 1
Cul % 1 5 8 14 22 31 46 59 72 81 88 92 96 99 100
inf low 20 0 0 60 0 0 0 50 0 0 20 0 0 20 0
outflow 3 8 5 10 13 10 24 18 23 15 11 5 5 4 1
Cul 20 20 20 80 80 80 80 130 130 130 150 150 150 170 170
inflow
Cul 3 11 16 26 39 49 73 91 114 129 140 145 150 154 155
outflow
Cash 17 9 4 54 41 31 7 39 16 1 10 5 0 16 15
flow

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 120

100
Cumulative Completion Percentage
80

60

40

20

0
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15
Months

180

160

140 Cumulative inflow

120
Cumulative outflow
100

80

60

40

20
Cash flow
0
M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15

Profit = Final cumulative cash inflow – Final cumulative cash outflow = 170 – 155 =
$15k

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5. Eight activities shown in the table below must be undertaken in succession to
construct an airport runway.

Activities Optimistic Time Most Likely Time Pessimistic Time

(day) (day) (day)
A 38 45 50
B 27 34 40
C 50 62 72
D 13 16 18
E 22 25 27
F 30 32 35
G 45 54 62
H 8 9 12

a) Calculate the expected project duration using PERT technique.

b) Determine the probability of completing the project after 285 days.
c) Determine the chance of completing project between 275 and 280 days.
d) How many days does it take to complete the project by the probability of
60%?

Solution

a)

OT + 4MT + PT
ET =
6

PT −OT 2
σ2=( )
6

Activity OT MT PT ET σ2
A 38 45 50 44.67 4
B 27 34 40 33.83 4.694
C 50 62 72 61.67 13.444
D 13 16 18 15.83 0.694
E 22 25 27 24.83 0.694
F 30 32 35 32.17 0.694
G 45 54 62 53.83 8.028
H 8 9 12 9.33 0.444

SD=√∑n1 σ2 =√4 + 4.694.13.444 + .0694 + 0.694 + 0.694 + 8.028 + 0.444 = 5.718

PED = 44.67+33.83+61.67+15.83+24.83+32.17+53.83+9.33 = 276.16 days

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b)

PSD −PED 285 −276 .16

Z= = = 1.546
SD 5.718

Using Table 2, the probability of project completion on or before 285 days = 0.9389
(93.89%) (interpolation is required)

So, the probability of completing project after 285 days is 1 – 0.9389 = 0.0611
(6.11%)

c)

PSD −PED 280 −276 .16

Z= = = 0.672
SD 5.718

Using Table 2, the probability of project completion on or before 280 days = 0.7492
(74.92%) (interpolation is required)

PSD −PED 275 −276 .16

Z= = = - 0.203
SD 5.718

If Z value is negative, its probability will be: 1 – (positive value of Z)

So, the probability of Z= - 0.203 will be 1 – (z= 0.203) = 1 - 0.5805 = 0.4195

Probability of finishing project between 275 and 280 days is 0.7492 – 0.4195 =
0.3297 (32.97%)

d)

Using table 2, z for the probability of 60% will be 0.254.

PSD −PED X −276 .16

Z= = = 0.254
SD 5.718

X = 277.61

This project will be completed in less than 277.61 days with the chance of 60%.