Developing a Project Plan

Developing the Project Plan

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Developing the Project Plan

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 Developing the Project Plan

 The Project Network

 A flow chart that graphically depicts the sequence,
interdependencies, and start and finish times of the project job
plan of activities that is the critical path through the
network.
 Provides the basis for scheduling labor and equipment.
 Enhances communication among project participants.
 Provides an estimate of the project’s duration.
 Provides a basis for budgeting cash flow.
 Identifies activities that are critical.
 Highlights activities that are “critical” and can not be delayed.
 Help managers get and stay on plan.
WBS/Work Package to Network

WBS for circuit board:

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WBS/Work Package to Network (cont’d)

FIGURE 6.1 (cont’d)

 Constructing a Project Network

 Terminology
 Activity: an element of the project
A
that requires time. Activities usually
represent one or more tasks from a
work package. Described in verb/noun
format B D

 Merge Activity: an activity that has

two or more preceding activities on
which it depends.
C
 Parallel (Concurrent)
Activities: Activities that can occur
independently and, if desired,
not at the same time.
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 Constructing a Project Network (cont’d)
 Terminology
 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; the shortest expected time in which the
entire project can be completed. Delays on the critical path
will delay completion of the entire project.

A B D
(Assumes that minimum of A + B > minimum of C in length of times to complete activities.)

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 Constructing a Project Network (cont’d)
 Terminology
 Event: a point in time when an activity is started
or completed. It does not consume time.
 Burst Activity: an activity that has more than one activity
immediately following it (more than one dependency arrow
flowing from it).
 Two Approaches B

 Activity-on-Node (AON)
 Uses a node to depict an activity.
A C
 Activity-on-Arrow (AOA)
 Uses an arrow to depict an activity.

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 Basic Rules to Follow in Developing
Project Networks
1. Networks typically flow from left to right.
2. An activity cannot begin until all preceding connected
activities are complete.
3. Arrows indicate precedence and flow
and can cross over each other.
4. Each activity must have a unique identify number that
is greater than any of its predecessor activities.
5. Looping is not allowed.
6. Conditional statements are not allowed.
7. When there are multiple starts, a common start node
can be used to indicate a clear project beginning,
similarly the ending.
Activity-on-Node Fundamentals

FIGURE 6.2
Activity-on-Node Fundamentals (cont’d)

FIGURE 6.2 (cont’d)

Network Information

TABLE 6.1
Koll Business Center—Partial Network

FIGURE 6.3
Koll Business Center—Complete Network

FIGURE 6.4
Network Information (Practice problem)

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Network Information (Practice problem)

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 What is CPM?

 CPM calculates
 The longest path of planned activities to the end of the project

 The earliest and latest that each activity can start and finish
without making the project longer
 Determines “critical” activities (on the longest path)
 Prioritize activities for the effective management and
to shorten the planned critical path of a project by:
 Pruning critical path activities
 Fast tracking" (performing more activities in parallel)
 Crashing the critical path" (shortening the durations of critical
path activities by adding resources)
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 What is CPM

The essential technique for using CPM is to construct

a model of the project that includes the following:
†
 A list of all activities required to complete the project
(also known as Work Breakdown Structure)
 The time (duration) that each activity will take to
completion
 The dependencies between the activities.
 Network Computation Process

 Forward Pass—Earliest Times

 How soon can the activity start? (early start—ES)
 How soon can the activity finish? (early finish—EF)
 How soon can the project finish? (expected time—ET)
 Backward Pass—Latest Times
 How late can the activity start? (late start—LS)
 How late can the activity finish? (late finish—LF)
 Which activities represent the critical path? This is the longest
path in the network which, when delayed, will delay the project
 How long can activity be delayed? (slack or float—SL)
Network Computation Process (Example)
Network Computation Process (Example)

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Network Computation Process (Example)
Network Information

TABLE 6.2
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Activity-on-Node Network

FIGURE 6.5
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 Forward Pass Computation

 Add activity times along each path in the network

(ES + Duration = EF).
 Carry the early finish (EF) to the next activity
where it becomes its early start (ES) unless…
 The next succeeding activity is a merge activity, in
which case the largest EF of all preceding
activities is selected.

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Activity-on-Node Network Forward Pass

FIGURE 6.6
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 Backward Pass Computation

 The backward pass starts with the last project activity(ies)

on the network
 Before the backward pass can be computed, the late finish
for the last project activity(ies) must be selected.
 Subtract activity times along each path in the network (LF -
Duration = LS).
 Carry the late start (LS) to the next activity where it becomes
its late finish (LF) unless
 The next succeeding activity is a burst activity, in which case
the smallest LF of all preceding activities is selected.

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Activity-on-Node Network Backward Pass

FIGURE 6.7
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 Determining Free Slack (or Float)

 Total slack tells us the amount of time an activity can

be delayed and not delay the project

 Total slack is the amount of time an activity can

exceed its early finish date without affecting the
project end date or an imposed completion date

 Total slack or float for an activity is simply the difference

between the LS and ES (LS − ES = SL) or between LF and EF
(LF − EF = SL).

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 Determining Free Slack (or Float)

 Free slack (FS)

 It is the amount of time an activity can be delayed without
delaying any immediately following (successor) activity.
 Or it is the amount of time an activity can exceed its early finish
date without affecting the early start date of any successor(s).
 Only activities that occur at the end of a chain of activities, where
you have a merge activity, can have free slack
 Sensitivity
 The likelihood the original critical path(s) will change once the
project is initiated.
 The critical path is the network path(s) that has (have) the least
slack in common.
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Activity-on-Node Network with Slack

FIGURE 6.8
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Class Activity
Free Slack Example

FIGURE 6.9
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 Practical Considerations
 Network Logic Errors

 Activity Numbering

 Use of Computers to
Develop Networks
 Calendar Dates

 Multiple Starts and

Multiple Projects

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Illogical Loop

FIGURE 6.10
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Air Control Project—Network Diagram

FIGURE 6.11
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Automated Warehouse….—Gantt Chart

FIGURE 6.12
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 Extended Network Techniques
to Come Close to Reality
 We studied finish-to-start relationship i.e. all immediate
preceding connected activities must be completed before
the next activity can begin; some useful extensions have
been added
 Laddering
 Activities are broken into segments so the following activity can
begin sooner and not delay the work.
 Lags
 The minimum amount of time a dependent activity must be
delayed to begin or end.
 Lengthy activities are broken down to reduce the delay
in the start of successor activities.
 Lags can be used to constrain finish-to-start, start-to-start,
finish-to-finish, start-to-finish, or combination relationships.
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Example of Laddering Using
Finish-to-Start Relationship

FIGURE 6.13
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 Use of Lags
Finish-to-Start Relationship

FIGURE 6.14

Start-to-Start Relationship

FIGURE 6.15
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Use of Lags Cont’d

Use of Lags to Reduce Detail

FIGURE 6.16
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 New Product Development
Process

FIGURE 6.17
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Use of Lags (cont’d)

Finish-to-Finish
Relationship
FIGURE 6.18

Start-to-Finish
Relationship FIGURE 6.19

Combination
Relationship
FIGURE 6.20

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Network Using Lags

FIGURE 6.21
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 Key Terms

Activity Gantt chart

Activity-on-arrow (AOA) Hammock activity
Activity-on-node (AON) Lag relationship
Burst activity Merge activity
Concurrent engineering Network sensitivity
Critical path Parallel activity
Early and late times Slack/float—total and free

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Activity-on-Arrow Network Building Blocks

FIGURE A6.1
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Activity-on-Arrow Network Fundamentals

FIGURE A6.2
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