Project Scheduling

Alcides Santander Mercado Ph.D.

asantand@uninorte.edu.co
Background

Basic Concepts
 Objective What is the difference compared to
To understand how “classic scheduling”?
mathematical and graphical
techniques are used to assist Time variability
with the task of scheduling Learning curve
complex projects in an
organization. Precedence constraints
Parallel activities

asantand@uninorte.edu.co
Universidad del Norte
Project Scheduling
Key elements

Project representation and critical path

identification

Time costing methods

Uncertain activity times

Resource considerations

asantand@uninorte.edu.co
Universidad del Norte
Project Management Methods

Critical Path Method

CPM
Project Management Methods
Critical Path Method

The critical path method (CPM) is a technique where you identify tasks that are necessary for project
completion and determine scheduling flexibilities. A critical path in project management is the longest
sequence of activities that must be finished on time in order for the entire project to be complete.

Key Elements

▪ Deterministic environments
▪ Project definition (Goals and resources)
▪ Activity definition (work elements and time estimation)
▪ Activity relationships (Precedence)
▪ Project Scheduling (Starting and ending times)
▪ Project Monitoring asantand@uninorte.edu.co
Universidad del Norte
 asantand@uninorte.edu.co
Universidad del Norte

Project Management Methods

Critical Path Method

Step 1. Network representation

▪ Gantt charts are useful to represent

a final schedule, but they lack of
clarity to show precedence among
elements.

▪ A network can easily shows

precedence constraints in project
scheduling.

▪ Example: Software development

Total Time: 43 Weeks

Project Due Date: 25 Weeks
 asantand@uninorte.edu.co
Universidad del Norte

Project Management Methods

Critical Path Method

Step 1. Network representation

B
A D I

C
E G

F H

Total Time: 43 Weeks

Project Due Date: 25 Weeks
 asantand@uninorte.edu.co
Universidad del Norte

Project Management Methods

Critical Path Method

Step 2. Finding Critical Path ESi = Earliest starting time for activity i

EFi = Earliest finishing time for activity i

B LSi = Latest starting time for activity i

A D I
LFi = Latest Finishing time for activity i
C
E G ti = time for activity i

EFi = ESi + ti LFi = LSi + ti

F H
Earliest times: Forward walk from 1 to the final node

Latest times: backwards walk from the final node to the first
one.
 asantand@uninorte.edu.co
Universidad del Norte

Project Management Methods

Critical Path Method

Step 2. Finding Critical Path

B
A D I

C
E G

F H
 asantand@uninorte.edu.co
Universidad del Norte

Project Management Methods

Critical Path Method

Step 2. Finding Critical Path

B
A D I

C
E G

F H
 asantand@uninorte.edu.co
Universidad del Norte

Project Management Methods

Critical Path Method

Step 2. Finding Critical Path

B
A D I

C
E G

F H
Project Management Methods

Project Evaluation and

Review Technique- PERT
 asantand@uninorte.edu.co
Universidad del Norte

Project Management Methods

Project Evaluation and Review Technique- PERT

Basics

It is considered a generalization of CPM to

allow uncertainty in the activity times.

Based on a minimum, maximum and most

likely activity time, and on the assumption
of Beta and Triangular distributions
behaviour.

a: minimum activity time.

b: maximum activity time. 𝑎 + 4𝑚 + 𝑏 σ2 = ( b – a )2 / 36
𝜇=
m: most likely activity time. 6
 asantand@uninorte.edu.co
Universidad del Norte

Project Management Methods

Project Evaluation and Review Technique- PERT

Steps

Step 1. Network representation

Step 2. Mean and variance calculation
Step 3. Expected completion time and variance

E(T) = 3 + 2 + 5 + 6.83 + 9.17

E(T) = 26 Weeks

E(σ2) = 0.11 + 0 + 1 + 1.36 + 4.69 𝑎 + 4𝑚 + 𝑏

E(σ2) = 7.16 𝜇= σ2 = ( b – a )2 / 36
6
 asantand@uninorte.edu.co
Universidad del Norte

Project Management Methods

Project Evaluation and Review Technique- PERT

Steps
Step 3. Expected completion time and variance

Let T be a normal random variable with mean µ and standard deviation σ.

µ = 26 σ = (7.16)1/2 = 2.68

What is the probability that the project can be completed in less than 22 weeks?

T −  22 −    22 −    22 − 26 
P{T < 22} = P    = P Z   = P Z  
        2 .68 

P{Z < - 1.5} = 0.0668

 asantand@uninorte.edu.co
Universidad del Norte

Project Management Methods

Project Evaluation and Review Technique- PERT

Steps
Step 3. Expected completion time and variance

Let T be a normal random variable with mean µ and standard deviation σ.

µ = 26 σ = (7.16)1/2 = 2.68

What is the probability that the project requires more than 28 weeks?

T − 28 −    28 −    28 − 26 
P =
P{T > 28}   = P  Z   = P  Z  
        2.68 
P{Z > 0.75} = 0.2266
 asantand@uninorte.edu.co
Universidad del Norte

Project Management: Example

Production expansion project

The development of new capacities in a factory need a series of the activities shown in the table below (times in weeks).
The contractor is subject to an audit. In each visit, the progress of the project is studied and the fulfillment of its stages is
verified. If a non-compliance is reported, the contractor is penalized. The expected profit for the contractor is COP
500,000,000 if it does not incur a penalty.

Visit 1: At the end of week 12, the auditor check if activity C is finished. If it is found that it was not fulfilled, the project is
canceled and the money invested up to that time is lost (approx. COP 120,000,000).

Visit 2: It is expected that the project will be delivered at the end of week 37, otherwise the contractor is penalized (COP
80,000,000) BUT CONTINUES UNTIL DELIVERY. Proyectado
Actividad Optimista Esperado Pesimista Precedencia
A 2 3 7 -
▪ Determine the critical path under the CPM approach. B 1 2 3 -
▪ Calculate the probability of non-compliance at visit 1 and 2, C 1 2 4 A
D 3 5 6 A
following the PERT approach. E 2 4 5 BD
▪ Calculate the expected value of the project’s profit. F 1 6 7 CE
G 1 3 4 EF
▪ Is it a good business opportunity for the contractor? H 4 5 7 GF
I 2 3 4 H
J 3 4 5 AHI
k 2 4 6 J
L 3 4 8 I
Project Management Software

Microsoft Project
 asantand@uninorte.edu.co
Universidad del Norte

Project Management Software

Microsoft Project

Microsoft Project is a project management

software product, developed and sold
by Microsoft. It is designed to assist a project
manager in developing a schedule,
assigning resources to tasks, tracking progress,
managing the budget, and analyzing
workloads.
 Questions
Alcides R. Santander M. Ph.D.
email: Website:
asantand@uninorte.edu.co www.uninorte.edu.co