Project Planning & Scheduling

Yousaf Ali Khan

Department of Management Sciences and Humanities
GIK Institute of Engineering Sciences and Technology

What is a Project?
An individual or collaborative enterprise that is
carefully planned and designed to achieve a
particular aim
EXAMPLES:
constructing a new road
building a ship
designing and marketing a new product
moving to a new office block
installation of a computer system.

Objectives and Tradeoffs

Due Date!

Meet the
Deadline--schedule

Stay within
the budget
Meet the
specifications

Management of Projects
Planning - goal setting, defining the project, team
organization
Scheduling - relates people, money, and supplies to
specific activities and activities to each other
Controlling - monitors resources, costs, quality, and
budgets; revises plans and shifts resources to meet
time and cost demands

Project Management Activities

Planning

Scheduling

Objectives

Project activities

Resources

Start & end times

Work break-down
schedule

Network

Organization

Controlling
Monitor, compare, revise, action

Project Planning
Establishing objectives
Defining project
Creating work breakdown
structure
Determining
resources
Forming organization

Project Organization
Often temporary structure
Uses specialists from entire company

Headed by project manager

Coordinates activities
Monitors schedule
and costs

Permanent
structure called
matrix organization

A Sample Project
Organization
President
Human
Resources

Marketing

Project 1

Project 2

Finance

Design

Quality
Mgt

Production

Mechanical
Engineer

Test
Engineer

Technician

Electrical
Engineer

Computer
Engineer

Technician

Project
Manager

Project
Manager

The Role of
the Project Manager
Highly visible
Responsible for making sure that:
All necessary activities are finished in order and on
time
The project comes in within budget
The project meets quality goals
The people assigned to the project receive
motivation, direction, and information

Project Life Cycle

Concept

Planning
Execution
Closure

Management

Feasibility

Work Breakdown Structure

(WBS)
Level
1. Project
2.
3.
4.

Major tasks in the project

Subtasks in the major tasks
Activities (or work packages)
to be completed

Example Of WBS For Building a

House

Project Scheduling
Identifying precedence relationships
Sequencing activities
Determining activity times & costs
Estimating material and worker
requirements

Determining critical activities

Purposes of Project Scheduling

1. Shows the relationship of each activity to
others and to the whole project

2. Identifies the precedence relationships

among activities
3. Encourages the setting of realistic time
and cost estimates for each activity
4. Helps make better use of people, money,
and material resources by identifying
critical bottlenecks in the project

Project Scheduling Techniques

Gantt chart
Critical Path Method
(CPM)
Program Evaluation
and Review Technique
(PERT)

 Gantt Charts
Shown as a bar charts
Do not show precedence relations
Visual & easy to understand

Network Methods
Shown as a graphs or networks
Show precedence relations
More complex, difficult to understand and costly
than Gantt charts

PERT and CPM

Network techniques

Developed in 1950s
CPM by DuPont for chemical plants (1957)
PERT by Booz, Allen & Hamilton with the
U.S. Navy, for Polaris missile (1958)

Consider precedence relationships and

interdependencies
Each uses a different estimate of
activity times

Six Steps PERT & CPM

1. Define the project and prepare the work
breakdown structure
2. Develop relationships among the activities decide which activities must precede and which
must follow others

3. Draw the network connecting all of the activities

4. Assign time and/or cost estimates to each activity
5.

Compute the longest time path through the network

this is called the critical path

6.

Use the network to help plan, schedule, monitor,

and control the project

Questions PERT & CPM

Can Answer
1. When will the entire project be completed?
2. What are the critical activities or tasks in the project?
3. Which are the noncritical activities?
4. What is the probability the project will be completed by a
specific date?
5. Is the project on schedule, behind schedule, or ahead of
schedule?
6. Is the money spent equal to, less than, or greater than the
budget?
7. Are there enough resources available to finish the project
on time?

8. If the project must be finished in a shorter time, what is

the way to accomplish this at least cost?

Constant-Time Networks
Activity times are assumed to be constant
Activities are represented by Arcs in the network
Nodes show the events
Notations used in calculating start and finish times:
ES(a) = Early Start of activity a
EF(a) = Early Finish of activity a
LS(a) = Late Start of activity a
LF(a) = Late Finish of activity a

A Comparison of AON and

AOA Network Conventions
Activity on
Node (AON)

(a)

A
(b)

Activity
Meaning

C
B

A comes before B,
which comes
before C

Activity on
Arrow (AOA)

A and B must both

be completed before
C can start

B
(c)

A
C

B and C cannot
begin until A is
completed

B
A
C

Rules
1.
2.
3.

4.

5.

One node has no arc entering and defines the starting

event.
One node has no arc leaving and defines the finishing
event.
Each activity should appear exactly once as an arc of
the network, and lies on a path from the starting event
to the finishing event. Dummy activities can also be
used.
There should be a path passing successively through
any two activities if and only if the first is a prerequisite for the second.
There should be at most one arc between each pair of
nodes of a network.

Drawing Project Networks

We consider an activity-on-arc approach.
We need a list of activities (constituent elements of a
project) and their prerequisites.
Example. Planting a tree
Description Activity

Prerequisites

Dig hole

Position tree

Fill in hole

Analysing Project Networks

Number the nodes so that each arc is directed
from a node i to a node j where i < j.
Let A be the set of activities
dij be the duration of activity (i, j)
n be the number of nodes.
Compute earliest event times, assuming that the
project starts at time zero and all activities are
scheduled as early as possible.

EET1 = 0
EETj = max{EETi + dij}
(i,j)A

j=2,,n

Analysing Project Networks

Note that EETj is the length of a longest path from
node 1 to node j.
The project duration is EETn.

Compute latest event times, assuming that the

project finishes at time EETn and all activities are
scheduled as late as possible.
LETn = EETn
LETi = min{LET
- dij}
(i,j)A j

i=n-1,,1

Note that LETn - LETi is the length of a longest path

from node i to node n.

Determining the Project Schedule

Perform a Critical Path Analysis
The critical path is the longest path through the
network
The critical path is the shortest time in which the
project can be completed

Any delay in critical path activities delays the project

Critical path activities have no slack time
Slack is the length of time an activity can be delayed
without delaying the entire project

Slack = LS ES

or

Slack = LF EF

Example
Precedence and times for Opening a New Office
Activity
A

Description
Lease the site

Immediate
Predecessors

Hire the workers

Arrange for the Furnishings

Install the furnishings

Arrange for the phones

Install the phones

Move into the Office

D, E

Inspect and test

F, G

A, B

Determining the Project Schedule

Perform a Critical Path Analysis
Activity
A
B
C
D
E
F
G
H

Description
Lease the site
Hire the workers
Arrange for the furnishings
Install the furnishings
Arrange for the phones
Install the phones
Move into the office
Inspect and test
Total Time (weeks)

Time (weeks)
2
3
2
4
4
3
5
2
25

AOA Network For

Opening a New Office

2

C
(Arrange for
the
furnishings)

Dummy
Activity

D
(Install the
furnishings)

H
(Inspect/
Test)

Determining the Project

Schedule
Perform a Critical Path Analysis
Activity Name or
Symbol

Earliest
Start

Latest
Start

A
ES

EF

LS

LF

Earliest
Finish

Latest
Finish

Activity Duration

ES/EF Network for Opening

a New Office
ES
Start

EF = ES + Activity time
EF of A =
ES
ES of A + 2
of A

A
0

0
2

ES/EF Network for Opening

a New Office
0

2
0

Start

13

2
8

13

15

LS/LF Network for Opening

a New Office
0

2
0

Start

10

7
13

E
LF = Min(LS
of following
4
8
activity)

13
13

LS = LF
D Activity time
3

15
15

13

LF = EF
of Project

Computing Slack Time

After computing the ES, EF, LS, and LF times
for all activities, compute the slack or free
time for each activity
Slack is the length of time an activity can be delayed
without delaying the entire project

Slack = LS ES

or

Slack = LF EF

Computing Slack Time

Activity
A
B
C
D
E
F
G
H

Earliest
Start
ES
0
0
2
3
4
4
8
13

Earliest
Finish
EF

Latest
Start
LS

Latest
Finish
LF

Slack
LS ES

2
3
4
7
8
7
13
15

0
1
2
4
4
10
8
13

2
4
4
8
8
13
13
15

0
1
0
1
0
6
0
0

On
Critical
Path
Yes
No
Yes
No
Yes
No
Yes
Yes

Critical Path for Opening a

New Office
0
0

0
0

Start

10

0
1

7
13

13

13

13
13

15
15

ES EF Gantt Chart
for Opening a New Office
1

A Lease the site

B Hire the workers

C Arrange for the

furnishings
D Install the furnishings
E Arrange for the phones

10

11 12 13 14

C
D
E
F

F Install the phones

G Move into the office
H Inspect and test

G
H

15 16

Variability in Activity Times

CPM assumes we know a fixed time estimate for
each activity and there is no variability in activity
times
PERT uses a probability distribution for activity
times to allow for variability
Three time estimates are required
Optimistic time (a) if everything goes
according to plan
Mostlikely time (m) most realistic estimate
Pessimistic time (b) assuming very
unfavorable conditions

Probabilistic Time Estimates

Optimistic time
Time required under optimal conditions

Pessimistic time
Time required under worst conditions

Most likely time

Most probable length of time that will be
required

Probabilistic Estimates
Beta Distribution

to

Activity
start

Optimistic
time

tm

te

Most likely
time (mode)

tp

Pessimistic
time

Expected Time
te

t
+
4t
+t
o
m
p
=
6
te = expected time
to = optimistic time
tm = most likely time
tp = pessimistic time

Variance
2

2
(t

t
)
= p o
36

2 = variance
to = optimistic time
tp = pessimistic time

Optimistic
time

Pessimistic
time

Most likely
time

1-2-3
(C)

Dummy
Activity

2-4-6
(D)

1-2-3
(H)

Computing Variance
Optimistic

Most
Likely

Pessimistic

Expected
Time

Variance

Activity

t = (a + 4m + b)/6

[(b a)/6]2

A
B
C
D
E
F
G
H

1
2
1
2
1
1
3
1

2
3
2
4
4
2
4
2

3
4
3
6
7
9
11
3

2
3
2
4
4
3
5
2

.11
.11
.11
.44
1.00
1.78
1.78
.11

Probability of Project
Completion
Project variance is computed by
summing the variances of critical
activities
s2p = Project variance
= (variances of activities
on critical path)

Probability of Project
Completion
Project variance is computed by summing
the variances of critical activities

Project variance
2p = .11 + .11 + 1.00 + 1.78 + .11 = 3.11
Project standard deviation
p =
=

Project variance
3.11 = 1.76 weeks

Probability of Project
Completion
Standard deviation = 1.76 weeks

15 Weeks
(Expected Completion Time)

Probability of Project
Completion
What is the probability this project can be
completed on or before the 16 week
deadline?
Z=

due
date

expected date
of completion

/p

= (16 wks 15 wks)/1.76

= 0.57

Where Z is the number of standard deviations

the due date or target date lies from the
mean or expected date

Probability of Project
Completion
From Appendix I

What is the probability

be
.00
.01this project
.07 can .08
completed.1on .50000
or before
the 16 week
.50399
.52790 .53188
deadline? .2 .53983 .54380
.56749 .57142
due

.5
.6

expected date

Z=

date .69497
of completion
.69146
.71566 /s
.71904
p
.72575

.72907

.74857

= (16 wks 15 wks)/1.76

= 0.57

.75175

Where Z is the number of standard

deviations the due date or target date lies
from the mean or expected date

Probability of Project
Completion
Probability
(T 16 weeks)
is 71.57%

0.57 Standard deviations

15
Weeks

16
Weeks

Time

What Project Management Has

Provided So Far
The projects expected completion time
is 15 weeks
There is a 71.57% chance the equipment
will be in place by the 16 week deadline
Five activities (A, C, E, G, and H) are on
the critical path

Three activities (B, D, F) are not on the

critical path and have slack time
A detailed schedule is available

Advantages of PERT/CPM
1. Especially useful when scheduling and controlling large
projects
2. Straightforward concept and not mathematically complex
3. Graphical networks help highlight relationships among
project activities
4. Critical path and slack time analyses help pinpoint
activities that need to be closely watched
5. Project documentation and graphics point out who is
responsible for various activities
6. Applicable to a wide variety of projects
7. Useful in monitoring not only schedules but costs as well

Trade-Offs And Project Crashing

It is not uncommon to face the
following situations:

The project is behind schedule

The completion time has been
moved forward
Shortening the duration of the project
is called project crashing

Factors to Consider When

Crashing A Project
The amount by which an activity is crashed
is, in fact, permissible
Taken together, the shortened activity
durations will enable us to finish the
project by the due date

The total cost of crashing is as small as

possible

Steps in Project Crashing

1. Compute the crash cost per time period. If
crash costs are linear over time:
Crash cost
per period

(Crash cost Normal cost)

=

(Normal time Crash time)

2. Using current activity times, find the critical

path and identify the critical activities

Steps in Project Crashing

3.

If there is only one critical path, then select the

activity on this critical path that (a) can still be
crashed, and (b) has the smallest crash cost per
period. If there is more than one critical path, then
select one activity from each critical path such that
(a) each selected activity can still be crashed, and (b)
the total crash cost of all selected activities is the
smallest. Note that the same activity may be common
to more than one critical path.

4.

Update all activity times. If the desired due date has

been reached, stop. If not, return to Step 2.

Crashing The Project

Time (Wks)
Activity Normal Crash
A
B
C
D
E
F
G
H

2
3
2
4
4
3
5
2

1
1
1
2
2
2
2
1

Cost ($)
Normal
Crash
22,000
30,000
26,000
48,000
56,000
30,000
80,000
16,000

22,750
34,000
27,000
49,000
58,000
30,500
84,500
19,000

Crash Cost Critical

Per Wk ($) Path?
750
2,000
1,000
1,000
1,000
500
1,500
3,000

Yes
No
Yes
No
Yes
No
Yes
Yes

Crash and Normal Times and

Costs for Activity B
Activity
Cost

Crash

$34,000

Crash
Cost

Crash Cost Normal Cost

Normal Time Crash Time

Crash Cost/Wk =

$33,000

$34,000 $30,000
31
$4,000
=
= $2,000/Wk
2 Wks

=
$32,000

$31,000
$30,000

Normal
Cost
Figure 3.16

Normal

|
1
Crash Time

|
2

|
3
Normal Time

Time (Weeks)