welcome to mm305 unit 7 seminar dr. bob project management
TRANSCRIPT
Welcome to MM305
Unit 7 Seminar
Dr. Bob
Project Management
1. Define the project and all of its significant activities or tasks
2. Develop the relationships among the activities and decide which activities must precede others
3. Draw the network connecting all of the activities4. Assign time and/or cost estimates to each activity5. Compute the longest time path through the
network; this is called the critical path6. Use the network to help plan, schedule, monitor,
and control the project
Six Steps of PERT/CPMSix Steps of PERT/CPM
The critical path is important since any delay in these activities can delay the completion of the project
General Foundry Example of PERT/CPMGeneral Foundry Example of PERT/CPM
Network for General Foundry
A
Build Internal Components
H
Inspect and Test
E
Build Burner
C
Construct Collection Stack
Start
F
Install Control System
Finish
G
Install Pollution Device
D
Pour Concrete and Install Frame
B
Modify Roof and Floor
Figure 7.1
Activity TimesActivity Times• In some situations, activity times are known with
certainty. In many projects there is uncertainty about activity times
• PERT employs a probability distribution based on three time estimates for each activity
• A weighted average of these estimates is used for the time estimate and this is used to determine the critical path
• CPM assigns just one time estimate to each activity and this is used to find the critical path• We will use the CPM method in this class
How to Find the Critical PathHow to Find the Critical Path
General Foundry’s network with expected activity times
A 2 C 2
H 2E 4
B 3 D 4 G 5
F 3
Start Finish
Figure 13.3
How to Find the Critical PathHow to Find the Critical Path
To find the critical path, we need to determine the following for each activity in the network
1.1.Earliest start timeEarliest start time (ESES): the earliest time an activity can begin without violation of immediate predecessor requirements
2.2.Earliest finish timeEarliest finish time (EFEF): the earliest time at which an activity can end
3.3.Latest start timeLatest start time (LSLS): the latest time an activity can begin without delaying the entire project
4.4.Latest finish timeLatest finish time (LFLF): the latest time an activity can end without delaying the entire project
General Foundry’s ES, EF, LS and LF timesGeneral Foundry’s ES, EF, LS and LF times
A 20 20 2
C 22 42 4
H 213 1513 15
E 44 84 8
B 30 31 4
D 43 74 8
G 58 138 13
F 34 7
10 13
Start Finish
Activity TimeEarliest Time
Latest Time
Planning and Scheduling Project Costs: Budgeting ProcessPlanning and Scheduling Project Costs: Budgeting Process• The overall approach in the budgeting process of a
project is to determine how much is to be spent every week or month
• This can be accomplished in four basic budgeting steps1. Identify all costs associated with each of the activities then add these
costs together to get one estimated cost or budget for each activity2. In large projects, activities can be combined into larger work packages.
A work package is simply a logical collection of activities. 3. Convert the budgeted cost per activity into a cost per time period by
assuming that the cost of completing any activity is spent at a uniform rate over time
4. Using the ES and LS times, find out how much money should be spent during each week or month to finish the project by the date desired
QM for Windows Cost Budgeting
Single Time EstimateInput Screen
QM for Windows Cost Budgeting
Single Time EstimateInput Screen
QM for Windows Cost Budgeting
Single Time EstimateSolved
QM for Windows Cost Budgeting
Single Time EstimateSolved
QM for Windows Cost Budgeting
Single Time EstimateSolved Chart
QM for Windows Cost Budgeting
Single Time EstimateSolved Chart
Note the tabs
Using TechnologyUsing Technology
• Appendix C (Page 303-307): Using POM-QM for Windows
• Appendix D (Page 307): Using Excel QM
• Appendix 7.1 (Page 272)