Rozlina C23-227

15/11/2014

Operations
Management
Chapter 3
Project Management
PowerPoint presentation to accompany
Heizer/Render
Principles of Operations Management, 6e
Operations Management, 8e
2006
Prentice
Hall, Inc. Hall, Inc.

2006
Prentice

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Purposes of Project
Scheduling

Project Scheduling
Identifying precedence
relationships

1. Shows the relationship of each activity to

others and to the whole project

Sequencing activities

2. Identifies the precedence relationships

among activities

Determining activity times & costs

3. Encourages the setting of realistic time

and cost estimates for each activity

Estimating material and worker

requirements

4. Helps make better use of people, money,

and material resources by identifying
critical bottlenecks in the project

Determining critical activities

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Project Management
Techniques

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A Simple Gantt Chart

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

Time
M J

Design
Prototype
Test
Revise
Production

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Service For A Delta Jet

Passengers
Baggage
Fueling
Cargo and mail
Galley servicing
Lavatory servicing
Drinking water
Cabin cleaning
Cargo and mail
Flight services
Operating crew
Baggage
Passengers

Figure 3.4
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PERT and CPM

Deplaning
Baggage claim
Container offload
Pumping
Engine injection water
Container offload
Main cabin door
Aft cabin door
Aft, center, forward
Loading
First-class section
Economy section
Container/bulk loading
Galley/cabin check
Receive passengers
Aircraft check
Loading
Boarding

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
0

15

30
Minutes

45

60
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Six Steps PERT & CPM

Work Breakdown Structure

1. Define the project and prepare the

work breakdown structure

Level

2. Develop relationships among the

activities - decide which activities
must precede and which must follow
others

2.

1. Project
Major tasks in the project

3.

Subtasks in the major tasks

4.

Activities (or work packages)

to be completed

3. Draw the network connecting all of

the activities
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Questions PERT & CPM

Can Answer

Six Steps PERT & CPM

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

1. When will the entire project be

completed?

5. Compute the longest time path

through the network this is called
the critical path

2. What are the critical activities or tasks in

the project?
3. Which are the noncritical activities?

6. Use the network to help plan,

schedule, monitor, and control the
project
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4. What is the probability the project will be

completed by a specific date?

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A Comparison of AON and

AOA Network Conventions

Questions PERT & CPM

Can Answer

Activity on
Node (AON)

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?

(a) A

B
A

7. Are there enough resources available to

finish the project on time?

(b)

C
B

8. If the project must be finished in a shorter

time, what is the way to accomplish this
at least cost?

B
(c)

Figure 3.5
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Activity
Meaning
A comes before
B, which comes
before C
A and B must both
be completed
before C can start
B and C cannot
begin until A is
completed

Activity on
Arrow (AOA)

A
B

C
B
C
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A Comparison of AON and

AOA Network Conventions

A Comparison of AON and

AOA Network Conventions

Activity on
Node (AON)

Activity on
Node (AON)

(d)

(e)
Figure 3.5

Activity
Meaning

Activity on
Arrow (AOA)

C and D cannot
begin until A
and B have
both been
completed
C cannot begin
until both A and B
are completed; D
cannot begin until
B is completed. A
dummy activity is
introduced in AOA

(f)
C

C
Dummy activity

B and C cannot
begin until A is
completed. D
cannot begin
until both B and
C are completed.
A dummy
activity is again
introduced in
AOA.

A
Dummy
activity

D
C

Figure 3.5
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AON Example

AON Network for

Milwaukee Paper

Milwaukee Paper Manufacturing's

Activities and Predecessors
Description
Build internal components

Activity on
Arrow (AOA)

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Activity
A

Activity
Meaning

Immediate
Predecessors

Modify roof and floor

Construct collection stack

Pour concrete and install frame

A, B

Build high-temperature burner

Activity A
(Build Internal Components)

Activity B
(Modify Roof and Floor)

Install pollution control system

Install air pollution device

D, E

Inspect and test

F, G

Start

Start
Activity

Figure 3.6

Table 3.1
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AON Network for

Milwaukee Paper

AON Network for

Milwaukee Paper

Activity A Precedes Activity C

F
A

Start

Start

D
Activities A and B
Precede Activity D

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H
G

Arrows Show Precedence

Relationships

Figure 3.7
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Figure 3.8

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AOA Network for

Milwaukee Paper

Perform a Critical Path Analysis

C
4
(Construct
Stack)

The critical path is the longest path

through the network

Dummy
Activity

Determining the Project

Schedule

H
(Inspect/
Test)

D
5
(Pour
Concrete/
Install Frame)

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

Figure 3.9

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AON Example

Determining the Project

Schedule

Milwaukee Paper Manufacturing's

Activities and Predecessors
Acti
vity
A

Description
Build internal components

Immediate
Predecessor
s

Time
(week
s)
2

Modify roof and floor

Construct collection stack

Pour concrete and install frame

A, B

Build high-temperature burner

Install pollution control system

Install air pollution device

D, E

Inspect and test

F, G

Perform a Critical Path Analysis

Earliest start (ES) = earliest time at which an activity can
Activity Description
Time (weeks)
start, assuming all predecessors
have
A
Build internal
components
2
been completed
Modify
roof and
floor
3
EarliestBfinish (EF)
= earliest
time
at which an activity can
be finished
C
Construct
collection stack
2
D start (LS)
Pour=concrete
and
Latest
latest time
atinstall
which frame
an activity can4
start so as to not delay
E
Build high-temperature
burnerthe completion
4
of thecontrol
entire project
F
Install time
pollution
system
3
LatestGfinish (LF)
=
latest
time
by
which
an
activity
has
Install air pollution device
5 to
be finished so as to not delay the
H
Inspect and test
2
completion time of the entire project
Table
Total Time (weeks)
25 3.2

2
26

Total time (weeks)

Table 3.1
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Determining the Project

Schedule

Begin at starting event and work forward

Earliest Start Time Rule:

Activity Name
or Symbol
A
ES

Latest
Start

LS

EF
LF
2

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Forward Pass

Perform a Critical Path Analysis

Earliest
Start

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If an activity has only one immediate

predecessor, its ES equals the EF of the
predecessor
If an activity has multiple immediate
predecessors, its ES is the maximum of
all the EF values of its predecessors

Earliest
Finish

Latest
Finish

ES = Max (EF of all immediate predecessors)

Figure 3.10
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Activity Duration
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ES/EF Network for

Milwaukee Paper

Forward Pass
Begin at starting event and work forward
ES

Earliest Finish Time Rule:

EF = ES + Activity time

The earliest finish time (EF) of an activity

is the sum of its earliest start time (ES)
and its activity time

Start

EF = ES + Activity time

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ES/EF Network for

Milwaukee Paper

Start

ES/EF Network for

Milwaukee Paper

EF of A =
ES of A + 2

ES
of A

Start

EF of B =
ES of B + 3

ES
of B

2
3
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ES/EF Network for

Milwaukee Paper
0

2
0

Start

ES/EF Network for

Milwaukee Paper
0

Start

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D
3

B
3

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= Max (2, 3)
0

0
0

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ES/EF Network for

Milwaukee Paper
0

2
0

Start

ES/EF Network for

Milwaukee Paper
0

Start

C
2

0
0

13

15

2
8

13

5
Figure 3.11

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Backward Pass

Backward Pass

Begin with the last event and work backwards

Begin with the last event and work backwards

Latest Finish Time Rule:

Latest Start Time Rule:

If an activity is an immediate predecessor

for just a single activity, its LF equals the
LS of the activity that immediately follows it
If an activity is an immediate predecessor
to more than one activity, its LF is the
minimum of all LS values of all activities
that immediately follow it

The latest start time (LS) of an activity is

the difference of its latest finish time (LF)
and its activity time

LS = LF Activity time

LF = Min (LS of all immediate following activities)

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LS/LF Times for

Milwaukee Paper
0

2
0

Start

C
2

B
3

13
13

LS = LF
D Activity time
G
3

4
0

Figure 3.12

F
3

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LS/LF Times for

Milwaukee Paper

H
2

15
15

Start

10

F
3

7
13

8 of
LF =4 Min(LS
following activity)

13
13

LF = EF
of Project

13

B
3

D
4

H
2

15
15

13

Figure 3.12
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LS/LF Times for

LF = Min(4, 10)
Milwaukee
Paper
0

2
0

Start

C
2

10

4
4

0
0

E
4

F
3

LS/LF Times for

Milwaukee Paper
7

13

13

13

8
8

G
5

H
2

15

15

Start

C
2

10

13

13

Figure 3.12

B
3

D
4

E
4

7
13

13

13

H
2

15
15

13
13

Figure 3.12

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Computing Slack Time

Computing Slack Time

After computing the ES, EF, LS, and LF times

for all activities, compute the slack or free
time for each activity

Activity

A
B
C
D
E
F
G
H

Slack is the length of time an activity can

be delayed without delaying the entire
project
Slack = LS ES

or

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Slack = LF EF

Earliest Earliest
Start
Finish
ES
EF

0
0
2
3
4
4
8
13

2
3
4
7
8
7
13
15

Latest
Start
LS

Latest
Finish
LF

Slack
LS ES

On
Critical
Path

0
1
2
4
4
10
8
13

2
4
4
8
8
13
13
15

0
1
0
1
0
6
0
0

Yes
No
Yes
No
Yes
No
Yes
Yes
Table 3.3

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Critical Path for

Milwaukee Paper
0
0
0
0

Start

A
2

C
2

10

0
1

B
3

D
4

E
4

F
3

ES EF Gantt Chart
for Milwaukee Paper
1

7
13

13

10

11 12 13 14 15 16

C Construct collection
stack

15

D Pour concrete and

install frame

15

E Build hightemperature burner

13

F Install pollution
control system

13

G Install air pollution

device
H Inspect and test

Figure 3.13
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B Modify roof and floor

13

A Build internal
components

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LS LF Gantt Chart
for Milwaukee Paper
1

10

Variability in Activity Times

11 12 13 14 15 16

CPM assumes we know a fixed time

estimate for each activity and there
is no variability in activity times

A Build internal
components
B Modify roof and floor
C Construct collection
stack

PERT uses a probability distribution

for activity times to allow for
variability

D Pour concrete and

install frame
E Build hightemperature burner
F Install pollution
control system
G Install air pollution
device
H Inspect and test
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Activity Preceding

Time

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Activity

Preceding

--

Duration

12

--

--

A, B

C, F

G, I

E, J

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