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Project Management

(Developing A Project Plan)

Introduction
The project network is the tool used for planning, scheduling and monitoring project progress. The network is developed from the information collected for the WBS and is a graphic flow chart of the project job plan. The network depicts the project activities that must be completed, the logical sequences, the interdependencies of the activities to be completed, and in most cases the time for the activities to start and finish along with the longest path(s) through the network - critical path. The network is the framework for the project information system that will be used by the project managers to make decisions concerning project time, cost and performance.

From Work Package to Network


Project networks are developed from the WBS. The project network is a visual flow diagram of the sequence, interrelationships, and dependencies of all the activities that must be accomplished to complete the project. An activity is an element in the project that consumes time for example work or waiting. Work packages from the WBS are used to build the activities found in project network.

From Work Package to Network


Networks provide the project schedule by identifying dependencies, sequencing and timing of activities, which WBS is not designed to do. Primary inputs for developing a project a project network plan are work packages. Remember, a work package is defined independently of other work packages, has definite start and finish points, requires specific resources, includes technical specifications, and has cost estimates for the package. However, dependency, sequencing and timing of each of these factors are not included in the work package.

From Work Package to Network


Lowest Element

Circuit Board
Design Control A/C Design WP D-1-1 Specifications WP D-1-2 Documentation) Production WP P-10-1 Prototype 1 WP P-10-2 Final Prototype 2 Test WP T-13-1 Test A Specifications and Documentations B Prototype 1 C Software Preliminary D Final Prototype 2 F Software Final Version K Test

Production Control A/C Test Control A/C Software Control A/C

Software WP S-22-1 Software Preliminary WP S-22-2 Software Final Version

B P-10-1 A D-1-1 D-1-2 D P-10-2 C S-22-1 F S-22-2 K T-13-1

Constructing a Project Network Terminologies


Activity An element of the project that requires time. It may or may not require resources. Typically, an activity consume resources either while people work or while people wait. Merge Activity An activity that has more than one activity immediately preceding it. Burst Activity An activity that has more than one activity immediately following it. Parallel Activities Activities that can take place at the same time. Path A sequence of connected, dependent activities Critical Path Longest path through the network. It has no slack or float. Event A point in time when an activity is started or completed. It does not consume time.

Constructing a Project Network Two Approaches


Both methods use two building blocks the arrow and the node. Activity on Node (AON) or Precedence Diagram Method Node to depict an activity Activity on Arrow (AOA) or Arrow Diagramming Method Arrow to depict an activity

Constructing a Project Network Basic Rules to Follow in Developing Project Networks


Network flow typically from left to right.
An activity cannot begin until all preceding connected activities have been completed. Arrows on networks indicate precedence and flow. Arrows can cross over each other.

Each activity should have a unique identifier number.


An activity identification number must be larger than that of any activities that precedes it. Looping and conditional statements are not allowed.

Experience suggests that when there are multiple starts, a common start node can be used to indicate a clear project beginning on the network.
Similarly, a single project end node can be used to indicate a clear ending.

Constructing a Project Network How to draw a network diagram


Draw basic diagram with dependencies

Add effort
Forward Pass Backward Pass

Calculate slack / identify critical path.

Activity-on-Node (AON) AON Fundamentals


Also called Precedence Diagram Method (PDM).

Activity is represented by a node.


Dependencies among activities are depicted by arrows. Length and slope of arrows are arbitrary and set for convenience of drawing the network.

Activity-on-Node (AON) AON Fundamentals


A B C
A is preceded by nothing. B is preceded by A. C is preceded by B.

B A C

A is called Burst Activity B and C are preceded by A. B and C can start at the same time if you wish.

A C B

C is called Merge Activity A and B can begin at the same time. They need to occur simultaneously. A and B must be completed before C can begin.

C is preceded by A and B D is preceded by A and B

Activity-on-Node (AON) AON Fundamentals


Three basic relationships that must be established for activities included in a project network. The relationships can be found by answering the following three questions: Which activities must be completed immediately before this activity. These activities are called predecessor activities. Which activities must immediately follows this activity. These activities are called successor activities. Which activities can occur while this activity is taking place. These activities are called parallel or concurrent activities.

Activity-on-Node (AON) Activity-on-Node (AON) Fundamentals


Drawing the project network places the activities in the right sequence for computing start and finish times of the activities. Activity time estimates are taken from the task times in the work packages and added to the network. Performing a few simple computations allow the project manager to complete a process known as the forward and backward pass.

Activity-on-Node (AON) AON Fundamentals


Forward Pass

How soon can the activity start (Earliest Start)? How soon can the activity finish (Earliest Finish)? How soon can the project be finished (Expected Time)?
Backward Pass How late can the activity start (Late Start)? How late can the activity finish (Late Finish)? Which activities represent the Critical Path? How long can the activity be delayed (Slack or Float)?

Activity-on-Node (AON) AON Fundamentals


Forward Pass requires that you remember just three things when computing early activity times. Rule FP1: Add activity times along each path in the network. (ES + Dur = EF) Rule FP2: Carry the early finish (EF) to the next activity where it becomes its early start (ES), unless Rule FP3: The next succeeding activity is a merge activity, in which case, you select the largest early finish (EF) of all its immediate predecessor activities.

Activity-on-Node (AON) AON Fundamentals


Backward Pass requires that you remember just three things when computing late activity times. Rule BP1: Subtract activity times along each path starting with the project end activity. (LF Dur = LS) Rule BP2: Carry the late start (LS) to the preceding activity where it becomes its late finish (ES), unless Rule BP3: The next preceding activity is a burst activity, in which case, you select the smallest late start (LS) of all its immediate successor activities to establish late finish (LF).

Activity-on-Node (AON) AON Fundamentals


Determining Slack / Float When the forward and backward passes have been computed, it is possible to determine which activities can be delayed by computing slack or float.

Total slack tells us the amount of time an activity can be delayed and yet not delay the project. (Also called Project Slack).
Critical path has a slack of zero (or minimum). Slack or Float (SL) = LF EF = LS ES

Activity-on-Node (AON) AON Fundamentals


Determining Free Slack / Float An activity with free slack is unique because the activity can be delayed without delaying the ES of activities following it. (Also called Task Slack)

Defined as the difference between the EF of and activity and the ES of the successor activity.
It can never be negative.

Activity-on-Node (AON)

Activity-on-Node (AON) AON Fundamentals


When the critical path is known, it is possible to tightly manage the resources of activities on the critical path so no mistakes are made that will result in delays.

Activity-on-Node (AON) AON Example


Project represents a new business center that is to be developed and the work and services the county engineering design department must provide as it coordinates with other groups such as the business center owners and contractors.
Koll Business Center County Engineers Design Department
Activity A B C D E F G H Description Application approval Construction plans Traffic study Service availability check Staff report Commission approval Wait for construction Occupancy Predecessor None A A A B, C B, C, D F E, G Time (Days) 5 15 10 5 15 10 170 35

Activity-on-Node (AON) AON Example


B Construction plans. 15 E Staff report. 15

A Application approval. 5

C Traffic study. 10

F Commission approval. 10

G Wait for construction. 170

H Occupancy. 35

Legend
ES SL LS ID EF

D Service check. 5

Description Dur LF

Develop a Network

Activity-on-Node (AON) AON Example


5 Rule FP2 Rule FP3

20

20

35

Construction plans. 15 Rule FP1 Rule FP2

Staff report. 15 Rule FP2 Rule FP3

Rule FP3

15

20

30

30

200

200

235

Application approval. 5

Traffic study. 10

Commission approval. 10

Wait for construction. 170

Occupancy. 35

Rule FP2

Legend
ES SL LS ID EF

10

Time to complete the project = 235 days

Service check. 5

Description Dur LF

Forward Pass

Activity-on-Node (AON) AON Example


5 B 20 20 E 35 Construction plans. 5 15 20 185 Staff report. 15 200

Rule BP3 Rule FP3

Rule BP2

15

20

30

30

200

200

235

Application approval. 0 5 5 10

Traffic study. 10 20 20

Commission approval. 10 30 Rule BP1 30

Wait for construction. 170 Rule BP2 200 200

Occupancy. 35 Rule BP1 235

Rule BP3

Rule BP3

Legend
ES SL LS ID EF

10

Time to complete the project = 235 days

Service check. 15 5 20

Description Dur LF

Rule BP2

Backward Pass

Activity-on-Node (AON) AON Example


5 0 5 B 20 20 165 185 E 35 Construction plans. 15 20 Staff report. 15 200

Rule BP2 Rule FP3

0 0 0

5 5 10

15

20 0 20

30

30 0 30

200

200 0 200

235

Application approval. 5 5

Traffic study. 10 20

Commission approval. 10 30

Wait for construction. 170 Rule BP2 200

Occupancy. 35 Rule BP1 235

Rule BP3

Legend
ES SL LS ID EF

5 10 15

10

Service check. 5 20

Time to complete the project = 235 days Critical Path = A B F G H

Description Dur LF

Backward Pass

Activity-on-Node (AON) Another Example: Given the network diagram, draw bar chart.
C

5 A F

4 E

Legend
ES SL LS ID EF 1

B C D E F

Description Dur LF

Activity-on-Node (AON) Another Example: Given the network diagram, draw bar chart.
2 2 4 0 2 2 2 2 4 4 0 7 0 0 7 0 4 4 4 2 6 1 7 E 5 4 11 B 4 4 3 7 0 G 11 11 2 13 D 7 9 2 11 0 11 H 13 A 2 7 F 9 5 9 C 7

0
A
B C D E F

10

11 12 13

Legend
ES SL LS ID EF

Description Dur LF

Activity-on-Arrow (AOA) AOA Fundamentals


Also called Arrow Diagramming Method (ADM).

Activity is represented by a arrow.


Length and slope of arrows are arbitrary and set for convenience of drawing the network.

The node, usually represented by a small circle, represent an event. Events represent point in time but do not consume time.
Each activity on the network has a start and end event node.

Activity-on-Arrow (AOA) AOA Fundamentals


X 10 11 Y 12
Y is preceded by X. 10 is start event for X. 11 is the end event for X and start event for Y. 12 is the end event for Y.

5 S

U
20 T 25

U is preceded by R, S and T. R, S and T can occur concurrently if you wish. Event 20 is the merge event.

10

15

N 50 M 54 O

75

N and O are preceded by M. When M is complete, N and O can start concurrently if you wish. Event 54 is the burst event.

79

Activity-on-Arrow (AOA) AOA Fundamentals

21 F 19

E 23

G H

24

E and F must precede G and H. E and F can occur together if you wish. G and H can occur together if you wish. Event 23 is both a merge event and a burst event.

28

A 62 C 76 77 64

B 66 D 78

A must precede B. C must precede D. Path A B is independent of path C D.

Activity-on-Arrow (AOA) AOA Example


Project represents a new business center that is to be developed and the work and services the county engineering design department must provide as it coordinates with other groups such as the business center owners and contractors.
Koll Business Center County Engineers Design Department
Activity A B C D E F G H Description Application approval Construction plans Traffic study Service availability check Staff report Commission approval Wait for construction Occupancy Predecessor None A A A B, C B, C, D F E, G Time (Days) 5 15 10 5 15 10 170 35

Activity-on-Arrow (AOA) AOA Example


Activity A - Application approval B - Construction plans C - Traffic study D - Service availability check E - Staff report F - Commission approval G - Wait for construction H - Occupancy

3 B, 15 A, 5 1 2 C, 10 Y D, 5 5 F, 10 7 X 4 E, 15 6 Z G, 170 8 H, 35

Legend
ES SL EF Dur

LS

LF

Develop a Network

Activity-on-Arrow (AOA) AOA Example


5 20 15 5 15

Activity
10

3 B A 1
0 5 5

20

35 15

X C Y
10 5

A - Application approval B - Construction plans C - Traffic study D - Service availability check E - Staff report F - Commission approval G - Wait for construction H - Occupancy

2 D
5

6 Z

5
20

F
30

7
10

G, 170
30 200

H, 35
200 235

9
35

170

Legend
ES SL EF Dur

LS

LF

Forward Pass

Activity-on-Arrow (AOA) AOA Example


5 20 15 5 20 5 15

Activity
10 10 20

3 X

20

35 15

B A 1
0 5 5 0 5

A - Application approval B - Construction plans C - Traffic study D - Service availability check E - Staff report F - Commission approval G - Wait for construction H - Occupancy

185

200

2 D
5

C Y
10 5

6 Z

5
20

F
30

7
10

G, 170
30 200

H, 35
200 235

9
35

15

20
20

170
30 200 200

30

235

Legend
ES SL EF Dur

LS

LF

Backward Pass

Activity-on-Arrow (AOA) AOA Example


5 0 5 20 15 20 5 5 10 15

Activity
10 20

3 X

20 165 185

35 15 200

B A 1
0 0 0 5 5 5

A - Application approval B - Construction plans C - Traffic study D - Service availability check E - Staff report F - Commission approval G - Wait for construction H - Occupancy

2 D
5 10

C Y
10 5

6 Z

5
20

F
30

7
10
30

G
30 200

8
170
200

H
200 235

9
35
235

15

20

0
20

0
30

0
200

Legend
ES SL EF Dur

Time to complete the project = 235 days Critical Path = A B X Y F G H

LS

LF

Backward Pass

Activity-on-Arrow (AOA) Another Example: Given the network diagram, draw bar chart.
D, 3

A, 2

2 E, 4

5 G, 2 6

B, 3 3 C, 1 F, 3

4
A
B

10

11 12 13

Legend
ES SL EF Dur

C D E F G

LS

LF

Activity-on-Arrow (AOA) Another Example: Given the network diagram, draw bar chart.
7 0 2 9 2 9

D, 3

2
2

2
4

A, 2
0 0

2
2
3 3 3 2 4

5
5
3 7

E, 4
3 0 7 4 7

G, 2 6

B, 3

3 C, 1
0 5 5 1 1 6

F, 3
1
5 6

4
3 9

4
A
B

Legend
ES SL EF Dur

C D E F G

LS

LF

Comparison or AON and AOA


AON Method
AOA Method

Advantages
No dummy activities are used. Events are not used. Easy to draw if dependencies are not intense. Activity emphasis is easily understood by first level managers. CPM approach uses deterministic times to construct networks. Path tracing is simplified by activity / event numbering scheme. AOA is easier to draw if dependencies are intense. Key events or milestones can easily be triggered.

Disadvantages
Path tracing by activity number is difficult.
Network drawing and understanding are difficult when dependencies are numerous. Use of dummy activities increases data requirements.

Emphasis on events can detract from activities. Activity delays cause events and projects to be delayed.

Extended Network Techniques

The method for showing relationships among activities in the previous examples is called finish-to-start relationship because it assumes that all immediate preceding connected activities must be completed before the next activity can begin. In order to come close to the realities of projects, some useful extensions have been added, such as, laddering, use of lags and leads, and different form of relationships, other than just finish-to-start.

Extended Network Techniques


Laddering

Trench (1/3)

Trench (1/3)

Trench (1/3)

Lay Pipe (1/3)

Lay Pipe (1/3)

Lay Pipe (1/3)

Refill (1/3)

Refill (1/3)

Refill (1/3)

Extended Network Techniques


Use of Lags A lag is the minimum amount of time a dependent activity must be delayed to begin or end . The use of lags has been developed to offer greater flexibility in network construction. Use of lags with Finish-to-Start, Start-toStart, Finish-to-Finish and Start-to-Finish relationships is discussed next.

Extended Network Techniques


Lag with Start-to-Finish Relationship There are situations in which the next activity must be delayed even when the preceding activity is complete. Example: removing concrete forms cannot begin until the poured cement has cured.

Also, used when ordering materials. For example, it takes one day to place the order but 19 days to receive the goods. This ensures that activity cost is tied to placing the order only rather than charging the activity for 20 days of work.
Lag 2 Activity A Activity B

Extended Network Techniques


Lag with Start-to-Start Relationship This situation typically depicts a situation in which you can perform a portion of one activity and begin a following activity without completing the first. Example: Laying of pipeline.

Reduces the network detail and project delays by using lag relationships.
It is possible to find compression activities by changing finish-to-start relations to start-to-start relations with lags.
Trench Lay Pipe Lag 3 Lag 3 Refill

Extended Network Techniques


Lag with Finish-to-Finish Relationship The finish of one activity depends on the finish of another activity. Example: testing cannot be completing any earlier than four days after the prototype is complete. Note that this is not a finish-to-start relationship as testing of subcomponents can be done before the prototype is completed, but four days of system testing is must after a prototype is finished.

Prototype Lag 4

Testing

Extended Network Techniques


Lag with Start-to-Finish Relationship The finish of one activity depends on the start of another activity. Rarely used. Example: System documentation can not end until three days after testing has started. Here all the relevant information to complete the system documentation is produced the first three days of testing.
Testing Lag 3

Doc.

Extended Network Techniques