More Related Content
Similar to PMNM101 Lesson 2 2022.pptx (20)
More from SydneyJaydeanKhanyil (6)
Recently uploaded (20)
PMNM101 Lesson 2 2022.pptx
- 1. Module: Project Management Code: PMNM101
- 2. PART TWO: PROJECT COSTS AND SCHEDULES
- 3. Learning Outcomes a) Estimate a Project time and cost b)Use chart and network techniques to schedule a project: - Draw a GANTT chart - Construct an AON network (PERT) - Calculate activity times - Determine the critical path and time - Determine the float (slack) c) Analyse changes in project constraints and the cost of making adjustments.
- 4. Estimate a Project Time and Cost Time and cost are the two of the three major project constraints. The three constraints or dimensions have serious effect on the success of a project. This section will explore different scheduling techniques used in project management from small to complex projects. It will further analyse the project resource requirements: project cost and cashflow.
- 5. SCHEDULING After the WBS process, scheduling the work elements is the most important step in planning as it becomes the basis for: Allocating resources Executing work Tracking project performance Finishing on time Schedules show the timing for work elements and when specific events and project milestone should take place.
- 6. SCHEDULING Contd Events and Milestones: Events represent the start or finish of something. Event signifies a moment in time, an instant when something happens. In projects there are two kinds of events: Interface and milestone. An interface event is the completion of one task and simultaneous start of one or more subsequent tasks. A milestone event signifies a major project occurrence such as completion of a phase or several critical or difficult tasks, approval of something important, or availability of crucial resources. It signifies progress, therefore it measures performance
- 7. Kinds of Schedules There are two kinds of schedules: project schedule and task schedule A project schedule (or project master schedule) plans and reviews the entire project. It shows the major project activities without much details about each. Top managers develop project master schedule. A task schedule shows the specific activities necessary to complete a work package. A task schedule is created for people working on a specific task and enables lower level managers or supervisors to focus on the task and not to be distracted by other tasks with which they have no interactions. Task schedules are prepared by functional managers or sub-contractors. NB: Task and project schedules are displayed in many ways including Gantt charts and project networks.
- 8. PROJECT SCHEDULE: TIME MANAGEMENT The project needs to be completed on time. It then consists of five major processes: 1. Activity definition: specify the activity to be accomplished 2. Activity sequencing: Identify dependencies among activities 3. Duration estimation: Estimate the time needed to complete each activity 4. Schedule development: Analyse activities sequences and durations, and resource availability to develop a realistic and achievable schedule. 5. Schedule control: maintain the project schedule
- 9. PROJECT SCHEDULE: TIME MANAGEMENT Contd Activity sequencing An activity-on-node network may have four types of logical relationships: Finish-to-start Finish-to-finish Start-to-start Start-to-finish A project critical path is the network path with the longest duration. It determines the shortest total duration of a project. Any delay on critical path will delay the project completion time.
- 10. CHART AND DIAGRAM USED IN PROJECT SCHEDULING Chart and diagram mostly used in project scheduling: Gantt chart: simplest to use and display activities plotted as bars or lines on a timeline. It cannot show logical relationships between activities. PERT (programme evaluation and review techniques): complex Determination of the critical path EF=ES+AD LS=LF-AD A slack is the time that an activity may delay without delaying the project s end date. Slack= LF-EF or LS-ES
- 11. GANTT CHARTS The simplest and most commonly used scheduling technique is the Gantt chart (or bar chart) developed by Henry Gantt. It was easily adopted in industry and today it is used in a variety of ways. The Gantt chart consists of a horizontal scale divided into time units (days, weeks, months, etc.) and vertical schedule showing project work elements (task, activities, or work packages). The preparation of the Gantt chart comes after a WBS analysis and identification of work packages or other tasks.
- 12. Gantt chart and Calendar The following must be considered before presenting the Gantt chart: Workdays Rest days Holidays Training Number of calendars
- 13. Milestone Gantt Chart Gantt Chart
- 14. Advantages and Disadvantage of Gantt Chart Advantages: it is often maintained manually, and better for small project, but a burden and disadvantage in large project. It requires a software for a large project in its creation and update: assuming input data is accurate and updated, computer-generated Gantt charts can be updated frequently to display progress. Disadvantages: The Gantt chart does not necessary show the relationships among work elements It does not reveal the effect of a work element falling behind schedule on other work elements as certain work elements must be completed by a specific date for the project to be completed on target.
- 15. Program Evaluation and Review Techniques: Networks Diagrams Network methods show interdependencies and what happens to the project when resources change or individual activities are delayed. A network diagram shows a group of activities or tasks and their logical relationships. e.g.: precedence relationship or dependency. It describes a project in terms of sequences of activities and events. Two common methods for constructing network diagrams are: activity-on-node (AON) also called precedence programming method (PDM) and activity-on-arrow (AOA)
- 16. EXERCISE Construct the activity-on-the-node project network diagrams for the project defined below: ACTIVITY PRECEDING (FROM) ACTIVITY SUCCEEDING (TO) ACTIVITY A _ C,E B _ D C A D D B,C F E A,G F F D,E _ G _ E ESTIMATED DURATION (WORK-DAYS) 3 5 3 10 8 14 7
- 18. Critical path may change Network: assume I is preceding by E and will take 16 to complete CP=G+E+I =7+8+16
- 19. EXERCISE CONTD CRITCAL PATH ACTIVITY DURATION (WORK-DAYS) EARLY START EARLY FINISH= EARLY START+DURATION LATE START= LATE FINISH- DURATION LATE FINISH SLACK= LATE FINISH-EARLY FINISH OR LATE START-EARLY START K 2 0 2 0 2 0 L 2 2 4 2 4 0 M 2 4 6 4 6 0 N 4 0 4 1 5 1 P 1 4 5 5 6 1
- 20. Build a network for this manufacturing project: Calculate and comment on the critical path ACTIVITY IMMEDIATE PREDECESSORS DURATION (Weeks) A - 3 B - 4 C A,B 3 D A,B 5 E C,D 5 F C 4 G D,E 6 H F,G 3
- 21. Introduction to Project Resources Resources include (information, human, physical and financial): Skilled workers Machinery Equipment Working capital These resources dictate whether activities will be completed on time or delayed.
- 22. Allocation of Resources 1. Identifying and assigning resources to activities so that the project is undertaken using appropriate levels of resources and within an acceptable duration. 2. Usage and availability of resources are the major problem areas for managers. 3. The project resource schedule is important because it serves as time baseline of the project. 4. Resource allocation, smoothing (dont go beyond resource requirement), levelling and scheduling are techniques used to determine and manage appropriate levels of resources.
- 23. Allocation of resources Contd Two cases where the project schedule must accommodate resources: resource levelling in time constrained and resource constrained project. Resource levelling: there is enough resource to complete the project on time, but the amount of resource needed fluctuates drastically. The objective is to balance or level the resource needed throughout the project. Resource constrained project: there is no enough resource to do multiple activities at once in adjusting the schedule to accommodate the constraint.