A Look Ahead We will now turn our attention to several tools and techniques associated with Project Time Management First, we will consider: PERT & CPM Historical Perspective Overview of Sequencing Techniques ADM: Arrow Diagramming Method Determining the Critical Path • download ADM_Class_Example.doc Strategic Project Management SPM Basic PERT/CPM (Part 1) 1 A Look Ahead (continued) After that, we will continue our exploration of tools and techniques by considering: The Concept of Float download ADM_Float_Calcs.xls Probabilistic Activity Duration Estimates download ADM_Mean_Variance.xls Probabilistic Project Completion download ADM_Standard_Normal_Table.xls Strategic Project Management SPM Basic PERT/CPM (Part 1) 2 PERT/CPM Some History PERT was first used in the late 1950’s by the Navy for the Polaris Missile Program PERT => Project Evaluation & Review Technique Development was in conjunction with the consulting firm of Booz, Allen, and Hamilton Development was designed to meet the needs of the “age of massive engineering” The Navy was concerned with performance trends on large military projects. Strategic Project Management SPM Basic PERT/CPM (Part 1) 3 PERT/CPM Some History (continued) Virtually simultaneously CPM was developed by the duPont Company and Remington-Rand-Univac. CPM => Critical Path Method For use on large construction projects Specifically targeted for process industries The two groups were unaware of each other's existence until about 1960. By then, each stood on its own merits Strategic Project Management SPM Basic PERT/CPM (Part 1) 4 PERT/CPM Some History (continued) PERT’s strengths are in its use of probabilistic estimates of activity durations CPM’s strengths are in its ability to do “time-cost trade-offs” Today, PERT/CPM are widely recognized as comprising one set of techniques the differences are primarily viewed as only of historical importance Strategic Project Management SPM Basic PERT/CPM (Part 1) 5 Activity Sequencing Display Techniques There are many suitable techniques for displaying the sequence of activities involved in a project Gantt Charts Precedence Diagramming Arrow Diagramming Conditional Diagrams Strategic Project Management SPM Basic PERT/CPM (Part 1) 6 Gantt Charts Gantt charts use horizontal bars (or lines) to represent activities Gantt charts are more commonly used for schedule display than activity sequencing see BOK Figure 6-6 (1996 & 2000) for an example length of the bars show expected duration activity inter-relationships are not explicitly shown we will see Gantt Charts again when we consider Resource Loading & Leveling Strategic Project Management SPM Basic PERT/CPM (Part 1) 7 The Precedence Diagramming Method The Precedence Diagramming Method (PDM) uses boxes to represent activities and arrows to represent dependencies see BOK Figure 6-2 (1996 & 2000 for an example This technique is also known as the Activity-on-Node (AON) Diagramming Strategic Project Management SPM Basic PERT/CPM (Part 1) 8 More on PDM Dependencies can include: Finish-to-Start Finish-to-Finish Start-to-Start Start-to-Finish Dependencies are usually indicated by the placement of the arrow heads and tails relative to the nodes but no consistent approach has been universally adopted. Looping and Conditional Branching is not allowed Strategic Project Management SPM Basic PERT/CPM (Part 1) 9 The Arrow Diagramming Method (ADM) The Arrow Diagramming Method (ADM) uses the following conventions: Arrows represent activities "Regular" activities require time and resources "Dummy" activities show precedence relationships Nodes represent events A point in time Some nodes may represent milestone events see BOK Figure 6-3 (1996 & 2000) for an example Strategic Project Management SPM Basic PERT/CPM (Part 1) 10 More on ADM Also known as Activity-on-Arrow (AOA) Each activity is represented by one and only one arrow in the network. Nodes (events) are numbered uniquely. Duplicate node numbers are not allowed No two activities can be identified by the same beginning and ending nodes. Dummy activities may be required Strategic Project Management SPM Basic PERT/CPM (Part 1) 11 More on ADM (continued) Before an activity can begin, all activities terminating at the activities beginning node must be completed. Neither the length of an activity arrow nor its “compass” direction have any significance. Networks should (must) have only one initial event and one terminal event. Strategic Project Management SPM Basic PERT/CPM (Part 1) 12 An Example to Try: Draw an Arrow Diagram A project consists of Activities A, B, C, D, E, F, G, H, I, J, K, and L A, B, and C, the 1st activities of the project, can start simultaneously A and B precede D B precedes E, F, and H F and C precede G E and H precede I and J C, D, F, and J precede K K precedes L I, G, and L are terminal activities for the project Strategic Project Management SPM Basic PERT/CPM (Part 1) 13 Let’s Examine the Example Solution Solution to be shown in class. Strategic Project Management SPM Basic PERT/CPM (Part 1) 14 Conclusion of Sequencing Techniques We’ll return to ADM in just a few minutes but first let’s complete the set of sequencing techniques by considering Conditional Diagramming Strategic Project Management SPM Basic PERT/CPM (Part 1) 15 Conditional Diagramming Conditional Diagramming methods allow for probabilistic activities and looping neither of these are allowed in traditional PDM or ADM Conditional diagramming techniques include Graphical Evaluation and Review Technique (GERT) and System Dynamics these are beyond the scope of this course Strategic Project Management SPM Basic PERT/CPM (Part 1) 16 Activity Durations The next logical step in Project Time Management is to determine activity durations. We are going to defer a detailed discussion of estimating activity durations until later in the course. At this point we need to introduce the concept of the Critical Path of a project. Strategic Project Management SPM Basic PERT/CPM (Part 1) 17 The Concept of the Critical Path The determination of the start and completion time of each activity on the network diagram requires a special calculation procedure. This approach classifies each activity as either critical or non-critical. The approach is commonly known as the Critical Path Method Strategic Project Management SPM Basic PERT/CPM (Part 1) 18 The Concept of the Critical Path (continued) A delay in the start or completion of a critical path activity will cause a delay in the completion of the entire project. Non-critical path activities can absorb some delay in start or completion without impacting project completion. The amount of delay which can be absorbed is known as slack or float. Strategic Project Management SPM Basic PERT/CPM (Part 1) 19 The Concept of the Critical Path (continued) There will always be at least one sequence of activities from the initial node to the terminal node that is made up entirely of critical activities. This is known as the Critical Path of the Project. Any delay of a critical path activity will delay the completion of the project. Strategic Project Management SPM Basic PERT/CPM (Part 1) 20 The Concept of the Critical Path (continued) The critical path defines the minimal completion time for the project. Multiple critical paths are possible. Complete multiple critical paths two or more critical paths exist from the initial node to the terminal node of the project. • rare in uncrashed networks, common in fully crashed Partial multiple critical paths two or more sets of parallel activities are critical over some segment of the project. • relatively common Strategic Project Management SPM Basic PERT/CPM (Part 1) 21 Determining the Critical Path The critical path is found by a two phase methodology after activity durations have been determined. A “forward pass” is made through the network diagram to determine the earliest start time for each node. A “backward pass” is made through the network to determine the latest completion time for each node. Strategic Project Management SPM Basic PERT/CPM (Part 1) 22 Determining the Critical Path (continued) This is best illustrated through an example. Mathematical details in SPM_PERT&CPM_Math An ADM diagram for a project is shown on the following page the activities themselves are not labeled, we will use the (start node, end node) pair to uniquely identify activities (e.g., (0,1)) duration estimates are indicated Strategic Project Management SPM Basic PERT/CPM (Part 1) 23 Class Example Critical Path Calculations 4 2 5 2 3 7 0 6 5 3 2 6 3 2 1 Strategic Project Management 3 2 SPM Basic PERT/CPM (Part 1) 24 Forward Pass and Backward Pass Solution to be shown in class. Strategic Project Management SPM Basic PERT/CPM (Part 1) 25 The Critical Path An activity lies on the critical path if it meets the three following conditions: The earliest start and latest completion for the activity’s terminal node are equal; The earliest start and latest completion for the activity’s initial node are equal; The difference between the earliest start of the terminal node and the earliest start of the initial node is the activity duration. Strategic Project Management SPM Basic PERT/CPM (Part 1) 26 The Critical Path (continued) Let’s re-examine the example for the critical path. Solution to be shown in class. Strategic Project Management SPM Basic PERT/CPM (Part 1) 27