Chapter 6
Developing a Project Plan
Luck favors to a prepared mind…..
Louis Pasteur
Developing a Project Plan
The biggest and important part of a project plan
is establishing the project network
Project Network
• The project network is the tool for planning, scheduling
and monitoring project progress.
• The project network presents a graphic display of the
flow and sequence of work through the project
• Provides the basis for scheduling labor and
equipment
• Provides an estimate of the project’s duration
• Provides a basis for budgeting cash flow
• Highlights activities that are “critical” and should
not be delayed
Project Network
• The project networks are developed from the WBS
Project Network
• The project networks are developed from the WBS
Project Network
• The project networks are developed from the WBS
Project Network - Terminology
• Activity: an element of the
project that requires time.
• Merge activity: an activity
that has two or more preceding
activities on which it depends.
• Parallel (concurrent)
activities: Activities that can
occur at the same time if
desired.
A
B
C
D
Project Network - Terminology
• Path: a sequence of connected, dependent
activities.
• Critical path: the longest path through the
activity network that allows for the completion
of all project-related activities;
C
A
B
D
Project Network - Terminology
Burst activity: an activity that has more than
one activity immediately following it (more
than one dependency arrow flowing from it)
B
A
C
D
Basic Rules in Developing Project Networks
• Networks typically flow from left to right.
• An activity cannot begin until all of its preceding
activities are complete.
• Arrows indicate precedence and flow and can cross
over each other.
• Looping is not allowed.
Basic Rules in Developing Project Networks
Basic Rules in Developing Project Networks
Project Networks – Prototype Example
This project is about preparing initial project plan regarding
with building a new business center
Project Networks – Prototype Example
Partial Network
Project Networks – Prototype Example
Complete Network
Project Networks – Prototype Example
This project is about preparing initial project plan regarding
with building a new business center
Project Networks – Prototype Example
Network Computation Process
• Forward Pass—Earliest Times
• How soon can the activity start? (early start—ES)
• How soon can the activity finish? (early finish—EF)
• How soon can the project finish? (expected time-ET)
• Backward Pass—Latest Times
• How late can the activity start? (late start—LS)
• How late can the activity finish? (late finish—LF)
• Which activities represent the critical path?
• How long can it be delayed? (slack or float—SL)
EF
Project Networks – Prototype Example
ES
ID
SL
Description
B
E
LS
Dur LF
Construction
plans
Staff Report
A
C
F
Application
approval
Traffic
Study
Comission
approval
H
Occupancy
G
D
Service
Check
Wait for
Construction
EF
Project Networks – Prototype Example
ES
ID
SL
Description
B
E
LS
Dur LF
Construction
plans
Staff Report
15
15
A
C
F
Application
approval
Traffic Study
Comission
approval
5
10
H
Occupancy
35
10
G
D
Wait for
Construction
Service
Check
170
5
ES
ID
EF
SL
Description
LS
Dur LF
0 A 5
Prototype Example- Forward Pass
5
B
20 E
20
35
Construction
plans
Staff Report
15
15
5 C 15
20 F
200 H
30
Application
approval
Traffic Study
Comission
approval
5
10
10
Occupancy
35
30
5
D
10
Service Check
5
235
G
200
Wait for
Construction
170
ES
ID
EF
SL
Description
LS
Dur LF
Prototype Example-Backward Pass
5
15 20
5 C 15
Application
approval
0 5 5
20
20
Traffic Study
10 10 20
E
35
Staff Report
Construction
plans
5
0 A 5
B
185 15
20 F
200
200 H
30
Occupancy
Comission
approval
200 35
20 10 30
30
5
D
10
Service Check
15 5
20
235
G
200
Wait for
Construction
30
170
200
235
Prototype Example-Slack (Float)
Total Slack
The amount of time an activity can
be delayed without delaying the
entire project