Planning

Interdependent

Scheduling Budgeting
 Scheduling is all
about the time
frame!!!

 Knowing how much time a team has to complete a

project makes it easier for the project manager to allocate
tasks and get things done.

 Therefore, many project managers rely on project

schedules to set timeframe parameters for projects.
Source: www.ehow.com
 Importance of Project Schedules

• Managers often cite delivering projects on time as

one of their biggest challenges
• Time has the least amount of flexibility; it passes no
matter what
• Schedule issues are the main reason for conflicts on
projects, especially during the second half of projects

4
How to prepare Project Schedule??

Typical
PERT/CPM formats/methods Gantt
Networks of preparing a Charts
Project Schedule
 PERT/CPM Networks
Convenient analytical and visual techniques of project
scheduling which have proven to be extremely valuable in
assisting the PM in managing the projects.
PERT stands for Project Evaluation and Review
Technique developed in late 1950’s by the US Navy. The technique was
developed and used in conjunction with the planning and designing of the
Polaris missile project.

CPM stands for Critical Path Method which was developed (also in
late 1950’s) by DuPont Company and applied first to the construction projects in
the chemical industry.
 Difference between PERT/CPM Networks
PERT and CPM are very similar in their approach. However, two
distinctions are usually made:

PERT CPM
In PERT, three estimates are used to
In CPM, there is only one
form a weighted average of the
estimate of duration.
expected completion time, based on
Therefore, CPM is a
a probability distribution of
deterministic tool.
completion times. Therefore, PERT is
considered a probabilistic tool.

PERT is basically a tool for planning CPM can be used to control the time
and control of time, with no ability of and at the same time allows an
cost estimation. explicit estimate of the project cost.
 Similarities between PERT/CPM Networks
• Both methods employed networks to schedule and display task
sequences.
• Both methods identified a critical path of tasks that could not be
delayed without delaying the project.
• Both methods identified activities with slack (or float ) that could
be somewhat delayed without extending the time required to
complete the project.

While PERT and CPM used slightly different ways of drawing the
network of activities, anything one could do with PERT, one
could also do with CPM and vice versa. Therefore, in our
syllabus, we use the term “PERT/CPM” when referring to
scheduling network analysis.
 The Framework of PERT/CPM
PERT and CPM both follow 6 basic steps:

Define the project and prepare the WBS

Develop the relationships among the activities/tasks. Decide

which activities must precede and which must follow others

Draw the network connecting all the activities

Assign time/or cost estimates to each activities

Compute the longest time path through the

network. This is called the critical path

Use network to help plan, schedule,

monitor and control the project
 First….must understand the ‘language’ of
PERT/CPM
Activity — A task or set of tasks required by the project. Activities
use resources and time.
Event — An identifiable state resulting from the completion of
one or more activities
 Events consume no resources or time. Before an
event can be achieved or realized , all its predecessor
activities must be completed.
Network — A diagram of nodes connected by arrows that defines the
project and illustrates the technological relationships of all
activities.
 Networks are usually drawn with a “ Start ” node on the left and a
“Finish” node on the right. Arrows show the direction of
precedence, that is, from predecessors to successors.

Source: Mantel Jr. et al. (2011)

Project Network Diagram: Arrows & Nodes
 Project Network Diagram

AOA AON
(activity-on-arrow) (activity-on-node)
• Activity as arrows • Activity as node
• Events as nodes • Arrows only use to show
• Usually associated with PERT, technological link/relationship
therefore AOA a.k.a. ‘PERT • Usually associated with CPM,
Network Diagram’ therefore AON a.k.a. ‘CPM
Network Diagram’
 Example 1: Understanding AOA & AON
Question: Draw an AON network and an AOA network for the project below.
Task/ Activity Predecessor
a -
b -
c a
d b
e b
f c, d
g e

Solution 1: AON network ending nodes

S a c F
t i
f n Dummy
a
r d i ending node
t b s or dummy
h activity
e g
Source: Mantel Jr. et al. (2011)
 Example 1: Understanding AOA & AON
Question: Draw an AON network and an AOA network for the project below.
Task/ Activity Predecessor
a -
b -
c a
d b
e b
f c, d
g e
Solution 2: AOA network Dummy task
c c
1 3
1 3
f
a f F a
i S F
S
t
n OR t d i
i a n
a 4 i
d s r b
r 2 4 s
t
b 2
h t
e g
h
e g
5 Source: Mantel Jr. et al. (2011)
 Exercise
Milwaukee paper Manufacturing Inc. has long been delaying the expense of
installing air pollution control equipment in its facility. The environmental
Protection Agency (EPA) has recently given the manufacturer 16 weeks to
install a complex air filter system. The company has been warned that it may
be forced to close the facility unless the device is installed in the allocated
time. The Plant Manager wants to make sure that installation of the filtering
system progress smoothly on time. He has identified 8 activities that need to
be performed in order for the project to be completed, as in Table below:

Draw a) an AON network diagram and b) an AOA network diagram for the
project
Source: techsci.msun.edu
Solution (AON network diagram)

Source: techsci.msun.edu
Solution (AOA network diagram)

Source: techsci.msun.edu
 Finding Critical Path & Critical Time
Activity Predecessor Duration (Days)
a - 5
b - 4
c a 3
d a 4
e a 6
f b,c 4
g d 5
h d,e 6
i f 6
j g,h 4
 47
• Does this means that the project needs 47 days to complete activities a to j?
• Then, how do we know how long it will take to complete these activities??

Critical Path Analysis!!!

To find the critical path, we calculate two distinct starting and
ending times for each activity, as defined below:

• Earliest Start Time (ES) = earliest time at which an activity can

start, assuming all predecessors have
been completed. Earliest
• Earliest Finish Time (EF) = earliest time at which an activity can time (TE)
be finished.

• Latest Start Time (LS) = latest time at which an activity can

start so as to not delay the completion
time of entire project. Latest
• Latest Finish Time (LF) = latest time by which an activity has to
finish so as not to delay the time (TL)
completion time of the entire project.
Notations used in nodes for critical path analysis…

Forward Pass Process

OR

Backward Pass Process

 5 9 9 14 Usually is assumed
as the project’s due
d 4 g 5 Critical time
date

7 11 12 17 17 21

j 4
0 5 5 11 11 17 F
17 21 i
a 5 e 6 h 6 n
a – e – h – j : critical path
i
0 5 5 11 11 17
12 18 s
h
5 8
S i 6
t c 3 8 12
a 15 21
r 8 11 f 4
t
11 15
0 4
b 4
7 11
• Activities on the critical path cannot be delayed, because it
will cause the entire project to be delayed.
What about activities not
on the critical path? Can
they be delayed without
causing delay to the entire
project?

Yes, they can be delayed,

but with a certain limit. The
amount of time a noncritical
path can be delayed without
delaying a project is known
as float or slack
 Float = Slack = LS – ES = LF - EF

For any activity on critical path, LF = EF.

 Float/ Slack for activities on critical path = 0

But for any activity NOT on the critical path, LF  EF (and LS  ES)
 This difference causes the activity float or slack
 5 9 9 14
d 4 g 5 Critical time
7 11 12 17 17 21

j 4
0 5 5 11 11 17 F
17 21 i
a 5 e 6 h 6 n
a – e – h – j : critical path
i
0 5 5 11 11 17
12 18 s
h
5 8
S i 6
t c 3 8 12
a 15 21
r 8 11 f 4 Float
t 0
11 15
0 4 7
3
b 4 2
0
7 11 3
3
0
Float = Slack = LS – ES = LF - EF 3
0
 Exercise
Referring to the AON network diagram drawn in the previous exercise on the
Milwaukee Paper Project, a) calculate the float/ slack for each activity
b) determine the critical path and indicate it on the diagram c) determine the
critical time (project completion time).

Solution for a)
 Gantt Chart
• A GANTT chart is a type of bar chart that illustrates a
project schedule.
• After the PERT/CPM analysis is completed, the
following phase is to construct the GANTT chart and
then to re-allocate resources and re-schedule if
necessary.
• GANTT charts have become a common technique for
representing the phases and activities of a project
work breakdown structure.
• It was introduced by Henry Gantt around 1910 –
1915.

Source: Maria Petridou

Gantt Chart : Example 1
Gantt Chart: Example 2
Gantt Chart: Example 3
 Characteristics of a Gantt Chart
– The bar in each row identifies the corresponding task
– The horizontal position of the bar identifies start and end times
of the task
– Bar length represents the duration of the task
– Task durations can be compared easily
– Good for allocating resources and re-scheduling
– Precedence relationships can be represented using arrows
– Critical activities are usually highlighted
– Slack times are represented using bars with doted lines
– The bar of each activity begins at the activity earliest start time
(ES)
– The bar of each activity ends at the activity latest finish time (LF).

Source: Maria Petridou

 Gantt Chart: Advantages/Disadvantages

 Advantages
 Simple
 Good visual communication to others
 Task durations can be compared easily
 Good for scheduling resources

 Disadvantages
 Dependencies are more difficult to visualise
 Minor changes in data can cause major changes in the chart

Source: Maria Petridou

 Constructing Gantt Chart

• The steps to construct a GANTT chart from the information

obtained by PERT/CPM are:
1. Schedule the critical tasks in the correct position.
2. Place the time windows in which the non-critical tasks can be
scheduled.
3. Indicate precedence relationships between tasks.

Source: Maria Petridou

 Constructing Gantt Chart
• Example of an early GANTT chart construction:

Step 1. Schedule critical tasks:

Source: Maria Petridou

 Constructing Gantt Chart
• Example of an early GANTT chart construction:

Step 2: Place time windows for non-critical tasks

Source: Maria Petridou

 Constructing Gantt Chart
• Example of an early GANTT chart construction:

Step 3. Indicate precedence relationships between tasks:

Source: Maria Petridou