Network Planning Methods Example PERT &CPM : Saint Pauls Hospital

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Terms Used in Project Management

Activity : A certain amount of work or task required in the project Activity duration: In CPM the best estimate of time to complete an activity . In PERT the expected time or average time to complete an activity Critical activity : An activity that has no room for schedule slippages : if it slips the entire the entire project completion will slip. An activity with zero slack
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

 Critical path: The chain of critical activities for the project .The longest path through the network Dummy activity :An activity that consumes no time but shows precedence among activities Earliest finish (EF): The earliest that an activity can finish from the beginning of the project Earliest start ( ES): The earliest that an activity can start from the beginning of the project

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

 Event :A beginning , a completion point ,or a milestone accomplishment within the project . An activity begins and ends with events Latest finish (LF) : The latest that an activity can finish from the beginning of the project Latest start (LS) :The latest that an activity can start from the beginning of the project Most likely time ( t m) : The time for completing the activity that is is the consensus best estimate, used in PERT
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

 Optimistic Time (to): The time for completing an activity if all goes well : used in PERT Pessimistic Time (tp): The time for completing an activity if bad luck is encountered : used in PERT Predecessor activity : An activity that must occur before another activity . Slack : The amount of time that an activity or group of activities can slip without causing a delay in the completion of the project Successor activity : An activity that must occur after another activity
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Conventions used in drawing network diagrams (Arrows & Circles ) Activity on Arrow (AOA) : The activities are denoted by
Arrows and events are denoted by circles Activity on Node(AON) : Activities are denoted by circles(or nodes) and the precedence relation ships between activities are indicated by arrows

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

PERT / CPM
Network planning methods that generate:
Relationship between activities Project duration Critical path Slack for non critical activities Crashing (cost / time trade-offs) Resource usage

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

St. Pauls Hospital

Activity A B C D E F G H I J K Description Immediate Predecessor(s) A B B A C D A E,G,H F,I,J Select administrative and medical staff. Select site and do site survey. Select equipment. Prepare final construction plans and layout. Bring utilities to the site. Interview applicants and fill positions in nursing, support staff, maintenance, and security. Purchase and take delivery of equipment. Construct the hospital. Develop an information system. Install the equipment. Train nurses and support staff.
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

St. Pauls Hospital

Activity A B C D E F G H I J K AON Network Description I Immediate Predecessor(s) A B B A C D A E,G,H F,I,J Select administrative and medical staff. Select site and do site survey. A F K Select equipment. Prepare final construction plans and layout. Bring utilities to the site. Start Finish C fill positions G Interview applicants and in nursing, support staff, maintenance, and security. Purchase and take delivery of equipment. D B hospital. H J Construct the Develop an information system. Install the equipment. E staff. Train nurses and support
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

St. Pauls Hospital

Completion Time I Activity Description 15 A B C D E F G H I J K Immediate Predecessor(s) A B B A C D A E,G,H F,I,J Select administrative and medical staff. A do site survey. F K Select site and 12 10 9 Select equipment. Prepare final construction plans and layout. C G BringStart utilities to the site. Finish 10 35 Interview applicants and fill positions in nursing, support staff, maintenance, and security. B D H J Purchase and take delivery of equipment. 9 10 40 4 Construct the hospital. Develop an information system. E Install the equipment. 24 Train nurses and support staff.
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

A-I-K 36 A-F-K 31 Critical Immediate Completion Time A-C-G-J-K 70 Path I Activity Description Predecessor(s) B-D-H-J-K 72 15 B-E-J-K 46 A Select administrative and medical staff. B Select site site survey. A and do F K 10 9 C Select 12 equipment. A D Prepare final construction plans and layout. B E Bring utilities to the site. G B C Start Finish F Interview applicants positions in nursing, 10 and fill 35 support staff, maintenance, and security. A G Purchase C B and take Ddelivery of H equipment. J 9 the hospital. 10 40 4 H Construct D I Develop an information system. A J Install the equipment. E,G,H E K Train nurses and 24 support staff. F,I,J
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

St. Pauls Hospital

Path

Expected Time (wks)

Critical Path
The longest path in the network Defines the shortest time project can be completed Critical path activity delay project delay

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Earliest Start and Earliest Finish

Begin at starting event and work forward ES is earliest start
ES = 0 for starting activities ES = Maximum EF of all predecessors for non-starting activities Activity Name

ES
LS

EF
LF

EF is earliest finish
EF = ES + Activity time Activity Duration

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Earliest Start / Earliest Finish

I
15 A 12 F 10 C G 35 H 40 J 4 K 9

Start
10

Finish

B
9

D 10 E 24
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Earliest Start / Earliest Finish

12 I 27

Earliest start time

0 A 12

15
12 F 22

Earliest finish time

63 K 72

12

10
12 C 22

9
22 G 57

Start

Critical path
0 B 9

10
9 D 19

35
19 H 59 59 J 63

Finish

10
9 E 33

40

24
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Latest Start and Latest Finish

Begin at ending event and work backward LF is latest finish
LF = Maximum EF for ending activities LF = Minimum LS of all successors for non-ending activities Activity Name

ES

EF

LS is latest start
LS = LF Activity time

LS
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Activity Duration

LF

2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Latest Start / Latest Finish

Latest start time
0 2 12 I 27 48 63

15

Latest finish time

63 K 72 63 72

A 12 12
14

12 F 22 53 63

10

Start

Critical path
0 0

12 C 22 14 24

10

22 G 57 24 59

35

Finish

B 9 9
9

9 D 19 9 19

10

19 H 59 19 59

40

59 J 63 59 63

9 E 33 35 59

24

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What do you notice about ES/LS & EF/LF?

2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Activity Slack Analysis

Slack = LS ES Latest start time or A Slack = LF12 EF
0 2 12 14 12 I 27 48 63

15

Latest finish time

63 K 72 63 72

12 F 22 53 63

10

Start Slack 63 = 010 K = 63 Critical

12 C 22 14 24

22 G 57 24 59

35

Finish

or
0 0

path
B 9
9 D 19 9 19 19 H 59 19 59 59 J 63 59 63

SlackK = 72 9 9 72 = 010

40

9 E 33 35 59

24

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Activity Slack Analysis

Node Duration ES Latest start time A B C D E F Start G H I J K 12 9 10 10 24 10 35 40 15 4 6
0 2

LS

12 I 27 48Slack 63

15

Latest finish time

63 K 72 63 72

0 0

0 2 0 0 A 12 1214 14 12 9 9 9 35 12 53 22 24 Critical 19 19 path 12 48 B 9 59 59 63 9 63

9

2 0 12 F 22 53 2 63 10 0 26 41 12 C 22 14 2 24 10 0 36 0 19 9 D 9 0 19
10

22 G 57 24 59

35

Finish

19 H 59 19 59

40

59 J 63 59 63

Activity slack = maximum delay time

Critical 24 path activities have zero slack

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

9 E 33 35 59

Activity Slack
How much would we like to reduce the time for activity B?
B 25
25 35 25 10 35 5 20 10 15 25

5 0 5 0 5 5

5 20 25

Start

Finish

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Activity Times & Project Times

3 activity time estimates
Optimistic times (a) Most-likely time (m) Pessimistic time (b)

Follow beta distribution Expected time: t = (a + 4m + b) / 6 Variance of times: v = (b - a)2 / 6

Expected project time: T = sum of critical path activity times, t Project variance: V = sum of critical path activity variances
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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Completion Time for Noncritical Activities

Variability of times for activities on non-critical paths must be considered when determining the probability of finishing in a specified time. Variation in non-critical activity may cause change in critical path.

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Cost / Time Trade-offs

Most activities can be done faster if you pay more money
Work overtime / hire more people / rent extra equipment / incentive contracts PERT / CPM have the ability to crash a schedule to shorten activity time in a network to reduce project completion time.

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2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458

Cost / Time Relationship

8000

Crash cost
Activity B

Direct cost (dollars)

7000 6000 5000

Normal cost

4000
3000 0 | 5 | 6 | 7 8 | 9 | 10 | 11

Crash time

3-24

Normal time

2004 by Prentice Hall, Inc., Upper Saddle River, N.J. 07458