Chapter 6 Developing a Project Network
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Chapter 6 Developing a Project Network

Course Number: MBA 683, Fall 2009

College/University: Benedictine IL

Word Count: 838

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Developing a Project Network Chapter 6 Copyright 2007-2009 by The McGraw-Hill Companies, Inc. and John Kevin Doyle All Rights Reserved. Developing the Project Plan The Project Network A flow chart that graphically depicts the sequence, interdependencies, and start and finish times of the project job plan of activities that is the critical path through the network Provides Provides Provides the basis...

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a Developing Project Network Chapter 6 Copyright 2007-2009 by The McGraw-Hill Companies, Inc. and John Kevin Doyle All Rights Reserved. Developing the Project Plan The Project Network A flow chart that graphically depicts the sequence, interdependencies, and start and finish times of the project job plan of activities that is the critical path through the network Provides Provides Provides the basis for scheduling labor and equipment an estimate of the project's duration a basis for budgeting cash flow activities that are "critical" and should not be Highlights delayed 2 Help managers get and stay on plan From Work Package to Network WBS/Work Packages to Network 3 From Work Package to Network 4 Constructing a 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 independently and, if desired, not at the same time. A B D C 5 Constructing a 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 projectrelated activities; the shortest expected time in which the entire project can be completed. Delays on the critical path will delay completion of the entire project. C D 6 A B Constructing a Project Network Terminology Event: a point in time when an activity is started or completed. It does not consume time. Burst activity: an activity that has more than one activity immediately following it (more than one dependency arrow flowing from it). B Activity-on-Node (AON) Uses Two Approaches a node to depict an activity an arrow to depict an activity A C Activity-on-Arrow (AOA) Uses 7 D Basic Rules to Follow in Developing Project Networks 8 Networks typically flow from left to right. An activity cannot begin until all of its activities are complete. Arrows indicate precedence and flow and can cross over each other. Identify each activity with a unique number; this number must be greater than its predecessors. Looping is not allowed. Conditional statements are not allowed. Use common start and stop nodes. Activity-on-Node Fundamentals 9 Activity-on-Node Fundamentals 10 Activity-on-Node Fundamentals 11 Network Information 12 Koll Business Center Partial Network 13 Koll Business Center "Complete" Network 14 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 represent activities the critical path? How long can it be delayed? (slack or float SL) 15 Network Information 16 Activity-on-Node Network 17 Activity-on-Node Network Forward Pass 18 Forward Pass Computation Add activity times along each path in the network (ES + Duration = EF). the early finish (EF) to the next activity where it becomes its early start (ES) unless... next succeeding activity is a merge activity, in which case the largest EF of all preceding activities is selected. Carry The 19 Activity-on-Node Network Backward Pass 20 Backward Pass Computation Subtract activity times along each path in the network (LF - Duration = LS). the late start (LS) to the next activity where it becomes its late finish (LF) unless... next preceding activity is a burst activity, in which case the smallest LF of all preceding activities is selected. Carry The 21 Determining Slack (or Float) Free Slack (or Float) The amount of time an activity can be delayed without delaying connected successor activities Total Slack The amount of time an activity can be delayed without delaying the entire project The critical path is the network path(s) that has (have) the least slack in common. 22 Sensitivity of a Network The likelihood the original critical path(s) will change once the project is initiated. Function of: The number of critical paths The amount of slack across near critical activities 23 Activity-on-Node Network with Slack 24 Practical Considerations Network logic errors Activity numbering Use of computers to develop networks Calendar dates Multiple starts and multiple projects 25 Illogical Loop 26 Air Control Project 27 Air Control Project 28 Extended Network Techniques to Come Close to Reality Laddering Activities are broken into segments so the following activity can begin sooner and not delay the work. The minimum amount of time a dependent activity must be delayed to begin or end Lengthy activities are broken down to reduce the delay in the start of successor activities. Lags can be used to constrain finish-to-start, startto-start, finish-to-finish, start-to-finish, or combination relationships. Lags 29 Example of Laddering Using Finish-to-Start Relationship 30 Use of Lags Finish-to-Start Relationship 31 Use of Lags Start-to-Start Relationship 32 Use of Lags Use of Lags to Reduce Detail 33 New Product Development Process 34 Use of Lags Finish-to-Finish Relationship Start-to-Finish Relationship 35 Network Using Lags 36 Hammock Activities Hammock Activity An activity that spans over a segment of a project Duration of hammock activities is determined after the network plan is drawn. Hammock activities are used to aggregate sections of the project to facilitate getting the right amount of detail for specific sections of a project. 37 Hammock Activity Example 38

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