PROJECT MANAGEMENT & ECONOMICS

SESSIONS 20 & 21 Scheduling

4. SCHEDULING
Determines how company resources should be integrated. Important for projecting time-phased resource utilisation requirements. Provides a basis for visually tracking performance. Serves as a master plan for information.
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Preparation of Schedules
Identify all major events and dates clearly. Establish number of activities and level of breakdown structure.

Define sequence of work through a network where interrelationships between events can be identified. Relate schedules directly to WBS.
Identify time constraints and resources required for each event.
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

The intended audience for the schedule?

Most organisations develop multiple schedules:
Provide a means to authorise and control manpower, inventory investment, and cash flow. Co-ordinate marketing, manufacturing, engineering, and finance activities Provides an overall measure of performance material and capacity planning

1. Summary schedules: for management and planners

2. Detailed schedules: for doers and lower-level control Provides data for
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Primary objective of scheduling:

To co-ordinate activities in the master plan To complete the project within time, cost, and least risk.

Secondary objectives of scheduling:

Studying alternatives Developing an optimal schedule Using resources effectively Communicating Refining the estimating criteria Obtaining good project control Providing for easy revisions

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

The Master Schedule

Provides top management with a means to authorise and control manpower levels, inventory investment, and cash flow. Co-ordinate marketing, manufacturing, engineering, and finance activities
Provides an overall measure of performance Provides data for material and capacity planning
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Components of the Program Master Schedule

An appropriate scheduling system: bar charts milestone charts network

A listing of activities at the project level or lower The possible interrelationships between activities, this can be accomplished by logic networks, critical path networks, or PERT network. Activity time estimates
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

SCHEDULING TECHNIQUES
Most common techniques: 1. Gantt or bar charts 2. Milestone charts 3. Networks Programme Evaluation and Review Technique (PERT) The Critical Path Method (CPM)
On-the-Arrow-Diagram Method On-the-Node-Diagram Method or Precedence Diagram Method

4. Line of balance
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

1. BAR CHARTS
Time

The oldest, simplest planning, scheduling and contracting technique. Represents the time period allocated to the various tasks or activities. An activity is a task or closely related group of tasks whose performance contributes to completion of the overall project. Activities are entered down the side in chronological order.
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Operatio n
Excavation Sub-structure

ADVANTAGES
Easily understood Extremely useful for comparing planned and actual progress Easy and quick to prepare Require less revision and updating than other more sophisticated systems.

DISADVANTAGES
Logical interconnections are difficult to comprehend. Difficult to reconstruct the logic and recognise sequence constraints Difficult to use for forecasting the effects that changes in a particular activity will have on the overall schedule, or even to project the progress of an individual activity.
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

2. The Program Evaluation and Review Technique (PERT) & The Critical Path Method (CPM)
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Characteristics
A powerful analytical tool for project planning and control.
Based on the rigorous application of logic network. PERT Originally developed in 1958 and 1959

Introduced by the Special Projects Office of the U.S. Navy on the Polaris Weapon System in 1958
At the same time the DuPont Company initiated the Critical Path Method (CPM) technique. This particularly concentrated in the construction and process industries.
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

ADVANTAGES
Reveals interdependencies and problem areas i.e. determines where the greatest effort should be made Can determine the probabilities of meeting a specified deadlines by development of alternative plans. Ability to evaluate the effect of changes in the programme. Allows a large amount of sophisticated data to be presented in a well-organised diagram.

DISADVANTAGES
Can become very complex More data is required for the analysis Expensive to maintain Best for large, complex programmes Complicated for repetitive tasks

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Differences between PERT and CPM

PERT
Uses three time estimates
Optimistic, Most-likely,
Pessimistic

CPM
Uses one time estimate

Probabilistic in nature, allows us to calculate the risk in completing the project. Used in R&D projects where risks in calculating time durations have a high variability.
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Deterministic in nature

Used for construction projects that resource dependent and based on accurate time estimates

Basic Requirements
All tasks must be visualised in a manner clear enough to be put down in a network which comprises events and activities; i.e. follow the work breakdown structure. Events and activities must be sequenced under a highly logical set of ground rules. Time estimates must be made for each activity on the network. Critical path and float times are computed
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Dependencies
Three types: 1. Mandatory dependencies- hard logic: dependencies that cannot change 2. Discretionary dependencies- soft logic: may be at the discretion of the project manager, may change from one project to another 3. External dependencies- may be beyond the control of the project manager.
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

NETWORK FUNDAMENTALS
A network provides the following information: Interdependencies of activities Project completion time Impact of late starts Impact of early starts Trade-offs between resources and time What if exercises Cost of a crash programme Slippages in planning/performance Evaluation of performance
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Network Fundamentals
Networks are composed of events and activities An event is the starting or ending point for a group of activities An activity is the work required to proceed from one event to another.

EVENT

ACTIVITY

EVENT

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Start of activity i EVENT Start of activity 3 Job description

Finish of activity j EVENT Finish of activity Well testing 7 days

Duration

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Constructing the Network

Defining the sequence of events: Logical flow of work is established by asking the following questions: What job/s immediately precede this one? What job/s immediately follow this one? What job/s can be done concurrently? The answers to these questions are compounded in an arrow diagram.
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Constructing the network

Excavate Erect formwork Pour concrete

1
Rough plumbing Plaster walls

Burst point

Sink

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Constructing the network

Length & shape of the arrow does not give any significant information of the activity or to the resources it consumes. Until or unless all activities, leading to an event are completed, the event is not completed. No activity can start until the proceeding events are completed. Time Flows from left to right. The activity is identified by its start and finish events number.
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Dummies
D D
Dummy

D i E j E

Dummy

Real dummy A C

10

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Draw the following logic: D depends on A and B, and C depends on A

A
B C D

Dummy B D

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

EXERCISE
Activities A, B, and C can start together. Once B is complete, D can start. E can start when A is complete, and F can start when A and D are

complete. G and H can start when B and C are

complete, and J when E, F and G are complete. Draw the network and number the nodes.

DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

Once B is complete, D can start A, B, and C can start together Once A is complete, E can start

F can start when A and D are complete G and H can start when B and C are complete

J can start when E, F and G are complete

C 4
DR ASSEM AL-HAJJ, Univation, RGU Project Management and Economics. SITP-SPDC, NIGERIA

G H