PE 511 Project Management

‫ إدارة مشاري ع‬511 ‫ـه نف‬

Chapter Six
Developing a Project Plan
Spring 2023

1
 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 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
• Help managers get and stay on plan.

Project Schedule Management

6.2 Activity Sequencing (from PMBOK)
Inputs Tools and Techniques Outputs
1. Project Scope 1. Precedence Diagramming 1. Project schedule
Statement Method DPM (also called network diagrams
2. Activity list Activity-On-Node) 2. Activity list (updates)
3. Activity attributes 2. Arrow Diagramming 3. Activity attributes
4. Milestone list Method (ADM) (updates)
5. Approved change 3. Schedule network 4. Requested Changes
requests templates
4. Dependency determination
5. Applying leads and lags

2
 6

From Work Package to Network

WBS/Work Packages to Network

FIGURE 6.1 →
7

3
From Work Package to Network (cont’d)
WBS/Work Packages to Network (cont’d)
This diagram is using
several work packages
in its network. Some
work packages can be
done in parallel while
others have a FS
relationship, creating a
linear pattern.

Duration is in
Weeks
FIGURE 6.1 (cont’d)
8

Constructing a Project Network

• Terminology
– Activity: an element of the A
project that requires time.
– Merge activity: an activity B D
that has two or more preceding
activities on which it depends.
– Parallel (concurrent) C
activities: Activities that can
occur independently and, if
desired, not at the same time.

4
Constructing a Project Network (cont’d)
• 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;
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

A B D
(Assumes that minimum of A + B > minimum of C in length of times to complete activities.)
10

Constructing a Project Network (cont’d)

• 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
• Two Approaches:
– Activity-on-Node (AON)
A C
• Uses a node to depict an activity
– Activity-on-Arrow (AOA)
• Uses an arrow to depict an activity. D

11

5
 Basic Rules to Follow in Developing
Project Networks
• 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.
12

Activity-on-Node (AON) Fundamentals

1. Activities that must be completed immediately before
an activity are called predecessor activities.
2. Activities that must follow immediately after an activity
are called successor activities.
3. Activities that can occur while an activity is take place is
known as a concurrent or parallel relationship.

13

6
Activity-on-Node Fundamentals (cont’d)

14

Activity-on-Node Fundamentals (cont’d)

15

7
 Network Information

16

Koll Business Center—Partial Network

17

8
Koll Business Center—Complete Network

18

Network Computation Process

1. Activity time estimates are taken from the work
package duration estimates and aggregated up as total
time for that network “node.”
2. A forward pass detects the earliest start ES and earliest
finish EF times of each activity to determine the earliest
that the project can be finished.
3. A backward pass detects the latest start LS and the
latest finish LF times of each activity in the network.

19

9
Network Computation Process (cont’d)
• 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 (CP)?
– How long can it be delayed? (slack or float—SL)
20

Network Information

265

21

10
 Activity-on-Node Network

22

Activity-on-Node Network Forward Pass

23

11
 Forward Pass Computation
• Add activity times along each path in the network
(ES + Duration = EF).
• Carry the early finish (EF) to the next activity where it
becomes its early start (ES) unless .…
• The next succeeding activity is a merge activity, in
which case the largest EF of all preceding activities is
selected.

24

Activity-on-Node Network Backward Pass

25

12
 Backward Pass Computation
• Subtract activity times along each path in the network
(LF - Duration = LS).
• Carry the late start (LS) to the next activity where it
becomes its late finish (LF) unless ....
• The next succeeding activity is a burst activity, in
which case the smallest LF of all preceding activities is
selected.

26

Determining Slack (or Float)

• When the forward and backward passes are computed,
you will be able to determine which activities can be
delayed without affecting the critical path and without
delaying the project.
• To determine an activity slack, simply subtract the ES
from LS or EF from LF – both will yield the same answer.

In this example, activity “C” has an early

start ES of 5 and an early finish EF of 10.
Subtract ES from EF and you learn that
activity “C” has a float of 5 weeks.
27

13
 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
• Maximum float = Latest Finish – Earliest Start - Duration

28

• Activity-6 as free slack of 15 time units.

Example • Activity-4 has free slack of 18 time units.
29

14
 Determining Slack (or Float) (cont’d)
• Free slack occurs at the end of a chain of activities before a
merge occurs.
• Notice that activities 6 and 4 are at the end of a chain
before merging into activity-7. (4, 5, and 6 all merge into 7)
• Consider also that any activity or all activities in the chain
can take advantage of the free float.
• We know that Activity-6 has a free slack/float of 15 time
units. That means activities 2, 3, and 6 can all share in that
float. If each of those tasks float, totaling 15 time units, the
successor activity (7) early start will not been affected.

30

Determining Slack (or Float) (cont’d)

• The critical path is the network path(s) that has (have)
the least slack in common.
• After the network is originally developed, an element is
on the critical path if the slack is 0.

31

15
 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

32

Activity-on-Node Network with Slack

33

16
 Practical Considerations
• Network logic errors
• Activity numbering
• Use of computers to develop networks
• Calendar dates
• Multiple starts and multiple projects

34

Illogical Loop

35

17
 Air Control Project – Network Diagram

36

Air Control Project (cont’d) – Gantt Chart

37

18
 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.

• Example: Laying pipe requires that the trench must be dug,

pipe laid, and the trench refilled. If the pipeline is 1-mile long,
it is not necessary to dig on mile of trench before pipe laying
can begin.
• It is also true that once the pipe is in place, refilling the trench
can also begin.

39

Example of Laddering Using

Finish-to-Start Relationship

• In this ladder network, all activities have been broken into

segments of 1/3.
• After 1/3 of the trench has been dug, the pipe laying begins.
• After 1/3 of the pipe laying is completed, the trench refilling
begins.
40

19
 Extended Network Techniques
to Come Close to Reality
• Lags
– 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, start-to-start,
finish-to-finish, start-to-finish, or combination relationships.
• During this lag, no work can occur or be charged to account
code.
• The project manager normally must justify lags.

41

Use of Lags
Finish-to-Start Relationship

Start-to-Start Relationship

42

20
Use of Lags (cont’d)

Use of Lags to Reduce Detail

43

New Product
Development Process
44

21
Use of Lags (cont’d)

Finish-to-Finish
Relationship

Start-to-Finish
Relationship

45

Network Using Lags

46

22
 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.

47

Hammock Activity Example

49

23
 Key Terms
Activity Gantt chart
Activity-on-arrow (AOA) Hammock activity
Activity-on-node (AON) Lag relationship
Burst activity Merge activity
Concurrent engineering Network sensitivity
Critical path Parallel activity
Early and late times Slack/float—total and free

50

Activity-on-Arrow Network
Building Blocks

51

24
Activity-on-Arrow Network Fundamentals

FIGURE A

52

Activity-on-Arrow Network Fundamentals

FIGURE A (cont’d)

53

25
Koll Center Project: Network Information

54

Partial Koll Business Center

AOA Network

55

26
 Partial AOA Koll Network

FIGURE B →

56

Partial AOA Koll Network (cont’d)

FIGURE B (cont’d)

57

27
Activity-on-Arrow Network

58

Activity-on-Arrow Network
Forward Pass

59

28
 Activity-on-Arrow Network
Backward Pass

60

Activity-on-Arrow Network Backward

Pass, Forward Pass, and Slack

61

29
Air Control Inc. Custom Order Project—
AOA Network Diagram

62

Comparison of AON and AOA Methods

63

30
 Chapter 6 Completed

HW# 4
[Due Saturday, May 27, 2023]

Problems: 6.3, 6.4, 6.8 & 6.12

[Pages 191, 192 & 194]
from “Project Management: The Managerial Process” book, by:
Erik W. Larson, Clifford F. Gray, 7th Edition, McGraw-Hill/Irwin
series, 2018. [ISBN 978-1-259-66609-4]

31