project management unit VI project and DQ question

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UnitVI.pdf

MBA 6961, Project Management 1

Course Learning Outcomes for Unit VI Upon completion of this unit, students should be able to:

8. Examine a variety of constraints that can negatively affect project planning. 8.1 Construct the critical path for a project schedule, and outline the steps that can be employed to

reduce the critical path. 8.2 Construct precedence diagrams, duration tables, network diagrams, Gantt charts, and activity-

on-node (AON) networks. 8.3 Identify the trade-offs required in the decision to crash project activities.

Reading Assignment Chapter 9: Project Scheduling: Networks, Duration Estimation, and Critical Path, pp. 296–322 Chapter 10: Project Scheduling: Lagging, Crashing, and Activity Networks, pp. 330–356

Unit Lesson Introduction In today’s organizations, projects play a critical role in delivering value to the sustainability and growth of the enterprise. For the most part, much of the project’s success is because of tactical and strategic management decisions based on historical project outcomes. Project time frames and schedules are closely interrelated with the strategic direction of the business. Business executives must determine specific time frames for the completion of project activities. It is well known that the individual who holds the schedule controls the project. Project managers (PMs) base scheduling on proper planning to effectively and efficiently achieve project goals. Project scheduling enables the planning of time and activity sequences to accomplish tasks according to the set time frames. When a project lacks a schedule or plan, it is like a ship without a rudder. No specific time frames or objectives exist. A PM must start with a list of project activities that need to take place to complete the project. As an example, if one opens a computer consulting business, the list of activities might include finding an office location, considering and interviewing prospective employees, hiring and training technicians, coming up with a marketing plan, and putting together a sales plan. Determining the proper sequence of the activities that must take place is important within the activity network to compensate for overlap and over-allocation of resources. A PM can complete this sequencing by asking a few basic questions:

 What are the serial activities?

 Are there concurrent activities?

 Are there any activities with two or more predecessors? If so, can they be merged?

 Are there any activities with two or more immediate successor activities? Several methodologies are available to PMs to help in scheduling. Two of the most widely used methods are the critical path method (CPM) and the program evaluation and review technique (PERT). CPM and PERT share many similarities in their approach to the point where many PMs refer to them interchangeably. For purposes of this lesson, the information offered will apply to both techniques. To facilitate PERT/CPM, we will employ Gantt charts and activity-on-arrow (AOA) techniques, and activity-on-node (AON) techniques. Program Evaluation and Review Technique/Critical Path Method

UNIT VI STUDY GUIDE

Project Scheduling

MBA 6961, Project Management 2

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The CPM/PERT methodology applies when a PM identifies the sequence of activities that are taking the longest time frame to complete. This approach also defines the total project time completion. The total length it takes to complete a sequence of activities is determined by calculating the critical path and adding up the projected time that each activity will take on that path. PMs need to calculate the longest path in an activity network to identify the total time to complete the project as this governs successful completion of the project. CPM/PERT, if applied correctly, minimizes the uncertainty often present in project activities. If anything delays an activity for any reason, the PM can apply slack or float time between activities. However, if the PM is not careful, and activities have extreme delays, taking the available slack or float time, it may affect the entire project. CPM/PERT was designed to provide PMs with the ability to monitor, control, assess, and identify risks associated with on-time project completion. Gantt Charts A popular tool for planning and scheduling projects graphically is a Gantt chart. The common name for a Gantt chart is a bar chart. Gantt charts offer a simplistic depiction, allowing the PM to schedule activities he or she needs to have performed at a given time and then monitor the progress of those activities to ensure that no delays have occurred in the system. Gantt charts facilitate the drawing of the duration for each activity and offer a visual representation of starting and finishing times as well as overlapping projects. One of the drawbacks of the Gantt chart is that it does not take into consideration the availability of resources. It assumes that management will ensure that appropriate and sufficient resources are available. Activity-on-Arrow (AOA) and Activity-on-Node (AON) AOA and AON network diagramming depict project activities and the order in which they should occur. In the AOA diagram, the arrows represent activities, and they show the sequence of those activities and their predecessors (Pinto, 2016). The arrow in an AOA diagram can only represent one activity. Conversely, nodes designate activities in the AON. An AON diagram begins with a starting node, and the arrows show only the sequence of the activities that must be performed (Pinto, 2016). The nodes, in this instance, are indicative of the activities. Deciding which method to use is really a matter of choice. Having knowledge of both methods is essential. Crashing Quite often, PMs need to complete projects sooner than their projected time frames. Crashing is a term used when the PM reduces the total time to complete a project (Pinto, 2016). Crashing entails applying more resources to an activity or activities to get them completed quicker. When crashing a project, the PM must understand the opportunity in terms of cost and time. The crash time is the reduced length of time an activity will take to complete. The crash cost is the additional cost it will take to complete an activity in the reduced time versus the original projected time. Crashing a project entails the PM assuming that normal time and cost are based on normal working conditions and practices to provide accurate crash time and cost estimates. Pinto (2016) articulates that when considering crashing a project, “the goal is to find the point at which time and cost trade-offs are optimized” (p. 343). A very important component of crashing that the PM needs to keep in mind is that a direct correlation exists in the decision of crashing a project and the impact on the project’s budget. Example 10.1 on page 344 in the textbook explains how to calculate the cost of crashing a project.

CORE CONCEPTS

The decision of crashing an activity must “be weighed against the time saved in expediting the activity’s schedule” (Pinto, 2016, p. 346).

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Conclusion Organizations depend on the efficient completion of projects (both in cost and time) for sustainability and growth. The successful completion of projects relies on the accurate time and cost estimates of project activities. PMs must effectively apply project management scheduling methodologies, as discussed in this unit, and tools to stay on schedule and on budget.

Reference Pinto, J. K. (2016). Project management: Achieving competitive advantage (4th ed.). Boston, MA: Pearson.