OM 300 Chapter 3
What are the steps for using CPM/PERT techniques?
1. Define the project and prepare the work breakdown structure 2. Develop relationships among activities (decide which activities must precede and which must follow) 3. Draw the network connecting all activities 4. Assign duration and/or cost estimate to each activity 5. Compute the longest path through activities with no slack time in the network (called the critical path) 6. Use the network to help plan, schedule, monitor and control the project
What are the advantages of CPM/PERT techniques?
1. Especially useful when scheduling and controlling large projects 2. Straightforward concept and not mathematically complex 3. Graphical networks help highlight relationships among project activities 4. Critical path and slack time analysis help pinpoint activities that need to be closely monitored 5. Project documentation and graphics point out who is responsible for various activities 6. Applicable to a wide variety of projects 7. Useful in monitoring schedules and costs
What are the three primary activities involved in managing a project?
1. Planning goal setting, defining the project, team organization 2. Scheduling relate people, money, and supplies to specific activities and activities to each other 3. Controlling monitor resources, costs, quality, and budgets; revise plans and shift resources to meet time and cost demands
What are the disadvantages of CPM/PERT techniques
1. Project activities clearly defined, independent and stable in their relationships 2. Precedence relationships must be specified and networked together 3. Time estimates tend to be subjective and are subject to fudging my managers 4. There is an inherent danger of too much emphasis being placed on the longest or critical path
What are the responsibilities of a project manager and what types of ethical issues could arise?
1. Responsibilities All necessary activities are finished in order and on time Project comes within budget Project meets quality goals Motivate, direct and inform project personnel 2. Ethical Issues Offers of gifts from contractors Pressure to alter status reports to mask delays False reports for charges of time and expenses Pressure to compromise quality to meet schedules
The crash cost per period
1. is the difference in costs divided by the difference in times (crash and normal) 2. is considered to be linear in the range between normal and crash 3. needs to be determined so that the smallest cost values on the critical path can be considered for time reduction first
What is the main difference between using a Gantt chart versus using the CPM/PERT techniques?
Each use a different estimate of activity durations
Global company profile: Bechtel
International workforce, construction professionals, cooks, medical personnel, security Strategic value of time-based competition Quality mandate for continual improvement
Slack time equals
LS - ES
What is the main difference between CPM and PERT techniques?
PERT employs three time estimates for each activity CPM makes the assumption that activity times are known with certainty and requires only one time factor for each activity
Calculate the probability of project completion
Project Variance = Sum(variances of activities on critical path)
Define and explain the steps associated with project crashing
Step 1: Compute the crash cost per time period. If crash costs are linear over time: (Crash cost - Normal cost) / (Normal time - Crash time) Step 2: Using current activity times, find the critical path and identify the critical activities Step 3: If only one critical path, select the activity on the critical path that (a) can still be crashed, and (b) has the smallest crash cost per period. Compute the crash cost per time period. If there is more than one critical path, the select one activity from each critical path such that (a) each selected activity can still be crashed, and (b) the total crash cost of all select activities is the smallest.
The critical path of a network is the
longest-time path through the network
PERT analysis computes the variance of the total project completion time as
the sum of variances of all activities on the critical path
What is a Gantt chart?
visual devices that show the duration of activities in a project