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OPSM 639, C. Akkan 1 Network Planning Purposes of network planning Determine the intended timing of activities Determine the estimates of resource requirements Develop of comprehensible “picture” of the project. Take a proactive approach in order to prevent errors Minimize the effects of uncertainties on the project’s success factors. Note that timing and resources interact.
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OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

Mar 31, 2015

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Page 1: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 1

Network Planning

• Purposes of network planning– Determine the intended timing of activities

– Determine the estimates of resource requirements

– Develop of comprehensible “picture” of the project.

– Take a proactive approach in order to prevent errors

– Minimize the effects of uncertainties on the project’s success factors.

• Note that timing and resources interact.

Page 2: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 2

Network Planning

• The fundamental element of time planning is developing a project network.

• The network depicts the tasks and the logical precedence structure between these activities.

Page 3: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 3

Time Planning

A

B

B

B

A

A

Types of precedence relations between activities:

Finish - Start: One task cannot start until the other has finished.

Start - Start: Unless one of the tasks has started the other cannot start.

Start- Start with time lag: A certain time has to pass after one task has started until the other starts.

Page 4: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 4

Time Planning

• Let’s assume the following represent finish-start precedence relation:

Task Immediate predecessors A - B A C B, D D - E D F E

Page 5: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 5

Time Planning

• The following is called an activity-on-node network diagram (or PERT diagram)

Start

A

D

C

E

B

Finish

F

Page 6: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 6

Time Planning

Time11

A, 3

B, 5

D, 2

C, 3

E, 2

F, 5

Bar (Gantt) chart:A

B

C

D

E

F

Page 7: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 7

Developing Project Network

• Developing a network takes time (thus costs money). Is it worth it?– Provides a graphic display of the flow and sequence of

work that is easy to understand.

– Provides the basis for scheduling and resource planning.

– Yields a realistic estimate for total project time.

– Easy to update when unexpected events occur.

– Helps identify critical activities (whose delay will most probably delay the entire project).

Page 8: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 8

Developing Project Network

Level 1 - Milestone Plan

ABCDE

Time

WP1WP2WP3WP4

Level 4

Level 2 - Plans

Level 3 - PlansM1 M2 M3 M4

Page 9: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 9

Developing Project Network

• Integrating WBS and the network is crucial.• The hierarchical nature of WBS allows different

levels of managers to “visualize” the project plan at different levels of detail.– The milestone plan, in the form of a bar chart, shows

the level of detail useful for top management, showing only the major deliverables.

– Work-packages are used to develop a detailed network for the first-line managers.

Page 10: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 10

Developing Project Network

• Not only time, but also cost and resource plans can be “rolled up” from the work-package level to the top level.– Deliverables and sub-deliverable in WBS must be

designed so that after roll-up managers at different levels can obtain plans/reports that can be useful for them.

Page 11: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 11

Developing Project Network

• Network terminology– Activity: Element of a project that takes time. Usually one or more

work packages.

– Merge activity: Activity with more than one immediate predecessor activity.

– Burst activity: Activity with more than one immediate successor activity.

– Parallel activities: Activities that can take place simultaneously.

– Path: A sequence of connected activities.

– Critical path: Longest path(s) through the network

– Event: Represents a point in time.

Page 12: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 12

Developing Project Network

1

2 4

5

6

7

3

8

9

10

110

Rules:

•draw networks from left to right

•Each activity has a unique identification number

•An activity’s identification nbr should be larger than the activities’ preceding it.

•Loops (cycles) are not allowed.

•Conditional statement (e.g. if this happens then …) are not allowed.

•If there are multiple start or finish activities, a common start or finish node is used.

Page 13: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 13

Developing Project Network

• Laddering – Consider a pipe laying project. Three basic activities:

• dig a trench, lay the pipe, refill the trench

– Let’s say the pipeline is 5 km long: You cannot dig the entire trench before laying the pipe.

Trench Lay pipe Refill

Page 14: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 14

Developing Project Network

– Instead:break activities into segments and “ladder” them

Trench 1/3

Lay pipe 1/3

Trench 1/3

Trench 1/3

Lay pipe 1/3

Lay pipe 1/3

Refill 1/3

Refill 1/3

Refill 1/3

Page 15: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 15

Developing Project Network

• Calculating the earliest and latest times (numbers in the nodes represent activity durations):

Start

A,3

D,2

C,3

E,2

B,5

Finish

F,5

Page 16: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 16

Developing Project Network

Start

A

D

C

E

B

Finish

F

Time11

A, 3 B, 5

D, 2

C, 3

E, 2 F, 5

Total slack (float) for an activity = LS - ES(or LF - EF)

Free slack:Amount an activity can be delayed without delaying early-start (ES) of activities following it.

Page 17: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 17

Using Time Lags

• A lag is the minimum amount of time a dependent activity must be delayed to begin or end.

• Uses for start-to-start time lags– Instead of using laddering.

– Concurrent engineering practice that compresses the total product development time.

• Uses for finish-to-start time lags – Modelling ordering of parts: 1 day takes to place to order, 14 days

to receive it.

• Uses for finish-to-finish time lags – Painting multiple layers.

Page 18: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 18

Using Time Lags

• It is possible to have multiple time-lags attached to a pair of activities.– Usually an start-to-start and finish-to-finish

• Network calculations with time lags– forward and backward pass procedures are the same as

the ones for finish-to-start case with no time lags.• Difference is in checking the time lag relationships’ effects on

the activities’ times.

Page 19: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 19

Forward Pass with Time Lags

Start

A,3

D,2

C,3

E,2

B,5

Finish

F,5

Lag 2

Lag 6

Lag 10

0 2

2 5

Would be 0 with no lag.

5 10

2 4 4 10

Would be 9 with no lag.

2 ?

Would be 5 with no lag.

0

Page 20: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 20

Backward Pass with Time Lags

Start

A,3

D,2

C,3

E,2

B,5

Finish

F,5

Lag 2

Lag 6

Lag 10

? 7

2 5 5 10

7 9 10 15

Would be ? with no lag.

15

12 15

0 2

2 5 5 10

2 4 4 10

2 ?

0

?

Would be ? with no lag.

Page 21: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 21

Estimating Activity Times

• Guidelines – Responsibility:

• at the work-package level estimates should be made by person(s) most familiar with the task.

• Those responsible for getting the job done on schedule should determine the estimated times.

– They will have less bias due to imposed deadlines.

– Their judgement will be based on experience.

– They will do their best to materialize their estimates.

Page 22: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 22

Estimating Activity Times

– Normal conditions:• Estimates should be based on normal conditions,

efficient methods and a normal level of resources.

• A consensus is required in the organization as to what “normal conditions” mean.

– Time Units:• All task time estimates need consistent time units.

• In practice “workday” is the most frequent choice. Other alternatives:

– calendar days, workweeks, minutes, shifts

Page 23: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 23

Estimating Activity Times

– Independence:• Estimators should treat the task as independent of

other tasks in the WBS.• Top managers tend to aggregate many tasks into one

estimate and “deduce” the durations of individual tasks from this aggregate. It is better to obtain estimates from first-line managers who consider tasks independently.

• If tasks are in a chain, opportunity should not be given to modification of estimates so that total chain time meets an arbitrary schedule (imposed).

Page 24: OPSM 639, C. Akkan1 Network Planning Purposes of network planning –Determine the intended timing of activities –Determine the estimates of resource requirements.

OPSM 639, C. Akkan 24

Estimating Activity Times

– Contingencies• Work package estimates should not include

allowances for contingencies.

– Estimate errors• The project management culture should allow

estimate mistakes and errors to occur.– Punishment leads to future estimates being inflated.

– Trust in the project management culture will results in more realistic estimates.