QAM Chapter11 Project Management
QAM Chapter11 Project Management
Project
Management
To accompany
Quantitative Analysis for Management, Twelfth Edition,
by Render, Stair, Hanna and Hale
Power Point slides created by Jeff Heyl Copyright ©2015 Pearson Education, Inc.
LEARNING OBJECTIVES
After completing this chapter, students will be able to:
IMMEDIATE
ACTIVITY DESCRIPTION
PREDECESSORS
A Build internal components —
B Modify roof and floor —
C Construct collection stack A
D Pour concrete and install frame B
E Build high-temperature burner C
F Install control system C
G Install air pollution device D, E
H Inspect and test F, G
A C F
Build Internal Construct Install Control
Components Collection Stack System
E H
Start Build Burner Inspect Finish
and Test
B D G
Modify Roof Pour Concrete Install Pollution
and Floor and Install Frame Device
Probability of 1 in 100
of a Occurring
Probability
Probability of 1 in 100
of b Occurring
Activity Time
Most Most Most
Optimistic Likely Pessimistic
Time Time Time
(a) (m) (b)
A 2 C 2 F 3
E 4 H 2
Start Finish
B 3 D 4 G 5
A t=2
ES = 0 EF = 0 + 2 = 2
Start
B t=3
ES = 0 EF = 0 + 3 = 3
A 2 C 2 F 3
0 2 2 4 4 7
E 4 H 2
Start 4 8 13 15 Finish
B 3 D 4 G 5
0 3 3 7 8 13
A 2 C 2 F 3
0 2 2 4 4 7
E 4 H 2
Start 4 8 13 15 Finish
B 3 D 4 G 5
0 3 3 7 8 13
A 2 C 2 F 3
0 2 2 4 4 7
0 2 2 4 10 13
E 4 H 2
Start 4 8 13 15 Finish
4 8 13 15
B 3 D 4 G 5
0 3 3 7 8 13
1 4 4 8 8 13
A 2 C 2 F 3
0 2 2 4 4 7
0 2 2 4 10 13
E 4 H 2
Start 4 8 13 15 Finish
4 8 13 15
B 3 D 4 G 5
0 3 3 7 8 13
1 4 4 8 8 13
15 Weeks
Expected Completion Time
Probability
(T ≤ 16 Weeks)
Is 71.6%
15 16 Time
Weeks Weeks
D
Activity
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Copyright ©2015 Pearson Education, Inc. Week 11 – 47
Budgeting for General Foundry
TABLE 11.5 – Activity Cost for General Foundry, Inc.
WEEK
ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 TOTAL
A 11 11 22
B 10 10 10 30
C 13 13 26
D 12 12 12 12 48
E 14 14 14 14 56
F 10 10 10 30
G 16 16 16 16 16 80
H 8 8 16
308
Total to date 21 42 65 90 126 162 198 212 228 244 260 276 292 300 308
WEEK
ACTIVITY 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 TOTAL
A 11 11 22
B 10 10 10 30
C 13 13 26
D 12 12 12 12 48
E 14 14 14 14 56
F 10 10 10 30
G 16 16 16 16 16 80
H 8 8 16
308
Total to date 11 32 55 78 104 130 156 182 198 214 240 266 292 300 308
200,000 –
Budget Using
Latest Start
150,000 –
Times, LS
100,000 –
50,000 –
| | | | | | | | | | | | | | |
0– 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Weeks
VALUE OF
TOTAL WORK ACTIVITY
BUDGETED PERCENT OF COMPLETED ACTUAL DIFFERENCE
ACTIVITY COST ($) COMPLETION ($) COST ($) ($)
A 22,000 100
22,000 20,000 –2,000
B 30,000 100
30,000 36,000 6,000
C 26,000 100
26,000 26,000 0
D 48,000 10
4,800 6,000 1,200
E 56,000 20
11,200 20,000 8,800
F 30,000 20
6,000 4,000 –2,000
G 80,000 0
0 Overrun
0 0
CopyrightH©2015 Pearson
16,000
Education, Inc. 0
0 0 0 11 – 55
Project Crashing
• Projects will sometimes have deadlines that
are impossible to meet using normal
procedures
• By using exceptional methods it may be
possible to finish the project in less time
• Costs usually increase
• Reducing a project’s completion time is called
crashing
Activity
Cost
Crash
$30,000 — Normal
Normal —
Cost
| | |
1 2 3 Time (Weeks)
Crash Time Normal Time
Copyright ©2015 Pearson Education, Inc. 11 – 62
Project Crashing with
Linear Programming
• Linear programming can be used to find the best
project crashing schedule
• Decision variables for General Foundry
A 2 C 2 F 3
Start E 4 H 2 Finish
B 3 D 4 G 5
YA ≤ 1 YE ≤ 2 Xfinish ≤ 12
YB ≤ 2 YF ≤ 1
YC ≤ 1 YG ≤ 3
YD ≤ 1 YH ≤ 1
Copyright ©2015 Pearson Education, Inc. 11 – 65
Project Crashing with
Linear Programming
Constraints Describing the Network
EF time ≥ EF time for predecessor + Activity time
EF ≥ EFpredecessor + (t – Y), or X ≥ Xpredecessor + (t
– Y)
For activity A, XA ≥ Xstart + (2 – YA) or XA – Xstart + YA ≥ 2
For activity B, XB ≥ Xstart + (3 – YB) or XB – Xstart + YB ≥ 3
For activity C, XC ≥ XA + (2 – YC) or XC – XA + YC ≥ 2
For activity D, XD ≥ XB + (4 – YD) or XD – XB + YD ≥ 4
For activity E, XE ≥ XC + (4 – YE) or XE – XC + YE ≥ 4
For activity F, XF ≥ XC + (3 – YF) or XF – XC + YF ≥ 3
For activity G, XG ≥ XD + (5 – YG) or XG – XD + YG ≥ 5
For activity G, XG ≥ XE + (5 – YG) or XG – XE + YG ≥ 5
For activity H, XH ≥ XF + (2 – YH) or XH – XF + YH ≥ 2
For activity H, XH ≥ XG + (2 – YH) or XH – XG + YH ≥ 2
H finished Xfinish ≥ XH
Copyright ©2015 Pearson Education, Inc. 11 – 66
Project Crashing with
Linear Programming
GRAM 11.2 – Solution to Crashing Problem via Solver in Excel