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Agribusiness Project Management

July 2017
Session 4
Project Schedule Planning and Controlling
(continuation)

Project schedule compression and optimization


methods (fast tracking and crashing).
Resource conflicts and their resolution methods.
Critical Chain Project Management method.
Project Schedule Compression and
Optimization Methods

Fast tracking and Crashing


Fast Tracking

Finish to Start

10 8
Task A Task B

Task B cannot start until A is finished


Fast Tracking

Finish to Start

1 10 10 11 8 18
Task A Task B

Total duration 18 days

Task B cannot start until A is finished


Fast Tracking

Start to Start

10
Task A

8
Task B
Lag: 4 days

Task B can start 4 days after Task A is started


Fast Tracking

Start to Start

1 10 10
Task A

5 8 12
Task B
Lag: 4 days

Total duration 12 days

Task B can start 4 days after Task A is started


Fast Tracking

1 10 10 11 8 18 19 12 30 31 20 50
Task A Task B Task C Task D

Total duration 50 days


Fast Tracking

1 10 10
Task A

5 8 12
Task B
Lag: 4 days 11 12 22
Task C
Lag: 6 days 18 20 37
Task D
Lag: 7 days

Total duration 37 days


Fast Tracking

Pros Cons

No extra cost Increases risk


Reduces project time Network is more sensitive
Requires more communication
Laddering

Dig Ditch Lay Pipe Cover Ditch


Laddering

Dig Ditch Dig Ditch Dig Ditch


A B C
Day 1 Day 2 Day 3

Lay Pipe Lay Pipe Lay Pipe


A B C
Day 4 Day 5 Day 6

Cover Ditch Cover Ditch Cover Ditch


A B C
Day 7 Day 8 Day 9

Section A Section B Section C


Laddering

Dig Ditch
A

Dig Ditch
B
Lay Pipe Dig Ditch
C
A
Lay Pipe
B
Cover Lay Pipe
Ditch C
A Cover
Ditch B Cover
Ditch C
Day 1 Day 2 Day 3 Day 4 Day 5
Time-cost tradeoff

Activity direct costs

Crash Activity fully expedited


Direct cost

Normal No expediting

Time
Time-cost tradeoffs

Project direct costs

All activities crashed


Direct cost

All activities normal

Time
Time-cost tradeoffs

Project total costs

Total cost

Indirect cost (overhead)


Total cost

Direct cost

Time
Crashing

Pros Cons

Reduces project time Increases direct cost


Can find optimum project Increases management time
time May increase risk
Time - Cost Trade-offs During Crashing

Crash shortening activity duration


Procedure for crashing
Crash the project one period at a time
Crash only an activity on the critical path
Crash the least expensive activity
Multiple critical paths: find the sum of
crashing the least expensive activity on
each critical path
Based on the table data to find crashing limit and
optimal (time-cost) duration of the project

Activity Initial time, Initial direct Max. possible Time cut direct
days cost, $ time cut, days cost,
$/day

4 3500 0 0

B 5 2000 2 1000

C 5 2500 1 300

D 4 2000 3 500

E 5 2500 2 300

F 5 2000 2 500

G 4 2500 1 700

H 4 3000 1 700

I 3 2000 1 1000
B F G
5 5 4

A D I
Start End
4 4 3
x
C E H
5 5 4

ABFGI
4 + 5 + 5 + 4 + 3 = 21 Initial Duration:
21 days
ACDGI
4 + 5 + 4 + 4 + 3 = 20
ACDHI
Initial Direct Cost:
4 + 5 + 4 + 4 + 3 = 20
$22 000
ACEHI
4 + 5 + 5 + 4 + 3 = 21
B F G
5 4 4

A I
D End
Start 3
4 4
x
C E H
4 5 4
x
Crashing Step 1:
ABFGI
4 + 5 + 4 + 4 + 3 = 20 Crashed activities:
ACDGI F, C
4 + 4 + 4 + 4 + 3 = 19
Duration:
ACDHI 20 days
4 + 4 + 4 + 4 + 3 = 19
Direct Cost:
ACEHI
$22 800
4 + 4 + 5 + 4 + 3 = 20
F
B 3 G
5 x 4
A
I
Start 4 D End
3
x 4

C E H
4 4 4
x
ABFG-I Crashing Step 2
4 + 5 + 3 + 4 + 3 = 19
Crashed activities:
ACDGI F, C, F, E
4 + 4 + 4 + 4 + 3 = 19
Duration:
ACDHI 19 days
4 + 4 + 4 + 4 + 3 = 19
ACEHI Direct Cost:
$23 600
4 + 4 + 4 + 4 + 3 = 19
F
B 3 G
5 x 4

A I
D End
Start 2
4 4
x x
C E H
4 4 4
x
ABFG-I Step 3:
4 + 5 + 3 + 4 + 2 = 18 Crashed activity:
ACDGI F, C, F, E, I
4 + 4 + 4 + 4 + 2 = 18
Duration:
ACDHI 18 days
4 + 4 + 4 + 4 + 2 = 18
Direct Cost:
ACEHI
$24 600
4 + 4 + 4 + 4 + 2 = 18
F
B 3 G
5 x 3
x
A I
D End
Start 2
4 4
x x
C E H
4 4 3
x x
ABFG-I Step 4:
4 + 5 + 3 + 3 + 2 = 17 Crashed activity:
ACDGI F, C, F, E, I, G, H
4 + 4 + 4 + 3 + 2 = 17
Duration:
ACDHI 17 days
4 + 4 + 4 + 3 + 2 = 17
Direct Cost:
ACEHI
$26 000
4 + 4 + 4 + 3 + 2 = 17
F
B 3 G
5 x 3
x
A I
D End
Start 2
4 4
x x
C E H
4 3 3
x x x Step 5:

ABFG-I Crashed activity:


4 + 4 + 3 + 3 + 2 = 16 F, C, F, E, I, G, H,
B, D, E
ACDGI
4 + 4 + 3 + 3 + 2 = 16 Duration:
ACDHI 16 days
Crash point
4 + 4 + 3 + 3 + 2 = 16
ACEHI Direct Cost:
4 + 4 + 3 + 3 + 2 = 16 $27 800
Cost - time optimization

Duration, days Direct cost, $ Indirect cost, Total cost,


$ $
21 22 000 21 000 43 000
20 22 800 20 000 42 800
19 23 600 19 000 42 600
18 24 600 18 000 42 600
17 26 000 17 000 43 000
16 27 800 16 000 43 800

There is an optimal point in this cost-time trade-off.


That is project duration 18 days with total cost $42 600.
Resource Conflicts in Scheduling
Any task duration depends on quantity and quality of the
resources assigned to the task.
Assigning of a specific resource to many concurrently going tasks
creates resource conflicts resource over - or under- loading.
Resource leveling technique helps the project manager identify
and take advantage of unused times by analyzing task
dependences.
If you find resource conflicts (over or under allocations) you
could:
Delay certain tasks
Assign a different resource
Change task dependencies
Remove tasks
Add tasks
Exercise
Durations and dependences of a project are presented in the
table below
Only 2 excavators are available and all tasks of the project,
except task F require that 2 excavators every week. Task F
requires only 1 excavator for completion of its work during 3
weeks.
Task Duration, weeks Predecessors
A 2 -
B 1 A
C 3 A
D 1 B, C
E 2 D
F 3 F
G 2 E
H 2 F, G
3 1 3 7 2 8 9 2 10
B
E G
5 2 5
7 0 8 9 0 10

6 1 6
1 2 2
D
A
6 0 6
1 0 2 11 2 12
3 3 5 7 3 9
C F H
3 0 5 8 1 10 11 0 12
Res

ID TF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Dur

A 2 2 0

B 2 1 2

C 2 3 0

D 2 1 0

E 2 2 0

F 1 3 1

G 2 2 0

H 2 2 0

Resource scheduled

Resource available 2 2 2 2 2 2 2 2 2 2 2 2
3 1 3 7 2 8 9 2 10
B
E G
5 2 5
7 0 8 9 0 10

6 1 6
1 2 2
D
A
6 0 6
1 0 2 11 2 12
7 3 9
3 3 5
F H
C
8 1 10 11 0 12
3 0 5
Res

ID ES LF TF 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Dur

A 2 2 1 0 0 2 2

B 2 1 6 6 0 2

C 2 3 3 5 0 2 2 2

D 2 1 7 7 0 2

E 2 2 8 9 0 2 2

F 1 3 10 12 0 1 1 1

G 2 2 13 14 0 2 2

H 2 2 15 16 0 2 2

Resource scheduled 2 2 2 2 2 2 2 2 2 1 1 1 2 2 2 2

Resource available 2 2 2 2 2 2 2 2 2 2 2 2 2
Critical Chain Project Management
Why do projects take so long?

Parkinsons Law
Self-protection
Dropped baton
Excessive multitasking
Resource bottlenecks
Student syndrome
How normally we plan our projects?

We identify the tasks in the project and the


resources needed for each task.
We allocate to each task sufficient time that we
are confident will allow it to be completed with
those resources. That is, the time the task should
take on average, plus some contingency reserve.
We apply task dependencies and work out the
longest path of tasks in the project.
The time along this critical path is the duration of
the project.
How normally we plan our projects?

When a task completes on time (within its


contingency), its immediate successors will start on
time.
In case a task finishes late (outside its contingency),
its successors will start late, and this means they will
finish late.
In order to safe a project which shows any lateness,
project team has to squeeze the remaining tasks in
the project.
That means we have to compromise on time, cost or
scope and reschedule.
Beta-distribution for activity duration

Beta Activity
distribution
start

0 o m p
Elapsed
Activitytime
start

Activity start Optimistic Most likely Expected Pessimistic


What difference does this make to our
chance of being late ?

In 'normal' practice, if any task is later than its


contingency allows, we have a problem.
In case of Critical Chain, we only have a
problem if the total lateness exceeds the total
contingency.
Project Buffer

A buffer is a block of time which protects a


deliverable from being affected by delays
upstream. The project buffer protects the project
completion date.
Over the course of the project the buffers are
used up, in proportion of progress made.
Task Buffers vs Project Buffer

Task 1 Task 2 Task 3

Task 1 Task 2 Task 3 Buffer

Task 1 Project
Task 2 Task 3
Buffer
Scarcity of Resources

During project planning we must take into


account scarcity of resources.
In particular, if two tasks want exclusive use of
the same resource, at the same time, we have
an issue.
This affects the plan in a way similar to the task
dependencies.
Critical Chain in Planning Phase

There is no contingency reserve at task level.


The project due date is protected by the block of
time called the Project Buffer.
The Critical Chain is the longest chain of tasks
through the project.
All other chains of tasks are Feeding Chains.
Feeding Buffers have to be placed to separate
the Critical Chain from the feeding chains.
Critical Chain and Buffers

Resource
Buffer
(people or Feeding Project
Activities
equipment) Buffer (time) Buffer (time)

A1 A2

A5 A6 A7

A3 A4 Project
Completion
Critical Chain Scheduling

The longest chain of dependent tasks through the


project - this is the Critical Chain, at the end of
which we place the project buffer.
The time taken to complete the project is the time
taken to complete the Critical Chain.
Any delay in the Critical Chain delays the project
completion.
The project buffer protects the end date. The less
(more) it is used, the less (more) the end date is
at risk.
Critical Chain in Executing Phase

No multi-tasking - when someone starts a task


they focus on it until it is completed.
Each task begins as soon as resource is available
and prerequisite tasks are complete.
Each task finishes as soon as it possible.
Early finishes on Critical Chain tasks move the
whole project forward.
Early finishes on Feeding Chains increase the
protection of the Critical Chain.
CCPM and Splitting Tasks

CCPM has three recommendations that will help to


reduce the impact of splitting activities:
1. Reduce the number of projects so people are not
assigned to as many projects concurrently.
2. Control start dates of projects to accommodate
resource shortages. Dont start projects until
sufficient resources are available to work full time
on the project.
3. Contract (lock in) for resources before the project
begins.
Monitoring Project Performance
The CCPM method uses buffers to monitor project time
performance.
For monitoring purposes, this buffer is typically divided into
three zones OK, Watch and Plan, and Act, respectively.
As the buffer begins to decrease and moves into the
second zone, alarms are set off to seek corrective action.
To be truly effective, buffer management requires
comparing buffer usage with actual progress on the project.
Example:
If the project is 75% complete and you have only used
50% percent of the project buffer, then the project is in
pretty good shape. Conversely, if the project is only 25 %
complete and 50% percent of the buffer has already been
used, you are in trouble and corrective action is needed.
Q&A

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