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Project Management CPM Example - Music DM, Inc. Solution - CPM 1) Construct the network 2) Event analysis - forward pass - backward pass 3) Activity analysis - critical activities - noncritical activities ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 1) Construct the network One start node & one end node Each activity one arc Two nodes are connected maximally by one arc ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 1) Construct the network i j 3 2 i<j 2 3 ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. Activity Description Duration Predecessors A Songs Selection 15 None B Mastering 8 A C Promotion Material Elaborating 6 A D Customers Analysis 7 A E Promotion Material Production 4 C, D F Promotion Material to PH 5 E G Customers Selection 3 D ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. Activity Description Duration Predecessors H Make CD Copies 12 B, D I Data to PH 3 G J Laser Print 9 F, I K Mailing 8 H, J ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. H 9 4 B 1 A D 2 C 3 D2 G 7 I D1 5 K 10 J 8 F E 6 ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 12 4 9 8 10 8 9 0 1 15 7 2 6 3 3 7 3 8 0 5 5 4 6 ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 2) Event analysis - forward pass The earliest event time for a node is the earliest time at which all the preceding activities have been completed. j ETj ET j max ( ETi t ij ) i ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 2) Event analysis - forward pass Ascending order: ET1 ET2 ET3 … ETn The earliest event time for completing a project is the earliest time of the last event. T = ETn ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 2) Event analysis - backward pass The latest event time for a node is the latest time at which the event can occur without delaying the determined completion time of the project. LTi min ( LT j tij ) j i LTi ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 2) Event analysis - backward pass Descending order: LT1 LT2 LT3 … LTn The latest event time for completing a project can be set in the planning process or can be considered as the earliest event time for completing a project. LTn = T = ETn or LTn = TPL > T ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 3) Activity analysis Total float: i ETi LTi TFij ( LT j ETi t ij ) tij j ETj LTj ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 3) Activity analysis Critical activity: TFij = 0 if LTn = T = ETn TFij = TPL - T if LTn = TPL > T Noncritical activity: TFij > 0 if LTn = T = ETn TFij > TPL - T if LTn = TPL > T ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 3) Activity analysis 4 Critical path: B 1 A D 2 C 3 D2 G H 7 9 I D1 5 K 10 J 8 F 6 E ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry Project Management CPM Example - Music DM, Inc. 3) Activity analysis Noncritical activity 1) Start of the activity can be postponed 2) Duration of the activity can be extended 3) Combination of 1 and 2 ___________________________________________________________________________ Quantitative Methods of Management Jan Fábry