ppc_tutorial_2.pdf

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University of South Australia

School of Advanced Manufacturing and Mechanical Engineering

Project Planning and Control G

Tutorial 2: Module 5

Module 7 Set

Akot B Akot

5/17/2013


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Declaimer

I declare the following to be our own work, unless otherwise referenced, as defined by the

Universitys policy on plagiarism.


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Contents

Declaimer ................................................................................................................................................. i

List of Figures ......................................................................................................................................... iii

List of Tables .......................................................................................................................................... iv

1. Introduction .................................................................................................................................... 1

2. Solution and Explanation ................................................................................................................ 1

2.1. Module 5 ............................................................................................................................. 1

2.2. Module 6 ............................................................................................................................. 5

2.3. Module 7 ............................................................................................................................. 8

3. Conclusion ..................................................................................................................................... 15

Reference .............................................................................................................................................. 16


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List of FiguresFigure 1: WBS of Automated system for welding bicycle frames ........................................................................... 2

Figure 2: Organisational Breakdown Structure ...................................................................................................... 3

Figure 3: Early and late starts project Gantt charts for Q7-1 ................................................................................. 8

Figure 4: Project Network model for Q7-1 .............................................................................................................. 9

Figure 5: Early Start Gantt chart for Q7-2............................................................................................................. 10

Figure 6: Late Start Gantt chart for Q7-2 .............................................................................................................. 11

Figure 7: Project Network model for Q7-2 ............................................................................................................ 11

Figure 8: Early Start for Q7-3 ................................................................................................................................ 13

Figure 9: Late Start Gantt chart for Q7-3 .............................................................................................................. 14

Figure 10: Project Network for Q7-3. .................................................................................................................... 14


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List of TablesTable 1: Learning curve time computation ............................................................................................................. 6

Table 2: Tabulation of Historical data for parametric estimation .......................................................................... 7

Table 3: Data estimation table ............................................................................................................................... 7

Table 4: Project Activities for Q7-1 ......................................................................................................................... 8

Table 5: Legend of 3x3 matrix computation ........................................................................................................... 9

Table 6: Computed 3x3 for Q7-1 ............................................................................................................................. 9

Table 7: Project Activities for Q7-2 ......................................................................................................................... 9

Table 8: Computed 3x3 Matrix for Q7-2 ............................................................................................................... 11

Table 9: Project Activities for Q7-3 ....................................................................................................................... 12

Table 10: 3x 3 Matrixes for Q7-3 .......................................................................................................................... 14


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1. Introduction

The tutorials are an integral part of Project Planning and Control (PPC) overall assessment.

These are broken down into three parts. Tutorial 1 covers module 1 through module 4,

tutorial 2 covers module 5 through module 7, and tutorial 3 covers module 8 through 11. In

this tutorial set 2 some project techniques covered in module 5 module 7 are covered for

course assessment in the form of tutorials. Consequently, these tutorial questions are

answered under their respective modules.

Module 5 deals with

2. Solution and Explanation2.1. Module 55-1. A manufacturer of mountain bike will design and implement an automated systemfor welding bicycle frames. All works related to this project will be conducted within the

company without any contracts to any outside organization. The system will be expected to

handle about 100 frames per shift. Production is scheduled for two shifts per day. The system

will be designed to weld the frame and then to check the quality of each weld using automatic

machine vision systems. The welded frames will then be transported to the next cell for

assembly using a conveyor system. The project should consider the training of the current

workers as a part of the project. Most of components can be custombuilt in the company.However, some electrical and control parts should be purchased. Hence all Mechanical,

Electrical, Electronic, Procurement, Purchasing, Human Resource, Manufacturing, Quality

Control, Design, and other necessary departments should be involved in this project. Assume

that you have unlimited number of staffs in all different departments/tasks for the project.

(a)Develop an appropriate fourlevel WBSThe automated system is required to operate for than 16 hours a day assuming 8 hour/day

work week and the operation is to produce 200 frames a day. The system therefore, is

designed to carry out 2 operation processes assemble the frames and inspect for quality. This

requires 3 subsystems including (1) welding module, (2) components and frames handling


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and transfer module, and (3) quality control module. The components are to be transported to

weld area and picked, positioned, placed and welded by welding mechanisms. After, another

conveyor system transfers the assembled frame to QC area for quality of welds to be checked

by machine vision system for quality control. Figure 1 shows the work breakdown structure

(WBS) for this project.

Figure 1: WBS of Automated system for welding bicycle frames

(b)Develop an OBSDue to the availability of resources especially human capital, the company does not need to

restructure its organisation and therefore project is to done


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Figure 2: Organisational Breakdown Structure

(c)Develop an LRCWBS

COD

E

Projec

t

manag

er

Mechani

cal

engineer

Design

er

Electri

cal

engine

er

Electron

ics

enginee

r

Softwa

re

engine

er

Purchas

ing

Receivi

ng

Human

resour

ces

Fabricat

ors &

technici

ans

Quali

ty

contr

ol

Administra

tion

1.0 p p

1.1 s p s s

1.2 s p s s

1.2.1 s p s s

1.2.1

.1

p s s s

1.2.1

.2

p s

1.2.1

.3

s s s p

1.2.1

.4

s p

1.2.1

.5

p s

1.2.2 s p s s s

1.2.2

.1

p s s s s


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1.2.3 s s s p s

1.2.3

.1

p

1.2.3

.2

p

1.3 p s

1.4 p

1.4.1 P

1.4.2 P

1.4.2 P

1.4.2

.1

P

1.4.3 P

1.5 p

1.6 p

5-2. Describe major guidelines for choosing an organizational structure for a project. Foreach guideline, give a good example.

The factors for selecting an organisational structure can be outlined and explained as follow

(Shtub et al, 2005 pp. 290 -291):

i) Number of projects and their relative importance. The number of projects and relativeimportance of each project will determine which organisational structure to choose

i.e. project organisational structure is suited for companies dealing with regular

projects. Infrequent projects may be performed in traditional functional organisational

structure.

ii) Level of uncertainty in projects. When company is involved in a project with highlevel uncertainty a project organisational structure is advised where a project manager

is able to control all of the resources

iii) Type of technology used. When different technologies are used for a project withoutjustification for continuous effort throughout the project life-cycle then a matrix

structure is preferred.

iv) Project complexity. Projects with high complexities are carried out in goodcoordinated team environment and therefore project organisational structure is suited

for this.

v) Duration of projects. Short projects are handled within matrix organisation, whilelong projects can only be justified by using project organisational structure.


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vi) Resources used by projects. Matrix organisation is well suited for projects whereresources are shared by many projects.

vii) Overhead cost. Overheads cost can be spread over many projects that use the samefacilities and therefore a matrix organisational structure to reduce the overhead costs

viii) Data requirements. Databases may be shared by many projects and the fact that theinformation generated is passed on the parts of organisation not involved in the

projects, then matrix (weak) organisation structure is used.

2.2. Module 6

6-1. So called the process industries petrochemicals, breweries and pharmaceuticals usethe following formula to estimate the cost of the proposed projects.

Suppose a proposed plant is to have 1.2 million cubic meter capacity. Using the past project

of a plant with 3.5 million cubic meter capacity and a cost of $540,000, find the cost for the

proposed plant.

Capacity (proposed) =1.2 million cubic meter

Capacity (past) =3.5 million meter

Cost (past) =$540,000

[]

6-2. Experience indicated that the firm to build 20 devices would use 200 hours to buildthe first device. According to the past experience, the time will be shortened with the increase

of number of machines to be built. In the bid, the company is assumed the learning rate to be


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90% and the skilled labour cost to be $50 per hour. The company wants to have benefits

equalling 50% of the labour cost. Find the followings.

a) The total labour hours for the whole project of 20 machines to be completed (2922 hours)

()

Table 1: Learning curve time computation

b) If all material and design are already available free of charge within the company, whatprice would the company ask for the project? (Ans. $219,118)

The companys bidding price for the project should be the sum of labour cost and profit i.e.

T_1 b n T_n

200 -0.152003093 1 200

2 180

3 169

4 162

5 157

6 152

7 149

8 146

9 143

10 141

11 139

12 137

13 135

14 134

15 133

16 131

17 130

18 129

19 128

20 127

Total 2922


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6-3. The following table shows the historic data between the number of parts and the totalamount of time taken to produce the parts. Using this date, estimate how long it will take if

the number of parts is 200. Use the least square method. Find the correlation coefficient first

to see whether the linear relationship exists between two: time and the number of parts. (Ans.

311.2 hours)

Table 2: Tabulation of Historical data for parametric estimation

Number of parts 50 80 130 180 210 250 310 350

Time 130 210 195 270 280 380 450 525

Table 3: Data estimation table

( )( ( ) () 50 130 -145 -175 25375 21025 30625

80 210 -115 -95 10925 13225 9025

130 195 -65 -110 7150 4225 12100

180 270 -15 -35 525 225 1225

210 280 15 -25 -375 225 625

250 380 55 75 4125 3025 5625

310 450 115 145 16675 13225 21025

350 525 155 220 34100 24025 48400

Total 1560 2440 98500 79200 128650

Check for correlation coefficient R

R is close to 1 and therefore is a linear relationship between x and y, hence parametric

method can be used.

Finding


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If number of parts = 200 units then, time is given by function;

2.3. Module 7In this module assessment questions covering the

7-1. A project is defined by the list of activities in the table (Ans. Duration 19 days).Table 4: Project Activities for Q7-1

Activity Immediate predecessors Durations (days)

A --- 7

B --- 3

C B 1

D A,C 2

E D 2

F E 7

G E 2

H G 1

I F,H 1

a) Draw early and late start Gantt chart

Figure 3: Early and late starts project Gantt charts for Q7-1

b) Draw the AON network

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

A A A A A A A A A A A A A A A A

B B B B B B B B

C C C C

D D D D D D

E E E E E E

F F F F F F F F F F F F F F F F

G G G G G G

H H H H

I I I I

LATE STARTEARLY START


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Figure 4: Project Network model for Q7-1

c) Fill-out the 3x3 table in the node of AON for each activityTable 5: Legend of 3x3 matrix computation

Early Start (ES) Node (ID) Early Finish (EF)

Total Slack (TS) Free Slack (FS)

Late Start (LS) Duration (L) Late Finish (LF)

Table 6: Computed 3x3 for Q7-1

0 START 0 0 A 7 0 B 3 3 C 4

0 0 0 0 3 0 3 3

0 0 0 0 7 7 3 3 6 6 1 7

7 D 9 9 E 11 11 F 18 11 G 13

0 0 0 0 0 0 4 0

7 2 9 9 2 11 11 7 18 15 2 17

13 H 14 18 I 19 19 END 19

4 0 0 0 0 0

17 1 18 18 1 19 19 0 19

d) Critical Pathfrom the 3x3 matrix and the Gantt charts above the critical is determinedto A-D-E-F-I

7-2. A project is defined by the list of activities in the table (Ans. Duration is 41 days).

Table 7: Project Activities for Q7-2


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ActivityImmediate

predecessorsDuration (days)

A -- 3

B A 6

C A 9

D C 7

E B 3

F C 4

G D,E 5

H F 3

I G,H 5

J G 14

K I 2

L K 2

M L 3

N K 1

O J,M 3

a) Draw early and late start Gantt chart

Figure 5: Early Start Gantt chart for Q7-2

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

A A A A

B B B B B B B

C C C C C C C C C C

D D D D D D D D

E E E E

F F F F F

G G G G G G

H H H H

I I I I I I

J J J J J J J J J J J J J J J

K K K

L L L

M M M M

N N

O O O O


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Figure 6: Late Start Gantt chart for Q7-2

Slacks

A(0), B(7), C(0), D(0), E(7), F(7), G(0), H(7), I(2), J(0), K(2), L(2), M(2), N(9), O(0)


Figure 7: Project Network model for Q7-2

c) Fill-out the 3 x 3 table in the node of AON for each activityTable 8: Computed 3x3 Matrix for Q7-2

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

A A A A

B B B B B B B

C C C C C C C C C C

D D D D D D D D

E E E E

F F F F F

G G G G G G

H H H H

I I I I I I

J J J J J J J J J J J J J J J

K K K

L L L

M M M M

N N

O O O O


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d) Find the critical path

The critical path is 41 days which is consistent with the two Gantt chart

7-3. A project is defined by the list of activities in the table (Ans. Duration is 57 days)

Table 9: Project Activities for Q7-3

A --- 4

B A 5

C A 3

D A 10

E B 7

F C 6

G C 7

H C 3

I D 9

J I 3

K J 4

L E 4

0 Start 0 0 A 3 3 B 9 3 C 12 12 D 19 9 E 12

0 0 0 0 7 0 0 0 0 0 7 7

0 0 0 0 3 3 10 6 16 3 9 12 12 7 19 16 3 19

12 F 16 19 G 24 16 H 19 24 I 29 24 J 38 29 K 31

7 0 0 0 7 5 2 0 0 0 2 0

19 4 23 19 5 24 23 3 26 26 5 31 24 14 38 31 2 33

31 L 33 33 M 36 31 N 32 38 O 41 41 END 41

2 0 2 2 9 9 0 0 0 0

33 2 35 35 3 38 40 1 41 38 3 41 41 0 41

Critical PathTo find the critical path we find the longest path by adding the duration of

each activity on that path

A-C-F-H-I-K-L-M-O=34 days

A-C-F-H-I-K-N=27 days

A-C-D-G-I-K-N=32 days

A-C-D-G-I-K-L-M-O=39 days

A-B-E-G-I-K-L-M-O=29 days

A-B-E-G-J-O=34 days

A-B-E-G-I-K-N=25 days

A-C-D-G-J-O=41 days


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M F,G,H,I,L 9

N M 4

O M 8

P N,O 3

Q P 4

R P 3

S K 7

T R,S 3

U Q 4

V T,U 2

W V 4

a) Draw early and late Gantt chart

Figure 8: Early Start for Q7-3

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

A A A A A

B B B B B B

C C C C

D D D D D D D D D D D

E E E E E E E E

F F F F F F F

G G G G G G G G

H H H H

I I I I I I I I I I

J J J J

K K K K K

L L L L L

M M M M M M M M M M

N N N N N

O O O O O O O O O

P P P P

Q Q Q Q Q

R R R R

S S S S S S S S

T T T T

U U U U U

V V V

W W W W W


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Figure 9: Late Start Gantt chart for Q7-3


Figure 10: Project Network for Q7-3.

c) Fill out the table in the node of AON for each activity.Table 10: 3x 3 Matrixes for Q7-3

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57

A A A A A

B B B B B B

C C C C

D D D D D D D D D D D

E E E E E E E E

F F F F F F F

G G G G G G G G

H H H H

I I I I I I I I I I

J J J J

K K K K K

L L L L L

M M M M M M M M M M

N N N N N

O O O O O O O O O

P P P P

Q Q Q Q Q

R R R R

S S S S S S S S

T T T T

U U U U U

V V V

W W W W W


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d) Find the critical paththe critical path is determined from the 3x3 matrix with activitieswith zero total slacks (0 TS) and zero free slacks (0 FS) to be A-D-I-M-O-P-Q-U-V-W

as in indicated above.

3. ConclusionProjects are common in the business world are done within time and budget constraints, as

well as within a level of uncertainties. These problems are minimised using a number of

project management techniques such as those discussed in this report. These techniques

include work breakdown structures & organisational breakdown structures, Gantt chart, cost

and time estimation techniques as discussed in the report.

0 Start 0 0 A 4 4 B 9 4 C 7 4 D 14 9 E 16

0 0 0 0 3 0 9 0 0 0 3 0

0 0 0 0 4 4 7 5 12 13 3 16 4 10 14 12 7 19

7 F 13 7 G 14 7 H 10 14 I 23 23 J 26 26 K 30

10 10 9 9 13 13 0 0 11 0 11 0

17 6 23 16 7 23 20 3 23 14 9 23 34 3 37 37 4 41

16 L 20 23 M 32 32 N 36 32 O 40 40 P 43 43 Q 47

3 3 0 0 4 4 0 0 0 0 0 0

19 4 23 23 9 32 36 4 40 32 8 40 40 3 43 43 4 47

43 R 46 30 S 37 46 T 49 47 U 51 51 V 53 53 W 57

2 0 11 9 2 2 0 0 0 0 0 0

45 3 48 41 7 48 48 3 51 47 4 51 51 2 53 53 4 57

57 END 57

0 0

57 0 57


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Reference

Dr. Lee, Sang-Heon, UniSA 2013, Project Planning and Control course materials

Shtub, A., Bard, J.B., & Globerson, S., 2005, Project Management Processes, methodologies,

and Economics, Prentice Hall

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