Network Replanning

Once constructed, the PERT/CPM charts provide the framework from which detailed planning can be initiated and costs can be controlled and tracked. Many iterations, however, are normally made during the planning phase before the PERT/CPM chart is finished. Figure 12-11 shows this iteration process. The slack times form the basis from which additional iterations, or network replanning, can be performed. Network replanning is performed either at the conception of the program in order to reduce the length of the critical path, or during the program, should the unexpected occur. If all were to go according to schedule, then the original PERT/CPM chart would be unchanged for the duration of the project. But, how many programs or projects follow an exact schedule from start to finish?

Suppose that activities 1-2 and 1-3 in Figure 12-6 require manpower from the same functional unit. Upon inquiry by the project manager, the functional manager asserts that he can reduce activity 1-2 by one week if he shifts resources from activity 1-3 to activity 1-2. Should this happen, however, activity 1-3 will increase in length by one week. Reconstructing the PERT/CPM network as shown in Figure 12-12, the length of the critical path is reduced by one week, and the corresponding slack events are likewise changed.

There are two network replanning techniques based almost entirely upon resources: resource leveling and resource allocation.

• Resource leveling is an attempt to eliminate the manpower peaks and valleys by smoothing out the period-to-period resource requirements. The ideal situation is to do this without changing the end date. However, in reality, the end date moves out and additional costs are incurred.

• Resource allocation is an attempt to find the shortest possible critical path based upon the available or fixed resources. The problem with this approach is that the employees may not be qualified technically to perform on more than one activity in a network.

Unfortunately, not all PERT/CPM networks permit such easy rescheduling of resources. Project managers should make every attempt to reallocate resources so

Figure 12-11. Iteration process for PERT schedule development.

as to reduce the critical path, provided that the slack was not intentionally planned as a safety valve.

Transferring resources from slack paths to more critical paths is only one method for reducing expected project time. Several other methods are available:

• Elimination of some parts of the project

• Addition of more resources

• Substitution of less time-consuming components or activities

• Parallelization of activities

• Shortening critical path activities

• Shortening early activities

Figure 12-12. Network replanning of Figure 12-6.

• Shortening longest activities

• Shortening easiest activities

• Shortening activities that are least costly to speed up

• Shortening activities for which you have more resources

• Increasing the number of work hours per day

Under the ideal situation, the project start and end dates are fixed, and performance within this time scale must be completed within the guidelines described by the statement of work. Should the scope of effort have to be reduced in order to meet other requirements, the contractor incurs a serious risk in that the project may be canceled, or performance expectations may no longer be possible.

Adding resources is not always possible. If the activities requiring these added resources also call for certain expertise, then the contractor may not have qualified or experienced employees, and may avoid the risk. The contractor might still reject this idea, even if time and money were available for training new employees, because on project termination he might not have any other projects to which to assign these additional people. However, if the project is the construction of a new facility, then the labor-union pool may be large enough that additional experienced manpower can be hired.

Parallelization of activities can be regarded as accepting a risk by assuming that a certain event can begin in parallel with a second event that would normally be in sequence with it. This is shown in Figure 12-13. One of the biggest headaches at the beginning of any project is the purchasing of tooling and raw materials. As shown in Figure 12-13, four weeks can be saved by sending out purchase orders after contract negotiations are completed, but before the one-month waiting period necessary to sign the contract. Here the contractor incurs a risk. Should the effort be canceled or the statement of work change prior to the signing of the contract, the customer incurs the cost of the termination liability expenses from the vendors. This risk is normally overcome by the issuance of a long-lead procurement letter immediately following contract negotiations.

Figure 12-13. Parallelization of PERT activities.

There are two other types of risk that are common. In the first situation, engineering has not yet finished the prototype, and manufacturing must order the tooling in order to keep the end date fixed. In this case, engineering may finally design the prototype to fit the tooling. In the second situation, the subcontractor finds it difficult to perform according to the original blueprints. In order to save time, the customer may allow the contractor to work without blueprints, and the blueprints are then changed to represent the as-built end-item.

Because of the complexities of large programs, network replanning becomes an almost impossible task when analyzed on total program activities. It is often better to have each department or division develop its own PERT/CPM networks, on approval by the project office, and based on the work breakdown structure. The individual PERT charts are then integrated into one master chart to identify total program critical paths, as shown in Figure 12-14. The reader should not infer from Figure 12-14 that department D does not interact with other departments or that department D is the only participant for this element of the project.

Segmented PERT charts can also be used when a number of contractors work on the same program. Each contractor (or subcontractor) develops his own PERT chart. It then becomes the responsibility of the prime contractor to integrate all of the subcontractors' PERT charts to ensure that total program requirements can be met.

PEAT CHART FOR DEPART M6WT D

PEAT CHART FOR DEPART M6WT D

Figure 12-14. Master PERT chart breakdown by department.

Figure 12-14. Master PERT chart breakdown by department.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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