Scheduling and Budgeting

1
Scheduling and Budgeting

• Engineers Without FrontiersCEE 402

2
Basic Project Management Cycle

• Initiation Phase
• Team formation
• Goals
• Objectives
• Planning Phase
• Scheduling of tasks
• Budgeting (resource management)
• Control Phase
• Periodic adjustment of the PLAN
• Closeout Phase

3
Basic Project Management Process
4
Project Planning Tools

• Work Breakdown Structure (WBS)
• Hierarchy of tasks
• Estimated task durations
• Responsibility Chart
• Allocation of tasks to individuals
• Gantt or bar chart
• Schedule
• Budget

5
Hierarchical Work Breakdown Structure (WBS)
6
Microsoft Project WBS
7
Building Renovation Example

• Design
• Pre-Renovation
• Renovation
• Furnish
• Post-Renovation

8
Example of a WBS with Details
9
Sample Responsibility Matrix
10
Project Scheduling

• Critical path method
• Project network (arrow diagram)
• Gantt or bar chart
• Resource scheduling
• Program Evaluation Review Technique (PERT) (we
  wont discuss)

11
Blast Furnace Relining Example

• Reduction of iron oxide to molten iron to make
  steel

Main reaction
1000o C
30 meters
7 meters in diameter
Molten Iron andimpurities
12
Construction Planning

• Bosh and stack are lined with firebrick
• Lining needs to be replaced every 2-4 years
• Pipefitters, carpenters, bricklayers, etc. needed
• Expensive to have furnace offline
• Work typically carried out using three shifts
  around the clock

13
Objectives

• Installation of new coke screening and weighing
  equipment
• Replacement and rebricking of the hot blast main
• Rebricking of the bustle main
• Extensive repairs to the uptakes and downcomers

14
Questions

• What is the expected project duration?
• How should the work tasks be scheduled so that
  the project is completed in the minimum time
  possible?
• How do costs accumulate through the course of the
  project? What are the financing needs?

? Use Critical Path Method to answer
15
Project Network Example Build a House
1
Excavate
2
Foundation
Activitity
3
6
Roof
Event (usually point when activities leading to
that point are done)
Rough Wall
ExteriorSiding
4
8
Rough ExteriorPlumbing
Dummy
Exterior Painting
5
10
Dummy activity
Rough Interior Plumbing
Rough Electrical Work
7

• Rules
• 1 start node/1 end node
• 2 nodes can be directly connected by no more than
  1 arc
• No unnecessary arcs
• Flow to right (or down)

Wall Board
Exterior Fixtures
9
Flooring
Interior Plumbing
11
12
Dummy
13
Interior Fixtures
16
How to Draw a Project Network

• List all tasks.
• Determine the precedence requirements.
• Draw diagram
• Draw node 1. All activities with no precedence
  requirements emanate from it.
• One by one add activities for which precedence
  requirements have been satisfied.
• Renumber nodes.

17
List Tasks for Blast Furnace and Precedence
Requirements
Duration (Hrs.)







ID
Task Description
Predecessors




A

Cool furnace




none

128.0 18.0 6.0 14.7 56.0 22.7 37.3 46.0 96.0 56.0
169.3 300.0 41.3 82.7 160.0 633.3 586.7 126.7 36.0
128.0 98.7
B

Remove top




A

C

Rake out




A

D

Remove pipes




A



E

Wreck stack




B, C



F

Install safety platform



E



G

Fit brick platform



F



H

Wreck hearth




F



I

Renew bosh




F



J

Renew coolers




H



K

Brick hearth




I, J



L

Brick stack




G, K



M

Fit top





L



N

Fit pipes




D, E



O

Rebrick bustle main



A



P

Renew hot blast main



A



Q

Repair uptakes downcomers


A



R

Install coke screen weigh


none



S

Complete top




M, N, O, P, Q



T

Dry





M, N, O, P, Q



U

Fill and heat




R, S, T





2843.4
18
Critical Path for Blast Furnace

• Sequence of activities through project network
  that determines project duration
• Since all activities must be completed, critical
  path is path with maximum duration

3
G, 37.3
13
S,36
F 22.7
B,18
J 56
M 41.3
A 128
L 300
H,46
K 169.3
2
11
1
C,6
T,128
E,56
4
17
16
I, 96
U 98.7
N, 82.7
D,14.7
10
O, 160
14
P, 633.3
Expected Duration 1064 hrs.
Q, 586.7
15
R, 126.7
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Numbering Nodes on Project Network

• Number start node 1, then erase all arrows coming
  out of it.
• Find all nodes that have only outward-pointing
  arrows.
• Number all such nodes consecutively (in any
  order), then erase all arrows emanating from
  these nodes.
• Repeat steps 2 and 3 until final node is numbered.

G
13
3
B
S
A
F
H
J
K
L
M
2
11
E
C
T
I
4
U
17
16
N
D
10
O
P
14
Q
15
R
20
Time Definitions

• dIJ duration of activity IJ
• ESTIJ earliest time activity IJ can start
• EFTIJ earliest time activity IJ can finish
• LSTIJ latest time activity IJ can start without
  increasing project duration
• LFTIJ latest time activity IJ can finish without
  increasing project duration
• EFTIJ ESTIJ dIJ
• LFTIJ LSTIJ dIJ

21
Float

• Total float of activity IJ
• Max. time activity IJ can be delayed without
  increasing project duration, assuming predecessor
  activities started at EST

TFIJ LSTIJ - ESTIJ
22
Calculating Times

• Forward pass to calculate ESTIJ
• Max. of EFT of activities coming into node
• Backward pass to calculate LSTIJ
• Min.(LSTJK) - dIJ
• EFTIJ ESTIJ dIJ
• LFTIJ LSTIJ dIJ
• TFIJ LSTIJ ESTIJ
• If ESTIJLSTIJ, then IJ is on critical path.
• Minimum project duration Critical path duration

23
Activity Table
24
Completed Activity Table
25
Gantt Chart for Blast Furnace
200
400
600
800
1000
1200
hours
Activity
Critical

A


B

Scheduled duration
C

D

Float

E


F

G

Expected duration 1,064 hours

H

I


J


K


L


M

N

O

P

Q

R

S


T


U

26
Gantt Chart Variation
7/03
8/03
9/03
10/03
11/03
12/02
mth.
Duration (days)
Activity
40

A

Progress to date September 2003
B

10

C

5

D

25

Milestone
E

0
F

45

90

G

H
0
27
Costs for Blast Furnace Tasks
Duration (Hrs.)
Cost (1000)









ID
Task Description
Imm. Pred.









A

Cool furnace


none


60
128.0 18.0 6.0 14.7 56.0 22.7 37.3 46.0 96.0 56.0
169.3 300.0 41.3 82.7 160.0 633.3 586.7 126.7 36.0
128.0 98.7
B

Remove top




A



25

C

Rake out




A



65

D

Remove pipes




A



100

E

Wreck stack




B, C



125

F

Install safety platform



E



70

G

Fit brick platform



F



70

H

Wreck hearth




F



75

I

Renew bosh




F



50

J

Renew coolers




H



60

K

Brick hearth




I, J



190

L

Brick stack




G, K



230

M

Fit top





L



50

N

Fit pipes




D, E



50

O

Rebrick bustle main



A



220

P

Renew hot blast main



A



170

Q

Repair uptakes downcomers


A



120

R

Install coke screen weigh


none



80

S

Complete top




M, N, O, P, Q



60

T

Dry





M, N, O, P, Q



55

U

Fill and heat




R, S, T




75


2000
2843.4
28
Accumulated Project Cost for Blast Furnace (1000)
2,000
1,800
1,600
1,400
1,200
Project Cost (1000)
1,000
800
600
400
200
0
0
100
200
300
400
500
600
700
800
900
1000
1100
Time (hours)
29
Microsoft Project Gantt
30
Questions

• What is the expected project duration?
• How should the work tasks be scheduled so that
  the project is completed in the minimum time
  possible?
• How do costs accumulate through the course of the
  project? What are the financing needs?

31
Costs and Budgets

• Major concern of every project is to control
• Time
• Costs
• Issues affecting costs
• Amount of time charged by workers
• Duration from start to finish
• Time lost due to
• Factors within control of management
• Factors beyond control of management
• Resources required to perform project

32
Cost Classification

• Recurring vs. nonrecurring
• Fixed vs. variable
• Direct vs. indirect

33
Budgets

• A budget is a plan that describes expenses for a
  specified period of time.
• Budgets often include
• Start-up costs (fixed)
• Resources needed, e.g., labor, materials (direct)
• Unit cost for resources (direct)
• Indirect costs
• Total project cost
• Cost sharing