Lecture Project management in practice (Fifth Edition) – Chapter 6: Allocating resources to the project

The following will be discussed in this chapter: Expediting a project, resource loading, resource leveling, allocating scarce resources to projects, allocating scarce resources to several projects, goldratt’s critical chain. | Chapter 6 Allocating Resources to the Project Introduction Projects compete with each other for resources If resource is used but not consumed, which project must wait to use resource If resource is consumed during use, may not be available for other projects or other projects must wait for replacement In either case, one project must wait One project is delayed Likewise, different activities on the same project may compete for resources Trade-offs must be made Expediting a Project (Assumptions) Smaller problem to avoid unnecessary arithmetic Problem set in a deterministic world All estimates of task duration are based on normal (or standard) resource loadings Expediting a Project (Approaches) The critical path method Fast-tracking a project Project expediting in practice Opportunities before the project begins Opportunities when the project is underway The Critical Path Method Normal duration estimates Normal costs Crash duration estimates Crash costs Crash cost per day Notes on . | Chapter 6 Allocating Resources to the Project Introduction Projects compete with each other for resources If resource is used but not consumed, which project must wait to use resource If resource is consumed during use, may not be available for other projects or other projects must wait for replacement In either case, one project must wait One project is delayed Likewise, different activities on the same project may compete for resources Trade-offs must be made Expediting a Project (Assumptions) Smaller problem to avoid unnecessary arithmetic Problem set in a deterministic world All estimates of task duration are based on normal (or standard) resource loadings Expediting a Project (Approaches) The critical path method Fast-tracking a project Project expediting in practice Opportunities before the project begins Opportunities when the project is underway The Critical Path Method Normal duration estimates Normal costs Crash duration estimates Crash costs Crash cost per day Notes on Crashing Important to make sure the resources required to crash the project are available Technology may be used to crash an activity Using Ditch Witch to dig a ditch rather than adding more workers May have to expedite tasks not on critical path to make resources available to other projects Some tasks cannot be crashed How to Crash Start with the normal schedule Select activities to crash, one at a time Focus on the critical path(s) Select least expensive activity to crash Calculate slope information on activities to crash An Example of a Normal/Crash Project Table 6-1 A PERT/CPM Example of Crashing a Project, AOA Network Part 1 Figure 6-1 (Partial) A PERT/CPM Example of Crashing a Project, AOA Network Part 2 Figure 6-1 (Partial) CPM Crash Cost-Duration History Figure 6-2 Fast-Tracking a Project An expediting technique in which one phase of the project is started before preceding phases are completed Used in the construction industry when the building phase is started before the design .

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