OPTIMIZATION OF TIMES AND COSTS OF PROJECT OF HORIZONTAL
LAMINATOR PRODUCTION USING PERT/CPM TECHNICAL
Fernando Henrique Lermen
State University of Paraná (UNESPAR), Brazil
E-mail: fernando-lermen@hotmail.com
Márcia de Fátima Morais
State University of Paraná (UNESPAR), Brazil
E-mail: marciafmorais@yahoo.com.br
Camila Matos
State University of Paraná (UNESPAR), Brazil
E-mail: matoscamila@hotmail.com
Rodrigo Röder
State University of Paraná (UNESPAR), Brazil
E-mail: rodrigo.roder2@gmail.com
Celise Röder
Integrado Educational Center (IEC), Brazil
E-mail: celiseroder@gmail.com
Submission: 13/01/2016
Revision: 30/01/2016
Accept: 02/03/2016
ABSTRACT
The PERT/CPM is a
technique widely used in both the scheduling and in the project feasibility in
terms of cost control and time. In order
to optimize time and costs involved in production, the work presented here aims
to apply the PERT/CPM technique in the production project of the Horizontal
Laminator, a machine used to cut polyurethane foam blocks in the mattresses
industries. For the application of PERT/CPM technique in the project of
Horizontal Laminator production were identified the activities that compose the
project, the dependence between them, the normal and accelerated durations and
the normal and accelerated costs. In this study, deterministic estimates for
the duration of the activities were considered. The results show that the
project can be completed in 520 hours at a total cost of R$7,042.50, when all
activities are performed in their normal durations. When all the activities that compose the
critical path are accelerated, the project can be completed in 333.3 hours at a
total cost of R$9,263.01. If the activities slacks have been exploited, it can
obtain a final total cost of R$6,157.8, without changing the new duration of
the project. It is noteworthy that the final total cost of the project if the slacks
are used, will be lower than the initial cost. Regarding the initial cost of
the project, after the application of the PERT/CPM technique, it presents a
decrease of 12.56% of the total project cost.
Keywords:
Network Diagram; Deterministic Estimative; Path Critical; Slack of
Activities; Machinery Industry.
1. INTRODUCTION
Projects
are unique operations with a finite life span, which present many interrelated
activities that must be scheduled and monitored within strict time, cost and
performance guidelines (KRAJEWSKI; RITZMAN, 1999). Completing a project on time and within
budget is not an easy task (AGYEI, 2015). In the process of planning and
control of projects the use of specific techniques to deal with the complexity
and temporal nature of projects is required (SLACK, et al., 2009).
The
PERT/CPM technique that it is the joining of two techniques developed in the
50s in the United States, is a technique widely used to plan the schedule and
control the progress of the project (SLACK, et al., 2009; GRUNWALD NETO;
SANCHES, 2013). The PERT/CPM technique aims to simplify the planning and schedules
of large and complex projects (KEELLING, 2002), which consist of one of the
most challenging jobs that any manager can take, since they require
coordination of numerous activities throughout the organization (HILLIER;
LIEBERMAN, 2001).
The
PERT technique (Program Evaluation and Review Technique) and the CPM technique
(Critical Path Method) were developed independently in the end of the
1950s. The PERT was developed by the US
Navy Special Projects Office in 1958 as a management tool for programming and
control of the Polaris Project, while the CPM was developed in 1957 by J. Kelly
and M. R. Walker to assist in scheduling maintenance and shutdowns of chemical
processing plants (DAVIS, et al., 2001).
The
PERT and CPM techniques have many similarities, although they have been
developed separately, the main difference lies in the fact that the CPM
technique is based on deterministic estimates for the duration of activities
while the PERT technique is based on probability estimates for the duration of
the activities (ARENALES, et al., 2007).
These
two techniques, although it had independent development, are so similar that
small differences are considered by several authors as PERT/CPM technique, as
pointed by Andrade (2009) and according to Gaither and Frazier (2002) these two
terms are often used interchangeably.
The
PERT/CPM technique can answer the following important questions, as follow: i)
How long will the entire project take to be completed?; ii) What are the risks
involved?; iii) Which are the critical activities or tasks in the project which
could delay the entire project if they were not completed on time?; iv) Which
are the noncritical activities or tasks in the project which run later without
delayed the entire project? v) Is the project on schedule, behind schedule or
ahead of schedule?; and, vi) If the project has to be finished earlier than
planned, what is the best way to do this at the least cost? (HEIZER; RENDER,
1996; TAMRAKAR, 2013).
The
scheduling information generated by PERT/CPM is vital to the project manager. However,
the PERT/CPM technique assists the project manager in other ways. Schedule and
budget are key concerns and method of time-cost trade-offs enables
investigating ways of reducing the duration of the project at an additional
cost (HILLIER; LIEBERMAN, 2001).
In
this context, this paper aims to apply the PERT/CPM technique in Horizontal Laminator
production project on a machinery industry for foam cutting production in order
to optimize the time and cost, considering deterministic estimates for the
duration of the activities. This study also will allow to industry management
define a planning and control structure of the activities involved in the
production process of Horizontal Laminator, since it will provide knowledge of
the interdependencies between activities, activities that have slacks, time
that each activity can be delayed, and others information’s.
This
paper is structured in six sections. After the presentation of the context and
objectives of this research, the theoretical framework on the PERT/CPM technique
is explained in Section 2. In Section 3, the research methodology is presented.
Then, the theoretical framework is presented. The application of the PERT/CPM technique
on the project of the Horizontal Laminator production and optimization of times
and costs associated with the project is presented in Section 4; In Section 5,
discussions of the results are present; And, conclusions and final
considerations, are explained in the 6 Section.
2. 2. THEORETICAL FRAMEWORK
2.1.
PERT/CPM Technique
PERT/CPM
technique is based on a network diagram and network planning can help manager
monitor and control projects. To managing a project with network planning
involves four steps: I) Describing the project; ii) Diagramming the network;
iii) Estimative time of completion; and, iv) Monitoring project progress. (MCCLAIN;
THOMAS, 1985; KRAJEWSKI; RITZMAN, 1999).
The
final outcome of PERT/CPM technique is the construction of the time schedule
for the project, and to achieve this goal is convenient, run special
calculations to produce the following information in accordance with TAHA
(2008): i) Total time needed to complete the project; and ii) Classification of
project activities as critical and non-critical.
In
order to apply PERT/CPM technique in a project is needed: i) Define the activities involved for each
project; ii) Define the precedence relationship of activities; iii) Establish
the estimative of time and cost for each activity; iv) Create a network showing
the precedence relationship; and v) Develop a schedule for the project through
specific calculations of PERT/CPM technique (ACUÑA, 2009).
2.1.1. Critical Path
A
critical activity is an activity that has no leeway in determining its start
and finish times. According to Gaither and Frazier (2002) the critical path is
the longest path network and is a chain of critical activities for the project.
If a critical activity runs late, then the entire project will run late (TAHA,
2008; ACUÑA, 2009).
A
noncritical activity is an activity that allows some scheduling slack, meaning
it can be advanced or delayed (within limits) without affecting the completion
time of the project (TAHA, 2008; ACUÑA, 2009).
Slack
of activity is the maximum length of time that an activity can be delayed
without delaying the entire project. Activities on the critical path have zero
slack. Slack of activity is calculated from four time for each activity: i)
earliest start time; ii) earliest finish time; iii) latest start time; and iv)
latest finish time (KRAJEWSKI; RITZMAN, 1999).
According
to McClain and Thomas (1985), Heizer and Render (1996), Krajewski and Ritzman (1999),
Taha (2008), Andrade (2009) and Fernandes and Godinho Filho (2010) the earliest
start time and earliest finish time are obtained as follow:
·
Earliest Activity Start Time (ES): Time zero is
defined to be the earliest start time of the project. Each activity also has an
earliest start (ES) time, which supposes that all activities start as early as
possible, given the precedence relationships. Since an activity i cannot start until all its
predecessors are completed, ES can calculate by equation 1.
(1)
·
Earliest Activity Finish Time (EF): Is the earliest
finish time for an activity i is
equal its earliest start time plus its expected duration or time (t), according
to equation 2.
(2)
The
ES and EF times for each activity are computed as soon as all predecessors have
EF times, and are written on the node of the diagram (MCCLAIN; THOMAS, 1985).
To
McClain and Thomas (1985), Heizer and Render (1996), Krajewski and Ritzman (1999),
Taha (2008), Andrade (2009) and Fernandes and Godinho Filho (2010) the latest
start time and latest finish time are obtained as follow:
·
Latest Activity Finish Time (LF): For an activity is
the latest finish time of an activity is the latest start time of the
immediately following activity. For activities with more than one immediately
following, LF is the earliest of the latest start times of those
activities. Then LF for an activity i can calculate by equation 3.
(3)
·
Latest Activity Start Time (LS): This is, the latest
time an activity can be started without delaying the entire project. All
following activities must be completed without delaying the entire project. The
LS for an activity is equal its latest finish times minus it’s expect duration
(t), according to equation 4.
(4)
The
occurrences times calculations is done directly in the network diagram
(ANDRADE, 2009) and involve two passes: i) the forward pass determines the
earliest occurrence times of the events (earliest start time and earliest
finish time; and ii) the backward pass calculates their latest occurrence times
(latest start time and iv) latest finish time)
(TAHA, 2008; ACUÑA, 2009).
As
previously mentioned activities on the critical path have zero slack.
Information on slack are useful to project managers because its help them make
decisions regarding reallocation of resources (KRAJEWSKI; RITZMAN, 1999). Slack
times give you the amount of time an activity can run late without delaying
your project (ACUÑA, 2009).
Slack
times can be checked in activities that are outside the critical path and are
determined from the earliest and latest occurrence times of the events. Slacks
should be known by the project manager so that it can properly allocate the
resources to carry out the project activities (ANDRADE, 2009).
The
activity slack (S) for an activity i, according to Heizer and Render (1996), Krajewski
and Ritzman (1999), Taha (2008) and Fernandes and Godinho Filho (2010) can be
calculated in one of two ways for any activity, as follow:
(5)
(6)
According
to Krajewski and Ritzman (1999) to calculate the duration of the entire
project, should determine the EF for the last activity on the critical path.
The same authors highlight that the “constantly monitoring of the progress of
activities with little or no slack enables managers to identify activities that
need to be expedited to keep the project on schedule” (KRAJEWSKI; RITZMAN, 1999,
p. 805).
2.1.2. Deadlines for the Performing Activities
The
deadlines for performing the activity are those that enable the allocation
resources needed to perform the activity, thus show the most important points
for planning the execution, the deadlines for the start and end of the
activities are calculated after being obtained the occurrences times of each
event of project (ANDRADE, 2009), that are: i) earliest start time; ii)
earliest finish time; iii) latest start time; and iv) latest finish time.
The
deadlines for performing activities, according to Monks (1987) and Andrade
(2009) are:
·
First Start Date (FSD): It is the earliest possible
date for starting the activity, considering that the previous activities are being
performed without delay, according to its planned duration. The FSD for an
activity i is calculated by equation
(7).
(7)
·
First Finish Date (FFD): It is the first date to
complete an activity, considering that the previous activity has been initiated
in the early initial event and its duration has been obeyed. The FFD for an
activity i is calculated by equation
(8).
(8)
·
Latest Finish Date (LFD): It is the last date to end
an activity so as not to cause delays in the following activities. The LFD for
an activity i is calculated by
equation (9).
(9)
·
Latest Start Date (LSD): Is the maximum date for
initiating an activity so as not delay following activities, and consequently,
delay the entire project. The LSD for an activity i is calculated by equation (10).
(10)
2.1.3. Cost Analysis
Keeping
costs at acceptable levels almost always is as important as meeting schedule
dates. The reality of project management is that there are time-cost trade-offs
(KRAJEWSKI; RITZMAN, 1999).
The
cost analysis is used to determine the lowest cost way to reduce the duration
of the project. Heizer and Render (1996) emphasize that the objective of cost
analysis is to reduce the entire project completion time by a certain amount at
the least cost. For this it is necessary to reduce the duration of any critical
activity, if only because there are no slacks in these activities (TAHA, 2008).
In
the initial phase of the project when one of the activities is to estimate the
time spent performing each activity, the budgeting of the activities of costs
should also be a concern as it is necessary to create elements for the
relationship of three major analysis of the project, as follows: i) identifying
the total cost of the project, which is the sum of direct costs, indirect costs
and penalty costs; ii) identifying individual cost for each activity, creating the
possibility to optimize the project; and, iii) identifying resource
requirements per unit of time and analysis of resource leveling (ANDRADE, 2009).
According
to Krajewski and Ritzman (1999) and Andrade (2009) to assess whether the
activities may provide benefits – from either a cost or a schedule perspective –
the manager needs to know the following times and costs:
·
Normal Time/Duration: is the time to complete the
activity under normal considerations and this time is equal the expected time
(t).
·
Normal Cost: is the activity cost associated with the
normal time.
·
Accelerated Time/Duration: is the shortest possible
time to complete the activity.
·
Accelerated Cost: is the cost associated with the
accelerated time.
In
this study, based on Krajewski and Ritzman (1999), the assumption that direct
costs increase linearly as activity time is reduced from its normal time is
considered. This assumption implies that for every time unit the activity is
reduced, direct costs increase by a proportional amount.
To
conduct any analysis of the costs of a project initially should know the
Marginal Cost (CMg) of an activity i,
which is obtained by equation (11).
(11)
In
the planning phase, it should be noted that the activities that contain slacks,
have optimal duration higher than the normal duration. In this scenario, you can reduce the total
cost of the project increases the runtime of these activities to its duration
or to consume all his slack (ANDRADE, 2009). In this case the assumption that
direct costs decrease linearly as activity time is increased in all its slack
is considered. This assumption implies that for every time unit the activity is
increase, direct costs decrease by a proportional amount.
In
practical situations it may be necessary accelerate a project, that is, ends it
in a shorter period than anticipated. For this to occur it is necessary to
analyze the activities in order to accelerate that contribute most to the
project deadline, which are the critical path activities (PRADO, 2004; ANDRADE,
2009).
Once
managers have several activities that can be enhanced or accelerated in the
project, according to Gaither and Frazier (2002) the general rules for deciding
which activities accelerate, which do not accelerate and in what order accelerate
are: i) Accelerate only critical activities; ii) First accelerating activity
with lower cost of acceleration per unit of time or lower marginal cost; and
iii) When there are parallel critical paths, each must be accelerated because
the acceleration of just one of the paths will not reduce the total duration of
the project.
3. METHODOLOGY
In
this research were used the methods qualitative and quantitative. For the purpose,
this research was classified as to the purposes as descriptive, exploratory, and
methodological, and was classified as to the means as bibliographical and case
study.
The
theoretical framework about the PERT/CPM technique to support the application
in the project of Horizontal Laminator production was initially defined. The
choice of the production process of Horizontal Laminator for analysis is due
the fact of this equipment is one of the main products marketed by the Industry
X and be a customized or tailored product.
Data
collection was accomplished by means of direct observations, documentary
analysis and interviews. Direct
observations were necessary for the understanding of production process and
their respective activities. The analysis of documents, such as the production
route, was needed to identify the sequence of production as well as
dependencies between activities that compose the project. Interviews were conducted with staff from the
Engineering Department of Industry X to identify the time and costs associated
with project activities.
The
normal durations and the normal costs used the application of PERT/CPM
technique is coming from of the Engineering Department of Industry X. It is
noteworthy that in the calculation of activities costs were considered the
direct and indirect costs associated with the execution of activities.
According
to Engineering Department of Industry, the times of activities can be
accelerated by up to 37.5% over their normal durations, with the exception of the
painting activity. In this study was used for the calculation of the durations
accelerated all the percentage allowed by Industry X. The same percentage of
37.5% is added to the cost of activities when they are performed in their
accelerated durations, according to Engineering Department of Industry X.
4. APPLICATION OF PERT/CPM TECHNICAL FOR OPTIMIZATION OF
TIMES AND COSTS OF PROJECT OF HORIZONTAL LAMINATOR PRODUCTION
4.1.
Production Process of Horizontal
Laminator
The
horizontal laminator is produced by the Industry X, founded in 1986 and located
in Araruna City, northwest of Parana State, Brazil. The Industry x is specializes
in the development of industrial products customized or tailored.
The
horizontal laminator is a machine used for cutting blocks of polyurethane foam
with a precision of 1 mm and minimum cut 10mm thick, The structure is made of
carbon steel and its operation is made in Programmable Logic Controller (PLC)
and Human Machine Interface (HMI), in which the cutting plans and information pertinent
to operation of the machine are entered.
The
Horizontal Laminator structure is divided into cutting table and headstock. The table is responsible for transporting the
pack in cutting while the headstock ensures the alignment of the blade and precision.
In addition to these components the machine has a safety system as can be seen
in Figure 1.
Figure 1: Horizontal
Laminator
The
manufacturing process of Horizontal Laminator begins with cutting of carbon
steel bars and carbon steel flat sheets in sizes established by the Department
of Product Engineering.
The
cut sheets are divided into two groups, as follows: i) group of thin plates (up
to 4.75 mm) that are brought into the fold and then sent to the sector
responsible for production the machine; and ii) group of plates (larger than
4.75 mm) are taken together with the carbon steel bars cut the company's sector
responsible for production machine. The bars and the plates are then subjected
to the welding process the components and assembly of the machine.
After
the Horizontal laminator is ready, it is disassembled and its components are
brought to the paint sector, which are separated into three groups, as follows:
i) fixed parts for painting in gray; ii) moving parts to paint in orange; iii)
security protections for painting in yellow.
After
painted the Horizontal laminator is mounted again and begins the implementation
process of the electrical, pneumatic and automation components. After assembled
all electrical, pneumatic and automation components, the machine is subjected
to quality test, and then released for final disassembly, packing and shipping.
4.2.
Application of PERT/CPM Technique
To
optimize the times and costs associated of the project of Horizontal Laminator
production through the application of PERT/CPM technique, the sequence of
activities and their dependency relationships have been initially identified,
based on the production route (Table 1).
Table 1: Sequence and Activities Dependency Relations
of Project of Horizontal Laminator Production
Activity |
Description |
Dependence |
A |
Cut for Machining |
- |
B |
Cut to Curve |
- |
C |
Cut to Production |
- |
D |
Plasm Cutting |
- |
E |
Machining |
A |
F |
To Curve |
B |
G |
Production Parts |
C |
H |
Assembly 1 |
E, D, F, G |
I |
Panel Mounting |
A |
J |
Disassembly 1 |
H |
K |
Painting |
J |
L |
Assembly 2 |
K |
M |
Automation |
L |
N |
Quality Test |
I, M |
O |
Disassembly 2 |
N |
P |
Packing |
O |
Q |
Shipment |
P |
We
emphasize that the indirect dependence is not shown in the project network and
the dependencies relationships adopted in this study were provided by the Department
of Engineering. However, it is implicit in this study that the activity I
depend on all previous activities.
In
sequence, it was obtained from the Product Engineering Departament, normal and
accelerated times or durations, as well as the normal and accelerated costs,
for all the activities that compose the project associated with the production
of Horizontal laminator. It is noteworthy that the project activities with the
exception of the activity K (painting) can be accelerated by up to 37.5% of their
normal times and that the use of financial resources for such accelerations are
proportional to the decrease in the time for execution of activities. The
marginal cost was calculated using the equation (11) presented in the
theoretical framework.
The
times or durations and costs of activities that compose the project are
presented in Table 2.
Table 2: Durations and costs of activities of Project
of Horizontal Laminator Production
Activity |
Normal Duration (hours) |
Accelerated Duration (hours) |
Normal Cost (R$) |
Accelerated Cost (R$) |
Marginal Cost (R$) |
A |
4 |
2.5 |
45 |
61.87 |
11.24 |
B |
12 |
7.5 |
135 |
185.62 |
11.24 |
C |
24 |
15.1 |
270 |
371.25 |
11.37 |
D |
2 |
1.2 |
22.50 |
30.93 |
10.53 |
E |
16 |
10 |
180 |
247.5 |
11.25 |
F |
32 |
20.2 |
360 |
495 |
11.44 |
G |
32 |
20.2 |
360 |
495 |
11.44 |
H |
240 |
151.2 |
2700 |
3,712.5 |
11.40 |
I |
40 |
25.2 |
450 |
618.75 |
11.40 |
J |
16 |
10 |
180 |
247.5 |
11.25 |
K |
16 |
16 |
180 |
180 |
0 |
L |
32 |
20.2 |
360 |
495 |
11.44 |
M |
48 |
30.2 |
540 |
742.5 |
11.37 |
N |
16 |
10 |
180 |
247.5 |
11.25 |
O |
32 |
20.2 |
360 |
495 |
11.44 |
P |
32 |
20.2 |
360 |
495 |
11.44 |
Q |
32 |
20.2 |
360 |
495 |
11.44 |
Based
on the dependency relations (Table 1) and in the normal times of activities
(Table 2) was constructed the initial PERT/CPM network for the project (Figure
2) which has a total cost of R$ 7,042.50. It also calculated the total cost of
the project and identified the critical path.
Figure 2:
Initial PERT/CPM Network of Project of Horizontal Laminator Production
The
project of horizontal laminator production, with all activities performed in
normal times, has total duration of 520 hours and, as shown in network (Figure 2)
the activities C, G, H, J, K, L, M, N, O, P and Q composing the critical path.
As
shown in the theoretical framework, to reduce the total duration of a project,
it is necessary to accelerate the activities on the critical path, i.e. to
reduce their duration to the limits. Thus, with the exception of the activity K
(paint), since whom it has the normal period equal to accelerated life, it was
possible to accelerate the C, G, H, J, K, L, M, N, O and Q activities, for
which the variations of times and costs are presented in Table 3.
Table 3: Variations of Durations and Costs of
Accelerating of C, G, H, J, K, L, M, N, O and Q Activities
Activity |
Normal Duration (hours) |
Accelerated Duration (hours) |
Variation in Duration (hours) |
Marginal Cost (R$) |
Increase in Activity Cost (R$) |
C |
24 |
15.1 |
8.9 |
11.37 |
101.19 |
G |
32 |
20.2 |
11.8 |
11.44 |
134.99 |
H |
240 |
151.2 |
88.8 |
11.40 |
1,012.32 |
J |
16 |
10 |
6 |
11.25 |
67.5 |
L |
32 |
20.2 |
11.8 |
11.44 |
134.99 |
M |
48 |
30.2 |
9.8 |
11.37 |
111.42 |
N |
16 |
10 |
6 |
11.25 |
67.5 |
O |
32 |
20.2 |
11.8 |
11.44 |
134.99 |
P |
32 |
20.2 |
11.8 |
11.44 |
134.99 |
Q |
32 |
20.2 |
11.8 |
11.44 |
134.99 |
Total Increase in Total Cost of Project |
2,034.89 |
Based
on new activity durations (Table 3) was constructed the PERT/CPM network for
the project, calculated the new total duration of the project and identified
the new critical path, as can be seen in Figure 3.
Figure 3: Network PERT/CPM with a decrease in the
times of the activities C, G, H, J, L, M, N, O and P
The
reduction in the duration of the activities C, G, H, J, L, M, N, O and P
resulted in an increase of R $ 2,034.89 in the total project cost and reduction
of 177.8 hours in the total duration of the project. Thus, the total cost of
the project increased from R$7,042.50 to R$9,077.39 and the total duration of
the project decreased from 520.0 hours to 342.2 hours.
After
the construction of the new PERT/CPM network (Figure 3) it was found that the
critical path is now composed by the activities B, F, H, J, K, L, M, N, O, P
and Q. As the activities H, J, K, L, M, N, O, P and Q are already in their accelerated
durations (minimal duration), only activities B and F should be adjusted, i.e.
accelerated. The variations of times and costs resulting from changes in the
activities B and F are presented in Table 4.
Table 4: Variations of Durations and Costs of Accelerating
of B and F Activities
Activity |
Normal Duration (hours) |
Accelerated
Duration (hours) |
Variation
in Duration (hours) |
Marginal
Cost (R$) |
Increase in Activity Cost (R$) |
B |
12 |
7.5 |
4.5 |
11.25 |
50.62 |
F |
32 |
20.2 |
11.8 |
11.44 |
134.99 |
Total Increase in
Total Cost of Project |
185.61 |
Based
on new activity durations B and F (Table 4) was constructed PERT/CPM network
for the project, computed the new total duration of the project and identified
the new critical path, as can be seen in Figure 4.
Figure 4: Network
PERT/CPM with a decrease in the times of the activities B and F
The
reduction in the duration of the activities B and F resulted in an increase of
R$185.61 in the total project cost and reduction of 8.7 hours in the total
duration of the project. Thus, the total cost of the project increased from R$9,077.39
to R$9,263.01and the total duration of the project decreased from 342.2 hours
to 333.3 hours.
After
the construction of the new PERT/CPM network (Figure 4) it was found that the
critical path is now composed by the activities C, D, G, H, J, K, L, M, N, O, P
and Q. As the activities C, G, H, J, K, L, M, N, O, P and Q are already in
their accelerated durations (minimal duration), only activities D should be
adjusted. However, it was decided to not accelerate D activity because the
reduction in its duration will result in cost increase and will not result in
reduction of total project time, as this activity must be completed together
with G, F and E activities so that H activity starts, as can be seen in Figure
4.
After
the acceleration of activities, and reduced total duration in the duration of
the project, adjustments were made in the project network through the use of slack
free in order to reduce the total cost of the project. As there is a not optimal
time for the activities, all slack free of activities were used. The slack free
for all activities of project, variations of times and costs resulting from
changes in the activities are presented in Table 5.
Table 5: Slack Free, Variations of Durations and Costs
Resulting From Changes in the Activities of Project
Activity |
Current Duration (hours) |
Slack Free (hours) |
Variation in Duration (hours) |
Marginal Cost (R$) |
Decrease in Activity Cost (R$) |
A |
4 |
0 |
0 |
11.24 |
0 |
B |
7.5 |
0 |
0 |
11.24 |
0 |
C |
15.1 |
0 |
0 |
11.37 |
0 |
D |
2 |
33.3 |
33.3 |
10.53 |
350.64 |
E |
16 |
15.3 |
15.3 |
11.25 |
172.12 |
F |
20.2 |
7.6 |
7.6 |
11.44 |
86.94 |
G |
20.2 |
0 |
0 |
11.44 |
0 |
H |
151.2 |
0 |
0 |
11.40 |
0 |
I |
40 |
218.9 |
218.9 |
11.40 |
2,495.46 |
J |
40 |
0 |
0 |
11.25 |
0 |
K |
16 |
0 |
0 |
0 |
0 |
L |
20.2 |
0 |
0 |
11.44 |
0 |
M |
30.2 |
0 |
0 |
11.37 |
0 |
N |
10 |
0 |
0 |
11.25 |
0 |
O |
20.2 |
0 |
0 |
11.44 |
0 |
P |
20.2 |
0 |
0 |
11.44 |
0 |
Q |
20.2 |
0 |
0 |
11.44 |
0 |
Total Decrease in Total Cost of Project |
3,105.17 |
With
the use of slack free of activities, that not affecting the total duration of
the project as discoursed on the theoretical framework, it was possible to
obtain a decrease of R$ 3,105.17 in the total project cost, and therefore, R$
6,157.83 the final cost of the project. Based on new activity durations (Table
5) was constructed the final PERT/CPM network for the project of Horizontal
Laminator Production (Figure 5).
Figure 5: Final
PERT/CPM network with utilization of slacks free
5. DISCUSSIONS
With
the application of PERT/CPM technique in the project of the horizontal
laminator production process the production time was reduced by 35.86%, i.e.
from 520.0 hours to 333.5 hours, resulting in an increase of 31.53% in the
total cost of the project, i.e., from R$ 7,042.50 to R $ 9,263.01.
When
take advantage of slack activities it was possible to obtain a decrease of R$
3,105.17 total cost of the project, i.e. 33.52%, from the total cost of the
project from R $ 9,263.01 to R $ 6,157.83.
The
final cost of project of horizontal laminator production decreased by
approximately 12.56% from the initial total cost of the project, moving from R$
7,042.50 to R $ 6,157.83, that due to the utilization of slack free activities.
With
the application of PERT/CPM technique it was verified that the largest slacks free
are in free activities D (Plasm Cuting), E (Machining) e I (Panel Mounting) as
show in Table 5. The slacks free in activities D e E are arising from other
dependencies of activity H, which can only be started when the activities E, F,
G and H are completed. The slack free in activity I are arising from direct
dependence of activity A and indirect dependence of activity E.
Important
information for properly managing a project is the deadlines for implementation
of activities, i.e. the earlier and later dates to start the activities and
earlier and later dates for completion of activities. Thus, the deadlines for
implementation of the project activities were calculated and are presented in
Table 6 below. The equations (7), (8), (9) and (10) used for the calculation of
deadlines form presented in the theoretical framework.
Table 6: Deadlines for Implementation of Activities
Activity |
FSD |
LSD |
FFD |
LFD |
A |
1 |
1 |
4 |
4 |
B |
1 |
1 |
7.5 |
7.5 |
C |
1 |
1 |
15.1 |
15.1 |
D |
1 |
1 |
35,3 |
35,3 |
E |
5 |
5 |
35.3 |
35.3 |
F |
8.5 |
8.5 |
35.3 |
35.3 |
G |
16.1 |
16.1 |
35.3 |
35.3 |
H |
36.3 |
36.3 |
186.5 |
186.5 |
I |
5 |
45 |
222,9 |
262.9 |
J |
187.5 |
187.5 |
196.5 |
196.5 |
K |
197.5 |
197.5 |
212.5 |
212.5 |
L |
213.5 |
213.5 |
232.7 |
232.7 |
M |
233.7 |
233.7 |
262.9 |
262.9 |
N |
263.9 |
263.9 |
272.9 |
272.9 |
O |
273.9 |
273.9 |
293.1 |
293.1 |
P |
294.1 |
294.1 |
313.3 |
313.3 |
Q |
314.3 |
314.3 |
333.5 |
333.5 |
Analyzing the
data in Table 6 it can be seen that the later date to completion the activity Q,
the last activity of the project should be 333.5 hours, which is equivalent to
the time obtained for full completion of the project.
Armed
with information regarding to critical activities, slacks of activities and
deadlines for performing activities, the manager of a project can take various
decisions such as: i) reduction of work in process, reduction of use of
manpower , among others; ii) allocate the right resources at the right quantity
and at the right time; iii) integrate and coordinate efforts of all involved;
iv) eliminate problems related to the incidence of losses and low productivity;
and v) ensure good communication between the participants of the work,
increasing the transparency of procedures.
For
managers of industry subject of this study the PERT/CPM technique also gives a
pretty good idea about the completing the projects so that they can plan ahead
to expedite certain activities if necessary, since the horizontal laminator is
not the only equipment produced by industry.
6. CONCLUSIONS
The
PERT/CPM technique as part an information system transforms data on individual
activities into information about the project as a whole. Identification of the
critical path, slack time of activities and potential trouble spots exist in
the system are the most important information for management a project using
this technique.
The
total time initially estimated by PERT/CPM technique for conclusion the project
of the horizontal laminator production process was 520.0 hours. After
accelerate all activities that compose the critical path, the total time for
conclusion the project moved to 333.5 hours.
This
change in the duration of the project represents a reduction of 35.8% in
project conclusion time, with an increase of 31.53% in the total cost of the
project, which increased from R$7,042.50 to R$9,263.01.
However, after obtaining the
shortest possible duration for the project (333.5 hours), an analysis of slacks
of activities and consequently the use of these slacks, without changing the
total time execution of the project there was obtained a reduction of 33.52% in
total cost of the project, which decreased from R$9,263.01 to R $ 6,157.80.
In
this study, attention should be paid to the fact that the final cost of project
of horizontal laminator production decreased by approximately 12.56% from the
initial total cost of the project, moving from R$ 7,042.50 to R $ 6,157.83,
that due to the utilization of slack free activities.
The
results show that the PERT/CPM technique can bring a great contribution to the
optimization of the times and costs of project of the horizontal laminator
production process and that applied to other Industry projects, can lead to
reduced costs and even increase the amount of projects undertaken, and
consequently lead to an increase in its competitiveness.
PERT/CPM
is a valuable technique for projects planning and control, but not a substitute
for a judgment, with attention to organizational and behavioral implications.
PERT/CPM helps manager to focus attention on the most significant decisions,
and to identify the implication of a decision.
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