PM 0015

Quantitative Methods in Project Management

Contents
Unit 1
Basic Concepts in Project Management 1
Unit 2
Network Analysis 21
Unit 3
Project Scheduling by PERT/CPM 45
Unit 4
Time-cost Optimization in Network Scheduling 71
Unit 5
Resource Analysis in Network Scheduling 89
Unit 6
Business Forecasting Part 1 106
Unit 7
Business Forecasting Part 2 129
Unit 8
Project Cost Management and Budgeting 148
Unit 9
MS Project An Introduction 170
Unit 10
Task Entry and Linking in MS Project 200

Edition: Spring 2010

BKID B1344 20
th
Dec. 2010

Unit 11
Resource Management in MS Project 213
Unit 12
Displaying of Data and Examining Cost Factor in MS
Project 227
Unit 13
Printing and Reporting in MS Project 244
Unit 14
Updating a Project in MS Project 257
Unit 15
Managing Multiple Projects in MS Project 273

















Prof. N. S. Ramesh Murthy
Director
Directorate of Distance Education
Sikkim Manipal University of Health, Medical & Technological Sciences (SMU-DDE)
Board of Studies
Mr. C. Shanath Kumar (Chairman) Mr. Shankar Jagannathan
Head Management & Commerce Former Group Treasurer
Sikkim Manipal University, DDE Wipro Technologies Limited, Bangalore
Dr. T. V. Narasimha Rao Mr. Pankaj Khanna
Adjunct Faculty & Advisor Director, HR
SMU, DDE, Bangalore 560 008 Fidelity Mutual Fund
Mr. Ashok Kumar Mr. Abraham Mathew
Additional Registrar, SMU, DDE CFO, Infosys BPO
Prof. K. V. M. Varambally Ms. Sadhana Das
Director Senior Manager HR
Manipal Institute of Management Microsoft India Corporation (Pvt.) Ltd.
Manipal 576 104
Dean Special Invitee
Directorate of Distance Education Prof. Ramu Iyer
Sikkim Manipal University Ex-Professor, IIM Calcutta

Content Preparation Team
Content Writing and Compilation
Mr. Subhabaha Pal
Faculty, Department of e-Learning, Sikkim Manipal University - DDE
& Consultant, Manipal Education
Edition : Spring 2010
Printed : December 2010
This book is a distance education module comprising of collection of learning
material for our students.
All rights reserved. No part of this work may be reproduced in any form by any
means without permission in writing from Sikkim Manipal University of Health,
Medical and Technological Sciences, Gangtok, Sikkim.
Printed and Published on behalf of Sikkim Manipal University of Health, Medical and
Technological Sciences, Gangtok, Sikkim by Mr. Rajkumar Mascreen, GM, Manipal
Universal Learning Pvt. Ltd., Manipal 576 104.
Printed at Manipal Press Limited, Manipal.




















In the modern business world, almost all activities and performances are
measured on a short-term basis. So, achieving maximum output in shortest
possible time using optimum resources is the key for success of an
individual or a team. So, efficient time and resource management, proper
planning as well as apt imlementation are the needs of the day in every
sphere of activities. So, an efficient project manager should have certain
skills which are not needed for a general manager looking after day to day
activities. An efficient project manager should be armed with certain
statistical and mathematical tools which will help him to optimize his
resources for maximum output within the stipulated time. Several statistical
and mathematical tools are there which can be applied for efficient project
scheduling and management. Tools like Decision Trees, Network Analysis
techniques, PERT, CPM, MOST, GERT etc have wide applications in day to
day project management and project planning. MS Project is a tool for a
manager for day-to-day project management and implementation and it
makes the work of a project manager very easy. Becoming conversant with
these tools is essential for a project manager to perform well in his job.
This courseware throws light on various statistical and mathematical tools
available to a project manager for successful project management and
implementation. It also teaches how to use MS Project for project planning
and implementation.
This book contains 15 units.
Unit 1: Basic Concepts in Project Management
Deals with Decision Tree concepts and numeric and nonnumeric project
selection methods
Unit 2: Network Analysis
Gives an overview of network analysis and deals with minimum-span,
shortest-route as well as maximal-flow problems
Unit 3: Project Scheduling by PERT-CPM
Deals with the concepts of PERT and CPM and how it can be used in
project scheduling

SUBJECT INTRODUCTION
Unit 4: Time Cost Optimization in Network Scheduling
Deals with the use of time-cost optimization algorithm in network scheduling
Unit 5: Resource Analysis in Network Scheduling
Discusses resource allocation and scheduling and deals with the techniques
like GERT, MOST and LOB
Unit 6: Business Forecasting Part 1
Discusses annual time-series smoothing and least square trend fitting
Unit 7: Business Forecasting Part 2
Discusses autoregressive modeling for trend-fitting and forecasting as well
as time-series forecasting of seasonal data
Unit 8: Project Cost Management and Budgeting
Deals with project cost estimates, project budgeting, cost performance
analysis, cost forecasting and control
Unit 9: MS Project An Introduction
Introduces basics of MS Project
Unit 10: Task Entry and Linking in MS Project
Discusses how to make task entry and linking in MS Project
Unit 11: Resource Management in MS Project
Discusses resource management through MS Project and allocation of
resources to different tasks
Unit 12: Displaying of Data and Examining Cost Factor in MS Project
Discusses displaying of data, using filters and examining of cost factors
Unit 13: Printing and Reporting in MS Project
Discusses how to print and create reports in the MS Project
Unit 14: Updating a Project in MS Project
Deals with updating of task data, tracking of project progress as well as
updating of a project
Unit 15: Managing Multiple Projects in MS Project
Discusses how to use common resources in multiple projects, consolidating
multiple projects as well as using Organizer in MS Project.