A Global Catalyst of Ethical Business professionalism

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A Global Catalyst of Ethical Business professionalism

Project Management
SMN Praveeni
MGT-3133
Management Science Applications

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Learning Objectives

• To identify the project management

• To understand the Network Analysis Techniques
• To identify the logic in network construction
• To obtain the optimal solutions under Network
Analysis Techniques

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Project Management
Part I- Introduction

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Introduction
A project is a series of activities directed to
accomplishment of a desired objective.”

“A project is a temporary endeavor undertaken to

create a "unique" product or service’’

Ex; construction of a new building, Introduction of a new

product to market, introduction of new machine to production
process

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A project is an effort
▪ involving a connected sequence of
activities and a range of resources,
▪ designed to achieve a specific and unique
outcome and
▪ operates within time, cost and quality
constraints and
▪ often used to introduce change.
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Characteristic of a Project
A unique, one-time operational activity or effort
▪

▪Requires the completion of a large number of

interrelated activities
Established to achieve specific objective
▪

Limited Resources, such as time and/or money

▪

Typically has its own management structure

▪

Need leadership
▪
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Project Scheduling and Control

Techniques
• Gantt Chart
• Network Analysis
▪ Critical Path Method (CPM)
▪ Program Evaluation and Review Technique
(PERT)

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Gantt chart
Advantages
▪ Gantt charts are quite commonly used.
▪ They provide an easy graphical representation of when activities
(might) take place.

Limitations
▪ Do not clearly indicate details regarding the progress of activities
▪ Do not give a clear indication of interrelation ship between the separate activities
▪ Difficult to apply in complex and large project

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Network Analysis
Network analysis is the general name given to certain
specific techniques which can be used for the
planning, management and control of projects.
• Developed in 1950’s
• Advantages of PERT / CPM
• Precedence relationships
• Large projects
• More efficient
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Critical Path Method (CPM)

• CPM was developed by Du Pont and the emphasis
was on the trade-off between the cost of the project
and its overall completion time
• Production management - for the jobs of repetitive
in nature where the activity time estimates can be
predicted with considerable certainty due to the
existence of past experience.

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Programme Evaluation and Review

Technique (PERT)
•PERT was developed by the US Navy for the
planning and control of the missile program
and the emphasis was on completing the
program in the shortest possible time.

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• In PERT activities are shown as a network of

precedence relationships using activity-on-arrow
network construction
▪ Multiple time estimates
▪ Probabilistic activity times
• Project management - for non-repetitive jobs, where
the time and cost estimates tend to be quite
uncertain. This technique uses probabilistic time
estimates.

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Definition of Terms in a Network

Activity distinct part of a project whose completion requires
a certain amount of time

Event specific starting up or completion instant activity.

Also called nodes
Dummy activity which doesn’t consume any kind of
Activity resources and assumed the zero time duration for
the activity
Network graphical representation of activities and events , showing their logical
sequences to be performed in order to achieve the objective

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Emphasis on Logic in Network Construction

• Only one point of a start event and only one point of an end event
• Network proceed from left to right
• Arrows indicate logical precedence and should not be intersected
• There should be a tail event and a head event in each activities
• Loops that is a services of activities which lead back to the same event are not
allowed
• Isolated activities (dangling) are not allowed
• There should not be more than one activity between same starting and ending
events
Dummy activity can be introduced but should not make error of redundancy

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Situations in network diagram

B A
C
A
B
C
A must finish before either B or both A and B must finish before
C can start C can start

A C A B

B D Dummy

both A and B must finish before D

C
either of C or D can start
A must finish before B can start both
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Example of Simple Network – Survey

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Example of Network – More Complex

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Project Management
Part II-
Critical Path Method (CPM)
Programme Evaluation and Review Technique (PERT)

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Example 1
Consider the list of four activities for making s simple product
Activity Description Immediate
Predecessor
A Buy Plastic Body -
B Design Component -
C Make Component B
D Assemble product A,C

Immediate predecessors for a particular activity are the activities that,

when completed, enable the start of the activity in question.
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Sequence of activities
• Can start work on activities A and B anytime, since
neither of these activities depends upon the completion
of prior activities.
• Activity C cannot be started until activity B has been
completed
• Activity D cannot be started until both activities A and C
have been completed.
• The graphical representation (next slide) is referred to
as the PERT/CPM network
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Example 2
Develop the network for a project with following activities
and immediate predecessors:
Activity Immediate predecessors
A -
B -
C B
D A, C
E C
F C
G D, E, F
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Network of first five activities

1 4 5

3
2

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Network of Seven Activities
1 4 6
7

3
2 5

•Note how the network correctly identifies D, E, and F as the immediate predecessors for
activity G.
•Dummy activities is used to identify precedence relationships correctly and to
eliminate possible confusion of two or more activities having the same starting and
ending nodes
•Dummy activities have no resources (time, labor, machinery, etc) – purpose is to
PRESERVE LOGIC of the network
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EXAMPLES
OF USE OF
DUMMY
ACTIVITY

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Example 3 Activity Immediate

Predecessor
Completion Time
(Week)
A - 5

B - 62

C A 4

D A 3

E A 1

F E 4

G D,F 14

H B,C 12

I G,H 2

Total 51
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This information indicates that the total time

required to complete activities is 51 weeks.

However, we can see from the network that

several of the activities can be conducted
simultaneously (A and B, for example).

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Ending Point of Activity A and
starting point of Activity
D,E,C (Event 2)
Starting Point Activity

A
1 2
5

T= Expected
Activity Time
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5
2

4
7
1

H
3 6

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Forward Pass Calculation

Earliest Strat Time (ES)
• Earliest time an activity can start
• ES= maximum EF of immediate predecessors
Earliest Finish Time (EF)
• Earliest time an activity can finish
• The expression EF = ES + t can be used to find the earliest finish time for a
given activity

For example, for activity A, ES = 0 and t = 5; thus the earliest finish time for
activity A is

EF = 0 + 5 = 5
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ES = Earliest EF = Earliest
Start Time Finish Time

Activity

A (0,5)
1 2
5

T= Expected
Activity Time
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Earliest start time 5

rule: 2

The ES time for an

activity leaving a
4
particular node is
equal to the largest
of the earliest finish
times for all
activities entering 6
the node.
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5
2

4
7
1

H (9,21)
3 6

Network with Forward Pass Calculations

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Backward Pass Calculation

Latest Finish Time (LF)
• Latest time an activity can be completed without delaying critical path
LF=minimum LS of immediate predecessors
• Starting at the completion point (node 7) and using a latest finish time
(LF) of 26 for activity I
Latest Strat Time (LS)
• Latest time an activity can start without delaying critical path time
LS = LF - t
Ex; for activity I, LF = 26 and t= 2, thus the latest start time for activity I is
LS = 26 – 2 = 24
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ES = Earliest EF = Earliest
Start Time Finish Time

Activity

A (0,5)
1 2
5 ( 8, 12)
T= Expected
Activity Time
LS = Latest LF = Latest
Start Time Finish Time
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Latest Finish time

2 rule:

The latest finish time

4 for an activity
1
entering a particular
node is equal to the
smallest of the latest
start times for all
3 activities leaving the
node.

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5
2

4
7
1

H (9,21)
3 6
12 (12, 24)

Network with Backward Pass Calculations

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Total Slack / Total Float

Slack is the length of time an activity can be delayed without
affecting the completion date for the entire project.
▪ Total Slack =LF-EF
▪ Total Slack = LS-ES
▪ Total Slack = LF-ES-t
For example, slack for C = 3 weeks , i.e Activity C can be delayed
up to 3 weeks can be started anywhere between week 5 and 8
▪ LF-EF = 12 –9 =3
▪ LS-ES = 8 – 5 = 3
▪ LF-ES-t = 12-5-4 = 3

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Activity schedule for our example
Activity ES EF LS LF Slack Critical
(LS-ES) Path
A 0 5 0 5 0 Yes
B 0 6 6 12 6
C 5 9 8 12 3
D 5 8 7 10 2
E 5 6 5 6 0 Yes
F 6 10 6 10 0 Yes
G 10 24 10 24 0 Yes
H 9 21 12 24 3
I 24 26 24 26
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CPM Analysis
Critical Path is that the sequence of activities and events
where there is no “slack” or Zero slack
▪ Longest path through a network
▪ minimum project completion time

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5
2

4
7
1

H (9,21)
3 6
12 (12, 24)

Network with Critical Path

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• What is the total time to complete the project?

26 weeks
• What are the scheduled start and completion times for each activity?
ES, EF, LS, LF are given for each activity.
• What is the critical path?
A, E, F, G, and I.
• What activities are critical and must be completed as scheduled in order to keep the project on
time?
Critical path activities: A, E, F, G, and I.
• How long can non‐critical activities be delayed before they cause a delay in the project’s
completion time
Slack time available for all activities are given
• Identify whether Activity A and B can be delayed or not?
A can not be delayed without affecting the total completion of the project where B can be
delayed by 6 weeks as itD is
e pnon‐critical
a r t m e n t o f activity
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PERT Analysis

▪ PERT is based on the assumption that an

activity’s duration follows a probability
distribution instead of being a single value
▪ Three time estimates are required to compute
the parameters of an activity’s duration
distribution:

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Three time estimates are required to compute

the parameters of an activity’s duration
distribution:
▪ pessimistic time (tp ) - the time the activity
would take if things did not go well
▪ most likely time (tm ) - the consensus best
estimate of the activity’s duration
▪ optimistic time (to ) - the time the activity
would take if things did go well
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tp + 4 tm + to
Mean (Expected Time)= te =
6

2
tp - to
Variance: Vt =  2 = 6

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Activity Immediate Optimistic Pessimistic Most Likely

Predecessor Time to Time tp Time tm
A - 3 5 4
B A 2 4 3
C A 4 8 6
D A 2 6 4
E B 1 1 1
F C 3 9 6
G D,E,F 6 8 7

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Activity Immediat Optimis Pessimis Most Expected Variance

e tic tic Likely Time
Predecess Time Time Time
or
A - 3 5 4 4 0.111
B A 2 4 3 3 0.111
C A 4 8 6 6 0.444
D A 2 6 4 4 0.444
E B 1 1 1 1 0
F C 3 9 6 6 1
G D,E,F 6 8 7 7 0.111
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Activity ES EF LS LF Slack CP
LS-ES
A 0 4 0 4 0 Yes
B 4 7 12 15 8
C 4 10 4 10 0 Yes
D 4 8 12 16 8
E 7 8 15 16 8
F 10 16 10 16 0 Yes
G 16 23 16 23 0 Yes
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Critical Path
A,C,F,G
Total completion time of the project
4+6+6+7=23
Variance of completing the project
variance of critical activities= (0.111+0.444+1+0.111)
= 1.667
23+1.667=25 weeks (approximately)
23‐1.667=21 weeks (approximately)

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Comparison between CPM and PERT
CPM
Uses network, calculate float or slack,
identify critical path and activities,
guides to monitor and controlling
project
Uses one value of activity time
Used where times can be estimated
with confidence, familiar activities
Example: construction projects,
building one off machines, ships, etc
Department of
PERT
Same as CPM
Requires 3 estimates of activity time
Calculates mean and variance of time
Used where times cannot be
estimated with confidence. Unfamiliar
or new activities
Example: Involving new activities or
products, research and development
B u s i netc
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Benefits of Network Analysis

• Shows interdependence of all tasks, work packages, and work units.
• Helps proper communications between departments and functions.
• Determines expected project completion date.
• Identifies so-called critical activities, which can delay the project completion time.
• Identified activities with slacks that can be delayed for specified periods without
penalty, or from which resources may be temporarily borrowed
• Determines the dates on which tasks may be started or must be started if the project is
to stay in schedule.
• Shows which tasks must be coordinated to avoid resource or timing conflicts.
• Shows which tasks may run in parallel to meet project completion date

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